Lodi City Council
January 19, 2022

Revised 10/2021 1/12/2022 3:14 PM

For information regarding this Agenda please contact:

Jennifer Cusmir
City Clerk
Telephone: (209) 333-6702
C-1 Call to Order / Roll Call
C-2 Announcement of Closed Session
a) Conference with Adele Post, Human Resources Manager, and Andrew Keys, Deputy City Manager (Labor Negotiators), Regarding Lodi City Mid-Management Association, AFSCME General Services and Maintenance & Operators, Police Mid-Managers, Lodi Police Officers Association, Lodi Police Dispatchers Association, Lodi Professional Firefighters, Lodi Fire Mid-Management, International Brotherhood of Electrical Workers, Confidential General Services, Confidential Mid-Managers, Executive Managers, and Appointed Employees Pursuant to Government Code §54957.6 (CM)

b) Actual Litigation: Government Code Section 54956.9; Three Applications; James Landis v. City of Lodi, Workers’ Compensation, WCAB Case # ADJ13014927(DOI: 1/17/2020 CT), WCAB Case # ADJ13014910(DOI: 9/6/2019), WCAB Case # ADJ5777731(DOI:7/1/2006) (CA)

c) Actual Litigation: Government Code Section 54956.9; One Application; Gerald Bahr s v. City of Lodi, Workers’ Compensation, WCAB Case # ADJ12892437(12/30/2019) (CA)

C-3 Adjourn to Closed Session

NOTE: THE FOLLOWING ITEMS WILL COMMENCE NO SOONER THAN 7:00 P.M.

C-4 Return to Open Session / Disclosure of Action
A. Call to Order / Roll Call
B. Presentations – None

LODI CITY COUNCIL
Carnegie Forum
305 West Pine Street, Lodi

Notice Regarding Public Comments
Public Comment may be submitted in the following ways:
• In-person – The Carnegie Forum is open to the public in accordance with CDPH and CalOSHA guidelines.
• Zoom Webinar
 Meeting ID: 812 8765 8564
 Passcode: 508789
 Phone number: 1 253 215 8782 or 1 346 248 7799
 Link: https://us06web.zoom.us/j/81287658564?pwd=VEJ4dm9mcFNYbTJXKzk1YUZXSVRmQT09 Public comment received via email, mail, or hand delivery will be provided to the City Council and included in the official minutes of the meeting, but will not be read aloud at the meeting. • Email – [email protected]
 Received no later than two hours prior to the meeting • Mail – City Clerk’s Office, P.O. Box 3006, Lodi, CA 95241 • Hand delivered to: City Clerk’s Office, 221 W. Pine Street, Lodi, CA 95240  Received no later than two hours prior to the meeting 6:55 p.m. Invocation/Call to Civic Responsibility . Invocations/Calls may be offered by any of the various religious and non- religious organizations within and around the City of Lodi. These are voluntary offerings of private citizens, to and for the benefit of the Council. The views or beliefs expressed by the Speaker have not been previously reviewed or approved by the Council, and the Council does not endorse the beliefs or views of any speaker.

AGENDA – Regular Meeting
Date: January 19, 2022
Time: Closed Session 6:15 p.m.

Regular Meeting 7:00 p.m.

CITY COUNCIL AGENDA
JANUARY 19, 2022

PAGE TWO

C. Consent Calendar (Reading; Comments by the Public; Council Action) All matters listed on the consent calendar are considered to be routine and will be acted upon by one motion.

There will be no separate discussion of these items. If a member of the public would like a consent calendar item pulled and discussed separately, refer to the Notice at the beginning of this agenda.

C-1 Receive Register of Claims for December 17, 2021 through December 30, 2021 in the Total Amount of $7,399,703.79 (FIN)

C-2 Approve Minutes (CLK)
a) January 4 and January 11, 2022 (Shirtsleeve Sessions) b) January 5, 2022 (Regular Meeting)

Res. C-3 Adopt Resolution Accepting Zupo Field Daktronics Scoreboard Donation from Meehleis & Sinclair Foundation and Lodi Boosters of Boys/Girls Sports (B.O.B.S.) ($14,817.59) (PRCS)

Res. C-4 Adopt Resolution Authorizing City Manager to Waive Bidding Process, Approve Purchase and Standardization of Lyons V-Force Turnouts from AllStar Fire Equipment, Inc., and Transfer and Appropriate Funds ($33,000) (FD)

Res. C-5 Adopt Resolution Authorizing City Manager to Execute Professional Services Agreement with Transformer Services, Inc., of Hillsboro, Oregon ($115,768); Authorizing Purchase of Materials from Circuit Breaker Sales Co., Inc., of Phoenix, Arizona ($160,908); and Appropriating Funds for Substation Load Tap Changer Capital Improvement Project for Total Authorized Fiscal Year 2021/22 Budget of $288,000 (EU)

Res. C-6 Adopt Resolution Authorizing City Manager to Execute Professional Services Agreement with WMB Architects, of Stockton, for Tony Zupo Field Fire Restoration Project Design Services ($45,880) (PW)

Res. C-7 Adopt Resolution Authorizing City Manager to Execute Amendment to Professional Services Agreement with Complete Paperless Solutions, of Anaheim, for Software Support of Electronic Content Management System ($23,600) (CLK)

Res. C-8 Adopt Resolution Ratifying Expenses and Authorizing City Manager to Execute Amendment No. 2 to Contract for Janitorial Services for City Facilities with ABM Industry Groups, LLC, of San Francisco ($75,000) (PW)

Res. C-9 Adopt Resolution Revising Contract Max for Executed Agreement Amendment No. 4 to Include Amendments No. 1 through Nor 4 and Extensions No. 1 and No. 2 of Professional Services Agreement with Michael Baker International, of Rancho Cordova, for Community Development Block Grant Administration/Housing Program Support Services (CD)

Res. C-10 Adopt Resolution Authorizing City Manager to Execute Lease Agreement with Lodi Adopt -A-Child and Community Partnership for Families of San Joaquin for 100 East Pine Street (PW)

Res. C-11 Adopt Resolution Authorizing City Manager to Execute Agreement to Participate in CALNET NextGen Contract between State of California and AT&T through June 30, 2025 (IT)

Res. C-12 Adopt Resolution Revising Parks and Recreation Commission Bylaws (PRCS)

C-13 Post for Vacancy on Lodi Improvement Committee (CLK)

C-14 Monthly Protocol Account Report (CLK)

Res. C-15 Adopt Resolution Authorizing Payment of Supplemental Invoices to Settle Underpayments Associated with Woodbridge Irrigation District Water Sale Agreement Consumer Price Index Increases Utilizing Banked Water Credits in Lieu of Cash (PW)

Res. C-16 Adopt Resolution Declaring Emergency Condition Requiring Immediate Repair of Mokelumne Riverbank at Lodi Lake Park (PW)

C-17 Set Public Hearing for February 16, 2022, to Consider Adopting Resolution Setting Pre-Approved 2021 Engineering News Record Adjustment Index for Usage-Based and Flat Water Rates for Residential, Commercial, and Industrial Customers (PW)

CITY COUNCIL AGENDA
JANUARY 19, 2022

PAGE THREE

D. Comments by the Public on Non-Agenda Items

THE TIME ALLOWED PER NON -AGENDA ITEM FOR COMMENTS MADE BY THE PUBLIC IS LIMITED TO FIVE MINUTES.

Public comment may only be made on matters within the Lodi City Council's jurisdiction (Government Code Section 54954.3, Lodi City Council Protocol Manual Section 6.3l) . The Council cannot take action or deliberate on items that are not on this agenda unless there is an emergency and the need t o take action on that emergency arose after this agenda was posted (Government Code Section 54954.2(b)(2)). All other items may only be referred for review to staff or placement on a future Council agenda.

If you wish to address the Council, please refer to the Notice at the beginning of this agenda. Individuals are limited to one appearance during this section of the Agenda.

E. Comments by the City Council Members on Non-Agenda Items

F. Comments by the City Manager on Non-Agenda Items

G. Public Hearings – None

H. Regular Calendar

Res. H-1 Adopt Resolution of Intention Approving an Amendment to Contract Between Board of Administration Ord. of California Public Employees’ Retirement System (PERS) and City of Lodi and Introduce Ordinance (Introduce) Amending Contract Between PERS and City of Lodi with Regard to Providing Government Code Section 20516 (Employees Sharing Additional Cost) of Additional 3% for Local Miscellaneous Members in Unrepresented Confidential Mid-Management Group, Unrepresented Confidential General Services Group, Unrepresented Executive Management Group, and Unrepresented Council Appointees Group (HR)

H-2 Receive and File City’s Annual Comprehensive Financial Report (Fiscal Year 2020/21) by The Pun Group (FIN)

H-3 Provide Direction to Staff Regarding Council Request to Have Staff Run Town Hall Meetings on a Monthly Basis for Individual Districts (CM)

I. Ordinances

Ord. I-1 Adopt Ordinance No. 1990 Entitled, “An Ordinance of the Lodi City Council Amending Lodi Municipal (Adopt) Code Title 17 – Development Code – Article 3, ‘Site Planning and General Development Standards,’ Chapter 17.34, ‘Signs,’ by Adding Section 17.34.070.G, ‘Freeway Oriented Electronic Billboard,’ and by Amending Article 7, ‘Definitions,’ Chapter 17.78, ‘Definitions,’ Section 17.78.020, ‘Definitions of Specialized Terms and Phrases,’ by Adding ‘Freeway Oriented Electronic Billboard’” (CLK)

Ord. I-2 Adopt Ordinance No. 1991 Entitled, “An Ordinance of the Lodi City Council Amending Lodi Municipal (Adopt) Code Title 13 – Public Services – by Repealing and Reenacting Section 13.12.150, ‘Connections Outside City,’ In Its Entirety” (CLK)

J. Adjournment

Pursuant to Section 54954.2(a) of the Government Code of the State of California, this agenda was posted at least 72 hours in advance of the scheduled meeting at a public place freely accessible to the public 24 hours a day.

______________________________
Jennifer Cusmir
City Clerk
All staff reports or other written documentation relating to each item of business referred to on the agenda are on file in the Office of the City Clerk, located at 221 W. Pine Street, Lodi, and are available for public inspection. Agendas and staff reports are also posted on the City’s website at www.lodi.gov. If requested, the agenda shall be made available in appropriate alternative formats to persons with a disability, as required by Section 202 of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132), and the federal rules and regulations adopted in implementation thereof. To make a request for disability-related modification or accommodation contact the City Clerk’s Office as soon as possible and at least 72 hours prior to the meeting date. Language interpreter requests must be rec eived at least 72 hours in advance of the meeting to help ensure availability. Contact Jennifer Cusmir at (209) 333 -6702. Solicitudes de interpretación de idiomas deben ser recibidas por lo menos con 72 horas de anticipación a la reunión para ayudar a asegurar la disponibilidad. Llame a Jennifer Cusmir (209) 333-6702.

Meetings of the Lodi City Council are telecast on SJTV, Channel 26. The City of Lodi provides live and archived webcasts of regular City Council meetings. The webcasts can be found on the City's website at www.lodi.gov by clicking the meeting webcasts link.

Members of the public may view and listen to the open session of this teleconference meeting at www.facebook.com/CityofLodi/ or https://us06web.zoom.us/j/81287658564?pwd=VEJ4dm9mcFNYbTJXKzk1YUZXSVRmQT09.

AGENDA ITEM C-01

APPROVED: __________________________________
Stephen Schwabauer, City Manager

CITY OF LODI

COUNCIL COMMUNICATION

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AGENDA TITLE: Receive Register of Claims for December 17, 2021 through December 30, 2021 in the Total Amount of $7,399,703.79

MEETING DATE: January 19, 2022

PREPARED BY: Internal Services Director

RECOMMENDED ACTION: Receive the attached Register of Claims for $7,399,703.79 BACKGROUND INFORMATION: Attached is the Register of Claims in the amount of $7,399,703.79 for December 17, 2021 through December 30, 2021. Also attached is Payroll in the amount of $1,937,003.79 through December 26, 2021.

FISCAL IMPACT: Not applicable.

FUNDING AVAILABLE: As per attached report.

_______________________________
Andrew Keys
Internal Services Director

City of Lodi Live v2020.3 1/3/2022 8:21:19 AM
Fund Fund Title Amount
100 General Fund $1,864,332.99
103 Measure L $7,063.25
104 American Rescue Plan $11,362.36
120 Library Fund $17,473.76
140 Expendable Trust $216,491.60
200 Parks Rec & Cultural Services $36,343.70
205 State Grants $19,277.50
270 Comm Dev Special Rev Fund $60,369.04
301 Gas Tax-2105 2106 2107 $705.80
303 Measure K Funds $250.00
307 Federal - Streets $3,537.50
350 H U D $106,454.85
355 GRANTS COMM. IMPR $136,282.50
431 Capital Outlay/General Fund $234,000.00
432 Parks & Rec Capital $165,798.70
500 Electric Utility Fund $3,747,864.57
501 Utility Outlay Reserve Fund $106.09
504 Public Benefits Fund $18,110.20
508 Environmental Compliance $205,359.00
530 Waste Water Utility Fund $126,289.17
531 Waste Wtr Util-Capital Outlay $56,543.72
560 Water Utility Fund $36,492.61
561 Water Utility-Capital Outlay $250.00
565 PCE/TCE Rate Abatement Fund $2,927.32
600 Dial-a-Ride/Transportation $4,621.17
601 Transit Capital $500.00
641 Equipment replacement $105,631.58
650 Internal Service/Equip Maint $71,477.35
655 Employee Benefits $131,392.88
660 General Liabilities $9,809.63
665 Worker's Comp Insurance $2,584.95
Total $7,399,703.79
AP Council Report Summary
12/17/2021-12/30/2021
City of Lodi Live v2020.3 1/3/2022 8:33:13 AM
Fund Description Amount
$1,050,959.03
$197,783.07
$18,505.21
$102,635.63
$975.88
$39,114.91
$36,162.10
$249,005.36
$13,749.24
$159,315.60
$29,262.86
$12,759.44
$22,060.19
$4,715.27
Report Total $1,937,003.79
Council Report: Payroll
Pay Period: 12/26/2021
100 General Fund
103 Measure L
120 Library Fund
200 Parks Rec & Cultural Services
219 LPD-ABC Grant
270 Comm Dev Special Rev Fund
301 Gas Tax-2105 2106 2107
500 Electric Utility Fund
501 Utility Outlay Reserve Fund
530 Waste Water Utility Fund
560 Water Utility Fund
600 Dial-a-Ride/Transportation
650 Internal Service/Equip Maint
655 Employee Benefits
AGENDA ITEM C-02

APPROVED: _________________________________________
Stephen Schwabauer, City Manager
\\cvcfilv01\administration$\Shared\cityclerk\Agenda\2022\011922\CLK - Minutes\Minutes.doc

CITY OF LODI

COUNCIL COMMUNICATION

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AGENDA TITLE: Approve Minutes
a) January 4, 2022 (Shirtsleeve Session)
b) January 5, 2022 (Regular Meeting)
c) January 11, 2022 (Shirtsleeve Session)

MEETING DATE: January 19, 2022

PREPARED BY: City Clerk

RECOMMENDED ACTION: Approve the following minutes as prepared:
a) January 4, 2022 (Shirtsleeve Session)
b) January 5, 2022 (Regular Meeting)
c) January 11, 2022 (Shirtsleeve Session)

BACKGROUND INFORMATION: Attached are copies of the subject minutes marked Exhibit A through C, respectively.

FISCAL IMPACT: Not applicable.

FUNDING AVAILABLE: Not applicable.

_______________________________
Pamela M. Farris
Assistant City Clerk

Attachments

LODI CITY COUNCIL

SHIRTSLEEVE SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, JANUARY 4, 2022
The January 4, 2022, Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was canceled.

ATTEST:

Jennifer Cusmir
City Clerk
1 Exhibit A

LODI CITY COUNCIL

REGULAR CITY COUNCIL MEETING
CARNEGIE FORUM, 305 WEST PINE STREET
WEDNESDAY, JANUARY 5, 2022
The City Council Closed Session meeting of January 5, 2022, was called to order by Mayor Chandler at 6:30 p.m.

Mayor Pro Tempore Hothi attended remotely.

Present: Council Member Khan, Council Member Kuehne, Council Member Nakanishi, Mayor Pro Tempore Hothi, and Mayor Chandler

Absent: None
Also Present: City Manager Schwabauer, City Attorney Magdich, and City Clerk Cusmir At 6:30 p.m., Mayor Chandler adjourned the meeting to a Closed Session to discuss the above matters. The Closed Session adjourned at 6:57 p.m.

At 7:06 p.m., Mayor Chandler reconvened the City Council meeting, and City Attorney Magdich disclosed the following actions.

In regard to Item C-2a), Conference with Adele Post, Human Resources Manager, and Andrew Keys, Deputy City Manager (Labor Negotiators), regarding Lodi City Mid-Management Association, AFSCME General Services and Maintenance & Operators, Police Mid-Managers, Lodi Police Officers Association, Lodi Police Dispatchers Association, Lodi Professional Firefighters, Lodi Fire Mid-Management, International Brotherhood of Electrical Workers, Confidential General Services, Confidential Mid-Managers, Executive Managers, and Appointed Employees Pursuant to Government Code §54957.6. Information was provided to the Council. No action was taken by the Council.

In regard to Item C-2b), Review of Council Appointees (Government Code 54957). The Council provided staff with direction and no additional action was taken by the Council.

C-1 Call to Order / Roll Call
C-2 Announcement of Closed Session
a) Conference with Adele Post, Human Resources Manager, and Andrew Keys, Depu ty City Manager (Labor Negotiators), Regarding Lodi City Mid-Management Association, AFSCME General Services and Maintenance & Operators, Police Mid-Managers, Lodi Police Officers Association, Lodi Police Dispatchers Association, Lodi Professional Firefighters, Lodi Fire Mid-Management, International Brotherhood of Electrical Workers, Confidential General Services, Confidential Mid-Managers, Executive Managers, and Appointed Employees Pursuant to Government Code §54957.6 (CM) b) Review of Council Appointees (Government Code 54957) (HR) C-3 Adjourn to Closed Session
C-4 Return to Open Session / Disclosure of Actio n
A. Call to Order / Roll Call
1 Exhibit B
The Regular City Council meeting of January 5, 2022, was called to order by Mayor Chandler at 7:06 p.m.

Mayor Pro Tempore Hothi attended remotely.

Present: Council Member Khan, Council Member Kuehne, Council Member Nakanishi, Mayor Pro Tempore Hothi, and Mayor Chandler

Absent: None
Also Present: City Manager Schwabauer, City Attorney Magdich, and City Clerk Cusmir Council Member Khan made a motion, second by Council Member Kuehne, to approve the following items hereinafter set forth, except those otherwise noted , in accordance with the
report and recommendation of the City Manager.

ROLL CALL VOTE
The City Council held a ROLL CALL vote (all voiced their votes).

Claims were approved in the amount of $13,121,526.71.

The minutes of November 3, 2021 (Regular Meeting), November 17, 2021 (Regular Meeting), November 30, 2021 (Shirtsleeve Session), December 1, 2021 (Regular Meeting), December 7, 2021 (Shirtsleeve Session), December 14, 2021 (Shirtsleeve Session), December 15, 2021 (Regular Meeting), December 21, 2021 (Shirtsleeve Session), and December 28, 2021 (Shirtsleeve Session) were approved as written.

Adopted Resolution No. 2022-01 authorizing inclusion of Henning Getaway Project into FY 2021/22 Capital Improvement Program and appropriating funds in the amount of $450,000.

Accepted the improvements under the contract for Old City Hall Tower Demolition Project.

Accepted the improvements under the contract for Well 6R Granular Activated Carbon B. Presentations - None
C. Consent Calendar (Reading; Comment s by the Public; Council Action) All matters listed on the consent calendar are considered to be routine and will be acted upon by one motion. There will be no separate discussion of these items. If a member of the public would like a consent calendar item pulled and discussed separately, refer to the Notice at the beginning of this agenda.

C-1 Receive Register of Claims for November 12, 2021 through December 16, 2021 in th e Total Amount of $13,121,526.71 (FIN)
C-2 Approve Minutes (CLK)
C-3 Adopt Resolution Authorizing Inclusion of Henning Getaway Project into FY 2021/22 Capital Improvement Program and Appropriating Funds ($450,000) (EU) C-4 Accept Improvements Under Contract for Old City Hall Tower Demolition Project (PW) C-5 Accept Improvements Under Contract for Well 6R Granular Activated Carbon Replacement (PW)
2 Replacement.

Accepted the improvements under the contract for Well 28 Granular Activated Carbon Filter System.

Adopted Resolution No. 2022-02 accepting Gateway North Subdivision, Unit No. 2 (Tract No. 3976) Public Improvements and authorizing the City Manager to execute a Landscape Maintenance Agreement.

Adopted Resolution No. 2022-03 authorizing the City Manager to execute a Professional Services Agreement with Quest Media and Supplies, Inc., for Information Technology business continuity and disaster recovery planning, in an amount not to exceed $95,000, and appropriating funds in the amount of $64,455.94.

Adopted Resolution No. 2022-04 authorizing the City Manager to execute an amendment to the Professional Services Agreement with Garland/DBS, Inc., of Cleveland, Ohio, for Hutchins Street Square Roof Repair Project Phase 4 and transferring funds in the amount of $16,239.

Adopted Resolution No. 2022-05 rescinding Resolution No. 2021-258 and authorizing the City Manager to execute a Professional Services Agreement with Clean Energy, of Newport Beach, for monthly and preventative maintenance and repairs of Compressed Natural Gas Fueling Station, in the amount of $175,000.

This item was pulled at the request of Council Member Kuehne. Public Works Director Charlie Swimley provided details about the Safe Routes to School Project and the improvements that are made as part of the project scope. Council Member Kuehne spoke about the project funding through Measure K.

C-6 Accept Improvements Under Contract for Well 28 Granular Activated Carbon Filter System (PW)
C-7 Adopt Resolution Accepting Gateway North Subdivision, Unit No. 2 (Tract No. 3976) Public Improvements and Authorizing City Manager to Execute Landscape Maintenance Agreement (PW)
C-8 Adopt Resolution Authorizing City Manager to Execute Professional Services Agreement with Quest Media and Supplies, Inc., for Information Technology Business Continuity and Disaster Recovery Planning (Not to Exceed $95,000) and Appropriating Funds ($64,455.94) (IT)
C-9 Adopt Resolution Authorizing City Manager to Execute Amendment to Professional Services Agreement with Garland/DBS, Inc., of Cleveland, Ohio, for Hutchins Street Square Roof Repair Project Phase 4 and Transfer Funds ($16,239) (PW) C-10 Adopt Resolution Rescinding Resolution No. 2021-258 and Authorizing City Manager to Execute Professional Services Agreement with Clean Energy, of Newport Beach, for Monthly and Preventative Maintenance and Repairs of Compressed Natural Gas Fueling Station ($175,000) (PW)
C-11 Adopt Resolution Authorizing City Manager to Execute Agreement with San Joaquin Council of Governments for Funding Allocation for Garfield Street Safe Route to School Project (PW)
3 Council Member Khan made a motion, second by Council Member Kuehne, to adopt Resolution No. 2022-06 authorizing the City Manager to execute an agreement with San Joaquin Council of Governments for funding allocation for Garfield Street Safe Route to School Project.

VOTE:

The above motion carried by the following vote:

Ayes: Council Member Khan, Council Member Kuehne, Council Member Nakanishi, Mayor Pro Tempore Hothi, and Mayor Chandler
Noes: None

Absent: None

ROLL CALL VOTE
The City Council held a ROLL CALL vote (all voiced their votes).

Adopted Resolution No. 2022-07 authorizing the Library Director to accept Zip Books Grant Funding, in the amount of $5,000, from California State Library and appropriating funds in the amount of $5,000.

This item was pulled at the request of Council Member Khan. Council Member Khan thanked the Library Board of Trustees for providing the Council with the mobile library grant proposal and spoke about the importance of providing individuals living on the eastside with more opportunities to access the library.

Council Member Nakanishi commended Council Member Khan and his work on this project.

Received notice of modification of Library public hours approved by Library Board of Trustees (information only).

Adopted Resolution No. 2022-08 approving Impact Mitigation Fee Program Annual Report for Fiscal Year 2020/21.

Directed the City Clerk to post for the following expiring terms and vacancy:

Lodi Improvement Committee
David Diskin - Term to expire March 1, 2022
Vanessa Madrigal-Lauchland - Term to expire March 1, 2022 Sandra Vargas - Term to expire March 1, 2022
C-12 Adopt Resolution Authorizing Library Director to Accept Zip Books Grant Funding ($5,000) from California State Library and Appropriating Funds ($5,000) (LIB) C-13 Notice of Plan for Mobile Library Grant Proposal for Fiscal Year 2023-2024 Approved by Library Board of Trustees (Information Only) (LIB)
C-14 Notice of Modification of Library Public Hours Approved by Library Board of Trustees (Information Only) (LIB)
C-15 Adopt Resolution Approving Impact Mitigation Fee Program Annual Report for Fiscal Year 2020/21 (FIN)
C-16 Post for Expiring Terms on Lodi Improvement Committee and Vacancy for Greater Lodi Area Youth Commission Adult Advisor (CLK)
4 Greater Lodi Area Youth Commission - Adult Advisor
Breanna Meyer - Term to expire May 31, 2022
Authorized the City Clerk to grant Request for Leave to Present Late Claim, by Yousef Haddad, pursuant to Government Code Section 911.6(a).

Authorized the City Clerk to grant Request for Leave to Present Late Claim, by Joanne DelSolar, pursuant to Government Code Section 911.6(a).

Adopted Resolution No. 2022-09 of Intention to vacate existing 16.5-foot and 3-foot Public Utility Easements located at 2525 West Century Boulevard, refer the matter to the Planning Commission; and set a public hearing for February 16, 2022.

Alex Aliferis, a resident, provided public comment regarding his encounter with an aggressive transient in downtown and provided ideas to improve safety downtown. Mr. Aliferis also spoke about an accident that occurred on the train tracks.

Pete Valdez, a resident, provided public comment regarding the mobile library proposal, COVID- 19 testing, and influencers. Mr. Valdez feels not everyone in the City is being served by the City Council.

Tye Brockmeier, a resident, provided public comment regarding homelessness and asked what the City is doing to address the problem.

City Manager Schwabauer spoke about the City's ACCESS Center project and how that project will provide support services to homeless individuals.

Council Member Khan reiterated the importance of the mobile library project and the program's benefit to students in District 4. Council Member Khan also asked to discuss Main Street at a Shirtsleeve Session and spoke about problems with parking and damage being done to cars parked on the street in District 4.

Mayor Chandler gifted copies of the book Breaking Ice and Breaking Glass by Vice Admiral Sandra Stosz USCG (Ret) to the Department Directors.

C-17 Authorize City Clerk to Grant Request for Leave to Present Late Claim, by Yousef Haddad, Pursuant to Government Code Section 911.6(a) (CLK)
C-18 Authorize City Clerk to Grant Request for Leave to Present Late Claim, by Joanne DelSolar, Pursuant to Government Code Section 911.6(a) (CLK) C-19 Adopt Resolution of Intention to Vacate Existing 16.5-Foot and 3-Foot Public Utility Easements Located at 2525 West Century Boulevard, Refer the Matter to the Planning Commission; and Set a Public Hearing for February 16, 2022 (PW) D. Comments by the Public on Non-Agenda Items THE TIME ALLOWED PER NON-

AGENDA ITEM FOR COMMENTS MADE BY THE PUBLIC IS LIMITED TO FIVE MINUTES.

E. Comments by the City Council Members on No n-Agenda Items F. Comments by the City Manager on Non-Agenda Items
5 Notice thereof having been published according to law, an affidavit of which publication is on file in the office of the City Clerk, Mayor Chandler called for the public hearing to consider the recommendation of the Planning Commission to introduce and waive first reading of an ordinance amending Lodi Municipal Code Title 17 - Development Code, Article 3, "Site Planning and General Development Standards," Chapter 17.34, "Signs," by adding Section 17.34.070.G, "Freeway Oriented Electronic Billboard," to allow and regulate freeway-oriented electronic message signs and amend Article 7, "Definitions," Chapter 17.78, "Definitions," Section

17.78.020, "Definitions of Specialized Terms and Phrases," by adding "Freeway Oriented Electronic Billboard."
Planner Eric Norris provided a PowerPoint presentation regarding the proposed amendment to the Zoning Code to allow and regulate freeway oriented electronic message signs. Specific topics of discussion included existing regulations, signs in Lodi, proposed amendment, Planning Commission discussion, Caltrans review and approval, and options.

City Manager Schwabauer responded to questions asked by Council Member Nakanishi regarding the State regulations regarding signage. Council Member Nakanishi stated that he supports the changes.

Community Development Director Della Monica stated that requirements for the removal of signs no longer in use will be included in the terms of the developer agreements, in response to a question asked by Mayor Chandler.

Mayor Chandler opened the public hearing for public comment.

There being no public comments, Mayor Chandler closed the public hearing.

Community Development Director Della Monica answered questions asked by Council Member Kuehne regarding the number of signs allowed and the 1,000-foot rule. Mr. Della Monica also discussed the CalTrans appeal process.

Council Member Kuehne made a motion, second by Council Member Nakanishi, to introduce and waive first reading of Ordinance No. 1990 amending Lodi Municipal Code Title 17 - Development Code, Article 3, "Site Planning and General Development Standards," Chapter 17.34, "Signs," by adding Section 17.34.070.G, "Freeway Oriented Electronic Billboard," to allow and regulate freeway-oriented electronic message signs and amend Article 7, "Definitions," Chapter 17.78, "Definitions," Section 17.78.020, "Definitions of Specialized Terms and Phrases," by adding "Freeway Oriented Electronic Billboard."
VOTE
:

The above motion carried by the following vote:

Ayes: Council Member Khan, Council Member Kuehne, Council Member Nakanishi, Mayor Pro Tempore Hothi, and Mayor Chandler
G. Public Hearings
G-1 Public Hearing to Consider Recommendation of Planning Commission to Introduce and Waive First Reading of Ordinance Amending Lodi Municipal Code Title 17 – Development Code, Article 3, “Site Planning and General Development Standards,” Chapter 17.34, “Signs,” by Adding Section 17.34.070.G, “Freeway Oriented Electronic Billboard,” to Allow and Regulate Freeway-Oriented Electronic Message Signs and Amend Article 7, “Definitions,” Chapter 17.78, “Definitions,” Section 17.78.020, “Definitions of Specialized Terms and Phrases,” by Adding “Freeway Oriented Electronic Billboard” (CD) 6 Noes: None

Absent: None

ROLL CALL VOTE
The City Council held a ROLL CALL vote (all voiced their votes).

Notice thereof having been published according to law, an affidavit of which publication is on file in the office of the City Clerk, Mayor Chandler called for the public hearing to consider adopting a resolution setting San Joaquin County Multi-Species Habitat Conservation and Open Space Plan Development Fees for 2022.

Community Development Director John Della Monica provided a PowerPoint presentation regarding 2022 San Joaquin County Multi-Species Habitat Fees. Specific topics of discussion included fee schedule approved by San Joaquin Council of Governments, basis of fee adjustments, and staff recommendation.

Mayor Chandler opened the public hearing for public comment.

There being no public comments, Mayor Chandler closed the public hearing.

Council Member Kuehne made a motion, second by Council Member Khan, to adopt Resolution No. 2022-10 setting San Joaquin County Multi-Species Habitat Conservation and Open Space Plan Development Fees for 2022.

VOTE
:

The above motion carried by the following vote:

Ayes: Council Member Khan, Council Member Kuehne, Council Member Nakanishi, Mayor Pro Tempore Hothi, and Mayor Chandler
Noes: None

Absent: None

ROLL CALL VOTE
The City Council held a ROLL CALL vote (all voiced their votes).

Notice thereof having been published according to law, an affidavit of which publication is on file in the office of the City Clerk, Mayor Chandler called for the public hearing to consider introducing an ordinance amending Lodi Municipal Code Title 13 - Public Services - by repealing and re- enacting Section 13.12.150, "Connections Outside City," in its entirety.

Public Works Director Charlie Swimley provided a PowerPoint presentation regarding the introduction of an ordinance amending Lodi Municipal Code Title 17 in relation to connections outside the City. Specific topics of discussion included background, cemetery location, and proposed amendment.

Public Works Director Swimley spoke about the services provided to the City by the cemetery and the intent of the General Plan, in response to a question asked by Council Member Nakanishi.

G-2 Public Hearing to Consider Adopting Resolution Setting San Joaquin County Multi -Species
Habitat Conservation and Open Space Plan Development Fees for 2022 (CD) G-3 Public Hearing to Introduce Ordinance Amending Lodi Municipal Code Title 13 – Public Services – by Repealing and Re-Enacting Section 13.12.150, “Connections Outside City,” in Its Entirety (PW)
7 Mr. Swimley answered questions asked by Council Member Nakanishi regarding the benefits of sewer service versus septic systems.

Council Member Kuehne noted that there is precedent for allowing connections for businesses that provide services to Lodi residents.

City Manager Schwabauer spoke about concerns that the sewer treatment plant may be considered a regional plant and discussed how the ordinance is crafted to clarify that this connection is accommodating a need of the community.

Mayor Chandler opened the public hearing for public comment.

There being no public comments, Mayor Chandler closed the public hearing.

Council Member Kuehne made a motion, second by Council Member Khan, to introduce Ordinance No. 1991 amending Lodi Municipal Code Title 13 - Public Services - by repealing and re-enacting Section 13.12.150, "Connections Outside City," in its entirety.

VOTE:

The above motion carried by the following vote:

Ayes: Council Member Khan, Council Member Kuehne, Council Member Nakanishi, Mayor Pro Tempore Hothi, and Mayor Chandler
Noes: None

Absent: None

ROLL CALL VOTE
The City Council held a ROLL CALL vote (all voiced their votes).

Neighborhood Services Manager Jennifer Rhyne provided a PowerPoint presentation regarding the 2022 Point in Time (PIT) Count. Specific topics of discussion included importance of PIT count, PIT data from 2019, 2019 homeless census and survey, PIT count dates and locations, volunteer outreach, volunteer training, use of survey tools, PIT crew committee members, and purpose of presentation.

Council Member Kuehne spoke about his experience participating in the PIT in previous years.

Neighborhood Services Manager Rhyne spoke about incentives being offered, in response to a questions asked by Council Member Kuehne.

Ms. Rhyne stated the Salvation Army is offering support, in response to a question asked by Council Member Khan.

City Manager Schwabauer introduced the topic of Council service on various boards, committees, and commissions. Mr. Schwabauer stated that staff is recommending keeping the assignments as they are.

H. Regular Calenda
r
H-1 Receive Presentation on 2022 Point in Time Count (CD) H-2 Assign and Confirm Annual Appointment of City Council Members on Various Boards, Committees, and Commissions (CLK)
8 Mayor Chandler made a motion, second by Council Member Khan, to assign and confirm annual appointment of City Council Members on various boards, committees, and commissions.

VOTE:

The above motion carried by the following vote:

Ayes: Council Member Khan, Council Member Kuehne, Council Member Nakanishi, Mayor Pro Tempore Hothi, and Mayor Chandler
Noes: None

Absent: None

ROLL CALL VOTE
The City Council held a ROLL CALL vote (all voiced their votes).

Deputy City Manager Andrew Keys provided a presentation regarding the title change, amendments to job description and salary adjustments for the position of Building Official.

Specific topics of discussion included the reorganization of the Code Enforcement Division and the increased scope of responsibility of the position of Building Official.

Council Member Khan made a motion, second by Council Member Kuehne, to adopt Resolution No. 2022-11 approving the title change, amendments to job description, and salary adjustments for the position of Building Official.

ROLL CALL VOTE
The City Council held a ROLL CALL vote (all voiced their votes).

Deputy City Manager Andrew Keys introduced the Memorandum of Understanding (MOU) between the City of Lodi and the International Brotherhood of Electrical Workers. Specific topics of discussion included background information and highlights of the MOU.

Council Member Khan made a motion, second by Council Member Kuehne, to adopt Resolution No. 2022-12 approving the Memorandum of Understanding between the City of Lodi and International Brotherhood of Electrical Workers for the period January 1, 2022 through December 31, 2024.

VOTE
:

The above motion carried by the following vote:

Ayes: Council Member Khan, Council Member Kuehne, Council Member Nakanishi, Mayor Pro Tempore Hothi, and Mayor Chandler
Noes: None

Absent: None

ROLL CALL VOTE
The City Council held a ROLL CALL vote (all voiced their votes).

H-3
Adopt Resolution Approving Title Change, Amendments to Job Description, and Salary Adjustments for Position of Building Official (HR)
H-4 Adopt Resolution Approving Memorandum of Understanding between City of Lodi and International Brotherhood of Electrical Workers for Period January 1, 2022 through December 31, 2024 (HR)
I. Ordinances – None
9 City Manager Schwabauer introduced the item regarding the reorganization of the following agencies: Lodi Public Improvement Corporation, Industrial Development Authority, Lodi Financing Corporation, and Lodi Public Financing Authority.

Council Member Kuehne made a motion, second by Council Member Nakanishi, to adopt Resolution No. LPIC2022-01 reorganizing the officers of the Lodi Public Improvement Corporation, Resolution No. IDA-44 reorganizing the officers of the Industrial Development Authority, Resolution No. LFC2022-31 reorganizing the officers of the Lodi Financing Corporation, and Resolution No. LPFA2022-01 reorganizing the officers of the Lodi Public Financing Authority.

VOTE
:

The above motion carried by the following vote:

Ayes: Council Member Khan, Council Member Kuehne, Council Member Nakanishi, Mayor Pro Tempore Hothi, and Mayor Chandler
Noes: None

Absent: None

ROLL CALL VOTE
The City Council held a ROLL CALL vote (all voiced their votes).

There being no further business to come before the City Council, the meeting was adjourned at 8:52 p.m.

J. Reorganization of the Following Agency Meetings: Lodi Public Improvement Corp oration,
Industrial Development Authority, Lodi Financing Corporation, and Lodi Public Financing Authority
K. Adjournment
ATTEST:

Jennifer Cusmir
City Clerk
10 LODI CITY COUNCIL

SHIRTSLEEVE SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, JANUARY 11, 2022
An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday, January 11, 2022, commencing at 7:05 a.m.

Mayor Chandler attended the meeting via Zoom and had to leave the meeting at 8:00 a.m.

Present: Council Member Khan, Council Member Kuehne, Council Member Nakanishi, Mayor Pro Tempore Hothi, and Mayor Chandler

Absent: None
Also Present: City Manager Schwabauer, City Attorney Magdich, and City Clerk Cusmir Community Development Director John Della Monica and Planner Paul Junker provided a PowerPoint presentation regarding the Sphere of Influence (SOI) and Municipal Services Review (MSR) updates. Specific topics of discussion included current SOI update process, SOI study areas, General Plan development phases, key terms, status of SOI and MSR, community meetings, West Study Area, South Study Area, East Study Area, Glick property, Highway 12 property, SOI/MSR update process, and what happens after the SOI/MSR update.

Council Member Kuehne noted that this is an opportunity to create a buffer between the cities of Stockton and Lodi.

Council Member Nakanishi stated that establishing the sphere of influence is long overdue and it is obvious to him that the Council should move forward.

Council Member Khan spoke about the importance of managing Lodi's growth and the benefit to property owners that will have access to the City's utilities such as electric service.

Mayor Chandler spoke about the work done on establishing an agricultural reserve.

Council Member Kuehne elaborated on the MSR and providing services for annexed areas.

Mayor Pro Tempore Hothi opened public comment.

Pat Patrick, President and CEO of the Lodi Chamber of Commerce, provided public comment regarding the notices for the community meetings and suggested that Industrial be moved to Phase 1. Mr. Patrick also recommended a stop light be installed at Guild Avenue and Victor Road.

Council Member Kuehne stated that he supports moving Industrial to Phase 1 and explained that the State owns the property at Guild and Victor and because CalTrans does not have a plan to install a traffic signal, the City is planning to install the signal. Council Member Kuehne also spoke about reviewing the City's development ordinances.

A. Call to Order / Roll Call
B. Topics
B-1 Receive Presentation and Pr ovide Direction Regarding Sphere of Influence and Municipal Servces Review Updates (CD)
1 Exhibit C
Sean Ray, a resident in the proposed SOI, provided public comment regarding the potential for property tax increases and sidewalk construction if his property is annexed into the City of Lodi.

John (last name inaudible), a property owner in the proposed SOI, provided public comment stating that he is interested in his property, on Highway 12, being included in the SOI.

Jay Finkelstein, a resident in the proposed SOI, provided public comment voicing his concern about well and septic maintenance and the cost of hooking up to City utilities.

Ron (last name inaudible), a resident in the proposed SOI, provided public comment voicing his concern regarding requirements for hooking up to City utilities if and when the surrounding properties are developed. He also asked about solar benefits offered by the City.

Community Development Director Della Monica spoke about noticing for community meetings and the delays that were experienced due to problems with mail delivery.

Greg Finkelstein, a resident in the proposed SOI, spoke about the different animal species that may be impacted by an annexation.

Mayor Pro Tempore Hothi closed the public comments.

City Manager Schwabauer spoke about how the City may address the issues with solar customers and net metering.

Council Member Nakanishi stated that he supports "grandfathering" solar customers into the City.

Council Member Khan agreed.

Planner Junker stated that staff may bring back discussion regarding the Highway 12 property at a later date as that would increase the SOI.

None.

No action was taken by the City Council. The meeting was adjourned at 8:18 a.m.

C. Comments by Public on No n-Agenda Items THE TIME ALLOWED PER NON-AGENDA ITEM FOR COMMENTS MADE BY THE PUBLIC IS LIMITED TO FIVE MINUTES.

D. Adjournment
ATTEST:

Jennifer Cusmir
City Clerk
2 AGENDA ITEM C-03
APPR
OVED: __________________________________
Stephen Schwabauer, City Manager

CITY OF LODI

COUNCIL COMMUNICATION

TM
AG
ENDA TITLE: Adopt Resolution Accepting Zupo Field Daktronics Scoreboard Donation from Meehleis & Sinclair Foundation and Lodi Boosters of Boys/Girls Sports (B.O.B.S.), ($14,817.59)
M
EETING DATE: January 19, 2022
P
REPARED BY: Parks, Recreation and Cultural Services (PRCS) Director RE
COMMENDED ACTION: Adopt resolution accepting Zupo Field Daktronics Scoreboard (Scoreboard) donation from Meehleis & Sinclair Foundation and Lodi Boosters of Boys/Girls Sports (B.O.B.S.) in the amount of $14,817.59
B
ACKGROUND INFORMATION: It is the desire of Meehleis & Sinclair Foundation to provide funding for a new Daktronics Scoreboard for Tony Zupo Field in the amount of $14,817.59 to the City of Lodi’s partner – B.O.B.S., a nonprofit 501(c)(3) organization. B.O.B.S. desires to accept the funds from Meehleis & Sinclair Foundation, hold the funds in trust and coordinate purchase of the Scoreboard with Daktronics for shipment to the City of Lodi. PRCS shall provide conceptual plan to B.O.B.S. and Daktronics to assist with purchase and delivery of the scoreboard.

S
coreboard naming rights shall be granted to Meehleis & Sinclair Foundation for at least 20 years or up until Scoreboard requires replacement. Meehleis & Sinclair Foundation shall have first right of refusal to fund replacement of scoreboard.

F
ISCAL IMPACT: Department’s workforce for disposing of existing scoreboard and installation of the new Daktronics Scoreboard.

F
UNDING AVAILABLE: N/A
________________________
_______
Christina Jaromay
Parks, Recreation and Cultural Services Director
CJ\tl
A
ttachment

RESOLUTION NO. 2022-____

A RESOLUTION OF THE LODl CITY COUNCIL ACCEPTING DAKTRONICS

SCOREBOARD DONATION FROM MEEHLEIS & SINCLAIR FOUNDATION AND LODI BOOSTERS OF BOYS/GIRLS SPORTS; AND FURTHER

AUTHORIZING THE CITY MANAGER TO EXECUTE SCOREBOARD

DONATION AGREEMENT
========================================================================

WHEREAS, Meehleis & Sinclair Foundation (Meehleis) is a nonprofit 501(c)(3) with a long-standing history in the City of Lodi of supporting youth sports activities; and

WHEREAS, Meehleis desires to donate funds in the amount of $14,817.59 for the purchase of a new Daktronics scoreboard (Scoreboard) for use at Tony Zupo Field to City’s partner Lodi Boosters of Boys/Girls Sports (B.O.B.S.), a nonprofit 501(c)(3) whose mission is to promote, volunteer, and raise funds to develop a system of sports activities in the City of Lodi; and

WHEREAS, B.O.B.S. desires to accept the funds from Meehleis and in turn procure Scoreboard for installation at Tony Zupo Field; and

WHEREAS, Scoreboard naming rights shall be granted to Meehleis & Sinclair Foundation for at least 20 years or up until Scoreboard requires replacement , with first right of refusal to fund replacement.

NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby accept the donation of funds in the amount of $14,817.59 for Scoreboard replacement at Tony Zupo Field from Meehleis & Sinclair Foundation and B.O.B.S.; and

BE IT FURTHER RESOLVED that the Lodi City Council does hereby authorize the City Manager to execute the Scoreboard Donation Agreement; and

BE IT FURTHER RESOLVED, pursuant to Section 6.3q of the City Council Protocol Manual (adopted 11/6/19, Resolution No. 2019- 223), the City Attorney is hereby authorized to make minor revisions to the above- referenced document(s) that do not alter the compensation or term, and to make clerical corrections as necessary.

Dated: January 19, 2022
========================================================================

I hereby certify that Resolution No. 2022-____ was passed and adopted by the City Council of the City of Lodi in a regular meeting held January 19, 2022, by the following vote:

AYES: COUNCIL MEMBERS –

NOES: COUNCIL MEMBERS –

ABSENT: COUNCIL MEMBERS –

ABSTAIN: COUNCIL MEMBERS –

PAMELA M. FARRIS
Assistant City Clerk

2022-____
AGENDA ITEM C-04
APPR
OVED: __________________________________
Steve Schwabauer, City Manager

CITY OF LODI

COUNCIL COMMUNICATION
TM
AG
ENDA TITLE: Adopt Resolution Authorizing City Manager to Waive the Bidding Process, Approve the Purchase and Standardization of Lyons V-Force Turnouts from AllStar Fire Equipment Inc., Transfer and Appropriate Funds ($33,000) M
EETING DATE: January 19, 2022
P
REPARED BY: Fire Chief
RE
COMMENDED ACTION: Adopt resolution authorizing City Manager to waive the bidding process, approve the p urchase and standardization of Lyons V - Force turnouts from AllStar Fire Equipment Inc. and t ransfer and appropriate funds ($33,000)
B
ACKGROUND INFORMATION: Turnouts, which are required personal protective equipment (PPE), and must be worn on fire related calls are required to be replaced and maintained to NFPA Standards.

C
urrently, the Lodi Fire Department, has a replacement plan for turnouts. Each member has two sets of turnouts. The five year old set is their reserve set and the new set is their frontline set. Once the reserve set has expired at the ten year mark it is no longer up to the NFPA Standard and can no longer be used. The new set is then purchased for that employee and their frontline set is rotated to their reserve set. Having a reserve set available allows them to be fully protected while their frontline set is being cleaned.

The Lodi Fire Department’s Safety Team have researched and tested several different turnout designs and brands and have determined that the Lyons V -Force turnouts are the most durable, lightweight, and cost efficient turnouts. With heat injury and illness being a major consideration in turnout material and type, the V -force offer superior protection from both. The fabric chosen within this spec have the lowest total weight to increase work time and decrease heat exhaustion all while meeting the TPP (thermal protective performance) standards set forth by the NFPA. Lyons V-Force turnouts are sold by licensed distributors. AllStar Fire Equipment Inc. is the only licensed distributor within the state .

Turnouts must be custom fit and AllStar Fire Equipment is able to accommodate these fittings in a timely fashion. Due to the importance that turnouts are good quality, cost efficient and, consistent in design the Lodi Fire Department recommends standardizing to the Lyons V -Force turnouts and purchasing them from AllStar Fire Equipment Inc.

Ten sets of turnouts have been budgeted for fiscal year 2022 in the Emergency Operations fund (Fund 100)
and
staff recommends awarding the purchase to AllStar Fire Equipment Inc. To ensure payment for the turnouts from the current fiscal year funding, staff recommends transferring the turnout budget in the amount of $33,000 from Emergency Operations into the equipment replacement fund (Fund 641) so the encumbered funds can roll into the following fiscal year if the turnouts are not received until after June 30, 2022.

FISCAL IMPACT: No net fiscal impact as this item is included in the FY 2022 budget. Staff is requesting to transfer funds in the amount of $33,000 from Emergency Operations (Fund 100) into Equipment Replacement (Fund 641) to facilitate the purchase.

FUNDING AVAILABLE: Transfer out 10041000.76220
Transfer in to 64102000.50001
Appropriate expense 64102000.77030

__________________________________
Andrew Keys, Deputy City Manager

_________________________________________

Kenneth Johnson, Fire Chief

SALES QUOTE PACKING LIST
12328 Lower Azusa Road 2552 Barrington Court SALES ORDER Arcadia, CA 91006 Hayward, CA 94545 Requested by SALES QUOTE (626) 652-0900 (510) 887-6295 Paul Ferry
Delivery
Department: Lodi FD Attention: Drop Ship
Customer: Lambert Ship To: UPS
Bill To: Freightline

Bunker
Phone: Email: Ziggy
Date Cust. Order # Tax Exempt # Terms F.O.B. Salesperson Ship Via Ferry Quantity U/M Price Amount
9 EA 1,799.99 16,199.91

9 EA 1,199.98 10,799.82

Subtotal 2,999.97 $26,999.73
Sales Tax 8.250% $2,227.48
Freight $0.00
Total $29,227.21

Vendor: P. O. #
Destination Ferry Delivery

Lion V-Force Turnout Coat, Color:Black (Lodi Spec)
Vendor: P. O. #
Description
Lion V-Force Turnout Pant , Color:Black (Lodi Spec)

Net 30

RESOLUTION NO. 2022-____

A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE

CITY MANAGER TO WAIVE THE BIDDING PROCESS, APPROVING THE

PURCHASE AND STANDARDIZATION OF LYONS V-FORCE TURNOUTS FROM ALLSTAR FIRE EQUIPMENT, INC., OF HAYWARD; AND FURTHER

TRANSFERRING AND APPROPRIATING FUNDS
========================================================================

WHEREAS, turnouts are required personal protective equipment (PPE), must be worn on fire-related calls, and are required to be replaced and maintained to NFPA Standards; and

WHEREAS, the Lodi Fire Department has a replacement plan for turnouts; and

WHEREAS, the Lodi Fire Department’s Safety Team has researched and tested several different turnout designs and brands and has determined that the Lyons V-Force turnouts are the most durable, lightweight, and cost-efficient turnouts; and

WHEREAS, Lyons V- Force turnouts are sold by licensed distributors. AllStar Fire Equipment, Inc., is the only licensed distributor within the State of California; and

WHEREAS, due to the importance that turnouts are good quality, cost efficient , and consistent in design, the Lodi Fire Department recommends standardizing to the Lyons V-Force turnouts and purchasing them from AllStar Fire Equipment, Inc.; and

WHEREAS, ten sets of turnouts have been budgeted for Fiscal Y ear 2022 in the Emergency Operations fund (Fund 100) and staff recommends awarding the purchase to AllStar Fire Equipment, Inc.; and

WHEREAS, to ensure payment for the turnouts from the current fiscal year funding, staff recommends transferring the tur nout budget in the amount of $33,000 from Emergency Operations (Fund 10041000.76220) into the equipment replacement fund (Fund 64102000.50001) and appropriate to 64102000.77030 so the encumbered funds can roll into the following fiscal year if the turnouts are not received until after June 30, 2022.

NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the City Manager to waive the bidding process and further approves the purchase and standardization of Lyons V -Force turnouts from AllStar Fire Equipment , Inc., of Hayward, California, in the amount of $33,000; and

BE IT FURTHER RESOLVED that the Lodi City Council does hereby approve the transfer and appropriation of funds as set forth above; and

BE IT FURTHER RESOLVED, pursuant to Section 6.3q of the City Council Protocol Manual (Res. No. 2019-223), the City Attorney is hereby authorized to make minor revisions to the above- referenced document(s) that do not alter the compensation or term, and to make clerical corrections as necessary.

Dated: January 19, 2022
======================================================================== I hereby certify that Resolution No. 2022- ____ was passed and adopted by the City Council of the City of Lodi in a regular meeting held August 18, 2021 by the following vote:

AYES: COUNCIL MEMBERS –

NOES: COUNCIL MEMBERS –

ABSENT: COUNCIL MEMBERS –

ABSTAIN: COUNCIL MEMBERS –

PAMELA M. FARRIS
Assistant City Clerk

2022-____
AGENDA ITEM C-05
APPR
OVED: __________________________________
Stephen Schwabauer, City Manager

CITY OF LODI

COUNCIL COMMUNICATION
AGENDA TITLE: Adopt Resolution Authorizing City Manager to 1) Execute Professional Services Agreement with Transformer Services, Inc. of Hillsboro, OR ($115,768); 2) Authorize Purchase of Materials from Circuit Breaker Sales Co., Inc. of Phoenix, AZ ($160,908); and Appropriate Funds for Substation Load Tap Changer Capital Improvement Project for Total Authorized Fiscal Year 2021/22 Budget of $288,000 M
EETING DATE: January 19, 2022
P
REPARED BY: Electric Utility Director
RE
COMMENDED ACTION: Adopt a resolution authorizing the City Manager to 1) execute a Professional Services Agreement with Transformer Services, Inc. of Hillsboro, OR in the amount of $115,768; 2) authorize the purchase of materials from Circuit Breaker Sales Co., Inc. of Phoenix, AZ in the amount of $160,908; and appropriate funds for the Substation Load Tap Changer Capital Improvement Project for a total authorized Fiscal Year 2021/22 budget of $288,000.

B
ACKGROUND INFORMATION: Lodi Electric Utility (LEU) owns, operates and maintains four electrical substations to import and distribute power to Lodi customers.

E
ach of these substations has two transformers which converts or “steps down” electricity to a voltage appropriate for customer use. Contained within each of these transformers is a device called a Load Tap Changer (LTC) which regulates the voltage to keep it within a narrow operating band for system stability.

A
s load increases and decreases throughout the day, LTCs keep voltage steady throughout the distribution system. As time goes on, the contacts for stepping the voltage up and down become worn out, and the oil they are immersed in becomes contaminated with dissolved gasses and impurities. The manufacturers of the LTC’s specify intervals for maintenance and parts replacement. LEU has been performing the oil filtration on an ongoing basis. However, it is now necessary to replace the parts that are at the end of their recommended service life.

P
arts kits will be purchased by LEU from Circuit Breaker Sales Co., Inc. In accordance with Lodi Municipal Code, Sections 3.20.070, Circuit Breaker Sales Co., Inc. is the only authorized distributor who supplies the needed parts kits.

T
he labor for removing the old parts and installation of these new kits as well as refilling with new oil will be performed by Transformer Services, Inc. LEU staff reached out to three separate vendors for proposals to perform these services. Transformer Services, Inc. was the only vendor willing to provide a proposal for the specialized services based on their staff availability and expertise.

L
EU staff will be providing assistance as needed.

FISCAL IMPACT: The project is estimated to cost $288,000, including LEU staff time.

FUNDING AVAILABLE: Project EUCP-21009 has a current authorized budget of $164,812, including rollover of FY 2020/21 funds. Staff are requesting an appropriation of funds to 50199000.77020 in the amount of $123,188 for a total authorized FY 2021/22 budget of $288,000 for Project EUCP-21009.

_______________________________________
Andrew C. Keys
Deputy City Manager/Internal Services Director

________________________________
Jeff Berkheimer
Electric Utility Director

Project Title: 123
District Nos: Citywide Project Length 7/20-6/22 Priority High Expenditure Prior Years FY 20/21
Actual
FY 21/22
Budget
FY 22/23 FY 23/24 FY 24/25 FY 25/26 Future Yrs Total
Internal Staff -$ 17,530$ 11,200$ 28,730$ Contracts -$ 73,316$ 115,800$ 189,116$ Miscellaneous -$ 7,391$ 161,000$ 168,391$ Total Capital Costs -$ 98,237$ 288,000$ -$ -$ -$ -$ -$ 386,237$ Funding Source(s) Prior Years FY 20/21
Actual
FY 21/22
Budget
FY 22/23 FY 23/24 FY 24/25 FY 25/26 Future Yrs Total
501 - EU Outlay Capital Reserve Fund -$ 98,237$ 288,000$ 386,237$ Total Project Financing -$ 98,237$ 288,000$ -$ -$ -$ -$ -$ 386,237$ Section IV
Operating Cost or (savings) Prior Years FY 20/21
Estimate
FY 21/22
Budget
FY 22/23 FY 23/24 FY 24/25 FY 25/26 Future Yrs Total
Personnel -$ -$
Other Operating Costs -$ -$
Total Operating Impact -$ -$ -$ -$ -$ -$ -$ -$ -$ Capital Improvement Plan
FY 2021-2022
Load Tap Changers are the non-static devices connected to the station transformers that keep the voltage steady as the system load increases and decreases. Transformer bushings connect conductors to lower voltage to system levels. Professional oversight services will perform all major repairs and replacements with internal staff assistance. FY 22 budget includes rollover of $5,812 from FY 21 as well as additional needed funds of $123,188 for FY 22. FY 21 actuals total $98,237.

Additional Information
Load Tap Changers coming to end of lifetime operations. Refurbishing them will extend the life of station transformers and possibly avoid catastrophic equipment failures. Phase I of this project will postpone the need to replace the Killelea Bank 2 Power Transformer previously planned for FY 21. For Phase II, 2 Load Tap Changers are leaking oil, one into the transformer and one from the gearbox - requiring maintenance and remediation. Transformer bushings have also been found to be in need of replacement.

Justification/factor driving project
Phase I of this project includes refurbishing 3 Load Tap Changers - Henning Substation - (2) - UZD Style, Killelea Substation - (1) - UTT Style; Phase II includes refurbishing 2 Load Tap Changers and oil leaks as well as replacing vacuum bottles at Industrial Substation Bank #3 and McLane Substation Bank 1 in addition to replacing 1 set of transformer bushings at Henning Substation Bank #2.

Substation Load Tap Changer Upgrades EUCP-21009Munis Project Code:

Section I: Description
Section II: Estimated Project Costs
Section III: Funding Sources/Methods of Financing
Operating Budget Impact
RESOLUTION NO. 2022 -____

A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE

CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH TRANSFORMER SERVICES, INC., OF HILLSBORO, OREGON;

AUTHORIZING PURCHASE OF MATERIALS FROM CIRCUIT BREAKER SALES CO., INC., OF PHOENIX, ARIZONA; AND FURTHER APPROPRIATING FUNDS

FOR SUBSTATION LOAD TAP CHANGER CAPITAL IMPROVEMENT PROJECT ========================================================================

WHEREAS, Lodi Electric Utility (LEU) owns, operates and maintains four electrical substations to import and distribute power to Lodi customers; and

WHEREAS, each of these substations has two transformers which convert or “step down” electricity to a voltage appropriate for customer use; and contained within each of these transformers is a device called a Load Tap Changer (LTC) which regulates the voltage to keep it within a narrow operating band for system stability; and

WHEREAS, as load increases and decreases throughout the day, LTCs keep voltage steady throughout the distribution system ; and a s time goes on, the contacts for stepping the voltage up and down become worn out, and the oil they are immersed in becomes contaminated with dissolved gasses and impurities; and

WHEREAS, the manufacturers of the LTC’ s specify intervals for maintenance and parts replacement and it is now necessary to replace the parts that are at the end of their recommended service life; and

WHEREAS, parts kits will be purchased by LEU from Circuit Breaker Sales Co., Inc. , and in accordance with Lodi Municipal Code, Sections 3.20.070, Circuit Breaker Sales Co., Inc. is the only authorized distributor who supplies the needed parts kits; and

WHEREAS, the labor for removing the old parts and installation of these new kits , as well as refilling with new oil, will be performed by Transformer Services, Inc.; and

WHEREAS, LEU staff reached out to three separate vendors for proposals to perform these services and Transformer Services, Inc., was the only vendor willing to provide a proposal for the specialized services based on their staff availability and expertise; and

WHEREAS, this project (CIP Project EUCP-21009) has a current authorized budget of $164,812, including rollover of Fiscal Year (FY) 2020/21 funds and s taff is requesting an appropriation of funds to 50199000.77020 in the amount of $123,188 for a total authorized FY 2021/22 budget of $288,000 for said project.

NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the City Manager to execute a Prof essional Services Agreement with Transformer Services, Inc. of Hillsboro, Oregon, in the amount of $115,768 , for removal of old parts, installation of new parts, and refill of oil at substation transformers; and

BE IT FURTHER RESOLVED that the Lodi City Council does hereby approve the purchase of materials from Circuit Breaker Sales Co., Inc., of Phoenix, Arizona, in the amount of $160,908; and

BE IT FURTHER RESOLVED that funds for the Substation Load Tap Changer CIP Project EUCP-21009 be appropriated as noted above for a total authorized Fiscal Year 2021/22 budget of $288,000; and

BE IT FURTHER RESOLVED, pursuant to Section 6.3q of the City Council Protocol Manual (adopted 11/6/19, Resolution No. 2019 -223), the City Attorney is hereby authorized to make minor revisions to the above- referenced document(s) that do not alter the compensation or term, and to make clerical corrections as necessary.

Dated: January 19, 2022
======================================================================== I hereby certify that Resolution No. 2022-____ was passed and adopted by the City Council of the City of Lodi in a regular meeting held on January 19, 2022 by the following vote:

AYES: COUNCIL MEMBERS –

NOES: COUNCIL MEMBERS –

ABSENT: COUNCIL MEMBERS –

ABSTAIN: COUNCIL MEMBERS –

PAMELA M. FARRIS
Assistant City Clerk

2022-____
APPROVED: _________________________________
Stephen Schwabauer, City Manager
\\cvcfilv02\pubwks$\WP\PROJECTS\PARKS\ZupoField\Fire Restoration Project 2022\01-19-2022_Zupo Field Fire Restoration_Design Services_CC.docx 1/5/2022
C LODI

C COMMUNICATION
TM
AGENDA TITLE: Adopt Resolution Authorizing City Manager to Execute Professional Services Agreement with WMB Architects, of Stockton, for Tony Zupo Field Fire Restoration Project Design Services ($45,880)
MEETING DATE: January 19, 2022
PREPARED BY: Public Works Director
RECOMMENDED ACTION: Adopt resolution authorizing City Manager to execute Professional Services Agreement with WMB Architects, of Stockton, for Tony Zupo Field Fire Restoration Project design services, in the amount of $45,880.

BACKGROUND INFORMATION: Zupo Field is located at 350 N. Washington Street. The facility was damaged by an arson fire in September 2019. City staff will work with WMB Architects to complete the design,
permitting and bid documents.

Zupo Field, originally constructed in 1924, was known as Lawrence Park. In the 1960’s the stadium became the home of the Lodi Crushers a Single “A” California League team affiliated with the Chicago Cubs. Single “A” baseball was played at the facility from 1966 to 1985.

Zupo Field was also home to semi-professional baseball from mid-1940’s to late 1980’s. The semi- pro team was coached by Tony Zupo, Sr., Herb Handel and Ed DeBenedetti. Tony Zupo, Sr. managed the team until his death in the mid-1980’s. John Nilmeyer took over in 1986 and asked the city to change the stadium’s name to Tony Zupo Field, according to a Lodi City Council agenda report from December 17, 1986.

In recent years Zupo Field was home to both Lodi and Tokay high school baseball programs as well as American Legion, Japanese American Citizens League (JACL), California Interscholastic Federation (CIF) Baseball Playoffs, Lodi Men’s Senior League, Boosters of Boys and Girls Sports Babe Ruth program, Under Armour Professional Baseball Scout Days, and numerous outside travel baseball programs.

Based on past project experience and capacity, staff recommends WMB Architects of Stockton to perform the design services. The scope of work will include project site survey, project design and project bidding support services for the construction of new dugouts, bull pen areas, and associated American With Disabilities Act Improvements. The cost of the service is $45,880. Once the project is designed, staff will bring the project back to City Council for plan approval and authorization to bid.

Staff recommends authorizing City Manager to execute Professional Services Agreement with WMB Architects, of Stockton, for Zupo Field Fire Restoration Project design services, in the amount of $45,880.

AGENDA ITEM C-06
Adopt Resolution Authorizing City Manager to Execute Professional Services Agreement with WMB Architects, of Stockton, for Tony Zupo Field Fire Restoration Project ($45,880)
January 19, 2022

\\cvcfilv02\pubwks$\WP\PROJECTS\PARKS\ZupoField\Fire Restoration Project 2022\01-19-2022_Zupo Field Fire Restoration_Design Services_CC.docx 1/5/2022

FISCAL IMPACT: This project will replace the fire damaged structures and bring the facility to current ADA code Compliance.

FUNDING AVAILABLE: Parks Capital; Zupo Field Improvement; PKCP-22004.Contracts; $45,880

______________________________________
Andrew Keys
Deputy City Manager/Internal Services Director

_______________________________
Charles E. Swimley, Jr.

Public Works Director

_______________________________
Christina Jaromay
Parks, Recreation and Cultural Services Director

Prepared by Gary Wiman, Construction Project Manager
CES/GRW/cd
Attachment
Cc: Transportation Manager Facility Superintendent
Public Works Management Analyst WMB Architects
PRCS Management Analyst

RESOLUTION NO. 2022-____

A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE

CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT

WITH WMB ARCHITECTS, OF STOCKTON, FOR TONY ZUPO FIELD FIRE

RESTORATION PROJECT DESIGN SERVICES
========================================================================

WHEREAS, Zupo Field is located at 350 North Washington Street, and was damaged by an arson fire in September 2019 and therefore in need of restoration; and

WHEREAS, based on past project experience and capacity, staff recommends WMB Architects, of Stockton, to perform the design services; and

WHEREAS, the scope of work will include project site survey, project design and project bidding support services for the construction of new dugouts, bull pen areas, and associated American with Disabilities Act Improvements; and

WHEREAS, staff recommends authorizing the City Manager to execute a Professional Services Agreement with WMB Architects, of Stockton, for Zupo Field Fire Restoration Project design services, in the amount of $45,880.

NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the City Manager to execute a Professional Services Agreement with WMB Architects, of Stockton, California, for Zupo Field Fire Restoration Project design services, in the amount of $45,880; and

BE IT FURTHER RESOLVED, pursuant to Section 6.3q of the City Council Protocol Manual (adopted 11/6/19, Resolution No. 2019 -223), the City Attorney is hereby authorized to make minor revisions to the above- referenced document(s) that do not alter the compensation or term, and to make clerical corrections as necessary.

Dated: January 19, 2022
======================================================================== I hereby certify that Resolution No. 202 2-____ was passed and adopted by the City Council of the City of Lodi in a regular meeting held January 19, 2022 by the following vote:

AYES: COUNCIL MEMBERS –

NOES: COUNCIL MEMBERS –

ABSENT: COUNCIL MEMBERS –

ABSTAIN: COUNCIL MEMBERS –

PAMELA M. FARRIS
Assistant City Clerk

2022-____
AGENDA ITEM C-07
APPR
OVED: ______________________________________
Stephen Schwabauer, City Manager
\\cvcfilv01\administration$\Shared\cityclerk\Agenda\2022\011922\CLK - CPS\CPS_Amendment.doc

CITY OF LODI

COUNCIL COMMUNICATION

TM
AG
ENDA TITLE: Adopt Resolution Authorizing City Manager to Execute Amendment to Professional Services Agreement with Complete Paperless Solutions, of Anaheim, for Software Support of Electronic Content Management System ($23,600) MEET
ING DATE: January 19, 2022
P
REPARED BY: City Clerk
RE
COMMENDED ACTION: Adopt resolution authorizing City Manager to execute amendment to Professional Services Agreement with Complete Paperless Solutions, of Anaheim, for software support of electronic content management system, in the amount of $23,600.

B
ACKGROUND INFORMATION: In 2016, Council awarded a Professional Services Agreement to Complete Paperless Solutions (CPS) to provide software support of Laserfiche, the City’s electronic content management system. The agreement and two optional extensions have expired. CPS has provided outstanding service and staff recommends executing an amendment to extend the term for an additional five years.

F
ISCAL IMPACT: CPS has maintained the same cost per unit as provided in the original 2016 Professional Service Agreement. Electric Utility Department has added two named users for an additional cost of $240 per year. The total cost over the five-year term is $23,600.

F
UNDING AVAILABLE: 50060001.72369 $1,200
10005000.72313 $22,400
__
____________________________
Andrew K eys, Deputy City Manager
____ ___________________________
J ennifer Cusmir Jeff Berkheimer
City Clerk Electric Utility Director
JC/PMF
Attachment

RESOLUTION NO. 2022-_____

A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE

CITY MANAGER TO EXECUTE AN AMENDMENT TO THE PROFESSIONAL

SERVICES AGREEMENT WITH COMPLETE PAPERLESS SOLUTIONS, OF

ANAHEIM, FOR SOFTWARE SUPPORT OF ELECTRONIC CONTENT

MANAGEMENT SYSTEM

========================================================================

WHEREAS, in 2016, Council awarded a Professional Services Agreement to Complete Paperless Solutions, of Anaheim, for software support of the City’s electronic content management system; and

WHEREAS, the original agreement and extensions have now expired; and

WHEREAS, due to Complete Paperless Solutions’ excellent service, staff recommends executing an amendment to extend the term for an additional five years; and

WHEREAS, Complete Paperless Solutions has maintained the same price per unit since the original Professional Services Agreement in 2016. Electric Utility Department has added two named users to the original contract, for an additional $240 per year.

NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the City Manager to execute an amendment to the Professional Services Agreement with Complete Paperless Solutions, of Anaheim, California, for software support of the City’s electronic management system, thereby extending the term by five years, in the amount of $23,600; and

BE IT FURTHER RESOLVED, pursuant to Section 6.3q of the City Council Protocol Manual (adopted 11/6/19, Resolution No. 2019 -223), the City Attorney is hereby authorized to make minor revisions to the above- referenced document(s) that do not alter the compensation or term, and to make clerical corrections as necessary.

Dated: January 19, 2022
======================================================================== I hereby certi fy that Resolution No. 202 2-_____ was passed and adopted by the City Council of the City of Lodi in a regular meeting held January 19, 2022, by the following vote:

AYES: COUNCIL MEMBERS –

NOES: COUNCIL MEMBERS –

ABSENT: COUNCIL MEMBERS –

ABSTAIN: COUNCIL MEMBERS –

PAMELA M. FARRIS
Assistant City Clerk

2022-____
AGENDA ITEM C-08
APPR
OVED: __________________________________
Stephen Schwabauer, City Manager
\\cvcfilv02\pubwks$\WP\PROJECTS\MISC\JANITORL\2019\CAmend No. 2.docx 1/5/2022

CITY OF LODI

COUNCIL COMMUNICATION
TM
AG
ENDA TITLE: Adopt Resolution Ratifying Expenses and Authorizing City Manager to Execute Amendment No. 2 to Contract for Janitorial Services for City Facilities with ABM Industry Groups, LLC, of San Francisco ($75,000)
M
EETING DATE: January 19, 2022
P
REPARED BY: Public Works Director
RE
COMMENDED ACTION: Adopt resolution ratifying expenses and authorizing City Manager to execute Amendment No. 2 to Contract for janitorial services for City facilities with ABM Industry Groups, LLC, of San Francisco, in the amount of $75,000.

B
ACKGROUND INFORMATION: On June 5, 2019, Council awarded the contract for Citywide janitorial services to ABM Industry Groups, LLC., of San Francisco, in the amount of $424,094. The original term of the Contract was for two years, with the option to extend by mutual agreement. Article IV of the Contract also included provisions to increase the fees due to governmental factors beyond the contractor’s control, including but not limited to, increases in minimum wage.

I
n March of 2020, a work order agreement under the existing contract was entered into to provide enhanced COVID cleaning services under the City Manager’s local emergency contract authority. This work order agreement expired as of September 30, 2021. These enhanced cleaning services are still required under the current California Occupational Safety and Health (Cal/OSHA) health orders at a monthly cost of approximately $8,000 per month.

A
mendment No. 1 was executed on March 1, 2021 and adjusted the fees in accordance with the minimum wage increase, extended the term one additional year, through June 30, 2022, and added funds in the amount of $250,000 to cover the fee increase as well as the additional year of service, bringing the total Contract amount to $674,094.

E
ffective January 1, 2022, the California minimum wage will again increase, resulting in an increase in costs to the contractor beyond their control. The City and ABM Industry Groups, LLC negotiated, per Article IV, an equitable adjustment to the price of the contract, amounting to 8.01 percent.

A
mendment No. 2, if approved, would ratify the enhanced cleaning services costs from October through December and add this additional expense of approximately $8,000 per month to the original contract through June 30, 2022. The amendment would also add the additional funds to cover the increase in monthly service costs due to the minimum wage increase.

S
taff recommends ratifying the expenses and authorizing City Manager to execute Amendment No. 2 to Contract for janitorial services for City facilities with ABM Industry Groups, LLC, of San Francisco, in the amount of $75,000.

Adopt Resolution Ratifying Expenses and Authorizing City Manager to Execute Amendment No. 1 to Contract for Janitorial Services for City Facilities with ABM Industry Groups, LLC, of San Francisco ($75,000)
January 5, 2022

\\cvcfilv02\pubwks$\WP\PROJECTS\MISC\JANITORL\2019\CAmend No. 2.docx 1/5/2022

FISCAL IMPACT: The General Fund will contribute approximately 54 percent toward the total contract amount.

FUNDING AVAILABLE: Funding for janitorial services are included in the following operating accounts:

Public Works Facilities Services (10051000)
Hutchins Street Square (20071402)
Library (12090000)
Parks & Recreation (20072001/20073001)
Water (56052001)
Wastewater (53053001)
White Slough Water Pollution Control Facility (53053003) Surface Water Treatment Plant (56052005)
Transit (60054105)
Fleet Services (65055000)
Electric Utility (50060001)

_______________________________________
Andrew Keys
Internal Services Director/Deputy City Manager

_______________________________
Charles E. Swimley, Jr.

Public Works Director
Prepared by Rebecca Areida-Yadav, Management Analyst
CES/RAY/cd
Attachment

RESOLUTION NO. 2022-____

A RESOLUTION OF THE LODI CITY COUNCIL RATIFYING EXPENSES AND AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 2 TO

THE CONTRACT FOR JANITORIAL SERVICES FOR CITY FACILITIES WITH

ABM INDUSTRY GROUPS, LLC, OF SAN FRANCISCO

========================================================================

WHEREAS, on June 5, 2019, Council awarded the contract for Citywide janitorial services to ABM Industry Groups, LLC., of San Francisco, in the amount of $424,094; and

WHEREAS, the original term of the contract was for two years, with the option to extend by mutual agreement and also included provisions to increase the fees due to governmental factors beyond the contractor’s control, including but not limited to, increases in minimum wage ; and

WHEREAS, i n March 2020, a work order agreement under the existing contract was entered into to provide enhanced COVID cleaning services under the City Manager’s local emergency contract authority , which expired as of September 30, 2021, however, these enhanced cleaning services are still required under the current California Occupational Safety and Health (Cal/OSHA) health orders at a cost of approximately $8,000 per month; and

WHEREAS, Amendment No. 1 was executed on March 1, 2021 and increased the fees associated with the minimum wage increase, extended the term one additional year, through June 30, 2022, and added funds in the amount of $250,000 to cover the fee increase as well as the additional year of service, bringing the total contract amount to $674,094; and

WHEREAS, effective January 1, 2022, the minimum wage increase d, causing an increase in costs to the contractor beyond its control , therefore t he City and ABM Industry Groups, LLC, negotiated, per Article IV, an equitable adjustment to the price of the contract, amounting to 8.01 percent; and

WHEREAS, staff recommends ratifying the expenses and authorizing the City Manager to execute Amendment No. 2 to the c ontract for janitorial services for City facilities with ABM Industry Groups, LLC, of San Francisco, in an amount not to exceed $75,000.

NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby ratify the expenses and authorizes the City Manager to execute Amendment No. 2 to the c ontract for janitorial services for City facilities with ABM Industry Groups, LLC, of San Francisco, California, in an amount not to exceed $75,000; and

BE IT FURTHER RESOLVED, pursuant to Section 6.3q of the City Council Protocol Manual (adopted 11/6/19, Resolution No. 2019 -223), the City A ttorney is hereby authorized to make minor revisions to the above- referenced document(s) that do not alter the compensation or term, and to make clerical corrections as necessary.

Dated: January 19, 2022
======================================================================== I hereby certify that Resolution No. 202 2-____ was passed and adopted by the City Council of the City of Lodi in a regular meeting held January 19, 2022 by the following vote:

AYES: COUNCIL MEMBERS –

NOES: COUNCIL MEMBERS –

ABSENT: COUNCIL MEMBERS –

ABSTAIN: COUNCIL MEMBERS –

PAMELA M. FARRIS
Assistant City Clerk
2022-____
AGENDA ITEM C-09
APPR
OVED: __________________________________
Stephen Schwabauer, City Manager

CITY OF LODI

COUNCIL COMMUNICATION

TM
AG
ENDA TITLE: Adopt a Resolution Revising the Contract Max for the Executed Amendment N o. 4 to Include Amendments No. 1 Through No. 4 and Extensions No. 1 and No. 2 of the Professional Services Agreement with Michael Baker International, of Rancho Cordova (MBI), for Community Development Block Grant Administration/Housing Program Support Services.

M
EETING DATE: January 19, 2022
P
REPARED BY: Community Development Director
RE
COMMENDED ACTION: Adopt a resolution revising the contract max for the executed amendment No. 4 to include amendments No. 1
through No. 4 and extensions No. 1 and No. 2 of the
professional services agreement with Michael Baker International, of Rancho Cordova (MBI), for Community Development Block Grant (CDBG) Administration/ Housing Program Support Services.

B
ACKGROUND INFORMATION: Council previously approved amendment No. 4 to extend the term of the MBI agreement through June 30, 2022 and add programs services and support amount not to exceed
$150,508 at the October 20, 2021 City Council meeting.

T
he amendment amount was correctly executed as $150,508. However, the contract max listed on the October 20th agenda item was listed as $744,728, which only included amendments No. 2 through 4. The total contract max including the original contract and amendment No. 1 should be $1,330,898. Summary of contract, extension, and amendment amounts are in the below table.

C
ontract breakdown:

Contract Date Executed Amount
Original 2/27/2017 $ 99,070.00
Amendment No. 1 3/14/2019 $ 223,000.00
Amendment No. 2 10/3/2019 $ 41,100.00
Extension No. 1 12/18/2019 $ 223,000.00
Extension No. 2 1/26/2021 $ 223,000.00
Amendment No. 3 6/24/2021 $ 371,220.00
Amendment No. 4 11/1/2021 $ 150,508.00
Total: $ 1,330,898.00

Adopt Resolution Contract Mac for Executed Amendment No.4 to the MBI Contract January 19, 2022

Staff is requesting that the City Council adopt a resolution to revise the MBI contract max to the corrected $1,330,898.

FISCAL IMPACT: No fiscal impact, correction to contract max only

FUNDING AVAILABLE: No change to funding, correction to contract max only. Per executed contract Amendment No. 4, f unding is provided via administration caps of federal/state/county grants awarded, and Community Development Department funds already appropriated in the existing budget.

__________________________________
Andrew Keys
Deputy City Manager/Internal Services Director

John R. Della Monica, Jr.

Community Development Director
Attachments:

1. Approved Council Resolution 2021-280

RESOLUTTON NO. 2021 -280

A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE
CITY MANAGER TO EXECUTE AMENDMENT NO. 4 TO EXTEND THE TERM OF

THE PROFESSIONAL SERVICES AGREEMENT WITH MICHAEL BAKER

INTERNATIONAL, OF RANCHO CORDOVA, FOR COMMUNITY DEVELOPMENT

BLOCK GRANT ADMI N ISTRATION/HOUSI NG PROGRAM SU PPORT SERVICES WHEREAS, on February 27, 2017, the City entered into a Professional Services Agreement with Michael Baker lnternational to provide Community Development Block Grant (CDBG) Administration and Housing Program Support Services, Contract Amendment No. 1 on March 14,2019, Contract Amendment No. 2 on October 3,2019, Contract Extension No. 1 on December 18, 2019, and Contract Extension No. 2 effective November 1, 2020 in an amount not to exceed $223,000, and Contract Amendment No. 3 effective May 19,2021 in an amount not to exceed $594,220; and
WHEREAS, staff recommends approving Amendment No. 4 to the Professional Services Agreement with Michael Baker lnternationalto extend the term based on the quote received and attached to the agreement in an amount notto exceed $150,508 and a total contract maximum not to exceed $744,228.

NOW, THEREFORE, BE lT RESOLVED that the Lodi City Council does hereby authorize the City Manager to execute Amendment No. 4 the Professional Services Agreement with Michael Baker lnternational, of Rancho Cordova, California, for Community Development Block Grant Administration and Housing Program Support Services, in an amount not to exceed $150,508, thereby extending the term through June 30, 2022; and BE lT FURTHER RESOLVED, pursuant to Section 6.3q of the City Council Protocol Manual (Res. No. 2019-223), the City Attorney is hereby authorized to make minor revisions to the above-referenced document(s) that do not alter the compensation or term, and to make clerical corrections as necessary.

Dated: October 20,2021
I hereby certify that Resolution No. 2021-280 was passed and adopted by the City Council of the City of Lodi in a regular meeting held October 20,2021, by the following vote:

AYES COUNCIL MEMBERS - Chandler, Hothi, Khan, Kuehne, and Mayor Nakanishi

NOES COUNCIL MEMBERS -
ABSENT: COUNCIL MEMBERS -
ABSTAIN: COUNCIL MEMBERS -
h
JENNIF
2021-280
City Clerk
CUSMIR
RESOLUTION NO. 2022-____

A RESOLUTION OF THE LODI CITY COUNCIL REVISING THE CONTRACT MAXIMUM FOR THE EXECUTED AMENDMENT NO. 4 TO INCLUDE
AMENDMENTS NO. 1 THROUGH NO. 4 AND EXTENSIONS NO. 1 AND NO. 2 OF

THE PROFESSIONAL SERVICES AGREEMENT WITH MICHAEL BAKER

INTERNATIONAL, OF RANCHO CORDOVA, FOR COMMUNITY DEVELOPMENT

BLOCK GRANT ADMINISTRATION/HOUSING PROGRAM SUPPORT SERVICES ========================================================================

WHEREAS, the City entered into an Professional Services Agreement on February 27, 2017, with Michael Baker International to provide Community Development Block Grant (CDBG) administration and Housing Program support s ervices, Co ntract Amendment No. 1 on March 14, 2019, Contract Amendment No. 2 on October 3, 2019 , Contract Extension No. 1 on December 18, 2019, and Contract Extension No. 2 effective January 26, 2021 , and Contract Amendment No. 3 effective June 24, 2021; and

WHEREAS, City Council approved Amendment No. 4 to the Michael Baker Professional Services Agreement on October 20, 2021 to extend the term and increase the contract by $150,508 and overall contract maximum to an amount not to exceed $744,228; and

WHEREAS, after Amendment No.4 was executed, s taff recognized the overall contract maximum noted as $744,228 did not include the original c ontract amount or A mendment No. 1 and would need to be revised to a contract maximum not to exceed $1,330,898.

NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby revise the contract max imum f or the executed Amendment No. 4 to include A mendments No. 1 through No. 4 and E xtensions No. 1 and N o. 2 of the P rofessional Services Agreement with Michael Baker International, of Rancho Cordova, California, for Community Development Block Grant administration and Housing Program support services to a contract maximum amount not to exceed $1,330,898; and

BE IT FURTHER RESOLVED, pursuant to Section 6.3q of the City Council Protocol Manual (adopted 11/6/19, Resolution No. 2019 -223), the City Attorney is he reby authorized to make minor revisions to the above- referenced document(s) that do not alter the compensation or term, and to make clerical corrections as necessary.

Dated: January 19, 2022
======================================================================== I hereby certi fy that Resolution No. 202 2-_____ was passed and adopted by the City Council of the City of Lodi in a regular meeting held January 19, 2022, by the following vote:

AYES: COUNCIL MEMBERS –

NOES: COUNCIL MEMBERS –

ABSENT: COUNCIL MEMBERS –

ABSTAIN: COUNCIL MEMBERS –

PAMELA M. FARRIS
Assistant City Clerk

2022-______
AGENDA ITEM C-10
APPROVED: _________________________________________
Stephen Schwabauer, City Manager
\\cvcfilv02\pubwks$\WP\COUNCIL\2022\CC_ 100 E Pine Lease.doc 12/20/2021

CITY OF LODI

COUNCIL COMMUNICATION
TM
AG
ENDA TITLE: Adopt Resolution Authorizing City Manager to Execute a Lease Agreement with Lodi Adopt-A-Child and Community Partnership for Families of San Joaquin for 100 East Pine Street
MEETING DATE: January 19, 2022
PREPARED BY: Public Works Director
RECOMMENDED ACTION: Adopt resolution authorizing City Manager to execute lease agreement with Lodi Adopt-A-Child and Community Partnership for Families of San Joaquin for 100 East Pine Street.

BACKGROUND INFORMATION: On May 28, 2002, the City entered into a lease agreement with Lodi Adopt-A-Child for the property located at 100 East Pine Street. The annual rent was established at $1.00 per year with
provision that Lodi Adopt-A-Child would pay for various building improvements. Since the original lease was approved, it is estimated that Lodi Adopt-A-Child invested over $250,000 in building improvements.

At the August 5, 2009 Council meeting, Council authorized the extension of this lease through May 28, 2020. The lease agreement (since expired), is currently on a month-to-month basis. During the May 20, 2020 Council meeting, staff received direction from City Council to establish an arrangement that would suit the needs of both Lodi Adopt-A-Child and Community Partnership for Families of San Joaquin since both non-profit organizations expressed interest in occupying the 100 E. Pine Street location.

City staff met with both Lodi Adopt-A-Child and Community Partnership for Families of San Joaquin and was successful in establishing the terms of a co-lessee arrangement in which both organizations could successfully utilize the building.

The term of the lease agreement will be for 10 years and both co-lessees agree to pay rent at a fair market price. The rental price of $1,140 per month is based on approximately 912 square feet of daily operational space at $1.25 per square foot. This per square foot price is consistent with other lease agreements of City owned properties.

Staff recommends Council adopt a resolution authorizing the City Manager to execute a Lease Agreement with Lodi Adopt-A-Child and Community Partnership for Families of San Joaquin for 100 East Pine Street.

FISCAL IMPACT: The proposed lease will provide annual rental revenue to the General Fund in the amount of $13,680. The current lease generated $1.00 per year.

F
UNDING AVAILABLE: Not applicable.
_______________________________

Charles E. Swimley, Jr.

Public Works Director
CES/RAY/cd

RESOLUTION NO. 2022-____

A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING

THE CITY MANAGER TO EXECUTE A LEASE AGREEMENT WITH

LODI ADOPT-A-CHILD AND COMMUNITY PARTNERSHIP FOR
FAMILIES OF SAN JOAQUIN FOR 100 EAST PINE STREET
========================================================================

WHEREAS, on May 28, 2002, the City entered into a lease agreement with Lodi Adopt - A-Child for the property located at 100 East Pine Street; and

WHEREAS, the annual rent was established at $1.00 per year with pr ovision that Lodi Adopt-A-Child would pay for various building improvements and it is estimated that Lodi Adopt - A-Child invested over $250,000 in building improvements; and

WHEREAS, on August 5, 2009, Council authorized the extension of this lease throug h May 28, 2020 and is currently on a month-to-month basis; and

WHEREAS, City staff met with both Lodi Adopt -A-Child and Community Partnership for Families of San Joaquin to discuss a co -lease agreement with a term of 10 years and both co- lessees agree to pay rent at a fair market price of $1,140, based on approximately 912 square feet of daily operational space at $1.25 per square foot; and

WHEREAS, staff recommends authorizing the City Manager to execute a Lease Agreement with Lodi Adopt-A-Child and Community Partnership for Families of San Joaquin for 100 East Pine Street.

NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the City Manager to execute a Lease Agreement with Lodi Adopt -A-Child and Community Partnership for Families of San Joaquin for 100 East Pine Street; and

BE IT FURTHER RESOLVED, pursuant to Section 6.3q of the City Council Protocol Manual (adopted 11/6/19, Resolution No. 2019 -223), the City Attorney is hereby authorized to make minor revisions to the above -referenced document(s) that do not alter the compensation or term, and to make clerical corrections as necessary.

Dated: January 19, 2022
======================================================================== I hereby certify that Resolution No. 202 2-____ was passed and adopted by the City Council of the City of Lodi in a regular meeting held January 19, 2022 by the following vote:

AYES: COUNCIL MEMBERS –

NOES: COUNCIL MEMBERS –

ABSENT: COUNCIL MEMBERS –

ABSTAIN: COUNCIL MEMBERS –

PAMELA M. FARRIS
Assistant City Clerk

2022-____
AGENDA ITEM C-11
APPR
OVED: __________________________________
Stephen Schwabauer, City Manager

CITY OF LODI

COUNCIL COMMUNICATION

TM
AG
ENDA TITLE: Adopt Resolution Authorizing City Manager to Execute an Agreement to Participate in the CALNET NextGen Contract between the State of California and ATT through June 30, 2025
M
EETING DATE: January 19, 2022
P
REPARED BY: Information Technology Manager
RE
COMMENDED ACTION: Adopt resolution authorizing City Manager to execute an agreement to participate in CALNET NextGen contract between the State of California and ATT through June 30, 2025.

B
ACKGROUND INFORMATION: Currently, the City buys certain technology products, such as telephone services, cellular and internet service at discounted rates through the State of California contract called CALNET3. This contract expired December 31, 2021. The new contract, called CALNET NextGen is now available as of April 15, 2020.

A
ll California government agencies may use CALNET NextGen for procurement of certain products and services. The new CALNET NextGen contract is for five years, with possible three extensions of one year each.

A
ll current ATT voice and data services subscribed to by the City shall automatically be included under the new agreement.

S
taff recommends adoption of a resolution authorizing the City Manager to execute an agreement to participate in the CALNET NextGen contract between the State of California and ATT through June 30, 2025.

FI
SCAL IMPACT: Not participating in the CALNET NextGen contract will subject the City to revert to tariff pricing on all services.

F
UNDING AVAILABLE: 10095000.72202 – Telephone Charges
_
______________________________
Andrew Keys
Deputy City Manager

RESOLUTION NO. 2022-____

A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING

THE CITY MANAGER TO EXECUTE AGREEMENT TO

PARTICIPATE IN THE CALNET NEXTGEN CONTRACT

BETWEEN THE STATE OF CALIFORNIA AND AT&T
========================================================================

WHEREAS, the City buys certain technology products, such as telephone, cellular, and internet services, at discounted rates through the State of California contract with AT&T called CALNET3, which expired on December 31, 2021; and

WHEREAS, a new State contract called CALNET NextGen is now available for use by all California government agencies for procurement of certain products and services; and

WHEREAS, the term of the CALNET NextGen contract is for five years with three possible extensions of one year each; and

WHEREAS, all current AT &T voice and data services subscribed to by the City under CALNET3 will automatically be included in the new agreement.

NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the City Manager to execute an agreement to participate in the CALNET NextGen contract between the State of Calif ornia and AT&T through June 30, 2025, and all possible extensions ; and

BE IT FURTHER RESOLVED, pursuant to Section 6.3q of the City Council Protocol Manual (adopted 11/6/19, Resolution No. 2019 -223), the City Attorney is hereby authorized to make minor revisions to the above-referenced document(s) that do not alter the compensation or term, and make clerical corrections as necessary.

Dated: January 19, 2022
========================================================================

I hereby certify that Resolution No. 2022-____as passed and adopted by the City Council of the City of Lodi in a regular meeting held January 19, 2022, by the following votes:

AYES: COUNCIL MEMBERS –

NOES: COUNCIL MEMBERS –

ABSENT: COUNCIL MEMBERS –

ABSTAIN: COUNCIL MEMBERS –

PAMELA M. FARRIS
Assistant City Clerk

2022-____
AGENDA ITEM C-12
APPR
OVED: __________________________________
Stephen Schwabauer, City Manager

CITY OF LODI

COUNCIL COMMUNICATION

TM
AG
ENDA TITLE: Adopt Resolution Amending Parks and Recreation Commission Bylaws M
EETING DATE: January 19, 2022
P
REPARED BY: Parks, Recreation and Cultural Services Director RE
COMMENDED ACTION: Adopt resolution amending Parks and Recreation Commission (Commission) bylaws.

B
ACKGROUND INFORMATION: The Parks and Recreation Commission bylaws were last amended in 2019. Staff’s suggested changes to the bylaws were reviewed and approved by the Commission at the October 5, 2021 meeting.

T
he attached bylaws reflect the Commission-recommended changes from the October 5, 2021 meeting.

R
ecommended change includes: 1) permanently changing the start time of Parks and Recreation Commission meetings to 6:00 p.m.

F
ISCAL IMPACT: Not applicable.

F
UNDING AVAILABLE: Not applicable.
_______________________________
Christina Jaromay
Parks, Recreation, and Cultural Services Director
TL:tl
c
c: City Attorney
A
ttachment (1)

Revised 12/20/2021 1

COMMISSION SERVICE AND BYLAWS

LODI PARKS AND RECREATION COMMISSION

PURPOSE, ROLE, SCOPE AND FUNCTION
A. Except as hereinafter specifically defined, the Commission shall have all the powers contemplated by the Education Code Section 10900 et seq., and shall have the power to adopt bylaws, rules and regulations, make recommendations, and advise on various Parks and Recreation operations, services and issues, as necessary in the exercise of its duties.

B. The Commission shall be advisory to the City Council of the City of Lodi in the field of public parks and recreation, but shall have no administrative power or authority to incur any indebtedness or obligation against the City of Lodi.

C. The advisory powers of the Commission shall include, but not be limited to:

1. Recommendations as to the general nature of the parks and recreation program to be provided;

2. Advice and assistance to the Parks and Recreation Director in the preparation of his annual budget;

3. Recommendations as to the means of financing the parks and recreation facilities provided, assist in determining recreation fees and charges for activities, programs and services;

4. Study and recommendation on needed additional parks and recreation facilities; review, develop and recommend capital improvement projects.

THE COMMISSION/COMMISSIONER SERVICE
A. COMMISSION NUMBERS

1. The Commission shall be five (5) members appointed by the Mayor from a list of nominees who are residents of the City of Lodi at the time of their applications, with the approval of the City Council.

B. TERM OF APPOINTMENT

1. Commissioners are appointed for a (4) four -year term of office providing they meet meeting and participation requirements. Should a vacancy arise, the Mayor of the City Council, with Council approval, shall appoint an individual to fulfill the unexpired term of said Commission seat.

Revised 12/20/2021 2

2. The terms of office for all members of the Commission shall be deemed to run from July 1 of each year.
a. As of January 1, 2020, all Commissioners whose terms expire December 31, 2020, shall have their terms extended to June 30, 2021; and all Commissioners whose terms expire December 31, 2022, shall have their terms extended to June 30, 2023.

3. Any member appointed to fill the vacancy occurring prior to the expiration of the term for which his or her predecessor was appointed shall be appointed for the remainder of such term.

C. REAPPOINTMENT

1. When a term has expired, the Mayor may reappoint an individual or appoint a new individual to a seat on the Commission

THE COMMISSION/COMMISSIONER

A. CHAIRPERSON

1. Election: The Chairperson of the Commission shall be elected by the members thereof by a majority vote of all the members.

2. Term: The term of office of the Chairperson shall be one year and until the election of his or her successor.

3. Duties: The Chairperson shall be the presiding officer of the Commission. He/She shall preserve strict order and decorum at all meetings of the Commission, state questions coming before the Commission, announce the Commission's decision on all subjects, and decide all questions of order; subject, however, to an appeal to the Commission as a whole, in which event a majority vote shall govern and conclusively determine such questions of order. He/She shall vote on all questions and on roll call, his/her name shall be called last.

B. CHAIRPERSON PRO TEMPORE

1. Term and duties: There shall be a Chairperson pro tempore, whose term of office shall coincide with that of the Chairperson, and who shall, in the absence of the Chairperson, perform all the functions and duties of the Chairperson.

2. Election: The Chairperson pro tempore of the Commission shall be elected by the members thereof by a majority vote of all the members.

C. SECRETARY

The Parks and Recreation Director or his/her designee, shall have the duties of Secretary to the Commission. He/She shall be responsible for the keeping of the official transcript of the Commission.

Revised 12/20/2021 3

D. STATEMENTS OF ECONOMIC INTEREST

1. Pursuant to the State of California Political Reform Act, appointees to the Parks and Recreation Commission are required to file with the City Clerk of the City of Lodi, Statements of Economic Interests.

2. Filings must be made annually, at the time of assuming office and at the time of leaving office. All filings are to be made with the City Clerk, are public information and are available for inspection by the public.

MEETINGS AND RULES OF ORDER

A. ROLL CALL

1. Before proceeding with the business of the Commission, the Secretary shall call the roll of the members, and the names of those present shall be entered in the minutes.

B. QUORUM

1. A majority of the Commission constitutes a quorum for the transaction of business (3 of the 5 members).

C. ATTENDANCE

1. A member absent without excuse for three consecutive regular meetings of the Parks and Recreation Commission shall forfeit such office as a Commissioner, unless absence is due to illness.

D. MINUTES

1. Preparation: The minutes of the Commission shall be kept by the Secretary and shall be neatly typewritten in a book kept for that purpose with a record of each particular type of business transacted set up in paragraphs with proper subheadings, provided, however, that the Secretary shall be required to make a record only of such business as was actually acted upon by the Commission, and shall not be required to record any remarks of members or any other person except at the special request of a member, and provided, further that a record shall be made of the names and addresses of persons addressing the Commission, the title of such matter to which the remarks related, and whether they spoke in support of or in opposition to the matter.

2. Distribution: As soon as possible, after each meeting, the Secretary shall cause a copy of the minutes to be forwarded to each member.

Revised 12/20/2021 4

3. Reading: Unless the reading of the minutes of the meeting is requested by a member, such minutes may be approved without reading as each member has previously been furnished a copy thereof.

GENERAL ORDER AND CONDUCT OF BUSINESS

A. AGENDA

1. All reports, communications, and other documents or matters to be submitted to the Commission at their regular meeting shall be delivered to the Secretary not later than seven days prior to the regular scheduled meeting. The Secretary shall prepare an Agenda of all such matters according to the Order of Business and shall furnish each member of the Commission and their staff with a copy of the same prior to the Commission meeting.

The Secretary or his/her designee shall forward a copy of the Agenda to the City Clerk for posting 72 hours prior to said meeting. No item may be added to the Agenda subsequent to the post of same.

B. ORDER OF BUSINESS

1. Roll Call

2. Minutes

3. Comments-Non-Agenda Items

4. Action Items

5. Regular Agenda

6. Correspondence

7. Reports

8. Announcements

9. Adjournment

C. RULES OF DEBATE

1. Chairperson May Debate and Vote: The Chairperson may move, second, and debate from the chair, subject only to the limitations of debate as are by these rules imposed on all members and shall not be deprived of any of the rights and privileges of a member by reason of his/her acting as Chairperson.

2. Getting the Floor; Improper References: Every member desiring to speak shall address the chair and, upon recognition by the Chairperson, shall confine himself/herself to the question under debate, avoiding all personalities and indecorous language.

3. Interruptions: A member, once recognized, shall not be interrupted when speaking unless it shall be to call him/her to order or as otherwise specifically provided. If a member, while speaking, shall be called to order, he/she shall cease speaking until the question of order has been determined, and, if in order, he/she shall be permitted to proceed.

Revised 12/20/2021 5

D. RULES OF ORDER

1. Robert's Rules: Except as otherwise specifically provided in these rules, Robert's Rules of Order as last revised shall guide the proceedings of the Commission in the conduct of meetings thereof.

E. VOTING

1. A vote by Roll Call shall not be required unless a Commissioner specifically request a Roll Call after a motion is made and before the Chairperson calls for the vote. All members present shall vote. Unless a member of the Commission audibly states he/she is not voting, his/her silence shall be recorded as an affirmative vote. An audible abstention shall be recorded as an abstaining vote. A member may abstain from voting only if said member has a conflict of interest.

F. ADDRESSING THE COMMISSION

1. General: Any person desiring to address the Commission shall first secure the permission of the Chairperson and upon permission, give his/her name and address in an audible tone of voice prior to his/her testimony. Any person addressing the Commission shall speak only on items which are within the subject matter jurisdiction of the Commission.

2. Time: Each person addressing the Commission shall limit his/her time as may be directed by the Chairperson. The Commission reserves the right to establish reasonable time limits for discussion or debate.

3. Spokesperson for Groups: Whenever any group of persons wishes to address the Commission on the same subject matter, it shall be proper for the Chairperson to request that a spokesperson be chosen by the group to address the Commission and in the event additional matters are to be presented by other persons in the group, to limit the number of persons so addressing the Commission so as to avoid unnecessary repetitions.

4. Discussions: No person, other than a member and the person addressing the Commission shall be permitted to enter into any discussion with the person addressing the Commission without the pe rmission of the Chairperson. No Agenda items shall be discussed nor shall action be taken on same unless a majority of the Commission votes that the need to take action arose subsequent to the Agenda being posted. If the need to take action did not arise subsequent to the Agenda being posted, the item shall be referred to Staff and/or it shall be placed on the next meeting’s Agenda for discussion and action.

G. DECORUM

1. By Members: When the Commission is in meeting, the members shall preserve order and decorum and no member shall, by conversation or otherwise, delay or interrupt the proceedings or the peace of the Commission nor disturb any member while speaking or refuse to obey the orders of the Commission or Chairperson, except as provided in these rules.

Revised 12/20/2021 6

2. By Other Persons: Any person making personal, impertinent, or slanderous remarks, or who shall become boisterous while address the Commission, shall be forthwith, by the Chairperson, barred from further audience at such meeting, unless permission to continue shall be granted by majority vote of the Commission.

H. COMMISSION DIRECTIVES

1. The Commission shall, from time to time, by directives issued by it, establish procedures for the processing of the business of the Commission within the guidelines established by the City Council of the City of Lodi.

MEETING TYPES/PROCEDURE

A. REGULAR MEETINGS

1. The Parks and Recreation Commission shall hold its regular meetings at 6 :00 P.M. on the first Tuesday of each month in the Carnegie Forum, 305 West Pine Street, Lodi, California, provided, however, whenever the Commission, at a regular meeting, sets a different time and place for its meeting, such meeting shall constitute a regular meeting for all purposes. An Agenda for said meetings(s) shall be forwarded to the City Clerk for posting 72 hours prior to said meeting(s).

B. SPECIAL MEETINGS

1. Special meetings may be called at any time by the Chairperson of the Commission, or by a majority of the members of the Commission, by serving notice 24 hours in advance of the time, place, and purpose of the meeting upon each member of the Commission and by posting an Agenda 24 hours prior to the special meeting.

C. ADJOURNED MEETING

1. Any regular or special meeting may be adjourned to a time and place specified in the order of adjournment.

D. CALL TO ORDER

1. The Chairperson shall take the chair at the time and place appointed for the meeting, and shall call the Commission to order. In the absence of the Chairperson and Chairperson pro tempore, the Director of Parks and Recreation shall call the Commission to order, whereupon a temporary Chairperson shall be appointed from the members present. Upon the arrival of the Chairperson or the Chairperson pro tempore, the temporary Chairperson shall relinquish the chair at the conclusion of the business then before the Commission.

Revised 12/20/2021 7

E. THE BROWN ACT

1. All meetings of the Commission shall be subject to the provisions of the Ralph M.

Brown Act (California Government Code Section 54950 et seq.).

RESOLUTION NO. 2022-____

A RESOLUTION OF THE LODl CITY COUNCIL AMENDING

PARKS AND RECREATION COMMISSION BYLAWS
========================================================================

WHEREAS, the Parks and Recreation Commission bylaws were last amended in 2019; and

WHEREAS, the Parks and Recreation Commission reviewed potential bylaw changes on October 5, 2021, and recommended the City Council adopt various changes to the bylaws; and

WHEREAS, these recommended revisions include permanently changing the start time of Parks and Recreation Commission meetings to 6:00 p.m.

NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby amend the Parks and Recreation Commission Bylaws to those shown in Exhibit A.

Dated: January 19, 2022
========================================================================

I hereby certify that Resolution No. 2022-____ was passed and adopted by the City Council of the City of Lodi in a regular meeting held January 19, 2022, by the following vote:

AYES: COUNCIL MEMBERS –

NOES: COUNCIL MEMBERS –

ABSENT: COUNCIL MEMBERS –

ABSTAIN: COUNCIL MEMBERS –

PAMELA M. FARRIS
Assistant City Clerk

2022-____
Revised 12/20/2021 1

COMMISSION SERVICE AND BYLAWS

LODI PARKS AND RECREATION COMMISSION

PURPOSE, ROLE, SCOPE AND FUNCTION
A. Except as hereinafter specifically defined, the Commission shall have all the powers contemplated by the Education Code Section 10900 et seq., and shall have the power to adopt bylaws, rules and regulations, make recommendations, and advise on various Parks and Recreation operations, services and issues, as necessary in the exercise of its duties.

B. The Commission shall be advisory to the City Council of the City of Lodi in the field of public parks and recreation, but shall have no administrative power or authority to incur any indebtedness or obligation against the City of Lodi.

C. The advisory powers of the Commission shall include, but not be limited to:

1. Recommendations as to the general nature of the parks and recreation program to be provided;

2. Advice and assistance to the Parks and Recreation Director in the preparation of his annual budget;

3. Recommendations as to the means of financing the parks and recreation facilities provided, assist in determining recreation fees and charges for activities, programs and services;

4. Study and recommendation on needed additional parks and recreation facilities; review, develop and recommend capital improvement projects.

THE COMMISSION/COMMISSIONER SERVICE
A. COMMISSION NUMBERS

1. The Commission shall be five (5) members appointed by the Mayor from a list of nominees who are residents of the City of Lodi at the time of their applications, with the approval of the City Council.

B. TERM OF APPOINTMENT

1. Commissioners are appointed for a (4) four -year term of office providing they meet meeting and participation requirements. Should a vacancy arise, the Mayor of the City Council, with Council approval, shall appoint an individual to fulfill the unexpired term of said Commission seat.

Exhibit A
Revised 12/20/2021 2

2. The terms of office for all members of the Commission shall be deemed to run from July 1 of each year.
a. As of January 1, 2020, all Commissioners whose terms expire December 31, 2020, shall have their terms extended to June 30, 2021; and all Commissioners whose terms expire December 31, 2022, shall have their terms extended to June 30, 2023.

3. Any member appointed to fill the vacancy occurring prior to the expiration of the term for which his or her predecessor was appointed shall be appointed for the remainder of such term.

C. REAPPOINTMENT

1. When a term has expired, the Mayor may reappoint an individual or appoint a new individual to a seat on the Commission

THE COMMISSION/COMMISSIONER

A. CHAIRPERSON

1. Election: The Chairperson of the Commission shall be elected by the members thereof by a majority vote of all the members.

2. Term: The term of office of the Chairperson shall be one year and until the election of his or her successor.

3. Duties: The Chairperson shall be the presiding officer of the Commission. He/She shall preserve strict order and decorum at all meetings of the Commission, state questions coming before the Commission, announce the Commission's decision on all subjects, and decide all questions of order; subject, however, to an appeal to the Commission as a whole, in which event a majority vote shall govern and conclusively determine such questions of order. He/She shall vote on all questions and on roll call, his/her name shall be called last.

B. CHAIRPERSON PRO TEMPORE

1. Term and duties: There shall be a Chairperson pro tempore, whose term of office shall coincide with that of the Chairperson, and who shall, in the absence of the Chairperson, perform all the functions and duties of the Chairperson.

2. Election: The Chairperson pro tempore of the Commission shall be elected by the members thereof by a majority vote of all the members.

C. SECRETARY

The Parks and Recreation Director or his/her designee, shall have the duties of Secretary to the Commission. He/She shall be responsible for the keeping of the official transcript of the Commission.

Revised 12/20/2021 3

D. STATEMENTS OF ECONOMIC INTEREST

1. Pursuant to the State of California Political Reform Act, appointees to the Parks and Recreation Commission are required to file with the City Clerk of the City of Lodi, Statements of Economic Interests.

2. Filings must be made annually, at the time of assuming office and at the time of leaving office. All filings are to be made with the City Clerk, are public information and are available for inspection by the public.

MEETINGS AND RULES OF ORDER

A. ROLL CALL

1. Before proceeding with the business of the Commission, the Secretary shall call the roll of the members, and the names of those present shall be entered in the minutes.

B. QUORUM

1. A majority of the Commission constitutes a quorum for the transaction of business (3 of the 5 members).

C. ATTENDANCE

1. A member absent without excuse for three consecutive regular meetings of the Parks and Recreation Commission shall forfeit such office as a Commissioner, unless absence is due to illness.

D. MINUTES

1. Preparation: The minutes of the Commission shall be kept by the Secretary and shall be neatly typewritten in a book kept for that purpose with a record of each particular type of business transacted set up in paragraphs with proper subheadings, provided, however, that the Secretary shall be required to make a record only of such business as was actually acted upon by the Commission, and shall not be required to record any remarks of members or any other person except at the special request of a member, and provided, further that a record shall be made of the names and addresses of persons addressing the Commission, the title of such matter to which the remarks related, and whether they spoke in support of or in opposition to the matter.

2. Distribution: As soon as possible, after each meeting, the Secretary shall cause a copy of the minutes to be forwarded to each member.

Revised 12/20/2021 4

3. Reading: Unless the reading of the minutes of the meeting is requested by a member, such minutes may be approved without reading as each member has previously been furnished a copy thereof.

GENERAL ORDER AND CONDUCT OF BUSINESS

A. AGENDA

1. All reports, communications, and other documents or matters to be submitted to the Commission at their regular meeting shall be delivered to the Secretary not later than seven days prior to the regular scheduled meeting. The Secretary shall prepare an Agenda of all such matters according to the Order of Business and shall furnish each member of the Commission and their staff with a copy of the same prior to the Commission meeting.

The Secretary or his/her designee shall forward a copy of the Agenda to the City Clerk for posting 72 hours prior to said meeting. No item may be added to the Agenda subsequent to the post of same.

B. ORDER OF BUSINESS

1. Roll Call

2. Minutes

3. Comments-Non-Agenda Items

4. Action Items

5. Regular Agenda

6. Correspondence

7. Reports

8. Announcements

9. Adjournment

C. RULES OF DEBATE

1. Chairperson May Debate and Vote: The Chairperson may move, second, and debate from the chair, subject only to the limitations of debate as are by these rules imposed on all members and shall not be deprived of any of the rights and privileges of a member by reason of his/her acting as Chairperson.

2. Getting the Floor; Improper References: Every member desiring to speak shall address the chair and, upon recognition by the Chairperson, shall confine himself/herself to the question under debate, avoiding all personalities and indecorous language.

3. Interruptions: A member, once recognized, shall not be interrupted when speaking unless it shall be to call him/her to order or as otherwise specifically provided. If a member, while speaking, shall be called to order, he/she shall cease speaking until the question of order has been determined, and, if in order, he/she shall be permitted to proceed.

Revised 12/20/2021 5

D. RULES OF ORDER

1. Robert's Rules: Except as otherwise specifically provided in these rules, Robert's Rules of Order as last revised shall guide the proceedings of the Commission in the conduct of meetings thereof.

E. VOTING

1. A vote by Roll Call shall not be required unless a Commissioner specifically request a Roll Call after a motion is made and before the Chairperson calls for the vote. All members present shall vote. Unless a member of the Commission audibly states he/she is not voting, his/her silence shall be recorded as an affirmative vote. An audible abstention shall be recorded as an abstaining vote. A member may abstain from voting only if said member has a conflict of interest.

F. ADDRESSING THE COMMISSION

1. General: Any person desiring to address the Commission shall first secure the permission of the Chairperson and upon permission, give his/her name and address in an audible tone of voice prior to his/her testimony. Any person addressing the Commission shall speak only on items which are within the subject matter jurisdiction of the Commission.

2. Time: Each person addressing the Commission shall limit his/her time as may be directed by the Chairperson. The Commission reserves the right to establish reasonable time limits for discussion or debate.

3. Spokesperson for Groups: Whenever any group of persons wishes to address the Commission on the same subject matter, it shall be proper for the Chairperson to request that a spokesperson be chosen by the group to address the Commission and in the event additional matters are to be presented by other persons in the group, to limit the number of persons so addressing the Commission so as to avoid unnecessary repetitions.

4. Discussions: No person, other than a member and the person addressing the Commission shall be permitted to enter into any discussion with the person addressing the Commission without the pe rmission of the Chairperson. No Agenda items shall be discussed nor shall action be taken on same unless a majority of the Commission votes that the need to take action arose subsequent to the Agenda being posted. If the need to take action did not arise subsequent to the Agenda being posted, the item shall be referred to Staff and/or it shall be placed on the next meeting’s Agenda for discussion and action.

G. DECORUM

1. By Members: When the Commission is in meeting, the members shall preserve order and decorum and no member shall, by conversation or otherwise, delay or interrupt the proceedings or the peace of the Commission nor disturb any member while speaking or refuse to obey the orders of the Commission or Chairperson, except as provided in these rules.

Revised 12/20/2021 6

2. By Other Persons: Any person making personal, impertinent, or slanderous remarks, or who shall become boisterous while address the Commission, shall be forthwith, by the Chairperson, barred from further audience at such meeting, unless permission to continue shall be granted by majority vote of the Commission.

H. COMMISSION DIRECTIVES

1. The Commission shall, from time to time, by directives issued by it, establish procedures for the processing of the business of the Commission within the guidelines established by the City Council of the City of Lodi.

MEETING TYPES/PROCEDURE

A. REGULAR MEETINGS

1. The Parks and Recreation Commission shall hold its regular meetings at 6:00 P.M. on the first Tuesday of each month in the Carnegie Forum, 305 West Pine Street, Lodi, California, provided, however, whenever the Commission, at a regular meeting, sets a different time and place for its meeting, such meeting shall constitute a regular meeting for all purposes. An Agenda for said meetings(s) shall be forwarded to the City Clerk for posting 72 hours prior to said meeting(s).

B. SPECIAL MEETINGS

1. Special meetings may be called at any time by the Chairperson of the Commission, or by a majority of the members of the Commission, by serving notice 24 hours in advance of the time, place, and purpose of the meeting upon each member of the Commission and by posting an Agenda 24 hours prior to the special meeting.

C. ADJOURNED MEETING

1. Any regular or special meeting may be adjourned to a time and place specified in the order of adjournment.

D. CALL TO ORDER

1. The Chairperson shall take the chair at the time and place appointed for the meeting, and shall call the Commission to order. In the absence of the Chairperson and Chairperson pro tempore, the Director of Parks and Recreation shall call the Commission to order, whereupon a temporary Chairperson shall be appointed from the members present. Upon the arrival of the Chairperson or the Chairperson pro tempore, the temporary Chairperson shall relinquish the chair at the conclusion of the business then before the Commission.

Revised 12/20/2021 7

E. THE BROWN ACT

1. All meetings of the Commission shall be subject to the provisions of the Ralph M.

Brown Act (California Government Code Section 54950 et seq.).

AGENDA ITEM C-13
APPR
OVED: _______________________________________
Stephen Schwabauer, City Manager
council/councom/Posting1.doc

CITY OF LODI

COUNCIL COMMUNICATION

TM
AG
ENDA TITLE: Post for Vacancy on Lodi Improvement Committee M
EETING DATE: January 19, 2022
P
REPARED BY: City Clerk
RE
COMMENDED ACTION: P ost for vacancy on Lodi Improvement Committee.

B
ACKGROUND INFORMATION: Due to a recent resignation, there is one vacancy on the Lodi Improvement Committee. It is recommended that the City Council direct the City Clerk to post for this vacancy for a period of 30 days.

Government Code Section 54970 et seq. requires that the City Clerk post for vacancies to allow citizens interested in serving to submit an application.

POSTINGS:

Lodi Improvement Committee
Magdalena Saldana Term to expire March 1, 2024
F
ISCAL IMPACT: Not applicable.

F
UNDING AVAILABLE: Not applicable.
_________________________________

Pamela M. Farris
Assistant City Clerk

AGENDA ITEM C-14
APPR
OVED: ____________________________________
Stephen Schwabauer, City Manager
council/councom/protocolreport.doc

CITY OF LODI

COUNCIL COMMUNICATION

TM
AG
ENDA TITLE: Accept Monthly Protocol Account Report Through December 31, 2021 M
EETING DATE: January 19, 2022
P
REPARED BY: City Clerk
RE
COMMENDED ACTION: Accept Monthly Protocol Account Report through December 31, 2021.

B
ACKGROUND INFORMATION: The City Council, at its meeting of July 19, 2000, adopted Resolution No. 2000-126 approving a policy relating to the City’s “Protocol Account.” As a part of this policy, it was directed that a monthly itemized report of the “Protocol Account” be provided to the City Council.

A
ttached please find the cumulative report through December 31, 2021.

F
ISCAL IMPACT: Not applicable.

F
UNDING AVAILABLE: See attached.
___________________________

Jennifer Cusmir
City Clerk
JC/pmf
Attachment

\\cvcfilv01\administration$\Administration\CLERK\Finance\Misc\ProtocolSummary2021-22.doc Page 1

PROTOCOL ACCOUNT SUMMARY
FISCAL YEAR 2021-22
Cumulative Report through December 31, 2021

Date Vendor Description Amount Balance
Starting Bal.
$6,500.00
10/8/21 Cook’s Printing Name Plates for
Carnegie Forum
$197.83 $6,302.17
9/30/21 Costco Snacks for Council
Meetings
$79.14 $6,223.03
10/5/21 Staples Certificate Holders $23.97 $6,199.06
11/10/21 Creative Trophy &
Engraving
Plaques for Mayor &
Community Service
Awards
$119.28 $6,079.78
11/16/21 Kaylee Clayton Reimbursement for
Frosted Flour
$34.75 $6,045.03
11/23/21 Kaylee Clayton Smart & Final Napkins,
Plates & Cups for
Reorganization
$50.43 $5,994.60
11/23/21 Frosted Flour Desserts for
Reorganization
$114.90 $5,879.70
11/23/21 Save Mart Fruit Trays for
Reorganization
$59.98 $5,819.72
11/23/21 See’s Candy Chocolate for
Department Directors
$269.50 $5,550.22
12/1/21 Save Mart Refund for 1 Fruit Tray ($29.99) $5,580.21 12/1/21 Guiffra’s Wine Glass Rental for
Reorganization
$24.50 $5,555.71

Total
Expenditures:
($944.29)

Ending Bal.
$5,555.71
Prepared by: PMF
AGENDA ITEM C-15
APPRO
VED: ____________________________________
Stephen Schwabauer, City Manager
\\cvcfilv02\pubwks$\WP\COUNCIL\2022\CC Auth Payment for WID CPI Overages.doc 1/10/22

CITY OF LODI

COUNCIL COMMUNICATION
TM
AGE
NDA TITLE: Adopt Resolution Authorizing Payment of Supplemental Invoices to Settle Underpayments Associated with Woodbridge Irrigation District Water Sale Agreement Consumer Price Index Increases Utilizing Banked Water Credits In Lieu of Cash
MEET
ING DATE: January 19, 2022
PRE
PARED BY: Public Works Director
RECOMMENDED ACTION: Adopt Resolution Authorizing Payment of Supplemental Invoices to Settle Underpayments Associated with Woodbridge Irrigation District Water Sale Agreement Consumer Price Index Increases utilizing banked water credits in lieu of cash.

BACKGROUND INFORMATION: In May 2003, the City of Lodi (City) and Woodbridge Irrigation District (WID) agreed to a Water Sale Agreement (Agreement) which allows the City of Lodi to purchase 6,000 Acre-Ft of surface water from the Mokelumne River each year that is treated for municipal use.

Since, there have been three amendments to the Agreement. The Third Amendment of the Agreement executed in 2012, established that WID could increase the water cost each year by the annual change in Consumer Price Index (CPI-W, Unadjusted U.S. Average) published each December up to a maximum of 5%. Between the years of 2011 through 2020, WID had been adjusting the annual cost by a maximum of 2% annually as allowed by the original Agreement and did not consider the additional CPI increases allowed over this time period that fell between 2% and the maximum of 5% as per the 2003 original water purchase agreement.

This billing oversight (identified by WID audit
ors) resulted in WID under billing the City by $227,162.09 between 2011 and 2020 as show n in Exhibit A . The under billing was brought to the City’s attention in March 2021 by letter. Subsequent meetings with the WID General Manager generated a variety of solutions to repay the overage; after which staff brought the item to closed session during the April 21, 2021 Council meeting to discuss options. During closed session, two Council members requested to meet with the WID General Manager to discuss additional options. At this meeting, held last November, it was proposed the City consider repaying the entire overage amount by using banked water credits in lieu of a cash payment as the City has amassed over 53,000 Acre-Ft of banked surface water.

Utilizing banked water credits in lieu of cash payment satisfies WID’s audit review and avoids impacting the Water Utility Fund balance. Staff finds this solution very attractive since it is unlikely the City can utilize all 53,000 Acre-Ft of banked water by the end of the Agreement. The current value of each Acre-Ft of banked water is $255. The amount of banked water credits in Acre-Ft needed to satisfy the under payment of $227,162.09 is 891 Acre-Ft ($227,162.09 / $255 per Acre Ft = 891.83 Acre Ft) leaving a balance of banked water in excess of 44,000 Acre-Ft.

Adopt Resolution Authorizing Payment of Supplemental Invoices to Settle Underpayments Associated with Woodbridge Irrigation District Water Sale Agreement Consumer Price Index Increases Utilizing Banked Water Credits In Lieu of Cash January 19, 2022

\\cvcf ilv02\ pubwks$\WP\COUNCIL\2022\CC Auth Payment for WID CPI Overages.doc 1/10/22 T
he City and WID has developed a very positive working relationship over the years not only related to the water sale agreement, but also with storm drainage and groundwater sustainability. This close relationship greatly benefits the constituents represented by both public entities.

S
taff recommends City Council adopt a resolution authorizing payment of supplemental invoices to settle underpayments associated with Woodbridge Irrigation District Water Sale Agreement Consumer Price Index increases utilizing banked water credits in lieu of cash.

F
ISCAL IMPACT: By Woodbridge Irrigation District allowing the use of banked water credits in lieu of cash, there is no fiscal impact to the City’s Water Fund.

F
UNDING AVAILABLE: N/A
_______________________________

Charles E. Swimley, Jr.

Public Works Director
P
repared by Charles E. Swimley Jr., Public Works Director CES/cs/cd
Attachments
c
c: Woodbridge Irrigation District, Attn: General Manager City Manager
Public Works Director
Utilities Manager, Roberts
Water Treatment Superintendent, Kahrs
Public Works Management Analyst, Areida-Yadav

RESOLUTION NO. 2022-____

A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING

PAYMENT OF SUPPLEMENTAL INVOICES TO SETTLE UNDERPAYMENTS

ASSOCIATED WITH WOODBRIDGE IRRIGATION DISTRICT WATER SALE

AGREEMENT CONSUMER PRICE INDEX INCREASES UTILIZING BANKED

WATER CREDITS IN LIEU OF CASH
========================================================================

WHEREAS, in May 2003, the City of Lodi (City) and Woodbridge Irrigation District (WID) agreed to a Water Sale Agreement (Agreement) which allows the City of Lodi to purchase 6,000 Acre-Ft of surface water from the Mokelumne River each year that is treated for municipal use; and

WHEREAS, there have been three amendments to the Agreement; and

WHEREAS, the Third Amendment of the Agreement executed in 2012, est ablished that WID could increase the water cost each year by the annual change in Consumer Price Index (CPI-W, Unadjusted U.S. Average) published each December up to a maximum of 5%; and

WHEREAS, between the years of 2011 through 2020, WID had been adjus ting the annual cost by a maximum of 2% annually as allowed by the original Agreement and did not consider the additional CPI increases allowed over this time period that fell between 2% and the maximum of 5% as per the 2003 original water purchase agreement; and

WHEREAS, this billing oversight resulted in WID under billing the City by $227,162.09 between 2011 and 2020 and was brought to the City’s attention in March 2021 by letter; and

WHEREAS, it was proposed the City consider repaying the entire over age amount by using banked water credits in lieu of a cash payment as the City has amassed over 53,000 Acre-Ft of banked surface water; and

WHERAS, it is unlikely the City can utilize all 53,000 Acre-Ft of banked water by the end of the Agreement. The current value of each Acre- Ft of banked water is $255. The amount of banked water credits in Acre- Ft needed to satisfy the under payment of $227,162.09 is 891 Acre-Ft ($227,162.09 / $255 per Acre Ft = 891.83 Acre Ft) leaving a balance of banked water in excess of 44,000 Acre-Ft; and

WHEREAS, staff recommends authorizing payment of supplemental invoices to settle underpayments associated with Woodbridge Irrigation District Water Sale Agreement Consumer Price Index increases utilizing banked water credits in lieu of cash.

NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize payment of supplemental invoices to settle underpayments associated with Woodbridge Irrigation District Water Sale Agreement Consumer Price Index increases utiliz ing banked water credits in lieu of cash; and

BE IT FURTHER RESOLVED, pursuant to Section 6.3q of the City Council Protocol Manual (adopted 11/6/19, Resolution No. 2019 -223), the City Attorney is hereby authorized to make minor revisions to the above- referenced document(s) that do not alter the compensation or term, and to make clerical corrections as necessary.

Dated: January 19, 2022
======================================================================== I hereby certify that Resolution No. 202 2-____ was passed and adopted by the City Council of the City of Lodi in a regular meeting held January 19, 2022 by the following vote:

AYES: COUNCIL MEMBERS –

NOES: COUNCIL MEMBERS –

ABSENT: COUNCIL MEMBERS –

ABSTAIN: COUNCIL MEMBERS –

PAMELA M. FARRIS
Assistant City Clerk

2022-____
AGENDA ITEM C-16
APPROVED: ____________________________________
Stephen Schwabauer, City Manager
\\cvcfilv02\pubwks$\WP\PROJECTS\PARKS\LODILAKE\Riverbank Stabilization Project\C_Declaration of Emergency.doc 1/7/22

CITY OF LODI

COUNCIL COMMUNICATION
TM
AG
ENDA TITLE: Adopt Resolution Declaring an Emergency Condition Requiring the Immediate Repair of Mokelumne Riverbank at Lodi Lake Park
MEETING DATE: January 19, 2022
PREPARED BY: Public Works Director
RECOMMENDED ACTION: Adopt Resolution Declaring an Emergency Condition Requiring the Immediate Repair of Mokelumne Riverbank at Lodi Lake Park.

BACKGROUND INFORMATION: A portion of the riverbank on the Mokelumne River that runs along the northern boundary of Lodi Lake Park, has been severely eroded in past years and is threatening park facilities. The erosion has exposed irrigation lines, tree roots, and is causing the collapse of concrete retaining wall structures. The City initiated a State funded project to repair this portion of river in 2019, however, unprecedented delays in the State permitting process has delayed this project for two years.

City Council awarded the Lodi Lake Riverbank Stabilization Project to ASTA Construction Company of Rio Vista on December 1, 2021. While work can proceed outside of the riverbank area at this time, the City is still waiting for the State Land Commission (SLC) approval to allow work to be performed within the riverbank area. This final layer of approval is expected on February 25, 2022.

From final SLC approval (February 25, 2022) to the time Woodbridge Irrigation District (WID) raises the river water level (March 6, 2022), the contractor will only have 10 days to restore the portion of riverbank that lies below the normal river water levels. This tight schedule requires the contractor to work weekends to complete the work on schedule.

The Declaration of Emergency is needed since the rock is sourced from the Amador Quarry which is licensed to operate during weekdays unless there is a declared emergency. If the riverbank restoration cannot be completed prior to WID raising the Woodbridge Dam, this project will be postponed another year allowing further riverbank erosion.

For this reason, Staff recommends City Council adopt a resolution declaring an emergency condition requiring the immediate repair of Mokelumne Riverbank at Lodi Lake Park which will allow the quarry to operate on weekends to supply rock needed for the riverbank restoration.

FISCAL IMPACT: There will be a slight increase in project cost which is within the project contingencies.

FUNDING AVAILABLE: N/A
_______________________________

Charles E. Swimley, Jr.

Public Works Director
P
repared by Lyman Chang, Deputy Public Works Director/City Engineer CES/LC/cd
Attachments
cc: Parks, Recreation, and Cultural Services Director City Manager Public Works Director Public Works Construction Manager, Wiman

RESOLUTION NO. 2022-____

A RESOLUTION OF THE LODI CITY COUNCIL DECLARING AN

EMERGENCY CONDITION REQUIRING THE IMMEDIATE REPAIR

OF MOKELUMNE RIVERBANK AT LODI LAKE PARK
========================================================================

WHEREAS, a portion of the riverbank on the Mokelumne River that runs along the northern boundary of Lodi Lake Park has been severely eroded in past years and is threatening park facilities; and

WHEREAS, the City initiated a State-funded project to repair this portion of river in 2019; however, unprecedented delays in the State permitting process has del ayed this project for two years; and

WHEREAS, City Council awarded the Lodi Lake Riverbank Stabilization Project to ASTA Construction Company, of Rio Vista, on December 1, 2021; and

WHEREAS, work can proceed outside of the riverbank area at this time; however , the City is still waiting for the State Land Commission (SLC) approval to allow work to be performed within the riverbank area. This final layer of approval is expected on February 25, 2022; and

WHEREAS, f rom final SLC approval (February 25, 2022) to the time Woodbridge Irrigation District (WID) raises the river water level (March 6, 2022), the contractor will only have 10 days to restore the portion of riverbank that lies below the normal river water levels , which will require the contractor to work weekends to complete the work on schedule; and

WHEREAS, the Declaration of Emergency is needed since the rock is sourced from the Amador Quarry , which is licensed to operat e during weekdays unless there is a declared emergency; and

WHEREAS, i f the riverbank restoration cannot be completed prior to WID raising the Woodbridge Dam, this project will be postponed another year , allowing further riverbank erosion; and

WHEREAS, staff recommends declaring an emergency condition requiring the immediate repair of Mokelumne Riverbank at Lodi Lake Park , which will allow the quarry to operate on weekends to supply rock needed for the riverbank restoration.

NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby declare an emergency condition requiring the immediate repair of Mokelumne Riverbank at Lodi Lake Park, which will allow the quarry to operate on weekends to supply rock needed for the riverbank restoration.

Dated: January 19, 2022
======================================================================== I hereby certify that Resolution No. 202 2-____ was passed and adopted by the City Council of the City of Lodi in a regular meeting held January 19, 2022 by the following vote:

AYES: COUNCIL MEMBERS –

NOES: COUNCIL MEMBERS –

ABSENT: COUNCIL MEMBERS –

ABSTAIN: COUNCIL MEMBERS –

PAMELA M. FARRIS
Assistant City Clerk
2022-____
AGENDA ITEM C-17

APPROVED: _________________________________
Stephen Schwabauer, City Manager
\\172.22.14.2\pubwks$\WP\UTILITY RATES\W_WW\2022 W_WW Rate Increase\CC SetPH_WaterRates2022.doc 1/5/2022

CITY OF LODI

COUNCIL COMMUNICATION
TM
AG
ENDA TITLE: Set Public Hearing for February 16, 2022, to Consider Adopting Resolution Setting Pre-Approved 2021 Engineering News Record Adjustment Index for Usage-Based and Flat Water Rates for Residential, Commercial, and Industrial Customers MEETING DATE: January 19, 2022
PREPARED BY: Public Works Director
RECOMMENDED ACTION: S et public hearing for February 16, 2022, to consider adopting resolution setting pre-approved Engineering News Record adjustment index for usage-based and flat water rates for residential, commercial, and industrial customers.

BACKGROUND INFORMATION: The City Council has made numerous water rate decisions over the past several years. On March 20, 2019, City Council approved a five-year rate plan in accordance with the Proposition
218 rate setting process. The proposed rate adjustments are needed to generate sufficient revenue to meet projected operation and maintenance costs and debt service obligations, as well as, necessary capital maintenance improvements. The rate plan also included a rate “sunset” that rolled back rates on January 1, 2021 to January 1, 2016 levels. Prior to this rate rollback, there had not been an increase to rates since fiscal year 2018/19.

While the approved five-year rate plan allows for a maximum increase of 3 percent, staff has analyzed the water financial plan and recommends a 2 percent increase. A 2 percent increase will support a healthy reserve balance that is between the recommended level of 50% and the minimum level of 25%. A summary of current and proposed rates for flat-rate and usage-based rate customers is provided in Exhibit A, which reflects a 2 percent increase. For a resident still on the flat rate, the monthly charge for a three-bedroom home will increase from $45.89 to $46.81, or $0.92 per month. A metered resident using an average of 1,500 cubic feet of water per month will see an increase from $36.88 to $37.65, or $0.77 per month. The water utility, due to the foregoing of the January 1, 2020 pre-approved rate increase and implementation of the January 1, 2021 rate rollback, projects fund balances to dip below the 50 percent reserve target starting in Fiscal Years 2024/25.

Staff recommends setting public hearing for February 16, 2022, to consider adopting resolution setting pre-approved Engineering News Record adjustment index for usage-based and flat water rates for residential, commercial, and industrial customers.

FISCAL IMPACT: Increased revenues are required to properly fund capital maintenance, and to keep up with cost of service increases.

FUNDING AVAILABLE: Not applicable.
_______________________________

Charles E. Swimley, Jr.

Public Works Director

Prepared by Rebecca Areida-Yadav, Public Works Management Analyst CES/RAY/cd
Attachment

Current
(Jan. 2021)
Proposed Rates
(Feb. 2022)
Rate Increase --> 2.0%

FLAT RATES
Single Family Residential
1 Bedroom 31.88 $ 32.52$
2 Bedroom 38.29 $ 39.06$
3 Bedroom 45.89 $ 46.81$
4 Bedroom 55.14 $ 56.24$
5 Bedroom 66.13 $ 67.45$
6 Bedroom 79.37 $ 80.96$
7 Bedroom 95.17 $ 97.07$
Multi-Family (1)
1 Bedroom 27.37 $ 27.92$
2 Bedroom 32.83 $ 33.49$
3 Bedroom 39.40 $ 40.19$
Mobile Homes .

Any Size 27.37 $ 27.92$
Non-Residential
Existing unmetered Varies 3.000%
Notes:
(1) Multi-family includes duplexes, triplexes, fourplexes, apartments, and condominiums.

Exhibit A
City of Lodi
Current and Proposed Flat Water Rates
Current
(Jan. 2021)
Proposed Rates
(Feb. 2022)
Rate Increase --> 2.0%

USAGE-BASED RATES
Monthly Service Charge
Single Family
Up to 3/4" meter 21.23$ 21.65$
1" meter 33.34 $ 34.01$
1 1/2" meter 63.35 $ 64.62$
2" meter 99.53 $ 101.52$
Multi-Family and Non-Residential (1)
Up to 3/4" meter 21.23$ 21.65$
1" meter 33.34 $ 34.01$
1 1/2" meter 63.35 $ 64.62$
2" meter 99.53 $ 101.52$
3" meter 183.98 $ 187.66$
4" meter 304.59 $ 310.68$
6" meter 605.85 $ 617.97$
8" meter 967.52 $ 986.87$
10" meter 1,389.57 $ 1,417.36$
Usage Rates ($/CCF)
Single Family
Tier 1 (0-10 CCF) 0.94$ 0.96$
Tier 2 (11-50 CCF) 1.25$ 1.28$
Tier 3 (>50 CCF) 1.55$ 1.58$
Multi-Family and Non-Residential (1)
All water usage 1.12 $ 1.14$
Notes:
(1) Multi-family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.

City of Lodi
Current and Proposed Usage-Based Water Rates
AGENDA ITEM H-01
APPR
OVED: __________________________________
Steve Schwabauer, City Manager

CITY OF LODI

COUNCIL COMMUNICATION

TM
AG
ENDA TITLE: Adopt Resolution of Intention Approving an Amendment to the Contract Between the Board of Administration of the California Public Employees’ Retirement System (PERS) and the City of Lodi and Introduce Ordinance Amending the Contract Between PERS and the City of Lodi With Regard to Providing Government Code Section 20516 (Employees Sharing Additional Cost) of an Additional 3% for Local Miscellaneous Members in the Unrepresented Confidential Mid- Management Group, Unrepresented Confidential General Services Group, Unrepresented Executive Management Group and Unrepresented Council Appointees Group M
EETING DATE: January 19, 2022
P
REPARED BY: Human Resources Manager
RE
COMMENDED ACTION: Adopt Resolution of Intention approving an amendment to the contract between the Board of Administration of the California Public Employees’ Retirement System (PERS) and the City of Lodi and introduce ordinance amending the contract between PERS and the City of Lodi with regard to providing Government Code Section 20516 ( Employees Sharing Additional Cost) of an Additional 3% for Local Miscellaneous Members in the Unrepresented Confidential Mid- Management group, Unrepresented Confidential General Services group, Unrepresented Executive Management group and Unrepresented Council Appointees group.

B
ACKGROUND INFORMATION: Pursuant to Resolutions 2019-287, 2020-16, 2020-32, and 2021 - 332 Local Miscellaneous Members in the Unrepresented
Confidential Mid-Management group, Unrepresented Confidential General Services group, Unrepresented Executive Management group and Unrepresented Council Appointees group agreed to a n additional cost sharing agreement of three percent (3%); whereby, the employee agreed to contribute to the City’s normal contribution to CalPERS, in addition to the 3% cost sharing they were already contributing.

A
lthough the employees have already agreed to the cost sharing, and have been contributing as agreed upon, CalPERS requires an amendment to our c ontract specifically for the Unrepresented groups listed above. There are various steps in the process to amend the contract between CalPERS and the City .

The first step is to adopt the Resolution of Intention and to introduce the Ordinance amending the contract. The second step is the final reading and adoption of the Ordinance, scheduled to occur on February 16, 2022. If adopted, the contract will be amended effective March 21, 2022 . The intent of the amendment is to require CalPERS to credit those extra contributions to the employee’s personal account.

F
ISCAL IMPACT: There is no cost associated with this action. By approving the contract amendment, the City Council will be allowing the Unrepresented Confidential General Services group, Unrepresented Executive Management group and Unrepresented Council

Appointees group to have the additional three percent (3%) employer contribution credited to their individual account rather than the City account. This is similar to all other cost -sharing arrangements the City has with other bargaining groups.

FUNDING AVAILABLE: Not applicable.

_______________________________
Adele Post,
Human Resources Manager

_______________________________
Andrew Keys,
Deputy City Manager/Internal Services Director
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AGENDA ITEM H-02
APP
ROVED: ________________________________________
Stephen Schwabauer, City Manager

CITY OF LODI

COUNCIL COMMUNICATION

AG
ENDA TITLE: Receive and File City’s Annual Comprehensive Financial Report (Fiscal Year 2020/21) by The Pun Group
M
EETING DATE: January 19, 2022
P
REPARED BY: Accounting Manager
RE
COMMENDED ACTION: Receive and file the following reports and financial statements submitted by The Pun Group, LLP and the Internal Services Department for Fiscal Year 2020/21:

B
ACKGROUND INFORMATION: The annual audit was conducted to assure the City Council and other interested parties that the City’s financial records and reports are prepared in accordance with generally accepted accounting principles (GAAP), that internal controls are adequate to safeguard the City against loss from unauthorized use or disposition of assets and that the City has compiled with all agreements and covenants to obtain grant funds and debt financing. The Pun Group, LLP issued an “unqualified opinion.” Vanessa Burke, Managing Partner of the Pun Group, LLP and Kenneth Pun, Managing Partner of the Pun Group, LLP will be present over zoom to answer questions during the Council meeting.

T
he reports will be provided to federal and State oversight agencies, bond trustees and insurance companies for their review and evaluation. Copies of the reports are provided to the City Council and also available to the public by contacting the Financial Services Division or the City’s website at www.lodi.gov and at the Lodi Public Library.

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he City received a Certificate of Achievement for Excellence in Reporting from the Government Finance Officers Association of United States and Canada (GFOA) for the 28th year. A copy of the GFOA certificate is included in the 2020/21 financial reports.

FI
SCAL IMPACT: By law and good management practice, the City’s financial records are audited by independent auditors according to Generally Accepted Auditing Standards. Well-maintained financial records are the cornerstone by which the City fulfills its fiduciary responsibilities to the public.

F
UNDING AVAILABLE: Not applicable.
__________
________________________
Melissa Munoz, Accounting Manager
__________
________________________
Andrew Keys, Deputy City Manager

A N N U A L

C O M P R E H E N S I V E

F I N A N C I A L R E P O R T
F O R T H E Y E A R E N D E D J U N E 3 0 , 2 0 2 1 FY 2021
W W W . L O D I . G O V

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ALAN NAKANISHI, MAYOR, DISTRICT 1

MARK CHANDLER, MAYOR PRO TEMPORE, DISTRICT 2
DOUG KUEHNE, COUNCIL MEMBER, DISTRICT 3
SHAK KHAN, COUNCIL MEMBER, DISTRICT 4
MIKEY HOTHI, COUNCIL MEMBER, DISTRICT 5

STEVE SCHWABAUER, CITY MANAGER

Prepared by the Financial Services Division
Melissa Munoz, Accounting Manager
Robin Xiang, Supervising Accountant
Harron Akbar, Accountant

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I N T R O D U C T O R Y

S E C T I O N
( U N A U D I T E D )
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INTRODUCTORY SECTION (UNAUDITED)
Table of Contents.............................................................................................................. ........................................ i Letter of Transmittal ................................................................................................................................................. iii Certificate of Achievement for Excellence in Financial Reporting ......................................................................... xiv City of Lodi Organization Chart ............................................................................................................................... xv Mayor and Council ................................................................................................................................................... xvi Advisory Bodies and Directory of Officials ............................................................................................................. xvii

FINANCIAL SECTION
Independent Auditor’ s Report ................................................................................................................................. 1 MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) ....................................................... 5 BASIC FINANCIAL STATEMENTS ............................................................................................................ 15 Government-Wide Financial Statements ............................................................................................................ 17 Statement of Net Position .............................................................................................................................. 19 Statement of Activities .................................................................................................................................. 20 Fund Financial Statements ................................................................................................................................. 23 Balance Sheet – Governmental Funds ........................................................................................................... 27 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position .................... 28 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ................... 29 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ...................................................................................... 30 Statement of Net Position – Proprietary Funds .............................................................................................. 31 Statement of Revenues, Expenditures, and Changes in Net Position – Proprietary Funds ............................ 33 Statement of Cash Flows – Proprietary Funds ............................................................................................... 35 Statement of Fiduciary Net Position – Private – Purpose Trust Funds .......................................................... 39 Statement of Changes in Fiduciary Net Position .......................................................................................... 40 Notes to Basic Financial Statements .................................................................................................................. 41 REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) ....................................................... 85 Schedule of Changes in Net Pension Liability and Related Ratios – Miscellaneous Plan ............................. 87 Schedule of Changes in Net Pension Liability and Related Ratios – Safety Plan ......................................... 89 Schedule of Pension Contributions ................................................................................................................ 91 Schedule of Changes in Net OPEB Liability and Related Ratios .................................................................. 93 Schedule of Employer OPEB Contributions .................................................................................................. 94 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General Fund ................................................................................................................................................. 95 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Streets Fund ................................................................................................................................................... 96 Note to the Required Supplementary Information ......................................................................................... 97 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES ..................................... 99 Nonmajor Governmental Funds ..................................................................................................................... 101 Combining Balance Sheet – Nonmajor Governmental Funds ....................................................................... 103 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds ...................................................................................................................................... 104 Nonmajor Governmental Funds – Special Revenue Funds ........................................................................... 105 Combining Balance Sheet – Nonmajor Governmental Funds – Special Revenue Funds .............................. 106 i

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Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Nonmajor Governmental Funds ...................................................................................................................................... 108 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Nonmajor Governmental Funds – Special Revenue Funds:

Parks, Recreation, and Community Services Fund .................................................................................. 110 Public Safety Fund ................................................................................................................................... 111 Community Development Fund ............................................................................................................... 112 Transportation Fund ................................................................................................................................. 113 Special Assignments ............................................................................................................................... 114 HOME Program and Community Development Block Grants Fund....................................................... 115 Nonmajor Governmental Funds – Capital Project Fund .......................................................................... 117 Combining Balance Sheet – Nonmajor Governmental Funds – Capital Projects .................................... 119 Combining Satement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds – Capital Projects .................................................................................................. 121 Internal Service Funds ............................................................................................................................. 123 Combining Statement of Net Position – Internal Service Funds ............................................................. 125 Combining Statement of Revenues, Expenditures, and Changes in Net Position – Internal Service Funds ....................................................................................................................................................... 126 Combining Statement of Cash Flows – Internal Service Funds ............................................................... 127 Fiduciary Funds ....................................................................................................................................... 129 Combining Statement of Fiduciary Net Position – Private – Purpose Trust Funds ................................. 131 Combining Statement of Changes in Fiduciary Net Position – Private – Purpose Trust Funds .............. 132

STATISTICAL SECTION (UNAUDITED)
Government-Wide Information:

Net Position by Component – Last Ten Fiscal Years .......................................................................... 136 Changes in Net Position – Last Ten Fiscal Years ................................................................................ 138 Fund Information:

Fund Balances, Governmental Funds – Last Ten Fiscal Years ........................................................... 142 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years ..................................... 144 Tax Revenues by Source, Governmental Funds – Last Ten Fiscal Years .............................................. 146 Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years .................. 148 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years .................................................... 150 Principal property Taxpayers – Current Year and Nine Years AGo ...................................................... 151 Property Tax Levies and Collections – Last Ten Fiscal Years ............................................................... 152 Electricity Sold by Type of Customer – Last Ten Fiscal Years .............................................................. 153 Ratios of Outstanding Debt by Type ...................................................................................................... 154 Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years ................................................... 155 Legal Debt Margin Information – Last Ten Fiscal Years ....................................................................... 156 Direct and Overlapping Governmental Activities Debt .......................................................................... 158 Pledged-Revenue Coverage – Last Ten Fiscal Years ............................................................................. 159 Demographic and Economic Statistics – Last Ten Fiscal Years ............................................................. 160 Principal Employers – Current Year and Nine Years Ago ..................................................................... 161 Full-Time Equivalent City Government Employees by Department – Last Ten Fiscal Years ............... 162 Operating Indicators by Function/Program/Department – Last Ten Fiscal Years .................................. 163 Capital Asset Statistics by Function/Program/Department – Last Ten Fiscal Years .............................. 165 ii

CITY COUNCIL
ALAN NAKANISHI , Mayor

MARK CHANDLER,
Mayor Pro Tempore

MIKEY HOTHI

SHAK KHAN

DOUG KUEHNE

CITY OF LODI
2015 “Wine Region of the Year”
CITY HALL, 221 WEST PINE STREET
P.O. BOX 3006
LODI, CALIFORNIA 95241- 1910
(209) 333- 6702 / FAX (209) 333- 6807
www.lodi.gov [email protected]

STEPHEN SCHWABAUER
City Manager

JENNIFER CUSMIR
City Clerk
JANICE D. MAGDICH
City Attorney

December 31, 2021

Honorable Mayor, Members of the City Council:

I am pleased to present the City’s Annual Comprehensive Financial Report (AC FR) for the fiscal year (FY) ended June 30, 2021.

State law requires that every general purpose local government publish, within six months of the close of each fiscal year, a complete set of audited financial statements. This report fulfills that requirement for the fiscal year (FY) ended June 30, 2021.

Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements.

The data in this report is presented in a manner that is designed to fairly set forth the financial position and results of operations of the City of Lodi (the City). It contains the disclosure necessary to promote in- depth understanding of the City’s financial affairs and evaluate its financial condition.

The Cit y’s financial statements have been audited by The Pun Group, LLP located in Walnut Creek, California. The independent auditors concluded, based on their audit, that there was a reasonable basis for rendering an unmodified (or “clean”) opinion that the Ci ty of Lodi financial statements for the fiscal year (FY) ended June 30, 202 1 are fairly presented in conformity with generally accepted accounting principles. The independent auditor’s report is the first item presented in the financial section of this report.

In addition to the financial audit, each year the City is required to undergo an audit of federal grant expenditures. That r eport is commonly referred to as a Single Audit report and is issued as a separate document and is not included herein. T he Single Audit report includes the Schedule of Expenditures of Federal Awards, Findings and Recommendations, and an auditor’s report on the internal control structure and compliance with applicable laws and regulations.

The provisions of Governmental Accounting Standards Board (GASB) State 34, “Basic Financial Statements -and Management’s Discussion & Analysis” (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with the MD&A, which can be found immediately following the report of the independent auditors in the financial section of the ACFR.

Profile of the City of Lodi

The City of Lodi, was incorporated December 6, 1906, as a municipal corporation under the general la ws of the State of California. The City of Lodi is located on the northern boundary of San Joaquin County. The City of Lodi is a General Law City and has the power to make and enforce ordinances and regulations with respect to municipal affairs to the ext ent expressly permitted or implied by the California constitution or specific legislation. The City government is organized under the Council-Manager form of government. The five- member City Council is elected by district by its voters for overlapping fo ur- year terms, with no term limits. Each year the Mayor and Mayor Pro- Tempore are chosen by the members of the City Council. The Mayor presides at Council meetings and acts as the ceremonial head of the City, the Mayor Pro Tempore serves as Mayor in his or her absence. The City Manager is responsible for carrying out the policies and ordinances of the City Council, for appointing department heads, and overseei ng the operations of the City. The City Manager, City Attorney and the City Clerk are appointed by the City Council.

iii
The City Council is responsible for adopting the budget on or before June 30 each fiscal year. The level of budgetary contro l (that is, the level at which expenditures cannot legally exceed the appropriated amount) is maintained at the fund level. The City Manager is responsible for the preparation of the budget and its implementation after adoption. The City Council has the authority to amend the budget at any time during the year. The City Manager may transfer resources within a fund.

Supplemental appropriations and budget transfers between funds and projects, however, need approval from the City Council. During fiscal year 2020-21, the City Council and City Manager made several supplemental appropriations for operating budgets and capital projects.

T
he City, with 412 full time equivalent employees, provide a wide rant of services to a residential population 68,751. These service include public protection (police and fire), public utilit ies services (electric, water, and wastewater), public works, transit services, parks and recreation, library, community development, and general government (City Manager, City Clerk, City Attorney, human resources, information systems, financial services, and budget and treasury).

T
he City is also financially accountable for the following legally separate reporting entity the Lodi Public Financing Authority (LPFA), which are reported within the City’s financial statements as a blended component unit. Additional information on thi s legally separate entity can be found in the notes to the financial statements (see Note 1A).

Local Economy
T
he information presented in the financial statements is perhaps better understood when it is considered from the broader perspective of the specific environment within which the City operates.

The City of Lodi is located in California’s fertile San Joaquin Valley, adjacent to State Highway Route 99, between Stockton, 10 miles to the south, and Sacramento, 35 miles to the north. The City populati on is estimated at approximately 68,800 and is contained in an area of 13.98 square miles. The City has grown steadily since incorporation in 1906. The City’s growth is provided for in both the General Plan and the City’s Growth Management Allocation Ordinance that allows an increase in population of 2% per year until the growth limits are reached.

T
he City is built on a strong and diverse local economy . Lodi is best known for its Zinfandel wines; however, Lodi is an authentic and dynamic wine region with more than 80 wineries within 10 miles of downtown. The City’s employment base is just as diverse with industry that includes agribusiness, biotechnology, distribution, food and beverage product manufacturing, general service, government, health care, heav y manufacturing, and of course, wine based tourism and lodging.

I
n addition, the City has a wide range of small, financially sound businesses that add to the economic strength of the City.

These companies range in s ize from approximately 10 to 3,500 employees and produce a wide variety of products, services and commodities.

T
he City is growing. Over the last few years it has seen significant new commercial, industrial and residential development projects come to fruition. The past few years have seen a n average 200 new single family homes constructed and sold. The City has entitled and granted growth allocations for more than 2,000 residential lots, providing for consistent residential growth over the next eight to ten years. The City’s first market rate apartment complex in over 25 years has completed construction and is fully rented. A 150 unit senior apartment complex has completed construction and is now open for occupancy. The City has also seen significant investment in expanding existing commercia l developments. All this activity is a positive indicator for the City moving forward. The City’s focus on economic development, compact development and quality of life has encouraged these investments within the City, collectively creating hundreds of new employment and housing opportunities.

E
ven in the face of the COVID -19 pandemic, the most difficult budget issue facing the City is the California Public Employees’ Retirement System (CalPERS) funding crisis. The City is well aware of this challenge a nd is taking aggressive steps to address this concern. The City approved a Pension Stabilization Funding Policy in 2017 that requires unassigned reserves in excess of the General Fund target be invested at Public Agency Retirement System (PARS) in an IRS S ection 115 irrevocable trust known as a Pensi on Rate Stabilization Program (PRSP) . The City has amassed over $20 million in this fund to offset future pension costs. Non General Funds must contribute their proportional share to the trust as well. Due to t he COVID-19 pandemic, the iv
City Council suspended this policy for fiscal year 2020-21, but it was reinstated with the adoption of the fiscal year 2021-22 budget. Lodi’s General Fund revenues performed exceptionally well during the pandemic, resulting in si gnificantly better than expected fiscal year 2020-21 results. Substantial additional contributions to the PRSP will be made at what is estimated to be the highest annual level since the policy was adopted. More details can be found in the Economic Factors and Next Year’s Budget section of the Management’s Discussion and Analysis in this report.

M
easure L, the City’s general purpose sales tax approved by voters in 2018, continues performance above expectations. In large part because of Measure L, the City in February 2021 was able to restore all seven positions in the police department frozen at fiscal year 2020-21 budget adoption. More details can be found in the Economic Factors and Next Year’s Budget section of the Management’s Discussion and Analysis in this report.

Economic Development
The City of Lodi is a city of many cultures, skill levels and political and social orientations; yet its citizens are inspire d by a shared vision and the certainty that this city of the north Central Valley is specia l. Lodi, deep -rooted in California’s wine country, is giving rival Napa Valley a run for its money. Lodi has been a major wine grape growing region since the 1850s and today, the area has 100,000 acres of wine grapes farmed by over 750 growers. Lodi is be st known for its full-bodied Old Vine Zinfandel wines. There are six major wineries in the area —Robert Mondavi Woodbridge, Michael David, Turner Road Vintners, Sutter Home Winery, Bear Creek Winery and Oak Ridge Winery. More than 60 leading California wineries buy grapes from our region including E&J Gallo, Constellation, Fetzer, Delicato, Napa Ridge, Rave nswood and Beringer. Even the City’s industrial sector makes way for wine. Northeast of downtown Lodi is the Lodi Wine and Business Center. This forme r winery has been converted to industrial space, a warehouse, office and wine cooperage. This busy industrial setting offers lined wine storage tanks and chiller capacity for millions of gallons of local wine.

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n recent decades, Lodi’s agricultural roo ts have evolved. Lodi has developed an emerging concentration of related manufacturing businesses who depend on reliable and affordable electric power, ample water, efficient transportation, affordable real estate, and access to markets to control costs and prosper.

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n addition to the robust viticulture, Lodi’s economic drivers include manufacturers of rapid molecular diagnostic systems, consumable plastics for use in research laboratories, the world’s largest manufacturer of foam cups and disposable containers, and food manufacturing. Over the next five years, the compound annual growth rates of these industries is estimated to be 4.8 percent, 6.2 percent, and 11.2 percent, respectively.

A
little over a year and a half ago, big cities were in, bustling with a prosperity they hadn’t seen in many years. Then came the lockdown attributable to COVID and many downtowns, including Lodi’s , found themselves struggling. While it’s true that office-based, university and hospitality- centric cities were hit hard b y the stay at home mandate, the City of Lodi showed signs of resilience. Although restaurants and bars did close to indoor use, the City assisted as many establishments as it could, by participating in the successful Great Plates program, a meals delivery program for senior citizens, which also served as a restaurant stimulus program. Wherever possible, restaurants were permitted to set up outdoor dining by occupying wider swaths of the public right of way onto streets and sidewalks. In addition to a buoyant restaurant industry, the local economy fared better because of its variegated industry sectors. To help stimulate the local economy, the City offered smal l business grants to businesses faced with closing their doors, and provided over $3 million in financial assistance to help pay utility bills across customer classes.

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t is expected the pandemic will significantly change how Americans live and work. According to the real estate site Zillow, Americans are seeking out less expensive regions and more square feet of living space.

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n June 2021, Lodi home prices were up 15.3 percent compared to last year, selling for a median price of $481,000. According to Redfin, another full -service real estate brokerage firm, on average, homes in Lodi sold after about 7 days on the market compared to 30 days last year. Many homes get multiple offers and 73.6 percent of homes sold above the list price in 2021 compared to a year ago.

L
odi is a large submarket relative to the national average and contains about 12.2 million square feet of industrial space. The overwhelming majority of inventory remains full and the net absorption over the past year is substantially above the five yea r v
average. Industrial rents are slightly above the metro average, and the 12-month rent growth is 5.5 percent. The vacancy rate is currently about 2.4 percent. Multi-family, retail, and office rents all experienced greater than average rent growth and slightly below average vacancy rates over the last 12 months.

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n March 2021, Lodi published its first development prospectus which serves as a “prequalification statement” for a city to attract capital and drive smart investments. The prospectus presents a granular assessment of our competitive position which merits the additional appl ication of new capital either from existing investors or external investors. The development prospectus provides authentic evidence of the deployment of private capital which is happening now in Lodi. In addition to labor and demographic statistics, the development prospectus gives our market strengths, our challenges, a view of Lodi’s catalytic private investments, and recommendations for growth in the near term.

Key Labor and Demographic Statistics
A
fter population growth, wage growth is an important private sector location factor. It determines what kinds of jobs are being created and at what point workers begin to reap the benefits of economic growth. The Economic Policy Institute’s growth target for wages is 3.5 to 4 percent year over year. Lodi’ s wage growth is approximately 2.2 percent per year which indicates growth below the target. Next to wage growth, job growth ranks high as a locational factor. According to the Bureau of Labor Statistics, Lodi’s job growth is also about two percent per y ear which is a growth rate a little higher than average.

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n 2020, Lodi’s local economy employed just over 33 thousand people. Since 2016, the employment rate grew at a rate of about 2.05 percent per year. The 2020 Occupational Employment and Wage Statist ics, U.S. Bureau of Labor Statistics reports the most common employment sectors for those who live in Lodi were Education, Health Care & Social Assistance (8,325 people), and Finance, Insurance, Real Estate, Rental, and Leasing (6,656 people). Other comm on employment sectors were Retail (4,408), Manufacturing (3,498), Arts, Entertainment, Recreation, Accommodation and Food Services (2,489) and Professional, Scientific, Management (1,519). In raw numbers, the biggest increases since 2016 have been in 1) finance, insurance and real estate, 2) wholesale trade, 3) education, health care, and social assistance, and 4) manufacturing. The biggest declines have been in agriculture, construction, transportation and warehousing.

T
he highest paid employment sectors are Management Occupations, Legal Occupations, and Healthcare Practitioners with 2020 mean annual earnings of $116,000, $109,060, and $103,000, respectively. The lowest paid employment sectors reported are Farming, Food Preparing and Service-related occupations, and Healthcare Support with mean annual earnings of $31,360, $32,230, and $33,350, respectively. Mean annual wages for Production -related occupations were $42,250 and $40,470 for Transportation/Material Moving.

Fr
om 2019 to 2020, the median household income in Lodi was $59,151. In June 2021, Lodi home prices were up 15.2 percent, compared to last year, and the median price of a home is $481,000. The homeownership rate remains unchanged from June 2020 to June 2021 at 57 percent. Of Lodi’s population 25 years and older in 2020, 34.24 percent held Associate’s degrees or higher, and 19.2 percent held Bachelor’s degrees or higher.

Lodi by the Numbers
E
conomic and business indicators which provide data at the city level are not abundant. Most data from traditional data sources like the U.S Census Bureau and U.S Department of Labor assemble and publish data at the MSA and county level.

However, the Lodi Development Prospectus provides valuable business data from a variety of sources which authenticates Lodi as a sustainable business location. For example, the U.S. Patent Office reports that from 2017 -2020, an average of 17.6 patents were issued to entrepreneurs in Lodi. The Small Business Administration (SBA) reports that from 2017 -2019, small business loan activity was $34.7 million. Pitchbook, a venture capital, private equity and merger/acquisition database, reve als that since 2018, $10.87 million in venture capital has been deployed in Lodi. The Opportunity Atlas, a collaboration between researchers at the Census Bureau and Harvard University researching social mobility, reports the upward mobility rate in Lodi is currently 19 percent. An upward mobility rate is a rate at which an individual moves to an increased socioeconomic status .

The City of Lodi reports that public infrastructure spending from 2015 -2020 was $12 million from local sources, and building permits were up 12 percent. Lodi’s FY 2021-25 Capital Improvement Budget is $108.8 million. This represents an expenditure of $1,601 per capita in public infrastructure spending, the highest among per capita spending among Sacramento, Modesto, vi
Fresno, and Roseville.

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n addition to economic data, site selectors determine car collision rates and crime statistics in a specific geographic area before making a site selection. The reasons are obvious to business. The economic costs of car collisions and crime are los t productivity, medical costs, legal and court costs, congestion, and workplace losses. Car collision rates in Lodi decreased 66 percent from 2015 to 2020. The crime index lowered from 330.6 to 236.1 during the same time period.

Market Strengths
I
n addition to steady job growth, other market strengths serving to attract investment to Lodi includes direct transportation access to major state and interstate corridors, rail access, adjac ency to cargo -centric Stockton Regional Airport and Sacramento International A irport, and contiguousness to the Port of Stockton. These strengths provide for proximity to markets and proximity to a highly functioning supply chain.

L
odi owns its own electric utility providing highly reliable power, and administers its own water and wastewater utility delivering high quality and an abundant supply of potable water to Lodi’s service territory. G overned locally, these utilities strive to keep costs low to increase business profits.

Challenges
T
he primary business location factor today is workforce. While population growth has been consistent, a concern to new and existing businesses is the tale nt pipeline. The growth of the 15 to 22 age group has been flat since 2010. Conversely, the group retiring soon (ages 60 and over) has been slowly but steadily increasing.

E
ducational attainment, the share of the population with an associates or bachelor’s degree, is below the statewide average.

However, from 2010 to present, there has been a slow but steady increase in the share of population with a college degree.

A
bout 17 percent of Lodi’s population live below the poverty level. The statewide average is about 15 percent.

L
odi and San Joaquin County are addressing industry skills needs through collaborative efforts among Lodi Unified School District, San Joaquin County WorkNet, University of the Pacific (UOP), San Joaquin Delta Community College, a nd San Joaquin Building Trades Council.

Catalytic Investments
M
ore than $502.4 million in private investment will be invested within the city limits between 2014 and 2024. Supporting this private investment, is an $87.5 million public investment in publ ic infrastructure during the same timeframe. In Lodi’s industrial sector East of SR- 99, Cepheid, a rapidly -growing manufacturer of molecular diagnostic systems, is adding at least 175,000 sf of new production space and will add over 2 ,500 new jobs in Lodi by 2024. The investment capital added is $250 million.

Re
cent construction activity in downtown across from the new restaurant, retail and office sector is estimated to be $8.6 million since 2018.

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n the Northeast, the City has been anxiously awaiting the progression of The Lakehouse, a high value mixed -use of hospitality, retail and residential valued at $65 million. Currently in the environmental review stage, the groundbreaking i s expected to be in 2022.

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n the near east, the iconic Sunset Theater is undergoing renovation. Set to drastically change the landscape of Lodi Avenue, the new Sunset on Ave will bring thousands back to Lodi to recapture a bit of the past while enjoying present -day entertainment and retail . The Sunset on Ave will add near ly 21,000 sf of entertainment venue at an estimated cost of $5 million.

O
n the City’s South side, a new Marriott Residence Inn is in the planning and development stage. The completion of this vii
hotel will cost $13.4 million.

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n early 2021, a 150 unit mark et-rate apartment complex was completed at a cost of $28 million. Adjacent to Reynolds Ranch, the newest of Lodi’s mixed -use developments, LaVida Apartments of Lodi offers contemporary living and resort -style amenities to active seniors. Contiguous to LaVida, is Oakmont Assisted Living, an 80 unit facility valued at $10 million.

B
y year-end 2021, a new luxury non- age restricted multi-family rental development will commence construction on the City’s Southwest side. Targeted for completion in 2023, this development will add $30 million in value.

W
hile new market rate multi-family units are relatively new to the residential market in Lodi, its single family development in 2021 is unprecedented. In 2021, construction will start on over 1, 400 market-rate single family homes valued at $65 million.

The estimated completion date for these additions is 2024.

Recommendations to Sustain Business and Stimulate Growth B
ased upon the Lodi Development Prospectus, a number of recommendations have been made to sustain business and stimulate greater growth. First, rebuild and expand fiber connectivity for speed, cloud access, reliability, signal strength and security. Second, increase Lodi’s size by strategic annexation adjacent to major transportation corridors. Third, explore economic development incentives which build on existing incentives. Fourth, connect local business with greater export resources. Fifth, develop a small business center satellite in partnership with the existing San Joaquin County SBDC. Si xth, expand on the current Brownfield Program to include market studies, cleanup and demolition. And last, but not least, invest in the availability of economic, labor, demographic, and industry data sources to provide interested investors and site selectors in Lodi as a location to deploy investment capital.

MAJOR GOALS, OBJECTIVES AND PROJECTS
T
o assist the citizens of the City in understanding where the City intends to allocate available resources, the City Council, the City Manager and Department Hea ds established in 2004 a hierarchy of major aspirational goals, objectives and majo r projects that support and rei nforce the City’s mission statement. Council then set project specific goals at a series of workshops in 2016.

1. ) Aspirational Goals
F
our major City goals were established as policy direction and focal points for the efforts of City staff.

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hese goals include:
• Ensure a High Quality of Life and a Safe Environment for Citizens, • Ensure Efficient and Productive City Organization,
• Ensure Public Trust, and
• Ensure the Development of the Lodi Economy for a Fiscally Sound City Organization. viii
City Council, the City Manager and Department Heads established nineteen major City objectives:
• M
aintain City’s Sense of Community
• Provide Employee Training and Education
• Provide for a Balanced Community
• Evaluate Telecommunications Opportunities
• Enhance Access through Implementation of IT
Strategic Plan
• Provide Resources to Maintain City’s
Infrastructure
• Promote Urban Forestry
• Promote Public Relations and Marketing
Efforts
• Attract, Retain and Invest in a Quality City
Work Force
• Ensure Open and Accessible Public Meetings
• E
ncourage Public Arts, Cultural and
Re
creational Opportunities
• Pursue Efforts to be Entrepreneurial
• Provide Appropriate and Sufficient City
Fa cilities
• I mprove Customer Service
• D evelop Short and Long Range Operational
Plans
• Continue to use Partnerships to Advance City’s
Objectives
• Develop Effective Records Management
Program
• Provide a Balanced Budget and Adhere to
Adopted Policies
• Promote Commercial/Industrial Base

2.) Project Specific Goals
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hese projects are designed to accomplish specific objectives and become the focus for organization-wide effort. Council set the following priorities and categories in 2016:
• E
conomic development for “shovel ready” land
• Economic development and incentive program to focus on underutilized parcels • Public Safety, Gang Reduction Intervention Program, training and increase in staffing • Fiscal sustainability, asset preservation, CALPERS and Other Postemployment Benefits • East side rehabilitation, incentive programs and infrastructure Ad
ditional priorities that did not fit into the above categories include 1) addressing homelessness issues, 2) providing downtown Wi-Fi and music, and 3) beautification of highway overpasses.

As
discussed above, economic revitalization continued to be an active focal poin t of the City in fiscal year 2020-21. The following projects were recently completed, are underway and will see significant progress, or be completed in 2021.

Residential Development
In
fiscal year 2020-21, the City has accepted the following residential developments: Villa Fiore Unit 2 and Unit 3, Rose Gate II Unit 1, Vineyard Terrace Unit 2, Iris Drive, and Interlaken subdivisions. The Ci ty also accepted the Rose Gate o ff-site Storm Water and Wastewater improvements. The La Vida Senior Apartments and Oakmont Assisted Living Facility projects hav e been completed as part of the Reynolds Ranch Development. In fiscal year 2020 -21 the City finalized a total of 245 dwelling units. Sales and construction in various development projects are ongoing. The City is considering the annexation of additional land to support continued growth.

Downtown and Infill Development
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OVID-19 has had a huge impact to the City’s various businesses. The City has helped restaurants by allowing outdoor dining in areas of on -street parking and by participating the in the Gre at Plates Delivered program that provides freshly prepared, healthy meals to vulnerable populations (over age 60 with high risk factors, or anyone over age 65) to local residents prepared by local restaurants.

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he City has seen the interest in our downtown establishments, but due to COVID -19 impacts, the growth has been slow. ix
There are new restaurants that are still under construction in downtown, including t he Oxford and the very soon to be completed expansion of the Lodi Beer Company.

In fiscal year 2021, Papapavlos Bistro & Bar officially opened. Still under construction, across Lockeford Street is the new Lodi Bowling Alley. This project consists of a two -story bowling alley that will be equipped with 34 lanes, bar and banquet room.

Both projects have put vacant land to use, generating foot traffic on the edges of downtown.

Water Meters and Water Infrastructure
U
nder state law, all residential housing must be billed for water usage on a metered basis by 2025. In 2010, the City embarked on a program to install meters on approximately 16,000 parcels over an eleven year period. A portion of this project also included relocating water mains and service connections from alleys and rear yards to streets and sizing the new water mains to improve fire flo w. Construction began during fiscal year 2009-10 and will continue through fiscal year 2022-

23. To date, all single family dwelling water meters (approximately 16,000) have been installed. Estimated cost for the complete program is $42.5 million. The final phase of construction will begin in fiscal year 2022-23.

T
he City has a water well rehabilitation program and Well 3R rehabilitation ($174,700) was completed this fiscal year. For t he Dibromo-chloropropane ( DBCP), 123 Trichlorophenylmethyliodosalicyl ( TCP) cleanup effort, the granular activated carbon (GAC) at Well 16 ($134,700) was changed out. New GAC vessels at Well 27 ($1,064,000) were constructed and operational.

Wastewater Projects
T
he City has completed the Wastewater Rehabilitation Phase 8 pro ject at a total construction cost of $2.24 million. The Wastewater Rehabilitation Phase 9 is under design and expected to be completed by the end of 2022. The White Slough Water Pollution Control Facility (WSWPCF) irrigation project ($946,000) was completed and accepted. Additional projects planned for fiscal year 2021-22 and FY 2022-23 include the WSWPCF aeration and solids handling system improvements. The design of a WSWPCF electrical room relocation is complete and is scheduled to start construction in the summer of 2022.

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n compliance with the State Storm Water Trash policies, the City has started the multi -phase storm water trash collection program. The first phase of the program is completed at the cost of $224,000. The second phase is expected to be completed by June of 2022.

FINANCIAL INFORMATION, MANAGEMENT AND CONTROL
A detailed understanding of the financial position and change in financial position of the City is provided in the foll owing sections of this report. The followi ng is a brief description of the City’s financial condition, management practices and control techniques.

Basis of Accounting
Basis of accounting refers to the policy as to when revenues, expenditures or expenses are recognized in the finan cial accounts and reported in the financial statements. The City’s accounting records for general government operations are maintained on a modified accrual basis. Revenues are recorded when available and measurable. Expenditures are recorded when the services or goods are receiv ed and the liability incurred. For proprietary fund types, the City uses the accrual basis of accounting. As such, the measurement focus is on operating income in addition to financial position and changes in financial position. Rev enues are recognized when earned and expenses are recognized as the liability is incurred. We believe that the City’s internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions.

Accounting System and Budgetary Control
In developing the City’s accounting system, consideration is given to the adequacy of the internal controls. The objective o f the City’s internal accounting controls is to provide reasonable, but not absolute, assurance that the assets are safeguarded against loss from unauthorized use or disposition; and to ensure that transactions are properly recorded to permit the x
preparation of financial statements in accordance with Generally Accepted Accounting Principles. The concept of reasonable assurance recognizes that the cost of the controls should not exceed the benefits likely to be derived and that management estimates and judgments are required in evaluating these costs and benefits.

In ad dition, the City maintains budgetary controls. The objective of these controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. The City Manager has the authority to make adjustments to the budget as long as those changes will not have a significant policy impact nor affect budgeted year - end fund balances.

Long Term Financial Planning
T
he City has implemented a long -term financial planning practice to review the impact of current decisi ons on the City’s General Fund. This analysis can be found in the City’s budget docume nt and includes assumptions, revenue, expenditures, and fund balance projections. In addition, there is discussion of risks and opportunities not modeled. The tool is a baseline projection that provides management and policy makers a view of what the City’s financial condition may be if current operations are maintained and a reasonable set of economic assumptions are made. This plan is updated periodically as new information is available that will materially impact the projection.

Fund Balance
It is the City's goal to target and maintain an unassigned fund balance in the General Fund of at least 16% of revenues and working capital balances in the Water and Wastewater enterprise funds, and at least 25% of operating expenses. Based on a reserve policy adopted in March 2018, the target for the Electric enterprise fund working capital was $ 29.9 million for fiscal year 2020-21. In fiscal year 2020-21, the City has budgeted to take the final steps to fund another 16% Measure L Reserve fund over three years. The goals allow for variations from year -to-year to account for economic and fiscal changes. The General Fund maintained an unassigned fund balance of $24,437,033, or 30.87% of revenues at the end of fiscal year 2020-

21. Cash Management
The City has written investment policies that addres s a wide range of investments. These policies describe the City’s investment objectives, investment authority, allowable investment vehicles, maturity terms and el igible financial institutions.

They also describe the City’s capital preservation a nd cash management objectives. As provided in the policy, investments are intended to be held until maturity and investment terms are to be consistent wi th the City’s cash flow needs. Investment reports are issued quarterly to the City Manager and City Council to provide detailed information regarding the City's investments and compliance w ith City policy an d state law. The policy has three objectives: (1) protect principle; (2) provide for liquidity needs, and (3) obtain the most reasonable rate of return within the first two objectives. All investment activi ties are to be undertaken and judged using the Prudent Investor Standard as described within the policy.

Appropriation Limitation
Article XIII B of the Constitution of the State of California (Proposition 4) provides for the limitation of expenditures b y state and local gover nments. Under the provisions of this article, City appropriations funded through tax sources may not exceed fiscal year 1979 appropriation levels except as adjusted for increases in population and the growth in the California per capita income or non-residential assessed valuation due to new construction within the City.

E
xcluded from the limitation are appropriations funded through charges for services, fines and forfeitures, grants, transfers of service responsibilities between government agencies and indebtedness incurred pr ior to fiscal year 1979. Pursuant to subsequent legislation adopted after Article XIII B, the City is required to annually establish and adopt its appro priations limit by resolution. For fiscal year 2020-21, the City's appropriations subject to limit were $ 46,704,764 and the appropriation limit was $116,864,705, leaving appropriations at $70,159,941 below the limit. xi
Debt Administration
At June 30, 2021, the City had outstanding Certificates of Participation and Revenue Bonds of $123,623,638. These liabilities are discussed in Note 7 of the Basic Financial Statements and summarized below.

I
n 2004, the City issued $27,360,000 in Wastewater Certificates of Participation (2004A) to finance the costs of improvements to the wastewater collection, treatment and disposal system. These bonds were partially refunded with the 2012 Refunding Wastewater Revenue Bonds, Series A.

O
n October 1, 2010, the City issued $9,015,000 Water Revenue Certificates of Participation, 2010 Series A and $29,650,000 Water Revenue Bonds, 2010 Series B (Federally taxable - Build America Bonds) to finance the construction of the Surface Water Treatment Facility, which is designed to pump water from the Mokelumne River, treat and deliver it to the City’s water distribution system. The Water Revenue Bonds 2010 Series B was refunded in the previous fiscal year and is now the 2020 Water Revenue Bonds. The Water Revenue Bonds 2010 Series A was paid off in fiscal year 2020-21.

On September 1, 2012, the City issued $19,080,000 Refunding Lease Revenue Bonds (2012 LRB) to prepay and cause the immediate defeasance of the outstanding $21,025,000 Certificates of Participation (2002 COP). The 2002 COP were issued in January 2002 to provide funds to finance the costs of constructing, furnishing and equipping a new police building and jail for the City, to finance portions of certain other projects and to refund the outstanding 1995 and 1996 Certificates of Participation.

T
he City also issued the $17,105,000 2012 Refunding Wastewater Revenue Bonds (2012 Bonds) in September 2012 to advance refund the $17,115,000 principal amount of the 2004 Wastewater Revenue Certificates of Participation (2004 C OP).

The 2004 COP were issued to provide funds to finance the costs of certain improvements to the wastewater collection, treatment and disposal system of the City.

O
n March 10, 2016, the City issued the $20,295,000 2016 Refunding Wastewater Revenue Bonds, Series A (2016 Bonds) to partially refund $21,415,000 outstanding principal of the 2007A COP.

O
n December 1, 2017, the City issued $7,762,794 Installment Purchase Agreement, refunding the Certificates of Participation, 2007 A (2007 COP).

O
n June 13, 2018 the City issued $41,610,000 Electric System Revenue Refunding Bonds (2018 Bonds) to allow the City prepay and cause the immediate defeasance of the outstanding $55,785,000 Certificates of Participation (Electric System Revenue Certifications of Participation 2008 Series A).

O
n April 8, 2020 the City issued $25,390,000 Water Revenue Refunding Bonds (2020 Bonds) to allow the City prepay and cause the immediate defeasance of the outstanding $29,650,000 Lodi Public Financing Authority 2010 Water Revenue Bonds, Series B (Federally Taxable – Build America Bonds).

T
he City's debt management policy includes a commitment to monitor all forms of debt annually during the preparation of the City’s Financial Plan an d Budget to ensure compliance. Also, the City will generally conduct financing on a com petitive basis, will seek an investment grade rating on any direct debt and will obtain credit enhancements such as letters of credit or insurance when necessary for marketing purposes, availability and cost effectiveness.

Competitive Bidding Policy
All required purchases for materials, equipment and services during fiscal year 2020-21 were made pursuant to competitive bidding procedures as established under the City’s purchasing ordinance. Contracts for construction proje cts were awarded pursuant to competitive bidding procedures established by the State of California for projects in excess of $5,000. xii
Risk Management
The City is self -insured for dental care, long -term disability, workers’ c ompensation, general liability and unemployment insurance. General liability and workers’ compensation are ad ministered by outside agencies. The City administers unemployment insurance and long -term disability. Self-insurance transactions are accounted for under the Insurance Funds.

At June 30, 2021, the Insurance Fund had a net position of $7,798,135.

INDEPENDENT AUDIT
T
he City Council requires an annual audit of the records and accounts of the City by an independent certified public accountant. To ensure proper internal control, periodically the City conducts a request for proposal (RFP) process for auditing services. The accounting firm of The Pun Group was selected to perform this a udit. The independent auditor’s report precedes the basic financial st atements and concludes that the City’s basic financial statements are presented fairly, in all material respects, in accordance with GAAP.

CERTIFICATES OF ACHIEVEMENT
T
he City has applied for the Government Finance Officers Association of the United Sta tes and Canada (GFOA) award for Certificate of Achievement for Excellence in Financial Reporting to the City for its Annual Comprehensive Financial Report (ACFR) for the year ended June 30, 20 20. These Certificates of Achievement are prestigious national a ward recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized ACFR , whose contents conform to program standards. The ACFR must satisfy both generally accepted accounting principles and applicable legal requirements.

A
Certificate of Achievement is valid for a period of one year only. The City has received a Certificate of Achievement for the last twenty-eight consecutive years. We believe our current report continues to conform to the Certificate of Achievement program requirements and we are submitting it to GFOA this year.

ACKNOWLEDGMENTS
A
s always the professionalis m, dedication and efficiency of the Financial Services Division Accounting staff made it possible for the timely preparation of this report and are to be commended. I would also like to personally thank Melissa Munoz, Accounting Manager, Robin Xiang, Super vising Accountant, Harron Akbar, Accountant and the entire Finance Team. Their work in preparing this year’s ACFR is greatly appreciated.

I
would also like to thank you for your continued interest and support in planning and conducting the financial opera tions of the City in a responsible and progressive manner.

Respectfully submitted,
Andrew Keys
Deputy City Manager/Internal Services Director
xiii
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented
to
City of Lodi
California
For its
Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June
30, 2020
Executive Director/CEO
xiv
Library Risk
City of Lodi
Electric Utility
Public Works
Fire
Police
City Clerk Boards and
Commissions
Deputy City
Manager/Internal
Services Director
Budget/Treasury
Financial
Services
Human
Resources
Information
Systems
FY 2020-2021
xv
Mayor and Council
Lodi City Council Members work to provide citizens
with a better, more attractive, and healthier place
in which to live. Council establishes local laws, sets
policies, approves programs, appropriates funds,
and supervises the operations of City government.

Council Members are elected on a by-district basis
from five single-member Council districts by voters
residing in the district in which the Council Member
resides. Council Members hold four-year terms and
elections are held in November of even numbered
years.

Alan Nakanishi, Mayor
District 1
Mark
Chandler, Mayor Pro Tempore Shak Khan, Council Member
District 2 District 4
Do
ug Kuehne, Council Member Mikey Hothi, Council Member District 3 District 5
xvi

ADVISORY BODIES AND DIRECTORY OFFICIALS
ADV

ISORY BODIES
Planning Commission Lodi Improvement Committee
Library Board Lodi Arts Commission
Recreation Commission Youth Commission
Site Plan and Architectural Review Committee Lodi Senior Citizens’ Commission PRIN

CIPAL ADMINSTRATIVE OFFICERS
Steve Schwabauer City Manager
Andrew Keys Deputy City Manager
Janice Magdich City Attorney
Jennifer Cusmir City Clerk
Andrew Keys Interim Library Services Director
Ken Johnson Fire Chief
Christina Jaromay Parks, Recreation &
Cultural Services Director
Charles Swimley Public Works Director
Jeff Berkheimer Electric Utility Director
John Della Monica Community Development Director
Sierra Brucia Police Chief
xvii
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intentionally left blank.)

F I N A N C I A L

S E C T I O N
The Financial Section is comprised of
the Independent Auditor's Report,
Management's Discussion and Analysis,
Basic Financial Statements, including
the Notes, Required Supplementary
Information, and Supplementary
Information which includes Combining
and Individual Fund Statements and
Schedules.

(This page intentionally left blank.)

INDEPENDENT AUDITORS’ REPORT

To the Honorable Mayor and Members of the City Council
of the City of Lodi
Lodi, California

Report on Financial Statements

We have audited the accompanying financ ial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Lodi, California (the “City”), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express opinions on these financial stat ements based on our audit. We conducted our audit in accordance with auditing standards genera lly accepted in the United States of Amer ica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.

Those standards require that we plan and perform the audi t to obtain reasonable assurance about whether the financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit ev idence about the amounts and disclosures in the financial statements. The procedures selected depend on the audito r’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City’s preparation and fair pr esentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal contro l. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and approp riate to provide a basis for our audit opinions.
2121 North California Blvd., Suite 290, Walnut Creek, California 94596 Tel: 925-974-3394 • Fax: 949-777-8850
www.pungroup.cpa
3939352 Pun & McGeady_L_final.pdf 3 1/14/14 3:48 PM To the Honorable Mayor and Members of the City Council
of the City of Lodi
Lodi, California

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2021, and the resp ective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting prin ciples generally accepted in the United States of America.

Emphasis of Matter

Prior Period Adjustment

As discussed in Note 16 to the basic financial statements, compensated absen ces in the governmental activities were overstated by $5,850,449. Accordingly, beginning net position as of July 1, 2020, of the governmental activities was restated to reflect the correction of these errors. Our opinions are not modified with respect to these matters.

Implementation of GASB 84

As discussed in Note 1x to the basic financial statements, the City implemen ted Governmental Accounting Standards Board (“GASB”) Statement No. 84, Fiduciary Activities. The adoption of the standard resulted in the reclassification of the special assessment fund from fiduciary fund to a special revenue f und. Accordingly, the beginning net position as of July 1, 2020, of the governmental activities and the be ginning fund balance as of July 1, 2020 of the special assessment special revenue fund was restated by $375,940. Our opinions are not modified with respect to these matters.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United Stat es of America require that the Management’s Discussion and Analysis on pages 5 through 14 and the Schedule of Changes in Net Pension Liability and Related Ratios, Schedule of Pension Contributions, Schedule of Changes in the Net OPEB Liability and Related Ratios, Schedule of Employer OPEB Contributions and the Budgetary Comparis on Schedules (General Fund and Streets Fund) on pages 87 through 97 are presented to supplement the basic financial st atements. Such information, although not a part of the basic financial statements, is require d by the Governmental Accounting Standa rds Board who considers it to be an essential part of financial reporting for placing the basic fina ncial statements in an appr opriate operational, economic, or historical context. We have applied certain limite d procedures to the Required Supplementary Information in accordance with auditing standards generally accepted in the United States of Amer ica, which consisted of inquiries of management about the methods of preparing the informa tion and comparing the inform ation for consistency with management’s responses to our inquiries, the basic financial statements, a nd other knowledge we obtained during our audit of the basic financial statements. We do not expr ess an opinion or provide any assurance on the information because the limited procedures do not provide us with su fficient evidence to express an opinion or provide any assurance.

Other 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 Introductory Sec tion, Combining and Individual Nonmajor Fund Financial Statements and Budgetary Comparison Schedules, and Statistical Section, are presented for purposes of additional analysis and are not a required part of the basic financial statements.

To the Honorable Mayor and Members of the City Council
of the City of Lodi
Lodi, California

The Combining and Individual Nonmajor Fund Financial Statements and Budgetary Comparison Schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial stat ements. Such information has been subj ected to the auditing procedures applied in the audit of the basic financial statements and certai n additional procedures, including comparing and reconciling such information directly to the underlying accounting and othe r records used to prepare th e basic financial statements or to the basic financial statements themselves, and othe r additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Combining and Individual Nonmajor Fund Financial Statements and Budgetary Comp arison Schedules are fairly stated in a ll material respects in relation to the basic financial statements as a whole.

The Introductory and Statistical Sections have not been subj ected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated November 23, 2020, on our consideration of the City’s internal control over financia l reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreemen ts and other matters. The purpose of that report is solely to describe the scope of our testing of internal control ove r financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral pa rt of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Walnut Creek, California
December 31, 2021

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CITY OF LODI
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2021
This  section  of  the  Annual  Comprehensive  Financial  Report  is  presented  as  discussion  and  analysis  of  the  financial performance of the City of Lodi (City) for the year ended June 30, 2021.

FINANCIAL HIGHLIGHTS
 The assets and the deferred outflows of resources of the City exceeded its liabilities and the deferred inflows of resources at the close of the fiscal year by $285
,665,215 (net position).   Of this amount, ($44,748,967) is unrestricted deficit.
 The City’s total net position increased by $51,228,065 in fiscal year 2021.  As of June 30, 2021, the City’s governmental funds reported combined ending fund balances of $7 2,681,020, an  increase  of  $17,340,255  in  comparison  with  the  prior  year.  Of  this  amount,  $24,437,033  is  available  for spending at the City’s discretion (unassigned fund balance).  At the close of the fiscal year, fund balance for the General Fund was $40,690,098, of which $24,437,033 is unassigned or 37.24% of tota l general fund expenditures of $65,603,592.   Of the $40,690,098 fund balance, $53,739  is  non‐spendable  for  pre‐paid  expenses,  $15,641,640  is  restricted  for  Pensions  and  $557,686  is committed for video related capital projects.
 The City’s total long‐term liabilities decreased by $14,136,854 or 8.05% during the current fiscal year.   Other liabilities increased $2,287,789 or 12.57%.

OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements.  The  City’s basic  financial  statements  are  comprised  of  three  components:  (1)  Government‐wide  financial  statements,  (2)  Fund financial statements, and (3) Notes to Basi c Financial Statements.   This report also includes required supplementary information  and  combining  and  individual  fund  statements  and  schedules  in  addition  to  the  basic  financial statements.

Government‐wide Financial Statements
The
government‐wide  financial  statements  are  designed  to  provide  readers  with  a  broad  overview  of  the  City’s finances, in a manner similar to a private‐sector business.

The statement of net position presents information on all of the City’s assets, deferred outflows of resources, liabilities and deferred inflow of resources, with the differenc e reported as net position.  Over time, increases or decreases in net position  may  serve  as  a  useful  indicator  of  whether  or  not  the  financial  position  of  the  City  is  improving  or deteriorating.

The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year.   All changes in ne
t position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows.  Thus,  revenues and expenses are reported in this statement for some items that will only result in cash flows in future fis cal  periods, such as revenues pertaining to uncollected taxes, and expenses pertaining to earned but unused vacation and sick leave.

Both  of  the  government‐wide  financial statements  distinguish  functions of  the  City  that  are  principally  supported  by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all 5 CITY OF LODI
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2021

or  a  significant  portion  of  their  costs  through  user  fees  and  charges  (business‐type  activities).  The  governmental activities  of  the  City  include  general  government,  public  protection,  public  works,  community  development,  library, parks and recreation.  The business‐type activities of the City include electric operations, wastewater operations, water operations and public transit operations.

Fu
nd Financial Statements
The fund financial statements are designed to report information about groupings of related accounts, which are used to maintain control over resources that have been segregated for specific activities or objectives.   The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance‐related legal requirements.   All  of  the  fu
nds  of  the  City  can  be  divided  into  the  following  three  categories:  Governmental   funds, Proprietary funds, and Fiduciary funds.

Governmental  Funds.  Governmental   funds  are  used  to  account  for  essentially  the  same  functions  reported  as governmental activities in the government‐wide financial statements.  Most of the City’s basi c  services are reported in governmental  funds.  These  statements,  however,  focus  on  (1)  how  cash  and  other  financial  assets  can  readily  be converted to available resources and (2) the balances left at year‐end that are available for spending.  Such information may be useful in determining financial resources available in the near fut ure to finance City programs.

Because  the  focus  of  governmental  funds  is  narrower  than  that  of  the  government‐wide  financial  statements,  it  is useful  to  compare  the  information  presented  for  governmental  funds  with  similar  information  presented  for governmental activities in the government‐wide financial statements.  By doing so, readers may bett er understand the long‐term impact of the government’s near‐term financing decisions.  Both the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City maintains several individual gover
nmental funds organized according to their type (general, special revenue, capital projects and debt service).  Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for the General Fund and Streets  Fund  which  are  considered  major  funds.   Data  fr om  the  remaining  governmental  funds  are  combined  into  a single, aggregated presentation.  Individual fund data for each of the non‐major governmental funds is provided in the form of combining statements elsewhere in this report.

The City adopts an annual budget for its General Fund and special revenue fu nds.   Budgetary  comparison statements and  schedules  have  been  provided  for  the  General  Fund  and  the  special  revenue  funds  to  demonstrate  compliance with this budget.

Proprietary Funds.  Proprietary funds are generally used to account for services for which the City charges customers, either  outside  customers,  or  internal  units  or  departments  of  the  City.   Proprietary  f unds  provide  the  same  type  of information  as  shown  in  the  government‐wide  financial  statements,  only  in  more  detail.  The   City  maintains  the following two types of proprietary funds:

 Enterprise  funds  are  used  to  report  the  same  functions  presented  as  business‐type  activities  in  the government‐wi
de  financial  statements.  The   City  uses  enterprise  funds to  account  for  the  operations  of  the Electric, Wastewater, Water, all of which are considered to be major funds and the Transit system, which is considered to be a non‐major enterprise fund.

 Internal Service funds are used to report a ctivities  that account for various employee benefits, self‐insurance, fleet  activities,  and  vehicle  and  equipment  replacement of  the City.   Because  these activities  predominantly benefit governmental rather than business‐type functions, they have been included within the governmental activities in the government‐wide financial statements. 6 CITY OF LODI
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2021

Fiduciary funds.  Fiduciary funds are used to account for resources held for the benefit of parties outside the City.  The activities  of  the  Private‐Purpose  Trust  and  the  Hutchins  Street  Square  Bequest  are  also  accounted  for  under  the fiduciary funds.  Since the resources of these funds are not available to support th e  City’s own programs, they are not reflected  in  the  government‐wide  financial  statements.   Fiduciary  funds  are  accounted  for  using  the  accrual  basis  of accounting.

Notes to the Basic Financial Statements

The notes to the basic financial statements provide additional information that is essential to a full understanding of the data provided in the government‐wide and fund financial statements.

Required Supplementary Information

In  addition  to  the  basic  financial  statements  and  accompanying  notes,  this  report  presents  certain  required supplementary information concerning changes in net pension and other post‐employment liabilities and related ratios for  the  City’s  Miscellaneous  and  Safety  pension  plans,  the  City’s  progress  in  funding  its  obligation  to  provide  other postemployment benefits (OPEB) to its employees, an
d schedules comparing budget to actual amounts in the General Fund and Streets Fund.

Combining Statements

The  combining  statements  in  connection  with  non‐major  governmental  funds,  internal  service  funds  and  fiduciary funds are presented immediately following the required supplementary information.

GOVERNMENT‐WIDE FINANCIAL ANALYSIS
City of Lodi's Net Assets
June 30, 2021 and 2020
Governmental   Business‐type
Activities  Activities   Total
2021  2020  2021  2020  2021  2020
Assets:

Current and other assets   $ 107,397,365     $  85,328,959     $ 121,120,296     $ 109,002,767     $ 228,517,661     $ 194,331,726 Capital assets       136,983,261      132,931,298        253,309,985         247,071,050         390,293,246         380,002,348 Total assets       244,380,626      218,260,257        374,430,281         356,073,817         618,810,907         574,334,074 Deferred outflows of resources  17,279,260   16,721,382   11,267,852   9,424,449           28,547,112           26,145,831 Liabilities:

Net OPEB obligation          19,969,043         21,227,058              4,389,389             5,037,553           24,358,432           26,264,611 Net pension liability       114,251,141      111,492,523          32,904,069            30,331,747        147,155,210         141,824,270 Long‐term liabilities outstanding         35,155,052          41,948,772        126,283,946         133,627,080         161,438,998         175,575,852 Other liabilities         11,445,566            9,068,858             9,046,629             9,135,548           20,492,195           18,204,406 Total liabilities       180,820,802      183,737,211        172,624,033         178,131,928         353,444,835         361,869,139 Deferred inflows of resources            6,786,958            8,260,604   1,461,011   2,139,401             8,247,969           10,400,005 Net position:

Invested in capital assets,
net of related debt       122,205,737       117,009,601        151,811,971         137,467,657         274,017,708         254,477,258 Restricted         37,536,500         33,229,610           18,859,974           19,594,455           56,396,474           52,824,065 Unrestricted       (85,690,111)     (107,255,386)        40,941,144            28,164,825        (44,748,967)        (79,090,561) Total net position   $    74,052,126     $  42,983,825     $ 211,613,089     $ 185,226,937     $ 285,665,215     $ 228,210,762 7 CITY OF LODI
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2021

As noted earlier, net position may serve over time as a useful indicator of a government’s financial position.  The City’s assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $285,665,215 at the close of the current fiscal year.

Assets.  The City’s total assets increased by $4 4,476,833.   The increase is primarily due to the following:

Governmental Activities. Total assets for governmental activities had an increase of $26,120,369 or 11.97%.  Current and  other  assets  increased  by  $22,068,406  primarily  resulting  from  the  increase  in  restricted  assets  of  $16,990,838, $11,149,450 increase in due from other governmental agencies, and  increase  in accounts  receivable  of  $10,345,939.

Capital assets increased by $4,051,963.  Other insignificant activities make up the difference.

Business‐type Activities.  Total assets for the business‐type activities had an increase of $1 8,356,464 or 5.16%.  Current and other assets increased by $12,117,529 primarily due to increases in cash and investments of $8,924,835, increase in advance receivable of $248,957. Capital assets increased by $6,238,935. Other insignificant activities contributed to the difference.

Deferred outflows of resources.  The  increase in total deferred outflows of resources of $2,401,281 is primarily from cha
nges  in  various  components  related  to  the  Miscellaneous  and  Safety  Plans  in  the  CalPERS  valuation  reports  and current pension contributions made after the measurement date of June 30, 2020.

Liabilities.  The City’s total liabilities decreased by $8,424,303 or 2.33%.  The decrease is primarily due to the following:

Governmental  Activities.  To
tal   liabilities  for  the  governmental  activities  had  a  decrease  of  $2,916,409  or  1.59%, primarily  from  a  decrease  in  long‐term  liabilities.    Decreases  in  liabilities  included  a  reduction  in  the  compensated absences in the long‐term liabilities.

Business‐type  Activities.  Total   liabilities  for  the  business‐type  activities  decreased  by  $5,507,895  or  3.09%.  The decrease is primarily attributable to a decrease in long‐term liabilities, which is an offset by the increase in net pension liability.  Decreases in other liabilities include accrued salaries and wages, accounts payable and a decrease in unearned revenue.  Other insignificant activities offset the difference.

Net position.  The  City’s overall financial position increased du ring the fiscal year.  The  net position has increased by $51,228,819, or 25.18%.

The  largest  portion  ($274,017,708)  of  the  City’s  net  position  reflects  its  investment  in  capital  assets  net  of  any associated depreciation (e.g., land, buildings and improvements, machinery and equipment); less any related debt used to  acquire  tho se   assets  that  is  still  outstanding.   The  City  uses  these  capital  assets  to  provide  services  to  citizens; consequently, these assets are not available for future spending.  Although the City’s investment in its capital assets are reported net of related debt, it should be noted that the resources needed to repay this debt must be provided fro m other sources.

An additional portion of the City’s net position, $56,396,474 (19.74%) represents resources that are subject to external restrictions  on  how  they  may  be  used.   The  remaining  balance  of  unrestricted  net  position  amounts  to  a  deficit  of ($44,748,967).  At the end of the current fiscal year
, the City is able to report positive balances in the General Fund and all Enterprise activities.  Unrestricted  net position is negative for the governmental‐type activities primarily as a result of the City’s outstanding pension and OPEB obligations.

8 CITY OF LODI
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2021

City of Lodi's Changes in Net Position
June 30, 2021 and 2020
Governmental Business-type
Activities Activities Total
2021 2020 2021 2020 2021 2020
Revenues
Program revenues:

Charges for services $ 9,930,463 $ 9,555,445 $ 105,154,641 $ 102,596,417 $ 115,085,104 $ 112,151,862 Operating grants and contributions 4,582,051 3,426,206 6,866,098 7,034,631 11,448,149 10,460,837 Capital grants and contributions 8,417,830 10,302,125 5,120,055 2,893,597 13,537,885 13,195,722 General revenues:

Property taxes 13,050,417 11,980,334 - - 13,050,417 11,980,334 Sales taxes 24,302,433 20,083,863 - - 24,302,433 20,083,863 Other taxes 18,647,569 18,243,256 - - 18,647,569 18,243,256 Grants and contributions not restricted to
specific programs 14,166,158 474,595 - - 14,166,158 474,595 Other 4,536,154 4,567,817 6,160,060 7,917,094 10,696,214 12,484,911 Total revenues 97,633,075 78,633,641 123,300,854 120,441,739 220,933,929 199,075,380 Expenses
General government 24,867,053 13,156,177 - - 24,867,053 13,156,177 Public protection 34,636,966 35,764,250 - - 34,636,966 35,764,250 Public works 10,354,010 9,335,600 - - 10,354,010 9,335,600 Community development 1,903,002 2,056,443 - - 1,903,002 2,056,443 Library 1,152,899 1,881,688 - - 1,152,899 1,881,688 Parks and recreation 3,670,846 3,873,477 - - 3,670,846 3,873,477 Interest on long-term debt 654,504 712,187 - - 654,504 712,187 Electric - - 68,306,979 71,757,740 68,306,979 71,757,740 Wastewater - - 11,683,283 18,049,374 11,683,283 18,049,374 Water - - 8,141,513 14,514,000 8,141,513 14,514,000 Transit - - 4,334,810 4,840,742 4,334,810 4,840,742 Total expenses 77,239,279 66,779,822 92,466,585 109,161,856 169,705,865 175,941,678 Changes in net position before transfers 20,393,796 11,853,819 30,834,269 11,279,883 51,228,064 23,133,702 Transfers 4,448,117 4,270,227 (4,448,117) (4,270,227) - - Changes in net position 24,841,912 16,124,046 26,386,152 7,009,656 51,228,064 23,133,702 Net position at beginning of year 42,983,825 26,859,779 185,226,937 178,217,281 228,210,762 205,077,060 Prior period adjustments 6,226,389 - - - 6,226,389 - Net position at beginning of year, as restated 49,210,214 26,859,779 185,226,937 178,217,281 234,437,151 205,077,060 Net position at end of year $ 74,052,126 $ 42,983,825 $ 211,613,089 $ 185,226,937 $ 285,665,215 $ 228,210,762

Analysis of Changes in Net Position

Governmental Activities
Net  position  for  the  governmental  activities  increased  by  $24,841,912  in  the  current  fiscal  year.  The  change  in  net position is an improvement over last year’s increase of $16,124,046 by $8,717,866.  The increase is primarily a result of the following:

 The City receives other taxes, such as franchise tax, business licenses and tourism occ upancy tax.  These other
taxes increased by $404,313 or 2.22% compared to prior year.  The  economy continues to show evidence of positive movement particularly in the housing market, businesses and tourism.  Sales  tax  saw  an  increase  of  $4,218,571  or  21%  from  prior  year.   For  General  Fu nd,   sales  tax  increased  by $2,576,718.   For  Measure  L,  sales  tax  increased  by  $1,641,854.   Bradley  Burns’  general  sales  tax  revenues increased by $2,576,718 year over year.
 Property taxes increased by $1,070,083 from prior year.  Capital grants and contributions decreased by $1,884,245 from the prior fiscal year. The difference is due to departme
nts projects being placed on hold during the COVID‐19 pandemic.   Public Works used Federal grants to complete various projects in the prior fiscal year reducing the amount of grants in this fiscal year. 9 CITY OF LODI
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2021

Expenses for governmental functions totaled $77,239,279, an increase of $10,459,457 or 15.66% relative to the prior fiscal year.  Increase in expenditures resulted from the City participating in the Great Plates program.

Business‐type Activities
Business‐type  activities  increased  the  City’s  net  position  by  $26,386,152  in  the  current  year,  which  is  an  increase  of $1
9,376,496 from last year’s increase of $7,009,656.  The key elements of this change are:

 Charges  for  services  in  the Electric Fund  increased  by $2,015,604,  Wastewater  Fund  increased  by $683,896, the Water Fund decreased by $85,179 and Non‐major Transit decreased by $56,097.  Decrease in the greenhouse gas allowance (GHG) of $5 43,301 in the Electric Fund related to Assembly Bill 32:

Global  Warming  Act,  which  set  the  2021  greenhouse  gas  emissions  reduction  into  law  and  also  adopted  a regulation that established a system of market‐based declining annual aggregate emission limits for sources or categories of sources that emit green house gases.   In 2011, the California Air Resources Board (ARB) adopted the  cap‐and‐trade  regulation.   This  program  covers  major  sources  of  GHG  emissions  in  the  State  such  as refineries, power plants, industrial facilities, and transportation fuels.  The cap‐and‐trade program includes an enforceable  emissions  cap  that  will  decline  over  time.   The  Sta te  distributes  allowances  which  are  tradable permits, equal to emissions allowed under the cap.
 Other revenues decreased by $1,782,297 primarily due to investment returns.  Bulk power cost increased by $638,454 compared to the prior year primarily attributable to overall increase in generation and in th ird  party increase in transmission, management services costs paid to NCPA.

FINANCIAL ANALYSIS OF THE CITY’S FUNDS

Governmental Funds
The focus of the City’s governmental funds is to provide information on near‐term inflows, outflows, and balances of spendable  resources.  Such   information  is  useful  in  assessing  the  City’s  financing  requirements.  In   partic ular,
unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.   Types  of governmental funds reported by the City include the General Fund, special revenue funds, debt service fund and capital projects funds.

At  the  en
d   of  the  current  fiscal  year,  the  City’s  governmental  funds  reported  combined  ending  fund  balances  of $72,681,020, for a net change in fund balances of $17,340,255.  In  comparison to the prior year, the change in fund balance resulted from an increase in overall revenues and expenditures coming in under budget.

The General F
und is the chief operating fund of the City.  At the end of the current fiscal year, unassigned fund balance of the General Fund was $24,437,033 while total fund balance was $40,690,098. As a measure of the General Fund’s liquidity, it may be useful to compare both unassigned fund bala nce  and total fund balance to total fund expenditures.

Unassigned  fund  balance  and  total  fund  balance  represent  60.18%  and  37.33%  of  total  General  Fund  expenditures, respectively.

The  fund  balance  of  the  General  Fund  increased  by  $12,787,057  during  the  current  fiscal  year,  an  increase  of $7,336,428 from last year’s net ch ange  in fund balance of $5,450,629.

Key factors in this increase are:

 Total  revenues  increased  by  $21,424,773,  primarily  from  the  net  increase  of  sales  tax  of  $4,218,571,  which includes the additional revenue from Measure L sales tax, an increase of secured property tax of $1,070,085, 10 CITY OF LODI
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2021

increase intergovernmental revenue of $14,177,450 (primarily the Great Plates program).  Other  insignificant increases and decreases offset the difference.

 Total expenditures increased by $14,633,595 primarily from the City participating in the Great Plates program.

Due  to  management’s  decision  to  close  certain  City  facilities  and  programs  as  a  result  of  COVID‐19,  many expendit
ures came in lower than expected.

Total fund balance of the Streets Funds was $14,133,853.  Intergovernmental revenues of $6,774,637 offset by capital expenditures of $4,743,316 were the largest components that resulted in the increase of $1,389,856 to fund balance.

Proprietary Funds
The City’s proprietary funds provide the same type of i nformation  found in the government‐wide financial statements, but in more detail.

Unrestricted  net  position  at  the  end  of  the  year  for  the  Electric  Fund  was  $31,797,182,  Wastewater  Fund  was $11,553,632, Water Fund was $(6,473,947), Transit Fund was $4,064,277 and the Internal Services Funds unrestricted net position was $( 19,839,332).

Other factors concerning the finances of these funds are discussed in the City’s business‐type activities.

GENERAL FUND BUDGETARY HIGHLIGHTS

Differences between the original budget and the final budget in the General Fund were a net increase in appropriations of $5,461,285.  The increase in appropriations can be briefly summarized as follows:

 $1
2,087,720 increase in general revenues

 $17,549,005 increase in overall expenditures

Significant differences between the final budget and the actual revenues and expenditures can be briefly summarized as follows:

 Tax  revenue  experienced  a  favorable  variance  between  the  final  budget  and  actual  revenue  of  $2 ,254,246, which resulted from an increase in property tax and special assessment taxes.  Investment and rental income had  a  favorable  variance  between  the  budget  and  actual  of  $2,782,422.  Sales   and  use  tax  had  a  favorable variance  between  the  final  budget  and  actual  revenue  of  $4,344,433.  All  additional  revenues  had  an unfavorable variance betwee n final budget and actuals but were not significant.

 For expenditures, a favorable variance between the final budget and actual expenditures of $5,033,863 was due  savings  from  vacancies  and  the  continued  overall  effort  to  reduce  spending  and  costs.   Overall expenditures  were  additionally  reduced  due  to  management’s  decision  to  close  cer tain  City  facilities  and programs as a result of COVID‐19.

CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital assets
The City’s investment in capital assets for its governmental and business‐type activities as of June 30, 2021, amounts to $390,293,246  (net  of  accumulated  depreciation).  This   investment  in  capital  assets  includes  land,  buildings  and improvements,  machinery  an
d  equipment,  vehicles,  infrastructure,  works  of  art,  and  construction  in  progress.  The 11 CITY OF LODI
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2021

total increase in the City’s capital assets for the current fiscal year was $10,290,898, a 2.71% increase (a 3.05% increase in governmental activities and 2.53% increase in business‐type activities).

CITY OF LODI'S CAPITAL ASSETS
(net of depreciation)
Governmental     Business‐type
Activities   Activities    Total
Beginning of Year    $       132,931,298     $     247,071,050     $ 380,002,348 Land                 25,238,390                 5,535,718           30,774,108 Buildings and Improvements                33,808,085              36,281,687           70,089,772 Machinery and equipment                  2,861,571            197,409,303        200,270,874 Vehicles                  3,902,167                 2,880,592             6,782,759 Infrastructure                 67,847,737                               ‐             67,847,737 Work of Art                     304,907                               ‐                   304,907 Construction in Progress                  3,020,404              11,202,685           14,223,089 End of Year    $       136,983,261     $     253,309,985     $ 390,293,246

An increase in complete construction in progress compared to prior year was primarily from the Streets projects.

Additional information on the City’s capital assets can be found in Note 6 on pages 61‐62 of this report.

Long‐term debt
At  the  end  of  the  current  fiscal  year,  the  Cit y   had  total  bonded  debt  outstanding  of  $123,623,638.  Of   this  amount, $14,882,270 is the outstanding balance of the bonds issued to fund the new public safety building, refinancing of the performing  arts  center  and  the  downtown  and  Cherokee  Lane  improvements.   The  total  of  $108,741,368  from  the business‐type  activities  consists  of  $2 8,618,047   for  the  Water  Fund,  $37,303,247  for  the  Wastewater  Fund;  and $42,820,074 for the Electric Fund.

The City’s total bonded debt decreased by $7,143,860 during the current fiscal year.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET

On June 15, 2021, the State of California’s COVID‐19 response Blueprint for a Safer Eco nomy  was retired.  At that point,
nearly all economic activity within the City of Lodi was allowed to proceed unimpeded.  San Joaquin County lifted local COVID‐19  restrictions  and  has  instead  operated  with  an  indoor  masking  recommendation,  but  no  business  closures have been required since.   Unemployment remains high and labor force participation low as the restructuri ng caused by and recovery of the economy from COVID takes full shape.

Despite these challenges, Lodi’s revenues performed greatly during fiscal year 2020‐21 and it is anticipated they will continue to perform well in the coming year.  From the actuals for fiscal year 20 20 ‐21 to the adopted budget for fiscal
year  2021‐22,  it  is  estimated  that  sales  tax  and  Measure  L  revenue  will  decrease  by  7.89%,  business  license  tax  will grow  by  5.7%.  Transient  occupancy  tax,  the  only  major  revenue  source  to  see  a  significant  pandemic  influenced decline, is anticipated to de crease  by 11.1% and property tax will continue a steady increase of 4.25%, fueled by new development,  turnover  of  long  term  ownership  and  general  appreciation  in  property  values.  General  Fund  base revenue growth is projected to decrease by 5.93% from fiscal year 2020‐21 actual revenue to the fiscal year 2021‐22 bud
geted  revenue,  totaling  $58,827,000  when  excluding  pandemic  related  reimbursements.  Given   that  fiscal  year 2020‐21  outperformed  all  expectations  and  outperformed  budget  by  a  substantial  margin,  it  is  likely  that  adopted revenue estimates for fiscal year 2021‐22 are conservative and actual performance should again exceed expectations. 12 CITY OF LODI
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2021

The  City  added  a  record  annual  amount  to  its  General  Fund  reserve  balance  in  fiscal  year  2020‐21,  largely  due  to revenues  performing  well  above  expectations,  budgetary  cuts  due  to  pandemic  uncertainty  and  continued  difficulty filling General Fund positions.  Simply,  the pandemic did not impact the City of Lodi’s revenues to a large exte nt.   As the recovery continues, the City is projecting a balanced budget in the General Fund in fiscal year 2021‐22, although continued widespread labor market challenges make it likely the City will be able to contribute to its reserve balance.

The  City’s  General Fund  reserves  are  healthy,  and  with  disciplined  savi ngs  over  the  past  5  years  driven  by  the  City’s Pension  Stabilization  Policy,  the  City’s  Pension  Stabilization  Reserves  are  substantial  as  well.  Projected   CalPERS unfunded  accrued  liability  (UAL)  cost  of  $11.2  million  in  fiscal  year  2021‐22  are   anticipated  to  continue  to  grow  to approximately  $14.6  million  by  20 27 ‐28,  for  a  30%  increase  over  the  forecast  term  included  in  the  most  recent actuarial  reports  provided  by  CalPERS  to  the  City.   Additionally,  CalPERS  will  be  utilizing  a  portion  of  the  earnings  in excess of the discount rate achieved in the year ending June 30, 2021 to further buy down th e  discount rate used to calculate  UAL.  CalPERS  is  also  in  the  process  of  its  Asset  Liability  Management  review  which  may  result  in  further changes to actuarial assumptions including the discount rate.  Clearly caution and fiscal prudence towards CalPERS will be required in the coming years.

For  fiscal  year  2021‐22 ,   the  City  increased  its  workforce  by  a  net  of  six  positions;  adding  one  Legal  Secretary,  one Management  Analyst,  one  Senior  Customer  Service  Representative,  one  Network  Administrator,  one  Code Enforcement  Officer,  one  Police  Records  Clerk,  and  one  Assistant/Associate  Civil  Engineer  and  deleting  one  Utility Billing Specialist.  In  addition all positions le ft  vacant and unfunded during the fiscal year 2020‐21 budget cycle due to COVID uncertainties, were restored at mid‐year fiscal year 2020‐21 and are continuously funded into fiscal year 2021‐

22.  This includes six police officer and one police dispatcher positions.

The  City  has  expanded  capital  project  effo
rts   in  fiscal  year  2021‐22.  Taking   advantage  of  Measure  L’s  tremendous performance, general revenue growth and unprecedented federal funding, the City will be able to contribute $400,000 towards  a  parks  capital  fund  this  year,  which  is  the  first  budgeted  transfer  to  this  program  in  well  over  a  decade.

Significant  projects  ex pected   to  be  undertaken  include  Grape  Bowl  Turf  resurfacing,  Hutchins  Street  Square  roof replacement, Rebuilding of Zupo Field, Garfield St. Safe Routes to School project, planning for a new Animal Shelter, backbone Broadband installation, electrical overhead and underground maintenance, SCADA upgrades, various sewer main  line  replacements,  Intelligent  Transportation  System  Improvements  and  vari ous  transit  facility  repairs  and upgrades.

Employee costs and retirement contributions – The City entered multi‐year labor agreements with all of its represented bargaining units that began in 2019 and offered employees the first significant salary increases since 2008. Employees worked diligently through the pandemic to continue provision of critical City services.  Bargaining  is underway for the first contract with the International Brotherhood of Electrical Workers that expires December 31, 2021.  Public  Safety labor gro ups  have their contracts expiring at the end of fiscal year 2021‐22 and all other groups have contracts that expire December 31, 2022.

Based on the City’s aggressive funding actions over the past four years, by the end of fiscal year 2020‐21, total funding in the Pension Stabilization F
und  (PSF) is estimated as follows: General Fund: $15.4 million; Other Funds $5.0 million.

Because  results  for  fiscal  year  2020‐21  significantly  exceeded  expectations,  it  is  anticipated  that  the  City  will  make additional contributions to the PSF in fiscal year 2021‐22.

Economic Development
The  City  is  deep‐rooted  in  California’s  rival  wine  country,  is  as  ripe  for  commercial  and  residential  real  estate development  as  it  is  for  its  Zinfandel  grapes.   Because  of  its  agricultural  roots,  the  City  has  unfolded  into  an international tourist destination and real estate market, attracting medical biotech and light industrial developme nt  to the area.  With San Joaquin County’s charming architecture, and Lodi’s awe‐inspiring vineyards, almond, olive and fruit orchards, it is easy to see why so many are drawn to the area for its beauty and abundance.

13 CITY OF LODI
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2021

Investors are beginning to look to the City as an opportunity for adding commercial real estate, residential, in‐fill, and mixed‐use  development  to  its  picturesque  agricultural  setting.  The   City’s  strength  as  a  real  estate  market  lies  in  its strong infrastructure, abundant water, wine tourism industry, and affordable real estate.  The access ibility  to Interstate 5 and Highway 99 allows manufacturers and distributors to get their product out to market quickly.  The  Lodi Energy Center,  located  only  about  three  miles  outside  the  city  on  I‐5  provides  consistent  and  dependable  local  electricity, which is particularly crucial for its industrial thermoforming companies.  The city‐owne d  power is more reliable and less expensive than the investor owned utilities in the area.

REQUEST FOR INFORMATION

This  financial  report  is  designed  to  provide  citizens,  taxpayers,  customers,  investors  and  creditors  with  a  general overview of the City’s finances and to demonstrate the City’ accountability for the money it re ceives.   If  you have any
questions about this report or need additional information, contact the Financial Services Division of the City of Lodi at 310 W. Elm Street, Lodi, California, 95240.
14 B A S I C

F I N A N C I A L

S T A T E M E N T S
The Government-wide Financial
Statements provide a broad overview
of the City's financial position and
operating results. Information is
grouped by governmental activities or
business-type activities.

The Fund Financial Statements report
information about the City's
Governmental Funds, Proprietary
Funds, and the Fiduciary Funds.

The notes have an integral role in
disclosing information essential to the
Basic Financial Statements.

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e intentionally left blank.)

G O V E R N M E N T - W I D E

F I N A N C I A L

S T A T E M E N T S

(This pag
e intentionally left blank.)

Governmental
Activities
Business‐type
Activities Total
ASSETS
Cash and investments 68,569,596 $                 71,186,590$                 139,756,186$ Restricted cash and investments 16,990,838   18,859,974  35,850,812 Acco
unts receivables (net) 9,869,692  10,250,492  20,120,184 Pr
operty tax receivable 92,539
‐  92,539
In
terest receivable 21,421  26,153  47,574
Due fr
om other governmental agencies 11,625,698  3,380,389  15,006,087 Advance recei
vable ‐ NCPA ‐  12,189,516  12,189,516
In
ventory 205,119  5,058,525  5,263,644
Ot
her assets  171,337  19,782  191,119
Intern
al balances  (148,875)  148,875  ‐
Cap
ital assets, net: Nondepreciable 28,563,701  16,738,405  45,302,106 Cap
ital assets, net: Depreciable, net 108,419,560                 236,571,580                 344,991,140 Total assets 244,380,626                 374,430,281                 618,810,907 DEFERRED OUTFLOWS OF RESOURCES
Related to pensions 15,454,389  5,588,332  21,042,721
Related to O
PEB 1,551,024  340,931  1,891,955
Unamortized losse
s on defeasance of debt 273,847  5,338,589  5,612,436
To
tal deferred outflows of resources 17,279,260  11,267,852  28,547,112 LIA

BILITIES
Accou
nts payable and accrued liabilities 11,029,953  7,201,401  18,231,354 Accru
ed salaries and wages  166,413  119,667  286,080
Accru
ed interest 165,303  1,065,457  1,230,760
Un
earned revenue 83,897  660,104  744,001
Lon
g term liabilities:

Due within one year  9,105,409  7,643,492  16,748,901

Due in more than one year  26,049,643  118,640,454                 144,690,097 Ot
her long‐term obligations:

Net pension liability 114,251,141                 32,904,069  147,155,210

Net OPEB liability 19,
969,043  4,389,389  24,358,432

Total liabilities 180,820,802                 172,624,033                 353,444,835 DEFERRED INFLOWS OF RESOURCES
Related to pensions 545,547  89,088  634,635
Related to O
PEB 6,241,411  1,371,923  7,613,334
To
tal deferred inflows of resources 6,786,958  1,461,011  8,247,969 NE
T POSITION
Net investment in capital assets  122,205,737                 151,811,971                 274,017,708 Restricted  37,536,500  18,859,974  56,396,474
Un
restricted (deficit) (85,690,111)                  40,941,144  ( 44,748,967)
Total net position 74,052,126$                 211,613,089$               285,665,215$ CITY OF LODI
Statement of Net Position
June 30, 2021
Primary Government
The notes to financial statements are an integral part of this statement. 19 Functions/Programs Expenses Charges  for Services
Operating Grants and
Contributions
Capital Grants and
Contributions
Primary government:

Governmental activities:

General government 24,867,053$                 2,119,439$                    ‐$                                    ‐$ Public protection 34,636,966                    1,064,575                      1,266,125                      769,568 Public works 10,354,010                    1,484,056                      3,178,320                      5,554,281 Community development 1,903,002                      4,086,353                      29,447                           ‐ Library 1,152,899                      ‐                                      108,159                         ‐ Parks and recreation 3,670,846                      1,176,040                      ‐                                      2,093,981 Debt Service 654,504                         ‐                                      ‐                                      ‐ Total governmental activities 77,239,280                    9,930,463                      4,582,051                      8,417,830 B
usiness‐type activities:

Electric 68,306,979                    74,197,234                    1,908,549                      567,681 Wastewater 11,683,283                    16,780,674                    379,098                         2,241,113 Water 8,141,513                      14,106,809                    260,505                         1,165,001 Transit Funds 4,334,810                      69,924                           4,317,946                      1,146,260 Total business‐type activities 92,466,585                    105,154,641                 6,866,098                      5,120,055 Total primary government 169,705,865$               115,085,104$               11,448,149$                 13,537,885$ CITY OF LODI
Statement of Activities
For the Year Ended June 30, 2021
Program Revenues
Change in net position
Net position ‐ beginning, as restated (Note 16)
Net position ‐ ending
Total general revenues, and transfers
Property taxes
Special assessments
Sales tax
Document transfer
Franchise taxes
Business license tax
Transient occupancy tax
Grants and contributions not restricted to specific programs Investment earnings
Other
Transfers
General revenues:

The notes to financial statements are an integral part of this statement. 20 Governmental
Activities
Business‐type
Activities Total
(22,747,614)$                ‐ $                                    (22,747,614)$ (31,536,698)                  ‐                                       (31,536,698) (137,353)                        ‐                                       (137,353) 2,212,798                      ‐                                       2,212,798 (1,044,740)                     ‐                                       (1,044,740) (400,825)                        ‐                                       (400,825) (654,504)                        ‐                                       (654,504) (54,308,936)                  ‐                                       (54,308,936) ‐                                      8,366,485                      8,366,485 ‐                                      7,717,602                      7,717,602 ‐                                      7,390,802                      7,390,802 ‐                                      1,199,320                      1,199,320 ‐                                      24,674,209                    24,674,209 (54,308,936)                  24,674,209                    (29,634,727) 12,671,994                                                          ‐                      12,671,994 378,423                                                               ‐                            378,423 24,302,433                                                          ‐                      24,302,433 6,073,416
‐                        6,073,416
9,581,892                                                            ‐                        9,581,892 2,092,327                                                            ‐                        2,092,327 899,934                                                               ‐                            899,934 14,166,158                                                          ‐                      14,166,158 3,686,178                                            2,223,031                        5,909,209 849,976                                               3,937,029                        4,787,005 4,448,117                                           (4,448,117)                                       ‐ 79,150,848                        1,711,943                      80,862,791 24,841,912                      26,386,152                      51,228,064 49,210,214                    185,226,937                    234,437,151 $                74,052,126   $              211,613,089   $              285,665,215 CITY OF LODI
Statement of Activities  (Continued)
For the Year Ended June 30, 2021
Net (Expense) Revenue and Changes in Net Position
Primary Government
The notes to financial statements are an integral part of this statement. 21 (This pag
e intentionally left blank.)

F U N D

F I N A N C I A L

S T A T E M E N T S
Major Funds:

General Fund
Streets Fund
Major Funds:

Electric Fund
Wastewater Fund
Water Fund
Nonmajor Enterprise Fund:

Transit Fund
Internal Service Funds
Government Fund Types
Proprietary Fund Types
Private-purpose Trust Funds

(This pag
e intentionally left blank.)

FUND FINANCIAL

STATEMENT DESCRIPTIONS
Government Fund Types
Governmental Funds consist of the General Fund, Special Revenue Funds, Debt Service Fund and Capital Projects Funds.

Major Governmental Funds:

GENERAL FUND
This fund is maintained to account for all financial resources that are not restricted as to their use. This includes property and sales taxes, business tax receipts, franchise taxes and various subventions such as Motor Vehicle In-Lieu fees received from the State of California. With the exception of grant programs, General Fund resources can be utilized for any legitimate governmental purpose.

STREETS FUND
This fund was established to account for the following types of revenues and expenditures:

Gas Tax
To account for revenues and expenditures apportioned to the City under the Streets and Highway Code. Portions of the tax rate levied by the State of California on all gasoline purchases are allocated to cities throughout the State on a population basis. These funds are restricted for expenditure by the State of California for street related purposes only.

Development Impact Mitigation Fees
To account for impact fees charged to provide for the building of various storm dr ains and street improvements needed to serve new development. The fees are calculated on a per acre basis and are collected at subdivision final map approval or with building permit stage effective November 4, 1991.

Measure K Sales Tax
To account for revenues and expenditures apportioned to the City for sales tax collections under Measure K. Expenditures for administration, maintenance and construction must be for street-related projects.

Intermodal Surface Transportation Efficiency Act (ISTEA) To account for revenues from the federal highway administration for programs including surface transportation program (STP) for streets and roads, congestion mitigation and air quality program (CMAQ) and hazard elimination safety (HES) for street lighting projects.

Nonmajor Governmental Funds can be found in supplementary information. 25 Proprietary Fund Types
Proprietary funds consist of the enterprise funds and the Internal Service funds.

Major Enterprise Funds:

ELECTRIC FUND
The City established this fund in order to account for the provision of electric services to the residents of the City. All activities necessary to provide such services are accounted for in this fund, including but not limited to, source of supply, overhead, systems maintenance, customer service, engineering, administration, capital improvements maintenance and debt service.

WASTEWATER FUND
This fund was established by the City in order to account for the provision of wastewater collection and treatment services to the residents of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, improvements and debt service.

WATER FUND
This fund was establi shed by the City in order to account for the provision of water to the residents of the City as well as some customers in the County. All activities to provide such services are accounted for in this fund, including, but not limited to administration, operations, distribution, maintenance, capital improvements and debt service.

Nonmajor Enterprise Fund:

TRANSIT FUND
This fund is used to account for the operations of the Dial-A-Ride and the Grapeline bus system.

Internal Service Funds:

These funds are used to account for interdepartmental operations where it is the stated intent that costs of providing services to the departments of the City on a continuing basis be financed or recovered primarily by charges to the user departments.

Fiduciary Fund Types

PRIVATE-PURPOSRE TRUST FUNDS
These funds are used to account for assets held by the Library Board as trustee of the Lodi Public Library and for assets held by the City in accordance with the trust agreement on behalf of the Hutchins Street Square.
26 Other Governmental  Total Governmental
ASSETS General  Fund Streets Funds Funds
Cash and investments 15,180,526 $                 13,125,732$                 18,202,288$                 46,508,546$ Accounts receivables, net 7,190,261   2,128,815  324,113  9,643,189 Prop
erty taxes receivables 92,539 ‐  ‐  92,539
Int
erest receivable 4,218 4,619 5,889 14,726
Due from other governmental agencies 10,651,086  908,795  65,817 11,625,698 Invent
ory ‐  ‐  1,776 1,776
Prep
aid  53,739 ‐  ‐  53,739
Res
tricted cash and investments 15,641,640  298,541  862,282  16,802,463 Total a
ssets 48,814,009$                 16,466,502$                 19,462,165$                 84,742,676$

LIABILITIES
Accounts payable and other liabilities 7,302,047$   2,298,592$   1,091,245$   10,691,884$ Accr
ued salaries and wages 107,840  10,020 42,381 160,241
Advances fro
m other funds ‐  ‐  148,875  148,875
Unear
ned revenue ‐  ‐  83,897 83,897
Tota
l liabilities 7,409,887  2,308,612  1,366,398  11,084,897 DEFERRED IN
FLOWS OF RESOURCES
Unavailable revenue 714,024  24,037 238,698  976,759

Total d
eferred inflows of resources 714,024  24,037 238,698  976,759 FUND BA
LANCES
Nonspendable
Inventory ‐
‐  1,776 1,776

Prepaid 53,739 ‐  ‐  53,739
Res
tricted
Road‐related projects ‐  13,835,312  85,231 13,920,543
Home and CDBG pr
ogram ‐  ‐  (585,276)  (585,276)
Public sa
fety ‐  ‐  165,163  165,163
C
ommunity development ‐  ‐  6,410,945  6,410,945
Debt se
rvice ‐  ‐  2,239 2,239
Pen
sion  15,641,640  298,541  862,282  16,802,463
Spec
ial assessments ‐  ‐  362,908  362,908
C
ommitted
Video ‐ related capital projects 557,686  ‐  ‐  557,686 Pa
rks, recreation and community services ‐  ‐  913,705  913,705 A
ssigned
Capital projects ‐  ‐  9,638,096  9,638,096
U
nassigned 24,437,033  ‐  ‐  24,437,033
Tota
l fund balances 40,690,098  14,133,853  17,857,069  72,681,020 Total liabilities, deferred inflows of resources
and fund balances  48,814,009$                 16,466,502$                 19,462,165$                 84,742,676$ CITY OF LODI
Governmental Funds
June 30, 2021
Balance Sheet
The notes to financial statements are an integral part of this statement. 27 Fund balances ‐ total governmental funds 72,681,020$ Amounts reported for governmental activities in the statement of net position are different because:

Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in the funds.

Nondepreciable capital assets 28,563,701
Depreciable capital assets, net 108,419,560
Internal Service Fund capital asset (18,814)
De
ferred outflows of resources related to pensions & OPEB reported in government‐wide statement of net position 17,005,414 Deferred inflows of resources related to pensions & OPEB are reported in government‐wide statement of net position (6,786,959) Deferred outflows of resources related to unamortized losses on defeasance are not reported in governmental funds . 273,847 Amounts reported in Internal Service Funds
Deferred outflows of resources related to pensions & OPEB (1,845,173) Deferred inflows of resources related to pensions & OPEB 6,246,100 Long‐term liabilities and related accounts are not due and payable in the current period and therefore are not reported in the governmental funds as follows:

Accrued Inte rest (165,303)
Long‐term liabilities ‐ Due within one year (9,105,409) Long‐term Liabilities ‐ Due in more than one year (26,049,643) Net pension liability (114,251,141)
Net OPEB liability (19,969,043)
Long‐term liabilities reported in the Internal Service Funds Net pension liability 1,731,939
Net OPEB liability 19,969,043
Accrued compensated absences 6,714,211
Self‐insurance liability 9,482,536
Unavailable revenue reported in go vernmental funds was recorded as revenue in the statement of activities.  976,759 Internal service funds are used by management to charge the costs of general liability insurance, workers' compensation insurance, health benefits insurance, other insurance, employee benefits and the cost of operating and maintaining the City's fleet to individual funds.  The a ssets  and liabilities of the internal service funds are included in governmental activities in the statement of net position. (19,820,518) Net position of governmental activities 74,052,126$
CITY OF LODI
Reconciliation of  the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2021
The notes to financial statements are an integral part of this statement. 28 General Fund Streets
Other Governmental
Funds
Total Governmental
Funds

REVENUES
Taxes 31,697,986 $                  ‐ $                                     ‐ $                                     31,697,986$ Sales and use tax 24,302,433                     ‐                                        ‐                                        24,302,433 Licenses and permits 69,004                            ‐                                       2,551,510                      2,620,514 Intergovernmental revenues 15,116,622                    6,774,637                      765,877                          22,657,136 Charges for services 2,598,283                      1,511,609                      5,971,088                      10,080,980 Fines, forfeits, and penalties 217,097                          ‐                                       ‐                                       217,097 Investment and rental income 4,640,812                      166,969                          384,935                          5,192,716 Miscellaneous revenue 494,747                          228,186                          542,543                          1, 265,476 Total revenues 79,136,984                    8,681,401                      10,215,953                    98,034,338

EXPENDITURES
Current:

General government 23,829,150                    ‐                                       2,018,538                      25,847,688 Public protection 38,005,919                    ‐                                       104,210                          38,110,129 Public works 2,743,906                      2,849,603                      961,969                          6,555,478 Community development ‐                                       ‐                                       2,126,650                      2,126,650 Library 1,024,617                      ‐                                       ‐                                       1,024,617 Parks and recreation ‐                                       ‐                                       2,827,449                      2,827,449 Capital outlay ‐                                       4,743,316                      2,099,325                      6,842,641 Debt service:

Interest ‐                                       ‐                                       694,616                          694,616 Principal retirement ‐                                       ‐                                       1,144,218                      1,144,218 Tot
al expenditures 65,603,592                    7,592,919                      11,976,975                    85,173,486 Excess (deficiency) of revenues over
expenditures 13,533,392                    1,088,482                      (1,761,022)                     12,860,852 OTHER FINANCING SOURCES (USES)
Transfers in 4,697,816                      287,509                          5,802,968                      10,788,293 Transfers out (5,458,817)                     ‐                                       (881,359)                        (6,340,176) Proceeds from sale of property 14,666                            13,865                            ‐                                       28,531 Total other financing sources (uses) (746,335)                        301,374                          4,921,609                      4,476,648 Net change in fund balances 12,787,057                    1,389,856                      3,160,587                      17,337,500 F
und balances ‐ beginning, as restated (Note 16) 27,903,041                    12,743,997                    14,696,482                    55,343,520 Fund balances ‐ ending 40,690,098$                  14,133,853$                  17,857,069$                  72,681,020$ CITY OF LODI
Statement of Revenues, Expenditures  and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2021
The notes to financial statements are an integral part of this statement. 29 Changes in fund balances ‐ total governmental funds 17,337,500$ Amounts reported for governmental activities are different because:

Governmental funds report capital outlays as expenditures.  However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. In addition, contributed capital assets do not im pact  the governmental funds however they are reported in the statement of activities.

Capital outlays, capital asset contributions, and depreciation expense are as follows:

Capital outlays 6,842,641
Capital asset contributions 5,759,081
Depreciation expense (8,607,648)
Less: Internal service fund depreciation 1,447
Repayments of the principal are expenditures in the governmental funds, but the repayments reduce long‐term liabilities in the statem ent of net position.

Principal payment 1,144,218
Internal service funds are used by management to charge the costs of general liability insurance, workers' compensation insurance, health benefits insurance, other insurance, employee benefits and the cost of operating and maintaining the City's fleet to individual funds.  The net loss incom e  of the internal service funds are reported with governmental activities. 3,224,327 Other expenses in the statement of activities that do not use current financial resources are not reported as expenditures in the governmental funds.

Change in compensated absences and sick leave conversion balance 1,200,685 Less Internal Service Funds compensated absences (358,262) Amortization of loss on de feasance (26,936)
Amortization of bond premium 53,830
Change in unavailable revenue (184,231)
Change in accrued interest (13,176)
Change in net pension liability and related amounts 931,348 Change in OPEB obligation and related amounts (2,462,912) Change in net position of governmental activities 24,841,912$ CITY OF LODI
Reconciliation of the Statement of Revenues,
Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities
For the Year Ended June 30, 2021
The notes to financial statements are an integral part of this statement. 30 Electric Wastewater Water
ASSETS
Current assets:

Cash and investments 29,975,250$                 26,591,516$                 13,946,796$ Restricted cash and investments ‐  ‐  12,790,247
Accou
nt receivables, net 6,014,293  1,638,602  1,095,555
In
terest Receivable 9,443  8,417  8,068
Du
e from other governmental agencies ‐  ‐  ‐
Ad
vance receivables ‐ NCPA 12,189,516  ‐  ‐
I
nventory 4,483,387  46,900  528,238
Othe
r assets 13,490  ‐  6,292
To
tal current assets 52,685,379  28,285,435  28,375,196
No
ncurrent assets:

Restricted assets with fiscal agents  4  2,510,196  2
Rest
ricted cash and investments 1,991,595  734,201  734,201 Ad
vances to other funds ‐  ‐  148,875
Cap
ital assets:

Nondepreciable 1,677,348  6,081,478  7,195,478
D
epreciable, net 41,376,378  85,493,919  94,980,181
To
tal noncurrent assets 45,045,325  94,819,794  103,058,737 To
tal assets 97,730,704  123,105,229                 131,433,933 DE
FERRED OUTFLOWS OF RESOURCES
Unamortized losses on defeasance of debt 4,075,234  1,639,936  ( 376,581)
Re
lated to OPEB 35,758  195,629  109,544
Rela
ted to pensions 3,280,677  1,986,733  187,018
To
tal deferred outflows of resources 7,391,669  3,822,298  ( 80,019)
L

IABILITIES
Current liabilities:

Accounts payable and other liabilities 2,596,539  278,336  3,760,361 Accr
ued salaries and wages 66,504  42,902  7,118
Accr
ued interest 633,670  348,683  83,104
U
nearned revenue ‐  ‐  660,104
Lo
ans payable 224,178  ‐  ‐
Accr
ued compensated absences 245,146  466,132  56,009
P
ollution remediation obligation ‐  ‐  400,000
C
ertificates of participation and re venue
bonds payable 2,842,246  2,267,967  1,100,646
To
tal current liabilities 6,608,283  3,404,020  6,067,342 No
ncurrent liabilities:

Loans payable 229,405  ‐
‐
Self insurance liability ‐
‐  ‐

Accrued compensated absences 337,083  291,512  44,843
Certificates of participation and revenue
bonds payable 39,977,828  35,035,280  27,517,401
Net pension liability 19,316,608  11,697,875  1,101,164 Net OPEB liability 460,374  2,518,662  1,410,353
Pollution remediation ob ligation ‐                  ‐  14,982,824 Total noncurrent liabilities 60,321,298  49,543,329  45,056,585 Total liabilities 66,929,581  52,947,349  51,123,927
DEFERRED INFLOWS OF RESOURCES
Related to pensions 52,300  31,672  2,981
Related to OPEB 143,892  787,219  440,812
Total deferred inflows of resources 196,192  818,891  443,793 NET POSITION
Net investment in capital assets  4,207,819  58,363,258  72,735,691 Restricted for:

Debt service 4  2,510,196  2
P
ensions 1,991,595  734,201  734,201
Pollution Remediation ‐
‐  12,790,247
Unrestricted (deficit) 31,797,182  11,553,632  (6,473,947) Total net position   $                37,996,600   $                73,161,287   $                79,786,194 June 30, 2021
Business‐type Activities
CITY OF LODI
Statement of Net Position
Proprietary  Funds
The notes to financial statements are an integral part of this statement. 31 Governmental
Activities
Non‐Major
Transit Funds Total  Enterprise Funds Internal  Service Funds ASSETS
Current assets:

Cash and investments 673,028$   71,186,590$                 22,061,050$ Re
stricted cash and investments ‐  12,790,247  188,375
Accou
nt receivables, net 1,502,042  10,250,492  226,503
In
terest Receivable 225  26,153  6,695
Du
e from other governmental agencies 3,380,389  3,380,389  ‐ Ad
vance receivables ‐ NCPA ‐  12,189,516  ‐
In
ventory ‐  5,058,525  203,343
Othe
r assets ‐  19,782  117,598
Total c
urrent assets 5,555,684  114,901,694                 22,803,564 No
ncurrent assets:

Restricted assets with fiscal agents ‐  2,510,202  ‐
Re
stricted cash and investments 99,528  3,559,525  ‐
Ad
vances to other funds ‐  148,875  ‐
Cap
ital assets:

Nondepreciable 1,784,101  16,738,405  ‐
D
epreciable, net 14,721,102  236,571,580                 18,814 To
tal noncurrent assets 16,604,731  259,528,587                 18,814 To
tal assets 22,160,415  374,430,281                 22,822,378 DE
FERRED OUTFLOWS OF RESOURCES
Unamortized losses on defeasance of debt ‐  5,338,589  ‐ Re
lated to OPEB ‐  340,931  1,551,025
Re
lated to pensions 133,904  5,588,332  294,148
To
tal deferred outflows of resources 133,904  11,267,852  1,845,173 L

IABILITIES
Current liabilities:

Accounts payable and other liabilities 566,165  7,201,401  338,068 Accr
ued salaries and wages 3,143  119,667  6,172
Accr
ued interest ‐  1,065,457  ‐
U
nearned revenue ‐  660,104  ‐
Lo
ans payable ‐  224,178  ‐
Accr
ued compensated ab sences 41,168  808,455  57,443
P
ollution remediation obligation ‐  400,000  ‐
C
ertificates of participation and revenue
bonds payable ‐  6,210,859  ‐
To
tal current liabilities 610,476  16,690,121  401,683
No
ncurrent liabilities:

Loans payable ‐  229,405  ‐
Sel
f insurance liability ‐  ‐  9,482,536
Accr
ued compensated absences 224,278  897,716  6,656,768
C
ertificates of participation and revenue
bonds payable ‐  102,530,509                 ‐
Ne
t pension liability 788,422  32,904,069  1,731,939
Net OPEB lia
bility ‐  4,389,389  19,969,043
P
ollution remediation obligation ‐  14,982,824  ‐
To
tal noncurrent liabilities 1,012,700  155,933,912                 37,840,286 To
tal liabilities 1,623,176  172,624,033                 38,241,969 DE
FERRED INFLOWS OF RESOURCES
Related to pensions 2,135  89,088  4,689
Re
lated to OPEB ‐  1,371,923  6,241,411
To
tal deferred inflows of resources 2,135  1,461,011  6,246,100 NET PO
SITION
Net investment in capital assets  16,505,203  151,811,971                 18,814 Restr
icted for:

Debt service ‐  2,510,202  ‐
P
ensions 99,528  3,559,525  ‐
P
ollution Remediation ‐  12,790,247  ‐
Unre
stricted (deficit) 4,064,277  40,941,144  (
19,839,332)
Total net position 20,669,008$                 211,613,089$               (19,820,518)$ Business‐type Activities
June 30, 2021
Proprietary  Funds
Statement of Net Position (Continued)
CITY OF LODI
The notes to financial statements are an integral part of this statement. 32 Electric Wastewater Water
OPERATING REVENUES
Charges for services 74,197,234$                 16,780,674$                 14,106,809$ OPERATING EXPENSES
Personnel services 9,481,228  3,818,107  2,457,115
S
upplies, materials and services 12,994,460  1,124,344  901,733 U
tilities 41,562,943  863,579  727,216
D
epreciation 1,978,200  4,647,540  3,212,895
Claim
s ‐  ‐  ‐
To
tal operating expenses 66,016,831  10,453,570  7,298,959 Op
erating income (loss) 8,180,403  6,327,104  6,807,850

NONOPER
ATING REVENUES (EXPENSES)
Investment income 1,135,011  638,685  362,266
Interes
t expense (2,290,148)  (1,229,713)  (842,554)
Op
erating grants ‐  379,098  260,505
Greenhouse ga
s allowance 1,908,549  ‐  ‐
Ot
her revenues 2,334,325  599,913  679,042
Ga
in on sale of city property ‐  22  31,026
To
tal nonoperating revenues (expenses) 3,087,737  388,005  490,285 Income (lo
ss) before contributions and
transfers 11,268,140  6,715,109  7,298,135
Cap
ital contributions 567,681  2,241,113  1,165,001
Tr
ansfers In ‐  41,600  ‐
Tr
ansfers out (2,285,270)  (1,084,699)  (853,449)
Ch
ange in net position  9,550,551  7,913,123  7,609,687
Tota
l net position (deficit) ‐ beginning 28,446,049  65,248,164  72,176,507 To
tal net position (deficit) ‐ ending 37,996,600$                 73,161,287$                 79,786,194$ For the Year Ended June 30, 2021
Business‐type Activities
CITY OF LODI
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
The notes to financial statements are an integral part of this statement. 33 Governmental
Activities
Non‐Major
Transit Funds Total  Enterprise Funds Internal  Service Funds OPERATING REVENUES
Charges for services 69,924 $   105,154,641$               18,112,304$ OPER
ATING EXPENSES
Personnel services 467,122  16,223,572  (203,973)
S
upplies, materials and services 2,800,465  17,821,002  10,943,011 U
tilities 49,920  43,203,658  11,927
D
epreciation 1,017,303  10,855,938  1,447
Claim
s ‐  ‐  4,941,487
To
tal operating expenses 4,334,810  88,104,170  15,693,899 Op
erating income (loss) (4,264,886)  17,050,471  2,418,405

NONOPER
ATING REVENUES (EXPENSES)
Investment income 87,069  2,223,031  199,438
Interest ex
pense ‐  (4,362,415)  ‐
Op
erating grants 4,317,946  4,957,549  ‐
G
reenhouse gas allowance ‐  1,908,549  ‐
Ot
her revenues 290,709  3,903,989  596,868
Ga
in on sale of city property 1,992  33,040  9,616
To
tal nonoperating revenues (expenses) 4,697,716  8,663,743  805,922 Income (lo
ss) before contributions and
transfers 432,830  25,714,214  3,224,327
Cap
ital contributions 1,146,260  5,120,055  ‐
Tr
ansfers In ‐  41,600  ‐
Tr
ansfers out (266,299)  (4,489,717)  ‐
Chan
ge in net position  1,312,791  26,386,152  3,224,327
To
tal net position (deficit) ‐ beginning 19,356,217  185,226,937                 (23,044,845) To
tal net position (deficit) ‐ ending 20,669,008$                 211,613,089$               (19,820,518)$ Business‐type Activities
For the Year Ended June 30, 2021
Proprietary Funds
Statement of Revenues, Expenses, and Changes in Net Position  (Continued) CITY OF LODI
The notes to financial statements are an integral part of this statement. 34 Electric Wastewater Water
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers 74,222,048$                 17,053,642$                 14,602,029$ Cash from interfund customers ‐  ‐  ‐
Pa
yments to suppliers (54,742,194)                  (1,327,358)  (992,177) Pa
yments to employees (9,640,634)  (4,201,536)  (3,910,135) Due fro
m other funds charges for services ‐  (841,241)  (709,384) Ne
t cash provided (used) by operating activities 9,839,220  10,683,507  8,990,333 CASH FLOW
S FROM NONCAPITAL FINANCING ACTIVI TIES
Operating grants ‐  379,098  260,505
Repa
id from other funds ‐  ‐  295,587
Recei
ved ‐ greenhouse gas allowance 1,908,549  ‐  ‐
Sa
le of property ‐  22  5,763
Tr
ansfers out (9,244,649)  (1,084,699)  (853,449)
Tr
ansfer in 6,959,379  41,600  ‐
Ne
t cash provided (used) by noncapital financing
activities (376,721)  (663,979)  (291,594)
CASH FLOW
S FROM CAPITAL AND RELATED FINANCING

ACTIVITIES
Fees received for water meter installation s ‐  ‐  71,322 Acqui
sition and construction of capital assets  (2,951,754)  (5,622,136)  (7,726,503) F
ees received from developers 567,681  2,241,113  1,165,001 Cap
ital grants received ‐  ‐  ‐
Pr
incipal payments on debt (2,469,027)  (1,889,846)  (1,040,000) Interes
t payments on debt (1,954,477)  (1,431,810)  (1,016,233) Ne
t cash provided (used) by capital and related
financing activities (6,807,577)  (6,702,679)  (8,546,413) CASH FLOW
S FROM INVESTING ACTIV ITIES
Interest on investments 668,952  349,961  355,416
Ne
t cash provided by investing activities 668,952  349,961  355,416 Ne
t increase (decrease) in cash and cash equivalents 3,323,874  3,666,810  507,742 Ba
lances ‐ beginning of year 28,642,975  23,999,253  26,963,504 Ba
lances ‐ end of the year 31,966,849$                 27,666,063$                 27,471,246$ Reconciliation to the statement of net position:

Cash and investments 29,975,250 $                 26,591,516$                 13,946,796$ Restricted cash and investments ‐
‐  12,790,247
Res
tricted assets with fiscal agents  4  2,510,196  2
Res
tricted cash and investments 1,991,595  734,201  734,201 Le
ss: Guaranteed Investment Contract ‐  (2,169,850)
‐
To
tal cash and cash equivalents 31,966,849$                 27,666,063$                 27,471,246$ For the Year Ended June 30, 2021
Business‐type Activities ‐ Enterprise Funds
CITY OF LODI
Statement of Cash Flows
Proprietary Funds
The notes to financial statements are an integral part of this statement. 35 Electric Wastewater Water
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:

Operating Income (loss) 8,180,403$   6,327,104$   6,807,850$ Adj
ustments to reconcile operating income (loss) to net
cash provided (used) by operating activities:

Depreciation Expense  1,978,200  4,647,540  3,212,895
Ot
her revenues 2,334,325  599,913  607,720
Ch
anges in assets, liabilities and deferred outflow/inflows of resources:

Loans receivable 52,196  ‐  ‐
Custo
mer Receivables (2,084,444)  (326,939)  (114,257)
Advance re
ceivable (248,957)  ‐  ‐
I
nventory (286,537)  779  (54,181)
Ot
her assets (13,490)  ‐  (3,780)
D
eferred inflows of resources ‐  ‐  ‐
D
eferred outflows of resources ‐  ‐  ‐
Co
mpensated absences (286,825)  69,742  3,664
Accounts Pa
yable ‐ Supplier (49,882)  (177,209)  222,901
Accrued salarie
s and wages 60,758  42,898  7,118
Ne
t pension liability, OPEB and related amounts 203,473  (500,321)  (811,215) Self‐insu
rance liability ‐  ‐  ‐
Po
llution remediation obligation ‐  ‐  (888,382)
Ne
t cash provided by operating activities 9,839,220$   10,683,507$                 8,990,333$ No
ncash investing, capital and financing activities:

Capital asset contributions  567,681$   2,241,113  1,165,001$ Amortization of issuance pre
mium (376,175)  297,292  188,063
Amortization of lo
sses on defeasance 477,246  ‐  ‐
To
tal noncash investing, capital and financing activities 668,752$   2,538,405$   1,353,064$ Proprietary Funds
For the Year Ended June 30, 2021
Business‐type Activities ‐ Enterprise Funds
CITY OF LODI
Statement of Cash Flows (Continued)
The notes to financial statements are an integral part of this statement. 36 Governmental Activities
Non‐Major
Transit Fund Total  Enterprise Funds Internal  Service Funds CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers 360,649 $   106,238,368$               837,396$ Cash fro
m interfund customers ‐
‐  17,791,751
Pa
yments to suppliers (2,528,346)  (59,590,075)                  (15,148,292) Pa
yments to employees (442,102)  (18,194,407)                  (2,089,786) Due fro
m other funds (42,540)  (1,593,165)  ‐
Ne
t cash provided (used) by operating activities (2,652,339)  26,860,721  1,391,069 CASH FLOWS
FROM NONCA
PITAL FINANCING ACTIVITIES
Operating grants  3,364,373  4,003,976  ‐
Repa
id from other funds (237,449)  58,138  ‐
Recei
ved ‐ greenhouse gas allowance ‐  1,908,549  ‐
Sa
le of property 1,992  7,777  ‐
Tr
ansfers out (266,299)  (11,449,096)                  ‐
Tr
ansfer in ‐  7,000,979  ‐
Ne
t cash provided (used) by noncapital financing
activities 2,862,617  1,530,323  ‐
CASH FLOW
S FROM CAPITAL AND RELATED FINANCING
ACTIVI
TIES
Fees received for water meter installations ‐  71,322  ‐ Acqui
sition and construction of capital assets  (769,213)  (17,069,606)                  ‐ F
ees received from developers ‐  3,973,795  ‐
Cap
ital grants received 1,164,196  1,164,196  ‐
Pr
incipal payments on debt ‐  (5,398,873)  ‐
Interes
t payments on debt ‐  (4,402,520)  ‐
Ne
t cash provided (used) by capital and related
financing activities 394,983  (21,661,686)                  ‐ CASH FLOWS
FROM IN
VESTING ACTIVITIES
Interest on investments 86,667  1,460,996  208,367
Ne
t cash provided by investing activities 86,667  1,460,996  208,367 Ne
t increase (decrease) in cash and cash equivalents 691,928  8,190,354  1,599,436 Ba
lances ‐ beginning of year 80,628  79,686,360  20,649,989 Ba
lances ‐ end of the year 772,556$   87,876,714$                 22,249,425$ R
econciliation to the statement of net position:

Cash and investments 673,028 $   71,186,590$                 22,061,050$ Res
tricted cash and investments ‐  12,790,247  188,375
Res
tricted assets with fiscal agents ‐  2,510,202  ‐
Res
tricted cash and investments 99,528  3,559,525  ‐
Le
ss: Guaranteed Investment Contract ‐  (2,169,850)  ‐
To
tal cash and cash equivalents 772,556$   87,876,714$                 22,249,425$ B
usiness‐type Activities ‐ Enterprise Funds
For the Year Ended June 30, 2021
Proprietary Funds
Statement of Cash Flows (Continued)
CITY OF LODI
The notes to financial statements are an integral part of this statement. 37 Governmental Activities
Non‐Major
Transit Fund Total  Enterprise Funds Internal  Service Funds Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:

Operating Income (loss) (4,264,886) $                  17,050,471$                 2,418,405$ Adj
ustments to reconcile operating income (loss) to net
cash provided (used) by operating activities:

Depreciation Expense  1,017,303  10,855,938  1,447
Ot
her revenues 290,709 3,832,667  606,484
Ch
anges in assets, liabilitie s and deferred outflow/inflows of resources:

Loans receivable ‐  52,196  ‐
Cu
stomer Receivables ‐  (2,525,640)  (89,644)
Advance re
ceivable ‐  (248,957)  ‐
Inventory ‐  (339,939)  (27,801)
Ot
her assets ‐  (17,270)  (1,491)
D
eferred inflows of resources ‐  ‐  (369,789)
D
eferred outflows of resources ‐  ‐  1,206
Co
mpensated absences 102,741  (110,678)  242,827
Accounts Pa
yable ‐ Supplier 279,499  275,309  (77,580)
Accrued salaries
and wag es 3,143  113,917  6,172
Ne
t pension liability, OPEB and related amounts (80,848)  (1,188,911)  (2,136,618) Se
lf‐insurance liability ‐  ‐  817,451
Po
llution remediation obligation ‐  (888,382)  ‐
Ne
t cash provided (used) by operating activities (2,652,339)$                  26,860,721$                 1,391,069$ No
ncash investing, capital and financing activities:

Capital asset contributions  1,146,260$   5,120,055$   ‐$ Amortization of issuance premi
um ‐  109,180
‐
Amortization of lo
sses on defeasance ‐  477,246
‐
To
tal noncash investing, capital and financing activities 1,146,260$   5,706,481$ ‐$
For the Year Ended June 30, 2021
Proprietary Funds
Statement of Cash Flows (Continued)
CITY OF LODI
Business‐type Activities ‐ Enterprise Funds
The notes to financial statements are an integral part of this statement. 38 Private‐Purpose Trust
Funds
ASSETS
Cash and investments 172,795$
In
terest receivable 1
Tot
al assets 172,796
L

IABILITIES
Deposits payable ‐
NE
T POSITION  172,796$
CITY OF LODI
Statement of Fiduciary Net Position
June 30, 2021
The notes to financial statements are an integral part of this statement. 39 Private‐Purpose Trust
Funds

ADDITIONS
Investment and rental income 31,211 $
DE

DUCTIONS
Current:

Library 1,398
Ch
ange in Fiduciary Net Position 29,813
Ne
t Position ‐ beginning of the year 142,983
Ne
t Position ‐ end of the year 172,796$
CITY OF LODI
Statement of Changes in Fiduciary Net Position
For the Year Ended June 30, 2021
The notes to financial statements are an integral part of this statement. 40 NOTES TO THE

BASIC FINANCIAL

STATEMENTS

CITY OF LODI
Notes to Basic Financial Statements
June 30, 2021
Note 1 – Summary of Significant Accounting Policies
A. T
he Financial Reporting Entity
The City of Lodi (City) was incorporated on December 6, 1906, as a municipal corporation under the General La ws of
the State of California. The City operates under a Council -Manager form of government and provides the following services: general government, public works, community development, public protection (police and fire), public utilities, library, parks and recreation.

The accounting policies of the City conform to generally accepted accounting principles (GAAP) as applicable to governments in the United States of America. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for governmental accounting and financial reporting principles.

A
n elected five -member council governs the City of Lodi. As required by GAAP, these financial statements presen t th
e City and its component units, entities for which the City is considered to be financially acco untable. The component units, although legally separate entities, are, in substance, part of the City’s operations and therefore, their activities are blended with data of the City.

B lended Component Units
The blended component units of the City are as follows:

Th
e Lodi Public Financing Authority (LPFA) was created by a Joint Exercise of Powers Agreement between the City and the Industrial Development A uthority (IDA) on July 21, 2010, for the purpose of assisting the City in the financings of public capital improvements. The 2010 Water Revenue Bonds Series A and B were issued in October 2010 to provide funds for a new water treatment fac ility. On September 1, 2012, the $19,080,000 Refunding Lease Revenue Bonds (2012 LRB) were issued to prepay and cause the immediate defeasance of the outstanding $21,025,000 Certificates of Participation (2002 COP). The 2002 COP were issued in January 2002 to provide funds to finance the costs of constructing, furnishing and equipping a new police building and jail for the City, to fi nance portions of certain other projects and to refund the outstanding 1995 and 1996 Certificates of Participation. The $17,105,000 2012 Refunding Wastewater Revenue Bonds (2012 Bonds) were also issued in September 2012 to advance refund the $17,115,000 principal amount of the 2004 Wastewater Revenue Certificate s of Participation (2004 COP). The 2004 COP were issued to provide funds to finance the costs of certain improvements to the wastewater collection, treatment and disposal system of the Ci ty. The 2016 Refunding Wastewater Revenue Bonds (2016 Bonds) were issued to refinance $21,415,000 principal amount of the 2007 Wastewater System Revenu e
C
ertificates of Participation ( 2007 COP). On December 1, 2017 the City issued $7,762,794 2017 Insta llment P
urchase Agreement for a current refunding for the $7,555,000 principal amount of the 2007 Wastewater Revenue Certificates of Participation. On June 13, 2018, the City issued $41,610,000 Electric System Revenue Bonds ( 2018 B
onds) to allow the prepayment and cause immediate defeasance of the outstanding $55,785,000 Certificates of Participation (Electric System Revenue Certificates of Participation 2008 Series A). In April 2020, t he City issued $25,390,000 2020 Refunding Water Revenue Bonds, Series A ( 2020 Bonds) to redeem all of the outstanding $29,650,000 principal of the 2010 Water Revenue Bonds Series B, (Federally Taxable – Build America Bonds – Direct Payment).

T
he City Council constitutes the Board of Directors of LP FA. The funds of LP FA have been included in the governmental activities , Enterprise ( Wastewater and Water and Electric) Funds and in the accompanying basic financial statements.
42 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 1 – Summary of Significant Accounting Policies (Continued) B. G
overnment-Wide and Fund Financial Statements
T
he government- wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non -fiduciary activities of the primary gover nment and its component units. For the most part the e ffect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business - type activities that rely, to a significant extent, on fees and charges for support.

T
he statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment.

Program revenues include (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and (2) grants and contributions that are restricted to meeting the operational or capital requirem ents of a particular function. Taxes and other items no t
p
roperly included among program revenues are reported instead as general revenues.

S
eparate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the governmen t-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.

C. M
easurement Focus, Basis of Accounting, and Financial Statement Presentation T
he government- wide financial statements are reported using the economic resources measurement focus and accrual basis of accounting, as are the proprietary fund and private -purpose trust fund financial statements.

Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the y ear for which they are levied. Gran t
a
nd simi lar items are recognized as revenue as soon as all eligibility requ irements have been met. Agency funds use the accrual basis of accounting.

G
overnmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. The City considers property tax revenues to be available if they are collected within 60 days of the end of the current fiscal year. All other revenues are considered to be available if they are generally collected within 120 days of th e end of the current fiscal period. Expenditures generally are recorded when a liability is incurred , as under accrual accounting. However, debt servic e
e
xpenditures, as well as expenditures related to vacation, sick leave, claims and judgments, are recor ded only when payment is due.

P
roperty taxes, other local taxes, licenses, intergovernmental revenues, and interest associated with the curren t f
iscal period are all considered susceptible to accrual and have been recognized as revenues of the current fis cal period. All other revenues are considered to be measurable and available when the City receives cash.

P
roprietary funds distinguish operating revenues and exp enses from non-operating items. Operating revenues and expenses generally result from providing services in connection with the fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise funds, and internal service funds are charges for customer services including electric, wastewater, water a nd public transportation fees. Operating expenses for enterprise funds and internal service funds include the cost of services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non -operating revenues and expenses.
43 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021

Note 1 – Summary of Significant Accounting Policies (Continued)

C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)

The City reports the following major governmental funds:

The General Fund is the City’s primary operating fund. It accounts for all financial resources of the City except those required to be accounted for in another fund.

The Streets Fund accounts for Gas Tax revenues apportioned to the City under the State Streets and Highway Code, impact fees charged to provide for the building of various storm drains and street improvements needed to serve new developments, and to account for funds apportioned to the City for sales tax collections under Measure K.

The City reports the following major proprietary (enterprise) funds:

The Electric Fund accounts for the provision of electric services to the residents of the City. All activities necessary to provide such services are accounted for in this fund, including but not limited to, source of supply, overhead, systems maintenance, customer service, engineering, administration, capital improvements, and maintenance and debt service.

The Wastewater Fund accounts for the provision of wastewater collection and treatment services to the residents of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, improvements and debt service.

The Water Fund accounts for the provision of water to the residents of the City as well as some customers in the San Joaquin County (County). All activities to provide such services are accounted for in this fund, including, but not limited to administration, operations, distribution, maintenance, capital improvements and debt service.

Additionally, the City reports the following fund types:

The Internal Service Funds account for the City’s claims , benefits, fleet services and equipment/vehicle replacement.

Private-Purpose Trust Funds are used to account for trust agreements under which the principal and income benefit individuals, private organizations or other governments. They were established to account for assets held and invested by the Library Board as trustee; and to account for assets held by the City in accordance with a trust agreement on behalf of the Hutchins Square. These funds can only be spent in accordance with the trust agreements.

The effect of interfund activity has been eliminated from the governm ent-wide financial statements. Exceptions to this rule are charges to other City departments from the Electric, Waste water, Water and Transit Funds. These charges have not been eliminated because elimination would distort the direct costs and program revenues reported in the statement of activities.

D. Cash and Investments

The City maintains a cash and investment pool that is available for all funds of the City for the purpose of increasing interest earnings through investment activities. Investments are generally stated at fair value with the exception of guaranteed investment contrac ts, which are stated at cost. Income earned or losses arising from the investment of pooled cash are allocated to various funds based on month -end cash balances in accordance with California Government Code Section 53647. Changes in fair value of investments are recognized as a component of investment income.
44 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021

Note 1 – Summary of Significant Accounting Policies (Continued)

E. Restricted Cash and Investments

The City accounts for certain settlement payments for environmental remediation as restricted with the understanding that these funds will be used excl usively for environmental clean up, investigation or remediation expenses incurred by the City in the specified areas and that they will not be used for the payme nt of legal or technical fees. These funds are accounted for in the Water Fund.

The City has invested in the Public Agency Retirement Services (PARS) for the PARS Public Agencies Post- Employment Benefits Trust. This trust is to be used only for the payment of such post-employment benefits for retirees. These funds are accounted for in the General Fund; Streets; Parks, Recreation and Community Services; Community Development; Electric Utility; Wastewater; Water; Fleet and N on-major Transit Funds.

F. Restricted Cash and Investments with Fiscal Agents

Restricted assets represent the proceeds from debt and other cash and investments held by fiscal agents by agreement that meet the definition of cash and cash equivalents, with the exception of a $2,169,850 guaranteed investment contract held in the Wastewater Fund which is a long -term investment.

In the Electric Fund, restricted assets represent the proceeds of the 2018 Electric Bonds restricted for debt service.

In the Wastewa ter Fund, the restricted assets represent the proceeds of the 200 4A, the 2016A Refunding Wastewater Revenue Bonds and the 2017 Installment Purchase Agreement issued for improvements to the City’s Wastewater collection, treatment and disposal system . In the Water Fund, restricted assets represent the proceeds of the 2010A Revenue Bonds issued for the purpose of providing funds to pay the cost of a new Water Treatment Facility and the 2020 Water Refunding Series A Bonds.

G. Receivables

Revenues are rec orded when received in cash, except revenues subject to accrual (up to 90 days after year -end) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the City, are sales tax, special assessments, intergo vernmental revenues, other taxes, interest revenue, rental revenue and certain charges for services.

Federal and State grants are considered receivable and accrued as revenue when all eligibility requirements have been met under the accrual basis of acc ounting in the government- wide statement of net positions. The amount recognized as revenue under the modified accrual basis of accounting in the governmental funds is limited to the amount that is deemed measureable and available.

Billed but not colle cted and unbilled utility revenue earned is recognized as revenue and accounts receivable in the enterprise funds.

H. Loan Receivables

Loans receivable reported in the HOME Program and Community Development Block Grants Special Revenue Fund represent funds loaned to first- time homebuyers. Loans receivable in the Electric Enterprise Fund represent loans to eligible industrial and commercial customers participating in the Lodi Energy Efficiency Financing Pilot Project.

45 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021

Note 1 – Summary of Significant Accounting Policies (Continued)

H. Loan Receivables (Continued)

In December 2009, the City entered into a contractual relationship with the California Department of Housing and Community Development (HCD) to administer a First- time Homebuyers Program . The loan program is intended to provide deferred down -payment assistance to first- time homebuyers who are at or below 80% of the median income, for the purchase of homes within Lodi. The loan bears 2% interest and is due and payable 30 years from close of escrow, upon transfer of the property or when the home is no longer owner -occupied, whichever comes first. At June 30, 2021, the outstanding balance of these loans amounted to $ 65,816, which the City included in due from other governmental agencies.

In December 2012, the City increased the loan funds in its public benefits program from which G2, G3, G4, G5 or I1 electric utility rate commercial and industrial customers may borrow money to implement energy conservation projects in their facilities. The loan is at z ero interest rate payable in two years capped at $150,000 per customer.

As of June 30, 2021, a total of twenty- three loans to industrial and commercial customers have been approved. At June 30, 2021, there were three outstanding loans, with a balance of $37,899.

I. Property Taxes

The County is responsible for assessing, collecting and distributing property taxes in accordance with enabl ing legislation. Revenue received is based on an allocation factor calculated by the County under the provisi ons of Proposition 13, plus a percentage of the increase in m arket value in specific areas. The City's property tax lien is based on the assessed value listed as of the prior January 1st for all real and personal property located in the City.

Property sold after the assessment date (January 1st) is reassessed and the amount of property tax assessed is prorated. The assessed value at January 1, 2021, upon which the 2020-21 levy was based, was $6,900,922,739.

Secured property taxes are levied on October 1 an d are due in two installments on November 1 and February 1.

The tax becomes delinquent after December 10 and April 10, respectively. Unsecured property tax is levied on July 1, due on July 31 and becomes delinquent after August 31.

Property taxes levied for the year ended June 30, 2021 , are recorded as receivables . Property taxes paid to the City by the County within 60 days of the fiscal year -end are considered "available" and are, therefore, recognized as revenue in governmental funds.

In 1993, the City made an agreement with the San Joaquin County to participate in the Teeter Plan. The Teeter plan is an alternative method of apportioning property tax money. The City receives 95% of the property taxes in advance from the County and the 5% remaining after reconciling the City’s balance at June 30. As part of the agreement, the County keeps the penalties and interest on the delinquent taxes.

J. Due From/Due To Other Funds, Advances To/Advances From Other Funds, and Internal Balances

During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. In the fund financial statements, these receivables and payables are classified as “due from other f unds” or “due to other funds ”. Long-term inter fund loans receivable are reported as “advances to other funds”. The corresponding long -term interfund loans payable are reported as “advances from other funds ”. In the government-wide financial statements, these receivables and payables are eliminated within the governmental activities and bus iness-type activities columns. Receivables and payables between the governmental activities and the business-type activities are classified as internal balances.

46 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021

Note 1 – Summary of Significant Accounting Policie s (Continued)

K. Transfers

In the fund financial statements, interfund transfers are recorded as transfers in (out) except for transactions that are described below:

Charges for services are recorded as revenues of the performing fund and expenditures /expenses of the requesting fund. Unbilled costs are recognized as an asset of the performing fund at the end of fiscal year.

Reimbursements for expenditures/expenses, initially made by one fund that is properly applicable to another fund, are recorded as expenditures /expenses in the reimbursing fund and as a reduction of expenditures /expenses in the fund that is reimbursed.

L. Long-term Obligations

In the government- wide financial statements and in the proprietary fund financial statements, long -term debt and other long -term obligations are reported as liabilities in the applicable governmental activities, business -type activities, or proprietary fund statement of net position . Bond premiums are deferred and amortiz ed over the life of the bonds. Bonds payable are reported net o f the applicable bond premium. L osses occurring from advance refunding are reported as deferred outflows of resources and amortized as an expense for both governmental and business-type activities.

M. Advance Receivable

Advance receivable reported in the Electric Enterprise Fund represents the City’s portion of the Northern California Power Agency’s (NCPA) General Operating Reserve that is refundable upon demand by the City (See Note 1 1).

N. Inventory

Other governmental funds inventories are recorded at cost and are recognized as expenditures when consume d rather than when purchased. For the proprietary fund types, inventories are recorded at cost using the weighted average cost method, which approximates market, and expense is recognized w hen inventories are consumed in operations.

O. Deferred Outflows and Inflows of Resources

Unamortized Losses on Defeasance
Deferred outflows of resources reported in the Wastewater Enterprise Fund include the refunding loss incurred on the issuance of the 2012 Refunding Revenue Bonds amortized over 11 years, and the 2016 Refunding Revenue Bonds amortized over 21 years . Deferred outflows of resources reported in the Electric Utility Enterprise Fund include the 2018 Revenue Refunding Bonds amortized over 14 years. Deferred outflows of resources in the Water Enterprise Fund include the 2020 Water Revenue Refunding Bonds amortized over 20 years. Deferred outflows of resources reported in the governmental activities represent the refunding loss incurred with the issuance of the 2012 Refunding Lease Revenue Bonds.

Related to Pensions
Pension contributions made in the current year, changes of assumptions, difference between expected and actual experience and the net difference between projected and actual earnings on plan investments are reported as deferred outflows or deferred inflows of resources per GASB Statement No. 71 as the CalPERS’ valuation measurement date is June 30, 20 20. These amounts are to be recognized in future pension expense and the amortization period differs depending on the source of the gain or loss. 47 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021

Note 1 – Summary of Significant Accounting Policies (Continued)

O. Deferred Outflows and Inflows of Resources(Continued)

Related to OPEB
OPEB contributions made in the current year are reported as deferred outflows of resources per GASB Statement No. 71 as the CalPERS’ valuation measurement date is June 30, 20 20. Those contributions will be recognized as a reduction of the net OPEB liability in the year ending June 30, 2021 . Plan earnings in excess of earnings projected , changes in assumptions, differences between expected and actual experience in the OPEB actuarial report are reported as deferred outflows or inflows of resources.

Unavailable Revenue
The unavailable revenue in the governmental funds is related to the HCD’s First -time Homebuyers Program, Development Impact Fees , and miscellaneous revenue for various projects. All fees are expected to be repaid in full.

P. Capital Assets

Capital assets, which include land, works of art, buildings and improvements, machinery and equipment, vehicles, infrastructure (e.g., streets, streetlights, traffic signals, sidewalks, and bridges), and electric lines, wastewater lines and storm drains are reported in the applicable governmental or business-type activities columns in the government-wide financial statements and in the proprietary funds financial statements. Capital assets are defined by the City as assets with individual cost of $10 ,000 or more and have an estimated usefu l life in ex cess of two years. Such assets ar e recorded at historical cost. Donated capital assets are recorded at acquisition value at the date of donation. Capital outlay is recorded as expenditures in the General Fund and other governmental funds and as assets in the government-wide financial statements to the extent the City’s capitalization threshold is met.

The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset useful lives are not capitalized. As require d by the Governmental Accounting Standards Board Statement No. 34, beginning July 1, 2002, the City has capitalized infrastructure, primarily its network of streets, as part of the capital assets shown in the governmental activities column on the governmen t-wide statement of net position . This capitalization included infrastructure that could be identified and has been acquired since July 1, 1980.

Depreciation of capital assets is provided on the straight- line basis over the following estimated useful live s:

Years
Buildings and improvements 3 - 40
Machinery and equipment 2 - 40
Vehicles 5 - 15
Infrastructure 10 - 50

Q. Compensated Absences/Vacation and Sick Leave

The City accrues for compensated absences, in the government- wide financial statements and the proprietary funds financial statements , to pay its employees for the unused vacation, compensatory time, and miscellaneous leave. The City is not obligated to pay for unused sick leave if employees terminate prior to retirement.

48 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021

Note 1 – Summary of Significant Accounting Policies (Continued)

Q. Compensated Absences/Vacation and Sick Leave (Continued)

Employees hired prior to July 1, 1994, after 10 years with the City and only upon retirement, may convert their accumulated sick leave time to medical insurance premiums under the following options: bank or conversion. The bank option converts the unused sick leave into a dollar amount that will be placed into a “bank” to be used for medical insurance premiums for the employee. The conversion option takes the unused sick leave and converts it to days and the City will pay the medical insurance premiums for the employee for each day after conversion until the balance is exhausted.

R. Pensions

For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Miscellaneous and Safety Plans (Plans) and additi ons t o/deductions from the Plan s’ fiduciary net position have been determined on the same basis as they are reported by the CalPERS 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.

The following timeframes are used for Pensions reporting:

Valuation Date: June 30, 2019
Measurement Date: June 30, 2020
Measurement Period: July 1, 2019 to June 30, 2020

S. Other Post-Employment Benefits (OPEB)

For purposes of measuring the Net OPEB liability, deferred outflows of resources and deferred inflows of resources related to pensions, and OPEB expense, information about the fiduciary net position of the plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plans.

The following timeframes are used for OPEB reporting:

Valuation Date: June 30, 2019
Measurement Date: June 30, 2020
Measurement Period: July 1, 2019 to June 30, 2020

T. Self-Insurance

The City is self -insured for general liability, workers' compensation, dental benefits, unemployment and long -term disability. Various City funds are charged premiums for the City's self -insurance liability, which is accounted for in an internal service fund. The accrued liability for estimated self -insured claims represents an estimate of the eventual loss on claims arising prior to year-end including claims incurred but not reported.

U. Net Position

In the government-wide and proprietary funds financial statements, net position is reported in one of three categories:

49 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021

Note 1 – Summary of Significant Accounting Policies (Continued)

U. Net Position (Continued)

Net Investment in Capital Assets – This category consists of capital assets net of accumulated depreciation and reduced by deferred outflows of resources and outstanding debt that is attributed to the acquisition, construction , or improvement of the assets.

Restricted Net Position – Assets restricted by external creditors, grantors, contributors, enabling legislation or laws or regulations of other governments reduced by liabilities related to those assets.

Unrestricted Net P osition – This category consists of all net position that do es not meet the definition of net investment in capital assets or restricted net position.

Fund balances presented in the governmental fund financial statements represent the difference between a ssets, liabilities and deferred inflows of resources . GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions , establishes the criteria for classifying fund balances into specifically defined classifications and clarifies defin itions for governmental funds . GASB Statement No. 54 requires that the fund balances be classified in categories based upon the type of constraints imposed on the use of funds. The City evaluated each of its funds at June 30, 2021 and classified fund balances into the following five categories:

Non-spendable – Amounts that cannot be spent because they are (1) not in spendable form, such as prepaid items, inventories and long -term receivables for which the payment of proceeds are not restricted or committed with respect to the nature of the specific expenditures of that fund or (2) legally or contractually required to remain intact.

Restricted – Amounts that are restricted by external parties such as creditors or imposed by grants, laws or regulations of other governments or imposed by law through constitutional provi sions or enabling legislation. The City has legislative restrictions on amounts collected and reported in the City’s various governmental funds .

Committed – Amounts that can only be used for sp ecific purposes pursuant to constraints imposed by a formal resolution or ordinance of the City Council. Commitments may be changed or lifted only by the City taking the same formal action that imposed the constraint originally .

Assigned – Amounts that have been allocated by the City’s intent to be used for specific purposes. The intent can be established at either the highest level of decision making, which includes City Council or by an official designated such as the City Manager for such purpose.

Unassigned – Amounts that constitute the residual balances that have no restrictions placed upon them and are reported in the General Fund . For other governmental funds, as restrictions exceed available resources only deficit amounts are reported in the unassigned category.

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

The City does not have a policy on the order of spendi ng unrestricted amounts when an expenditure is incurred for which amounts in any of the unrestricted fund balance classifications could be used. Therefore, by default under GASB Statement No. 54, the City uses committed resources first, then assigned resources and unassigned resources last as they are needed.

50 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021

Note 1 – Summary of Significant Accounting Policies (Continued)

U. Net Position (Continued)

It is the City's policy to maintain an unassigned fund balance in the General Fund of at least 1 6% of reven ues and working capital balances in the Water and Wastewater enterprise funds of at least 25% of operating expenses and the target for the Electric E nterprise Fund working capital is $ 29.9 million. The policy allows for variations from year-to year to account f or economic and fiscal changes. The City Council also adopted a policy to establish the following reserves:

Catastrophic reserve – To maintain the ability of the City to meet operational costs during times of declared emergency or major catas trophe, the City shall designate General Fund balance of a minimum of 8% of annual General Fund revenues reported as unassigned fund balance . This reserve may only be drawn upon pursuant to an emergency as declared under the Municipal Code.

Economic reserve – T o maintain the City’s economic viability and to meet seasonal cash flow shortfalls, the City shall designate General Fund economic reserve balance of a minimum of 8% of annual General Fund revenues reported as unassigned fund balance . Funding the economic reserve will begin in the fiscal year following full funding of the catastrophic reserve. Funding may only be disbursed upon a resolution of the City Council.

Once fully funded, i f these reserves fall below 5% of annual revenues, the City Manager shall prepare a plan within three months of approval of the City’s f inancial statements. This plan will restore the 5% within 12 months and the 8% within 24 months.

V. Statement of Cash Flows

A statement of cash flows is presented for proprietary fund types. For purposes of reporting cash flows, the City considers all highly liquid investments with maturities of three months or less when purchased and investments maintained in the pool to be cash equivalents.

W. Use of Estimates

The preparation of financial statem ents in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Actual results could differ from those estimates.

X. Current & Future Implementation of New Governmental Accounting Standards

Current Implementations:

The City is currently analyzing its accounting practices to determine the potential impact on the financial statements for the following GASB Statements:

In January 2017, GASB issued Statement No. 84, Fiduciary Activities (GASB Statement No. 84), to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. The statement establishes criteria for identifying fiduciary activities of all state and local governments. It also provides for recognition of a liability to the beneficiaries in a fiduciary fund when an event has occurred that compels the government to disburse fiduciary resources. The implementation of this standard did not have significant impact on the City’s financial statements.

51 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021

Note 1 – Summary of Significant Accounting Policies (Continued)

X. Current & Future Implementation of New Governmental Accounting Standards (Continued)

In August 2018, the GASB issued Statement No. 90, Majority Equity Interests – an Amendment of GASB Statements No. 14 and No. 61 (GASB Statement No. 90), to improve the consistency and comparability of reporting a government’s majority equity interest in a legally separate organization a nd to improve the relevance of financial statement information for certain component units. This statement requires that a component unit in which a government has a 100 percent equity interest account for its assets, deferred outflows of resources, liabilities, and deferred inflows of resources at acquisition value at the date the government acquired a 100 percent equity interest in the component unit. The implementation of this standard did not have significant impact on the City’s financial statements.

In April 2021, the GASB issued statement No. 98, The Annual Comprehensive Financial report (GASB Statement No. 98), is to address references in authoritative literature to the term comprehensive annual financial report. This statement establishes the annual comprehensive financial report and ACFR in generally accepted accounting principles (GAAP) for state and local governments and eliminates the prior name and acronym. This statement was developed in response to concerns raised by stakeholders that the common pronunciation of the acronym for comprehensive annual financial report sounds like a profoundly objectionable racial slur. The statement’s introduction of the new term in founded on a commitment to promoting inclusiveness. The implementation of this standard did not have significant impact on the City’s financial statements.

Future Implementations:

In June 2017, GASB issued Statement No. 87, Leases ( GASB Statement No. 87 ), to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as o perating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It also establishes a single model for lease accounting based on the foundational principle that leases are financings of the r ight to use an underlying asset. GASB Statement No. 87 is effective for the City’s fiscal year ending June 30, 202 2.

In June 2018, GASB issued Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period (GASB Statement No. 89), to (1) enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and (2) simplify accounting for interest cost incurred before the end of a construction period. This statement requires that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus. As a result, interest cost incurred before the end of a construction period will not be included in the historical cost of a capital asset reported in a business -type activity or enterprise fund. GASB Statement No. 89 is effective for the City’s fiscal year ending June 30, 202 2.

In M ay 2019, GASB issued Statement No. 91, Conduit Debt Obligations (GASB Statement No. 91) , to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. GASB Statement No. 91 is effective for the City’s fiscal year ending June 30, 2023.

52 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021

Note 1 – Summary of Significant Accounting Policies (Continued)

X. Current & Future Implementation of New Governmental Accounting Standards (Continued)

In January 2020, GASB issued Statement No. 92, Omnibus 2020 (GASB Statement No. 92) , to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB statements. This Statement addresses a variety of topics. GASB Statement No. 92 originally effective for the City’s fiscal year ending June 30, 2021, has been postponed to the fiscal year ending June 30, 2022.

In March 2020, GASB issued Statement No. 93, Replacement of Interbank Offered Rates (GASB Statement No. 9 3), to address those and other accounting and financial reporting implications that result from the replacement of an interbank offered rate (IBOR) – most notably, the London Interbank Offered Rate (LIBOR) which is expected to cease to exist in its current form at the end of 2021. GASB Statement No. 93 originally effective for the City’s fiscal year ending June 30, 2021, has been postponed to fiscal year ending June 30, 2022.

In March 2020, GASB issued Statement No. 94, Public -Private and Public -Public Partnerships and Availability Payment Arrangements (GASB Statement No. 94) to improve financial reporting by addressing issues related to public-private and public -public partnership arrangements (PPPs). This Statement also provides guidance for accounting and financial reporting for availability payment arrangements (APAs). GASB Statement No. 94 is effective for the City’s fiscal year ending June 30 , 2023.

In May 2020, GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements (GASB Statement No. 96) , to provide guidance on the accounting and financial reporting for subscription -based technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right- to-use subscription asset – an intangible asset – and a corresponding subscription liability; (3) provide the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. GASB Statement No. 96 is effective for the City’s fiscal year ending June 30, 2023.

In June 2020, GASB issued State ment No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans – An Amendment of GASB Statements No. 14 and No. 84, and a Supersession of GASB Statement No. 32 (GASB St atement No.97) , to (1) increase consistency and comparability related to the reporting of fiduciary component units; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for the Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans. GASB Statement No. 97 is effective for the City’s fiscal year ending June 30, 2022.

53 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021

Note 2 – Cash and Investments

Cash and investments as of June 30, 2021 are classified in the accompanying financial statements as follows:

Fiduciary Funds

Governmental Business-type

Statement of
Activities Activities Total Net Position Total
Cash and investments $ 68,569,596 $ 71,186,590 $ 139,756,186 $ 172,795 $ 139,928,981 Restricted cash
and investments 16,990,838 18,859,974 35,850,812 - 35,850,812 Total $ 85,560,434 $ 90,046,564 $ 175,606,998 $ 172,795 $ 175,779,793

Cash and investments as of June 30, 2021 consist of the following:

Cash on hand $ 3,696
Demand deposits 6,377,457
6,381,153
Investments 169,398,640
Total cash and investments $ 175,779,793

A. Authorized Investments

The City has adopted an investment policy pursuant to Government Code Section 53601, which authorizes the City to invest surplus funds in the City Treasury in certain investment categories authorized by the California Government Code and the City’s Investment Policy . The City’s Investment Policy is more restrictive than the Government Code.

The following table identifies the permitted investment types authorized per the City’s investment policy. The table also identifies certain provisions that address interest rate risk and concentration of credit risk.

Maximum %
Permitted Investments Maturity of Portfolio Minimum Quality Requirements U.S. Treasury Obligations 5 years 100% None
US Government Agency Securities & Instrumentalities 5 years 100% None Bankers Acceptances 180 days 40% None
Certificates of Deposit 5 years 100% None
Negotiable Certificates of Deposit 5 years 30% None
Commercial Paper 270 days 30%
Credit rating of P1/A1 or A1+/F1 or F1+
by Moody's S&P or Fitch
California State Local Agency Investment Fund Indefinite 100% None Passbook Deposits Indefinite 100% None
Mutual Funds & Money Market Mutual Funds N/A 20% Multiple Requirements per Gov't Code Medium Term Corporation Notes 5 years 30% A-/A3/A- by Moody's, S&P, or Fitch Joint Powers Authority Pool Indefinite 30% (1) Multiple Requirements per Gov't Code Certificates of Deposit Account Registry Service (CDARS) Indefinite 30% None Supranational Obligations 5 years 30% AA-/Aa3/AA- by Moody's, S&P, or Fitch Municipal Securities (50 States or California Local Agencies) 5 years 100% None (1) Funds held at NCPA shall not count to this limit)

54 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021

Note 2 – Cash and Investments (Continued)

B. Investments Authorized by Debt Agreements

Investments of debt proceeds held by bond trustee are governed by the provisions of the debt agreements as to the extent that they are permissible investments of funds of the City.

C. Restricted Cash

The City has established a pension stabilization account with Public Agency Retirement Services (PARS), which invests in a Balanced Index PLUS Fund. The investments made by the City to this fund, are in restricted cash and investments.

D. Disclosure Relating to Interest Rate Risk and Credit 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 te rm investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity over time as necessary to provide the cash flow and l iquidity needed for operations. The City monitors the interest rate risk inherent in its portfolio by measuring the weighted average maturity of its portfolio, as well as limiting a securities maturity to five years or less fo r investments in the investment pool. Investments held outside the investment pool can have longer maturities as these funds are restricted by bond covenants and are held to the maturity of the bonds.

Investment Type AAA/Aaa AA+/AA/AA- A+/A/A- BBB+/BBB/BBB- Not Rated Total Investments by Fair Value:

Held by Trustee:

US Agency Securities $ - $ 7,966,550 $ - $ - $ 758,500 $ 8,725,050 Money Market Mutual Funds - - - - 6,555,515 6,555,515 Municipal Securities 2,383,811 17,320,553 1,085,443 - 2,268,835 23,058,642 Corporate Securities 821,360 4,903,876 12,654,135 3,299,015 - 21,678,386 Negotiable Certificate of Deposits - - - - 7,766,100 7,766,100 Sovereigns, Supranational & Agencies - 419,046 - - 994,200 1,413,246 Guaranteed Investments Contracts - - - - 2,169,850 2,169,850 Exempt from Credit Rating Disclosure:

U.S Treasury Notes - - - - 6,744,115 6,744,115 Held by City:

CALTRUST - - - - 10,518,243 10,518,243 PARS - - - - 20,499,725 20,499,725 Local Bank Certificate of Deposits - - - - 2,000,000 2,000,000 Demand Deposits - - - - 6,377,457 6,377,457 Cash on hand - - - - 3,696 3,696 LAIF - - - - 58,269,768 58,269,768 Total Cash and Investments $ 3,205,171 $ 30,610,025 $ 13,739,578 $ 3,299,015 $ 124,926,004 $ 175,779,793

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 nationally recognized statistical rating organization.

Presented below and on the following page is the minimum rating required by the California Government Code, the City’s investment policy, or debt agreements and the actual rating at year end for each investment type. 55 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021

Note 2 – Cash and Investments (Continued)

E. Concentration of Credit Risk

The California Government Code and the investment policy of the City contain limitations on the amount that can be invested in any one issuer. Investments in any one issuer (other than investments issued by or explicitly guaranteed by the US Government and investments in mutual funds, external investment pools, and other pooled investments) that represent 5% or more of the total City investments are required to be disclosed. Investments in LAIF, CalTRUST, and money market mutual funds are not subject to the concentrat ion of credit risk disclosure. The City holds 53.76% of its investments in the various securities. These investments in aggregate total are greater than 5% of the total investments, and no one individual holding is greater than 5% of the total investmen ts.

F. Custodial Credit Risk

Custodial credit risk for deposits is the risk that, in the event of the failur e of a depository financial institution, a government will not be able to recover collateral securities that are in the p ossession of an outside party. The California Government Code and the City’s investment policy do not contain legal or policy requireme nts that would limit the exposure to custodial risk for deposits, other than the fol lowing provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law. The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also al lows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured deposits. The City’s deposits with financial institutions, exceeded federal depository insurance limits by $14,658,254, and was collateralized.

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

Investment Type 12 Months or Less 13 to 24 Months 25 to 36 Months 37 to 60 Months 61 + Months Total Investments by Fair Value:

Held by City:

CALTRUST $ 10,518,243 $ - $ - $ - $ - $ 10,518,243 LAIF 58,269,768 - - - - 58,269,768 PARS 20,499,725 - - - - 20,499,725 Local Bank Certificate of Deposits 2,000,000 - - - - 2,000,000 Cash on Hand 3,696 - - - - 3,696 Demand Deposits 6,377,457 - - - - 6,377,457 Held by Trustee:

Negotiable Certificate of Deposits 1,513,725 3,636,150 1,337,625 776,850 501,750 7,766,100 US Agency Securities 2,021,625 1,555,925 263,450 - 4,884,050 8,725,050 Money Market Mutual Funds 6,555,515 - - - - 6,555,515 Municipal Securities 4,780,542 3,981,824 3,716,480 6,210,981 4,368,815 23,058,642 Corporate Securities 3,333,365 3,571,958 6,019,211 4,082,622 4,671,230 21,678,386 Sovereigns, Supranational & Agencies - - - - 1,413,246 1,413,246 Guaranteed Investments Contracts - - - 2,169,850 - 2,169,850 U.S Treasury Notes 2,673,465 2,820,150 255,100 - 995,400 6,744,115 Total Investments $ 118,547,126 $ 15,566,007 $ 11,591,866 $ 13,240,303 $16,834,491 $175,779,793 Reporting Unit Issuer Investment Type Reported Amount
Entity Wide: United States Treasury US Treasury Notes $ 6,744,115

Federal Home Loan Bank US Agency Securities 5,672,775 56 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 2 – Cash and Investments (Continued)
G
. Investments in Investment Pools
T
he City is a voluntary participant in the California Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasur er of the State of California. The fair value of the City’s investmen t in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio. At June 30, 2021 , the City’s investment position in LAIF was $58.3 million. Of the investment with LAIF, 1.10% is invested in structured notes and 3.37% is invested in asset- backed securities. The City is also a voluntary participant in the CalTRUST which is a Joint Powers Authority governed by a Board of Trustees made up of l ocal treasurers and investment off icers. The Board of Trustees sets overall policy for CalTRUST, and selects and supervises the activities of the Investmen t M
anager and other agents. As of June 30, 2021 , the City’s investment in CalTRUST is $10.5 million; all of which is invested in the Medium term fund.

H. I
nvestments in Guaranteed Investment Contracts
T
he City has entered into nonparticipating guaranteed investment contracts (GICs), which are authorized under bond documents as outlined in the City’s i nvestment policy or the debt agreement. GICs are non -marketable interest bearing agreements with or guaranteed by certain financial institutions. The agreements provide for a guaranteed return on principal over a specified period. A GIC is a general obl igation instrument issued by a financial institution, subject to applicable legal restrictions. The City’s investments in GIC’s represent proceeds from bond issues that have been set aside (held for the benefit of the bondholders) as debt service reserves and proceeds of bonds that have been invested until used on the projects being financed. The investment contracts holding debt service reserves are held long -term and bear interest 5.455%, while most project funds are invested short-term with lower rates . All of the investment contracts are collateralized by investments, with $2,169,850 collateralized at 104% to 105%, as set forth in the legal agreements.

I
. Fair Value Measurements
I
n accordance with GASB Statement 72, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is a market-based measurement for a particular asset or liability based on assumptions that market participants would use in pricing the asset or liability.

V
aluation inputs are assumptions that market participants use in pricing an asset or liability. The hierarchy of inputs used to generate the valuation is classified into three different levels. • L
evel 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities at the measurement date.
• Level 2 inputs include quoted prices for similar assets or liabilities in markets that are active; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs other than quoted prices that are observable for an asset, either directly or indirectly. • Level 3 inputs are unobservable inputs from the asset or liability where there is very little mar ket activity and they should be used only when relevant Level 1 and Level 2 inputs are unavailable.

T
he City uses the market approach for determining the fair value levels. The market approach uses the prices associated with actual market transactions fo r similar or identical assets and liabilities to derive a fair value. The City has the following fair value measurements as of June 30, 20 21:
57 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021

Note 2 – Cash and Investments (Continued)

I. Fair Value Measurements (Continued)

Investment Type Level 1 Level 2 Total
Investments by Fair Value:

Held by City:

Negotiable Certificate of Deposits $ - $ 7,766,100 $ 7,766,100 US Agency Securities - 8,725,050 8,725,050 Sovereigns, Supranational & Agencies - 1,413,246 1,413,246 U.S Treasury Notes - 6,744,115 6,744,115 Municipal Securities - 23,058,642 23,058,642 Corporate Securities - 21,678,386 21,678,386 Subtotal - 69,385,539 69,385,539 Investments Exempt from Fair Value Hierarchy:

Held by City
Guaranteed Investments Contracts - - 2,169,850 CALTRUST - - 10,518,243 PARS - - 20,499,725 LAIF - - 58,269,768 Local Certificate of Deposits - - 2,000,000 Money Market - - 6,555,515 Cash on Hand - - 3,696 Demand Deposits - - 6,377,457 Total Investments $ - $ - $175,779,793

Note 3 – Allowance for Uncollectible Accounts

Receivables of the General Fund, Electric, Wastewater and Water funds , as well as the miscellaneous receivables are reported net of uncollectible amounts. The write off policy for the City is all receivables over 120 days are considered an uncollectible account. Total allowance provided for uncollectible amounts related to receivables of the current period are as follows:

Uncollectibles related to:

Late charges and services $ 62,497
Electric sales and services 312,011
Wastewater services 73,738
Water sales and services 61,531
Miscellaneous billing 686,948
Total uncollectibles, at end of fiscal year $ 1,196,725

Note 4 – Interfund Receivables/Payables

Advances to Advances from Amount
Other governmental

Water

$ 148,875

58 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021

Note 4 – Interfund Receivables/Payables (Continued)

The advances from the Water Fund were used for the construction of Fire Station #4. In fiscal year 2019, the interfund loan was taken to Council to establish interest terms and repayment terms. The repayment terms include a quarterly payment of all fee revenue collected , to be applied to outstanding principle prior to calculation of quarterly interest calcu lation.

Interest is calculated on a quarterly compounded basis after payment is applied at the rate of the Variable -1 year United States Treasury Note. The final payment to be made by June 30, 2024.

Note 5 – Transfers

Transfers for the year ended June 30, 2021, are summarized as follows:

Transfers In

Other

General Streets Governmental Wastewater Total
Transfers Out:

General $ - $ 287,509 $ 5,148,908 $ 22,400 $ 5,458,817 Other governmental 227,299 - 654,060 - 881,359 Electric 2,275,670 - - 9,600 2,285,270 Wastewater 1,084,699 - - - 1,084,699 Water 843,849 - - 9,600 853,449 Transit 266,299 - - - 266,299 Total $4,697,816 $ 287,509 $ 5,802,968 $ 41,600 $10,829,893

During the year, various interfund transfers were made to finance expenditures, subsidize operating losses and service debt.

Transfers out of $2,275,670 from the Electric Fund , $1,084,699 from the Wastewater Fund, $843,849 from the Water Fund and $ 269,299 from the Transit Fund represent operating contributions to the General Fund. In addition, Community Development transferred to the General Fund $ 127,299 for normal operating c osts and Library Capital transferred to Library $100,000 for a capital project that did not occur, that was funded in a previous fiscal year.

The transfer of $287,509 from the General Fund to the Streets Fund is for operations and for various streets pr ojects.

The transfer of $ 5,148,908 from the General Fund to other governmental funds represents transfer of $ 1,098,460 to the Debt Service Fund for the interest required to pay the 20 12 Refunding Lease Revenue Bonds ; $ 4,050,448 to Parks, Recreation, and Community Services Fund for operating costs.

The transfer out of $ 654,060 from other governmental funds to other g overnmental funds includes $654,060 transferred from Parks, Recreation , and Community Services Fund to the Debt Service Fund for the interest required to pay the 20 12 Refunding Lease Revenue Bonds.

The transfer of $ 22,400 was transferred from the General F und, the $9,600 from the Electric and $9,600 from Water Fund to the Wastewater Fund for the purchase of equipment.

59 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021

Note 6 – Capital Assets

Capital assets activity of the primary government for the year ended June 30, 2021, was as follows:

Governmental activities July 1, 2020 Additions Retirements Transfers June 30, 2021 Capital assets, not being depreciated:

Land $ 24,886,595 $ 351,795 $ - $ - $ 25,238,390 Work of Art 304,907 - - - 304,907 Construction in progress 1,126,756 5,709,815 - (3,816,167) 3,020,404 Total capital assets, not being depreciated 26,318,258 6,061,610 - (3,816,167) 28,563,701 Capital assets, being depreciated:

Buildings and improvements 77,869,002 57,889 - 249,148 78,176,039 Machinery and equipment 16,430,432 266,979 - 160,054 16,857,465 Vehicles 13,061,565 1,135,463 (225,011) - 13,972,017 Infrastructure 182,561,819 5,137,670 - 3,406,965 191,106,454 Total capital assets, being depreciated 289,922,818 6,598,001 (225,011) 3,816,167 300,111,975 Less accumulated depreciation for:

Buildings and improvements 42,300,774 2,067,180 - - 44,367,954 Machinery and equipment 13,211,811 784,082 - - 13,995,893 Vehicles 9,678,730 616,133 (225,011) - 10,069,852 Infrastructure 118,118,463 5,140,253 - - 123,258,716 Total accumulated depreciation 183,309,778 8,607,648 (225,011) - 191,692,415 Total capital assets, being depreciated, net 106,613,040 (2,009,647) - 3,816,167 108,419,560 Governmental activities capital assets, net $ 132,931,298 $ 4,051,963 $ - $ - $ 136,983,261

(Restated)
Business-type activities July 1, 2020 Additions Retirements Transfers June 30, 2021 Capital assets, not being depreciated:

Land $ 5,535,718 $ - $ - $ - $ 5,535,718 Construction in progress 11,724,120 12,454,145 - (12,975,578) 11,202,687 Total capital assets, not being dep reciated 17,259,838 12,454,145 - (12,975,578) 16,738,405 Capital assets, being depreciated:

Buildings and improvements 57,580,080 - - 4,729,678 62,309,758 Machinery and equipment * 322,435,164 4,573,447 (25,264) 8,245,900 335,229,247 Vehicles 15,043,274 67,281 (10,183) - 15,100,372 Total capital assets, being depreciated 395,058,518 4,640,728 (35,447) 12,975,578 412,639,377 Less accumulated depreciation for:

Buildings and improvements 24,514,273 1,513,800 - - 26,028,073 Machinery and equipment * 129,398,989 8,446,219 (25,264) - 137,819,944 Vehicles 11,334,044 895,919 (10,183) - 12,219,780 Total accumulated depreciation 165,247,306 10,855,938 (35,447) - 176,067,797 Total capital assets, being depreciated, net 229,811,212 (6,215,210) - 12,975,578 236,571,580 Business-type activities capital assets, net $ 247,071,050 $ 6,238,935 $ - $ - $ 253,309,985

*Machinery and equipment and related accumulated depreciation for July 1, 2020 were restated in the amount of $4,875,057 and $4,875,057 respe ctively as a result of City -wide inventory of its Electric Utility and other infrastructure assets.

60 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021

Note 6 – Capital Assets (Continued)

Depreciation expense was charged to function/programs of the primary government as follows:

Governmental Activities: Business-type Activities:

General government $ 627,654 Electric $ 1,978,200 Public protection 971,777 Wastewater 4,647,540 Public works 5,506,182 Water 3,212,895
Community development 11,514 Transit 1,017,303 Library 263,677 Total depreciation expense $ 10,855,938 Parks and recreation 1,225,397 Internal service funds 1,447 Total depreciation expense $ 8,607,648

Note 7 – Long – Term Liabilities

The following is a summary of long -term liability transactions of the City for the year ended June 30, 2021:

(Restated)

Amounts Due
Governmental activities: July 1, 2020 Additions Reductions June 30, 2021 Within One Year Compensated absences * $ 3,987,816 $ 6,117,458 $ (6,140,092) $ 3,965,182 $ 3,601,611 Sick leave conversion * 7,196,006 75,635 (615,676) 6,655,965 - Self-insurance liability 8,665,085 3,528,844 (2,711,393) 9,482,536 4,346,295 Publicly offered: 2012 Lease Revenue Bonds 15,300,000 - (965,000) 14,335,000 1,020,000 Issuance premium 601,100 - (53,830) 547,270 53,830 Total 15,901,100 - (1,018,830) 14,882,270 1,073,830 Loan payable 97,263 - (97,263) - - Capital lease 251,054 - (81,955) 169,099 83,673 Governmental activities long-term liabilities $ 36,098,324 $ 9,721,937 $ (10,665,209) $ 35,155,052 $ 9,105,409

*Compensated absences balances restated as of July 1, 2020 in the amount $ (5,025,939), from $9,013,756 to $3,987,816. Sick Leave Conversion balances restated as of July 1, 2020 in the amount of $(824,509) , from $8,020,515 to $7,196,006, for a net amount to restate of $428,857.

61 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 7 – Long – Term Liabilities (Continued)
Amounts Due
July 1, 2020 Additions Reductions June 30, 2021 Within One Year Business-type activities:

Compensated absences $ 1,816,867 $ 987,794 $ (1,932,077) $ 872,584 $ 808,455 Sick leave conversion - 833,587 - 833,587 -
Pollution remediation obligation (Note 14) 16,271,205 10,439 (898,820) 15,382,824 400,000 Loan payable 672,610 - (219,027) 453,583 224,178 Publicly offered:

Certificates of Participation and Revenue Bonds:
2004 Certificates of Participation A 2,070,000 - - 2,070,000 - 2010 Water Revenue Bonds A & B 1,040,000 - (1,040,000) - - Issuance premium - - - - -
Total 1,040,000 - (1,040,000) - -
2012 Wastewater Refunding Revenue Bonds A 7,065,000 - (1,660,000) 5,405,000 1,725,000 Issuance premium 540,519 - (166,313) 374,206 166,313 Total 7,605,519 - (1,826,313) 5,779,206 1,891,313 2016 Wastewater Refunding Revenue Bonds A 20,075,000 - (115,000) 19,960,000 125,000 Issuance premium 2,193,897 - (130,979) 2,062,918 130,979 Total 22,268,897 - (245,979) 22,022,918 255,979 2017 Installment Purchase Agreement 7,545,969 (114,846) 7,431,123 120,675 Issuance premium - - - - -
Total 7,545,969 - (114,846) 7,431,123 120,675 2018 Electric System Refunding Revenue Bonds 39,900,000 - (2,250,000) 37,650,000 2,365,000 Issuance premium 5,647,320 - (477,246) 5,170,074 477,246 Total 45,547,320 - (2,727,246) 42,820,074 2,842,246 2020 Water Refunding Revenue Bonds 25,390,000 - - 25,390,000 930,000 Issuance premium 3,398,693 - (170,646) 3,228,047 170,646 Total 28,788,693 - (170,646) 28,618,047 1,100,646 Total Certificates of Participation and Revenue Bonds 114,866,398 - (6,125,030) 108,741,368 6,210,859 Business-type activities long-term liabilities $133,627,080 $ 1,831,820 $ (9,174,954) $126,283,946 $ 7,643,492 Lo
ans Payables
Governmental Activities:

In September 2015, the City obtained a loan in the amount of $468,000 to finance the purchase of a fire engine. Annual principal and interest payment is $99,172 . The final pa yment of $99,172 was made on December 1, 2020 from the Fire department appropriations.

Business-type Activities:

In August 2015, the City obtained a loan in the amount of $1.5 million to finance the Electric Enterprise Fund’s LED Street Light Retrofit project. Annual principal and interest payment is approximately $235,000 with final payment due December 1, 2022. The annual payments will be paid from the Greenhouse Gas Free All owance proceeds. Annual payments are pledged from revenue in the Electric Utility.

A
nnual debt service requirements to maturity of the loans payables are as follows:

Year Ending Business-type Activities
June 30, Principal Interest
2022 224,178 10,577
2023 229,405 5,350
2024 - -
Total $ 453,583 $ 15,927
62 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021

Note 7 – Long – Term Liabilities (Continued)

Capital Lease

On June 22, 2016, the City entered into a lease -purchase agreement for the acquisition of Dispatch Console equipment f or the Police Department. The new equipment will provide the City with a more flexible system for better connectivity between the Lodi Police Department dispatch operators and field personnel . The annual payments will be paid from Police department approp riations. The pledge of payment is for annual appropriation and payment from all sources up to and including the General Fund.

The present values of future minimum capital lease payments as of June 30, 20 21, are as follows:

Year Ending, June 30 2022 86,540
2023 86,540
2024 -
Total minimum lease payments 173,080
Less amounts representing interest (3,981) Present value of minimum capital lease payments $ 169,099

Certificates of Participation and Revenue Bonds

Governmental Activities:

On September 1, 2012, the City issued $19,080,000 Refunding Lease Revenue Bonds (2012 LRB) to allow the City to prepay and cause the immediate defeasance of the outstanding $21,025,000 Certificate s of Participation (2002 COP). The 2002 COP were issued in January 2002 to provide funds to finance the costs of constructing, furnishing and equipping a new police building and jail for the City, to finance portions of certain other projects and to refund the outstanding 1995 and 1996 Certificates of Participation. As of June 30, 2021, there are no outstanding balances of these refunded Certificates. The 1995 Certificates of Participation (1995 COP) were sold in October 1995 to finance the City Downtown Revitalization and the Cherokee La ne Beautification projects. The 1996 Certificates of Participation (1996 COP) were sold in August 1996 to finance the construction of the Hutchins Square Conference and Performing Arts Center. The total principal and interest remaining to be paid on the 20 12 LRB is $18,088, 931. Principal is payable annually on October 1 in amounts ranging from $260,000 to $1,605,000 beginning in 2016 with final payment due in 2031. Interest paid for the current year was $ 685,338.

The pledge of payment is for annual appropriation and payment from all sources up to and including the General Fund.

Business-type Activities:

On May 12, 2004, the City issued $27,360,000 Certificates of Participation (2004A COP) to provide funds to finance the costs of certain improvements to the wastewater collection, treatment an d disposal system of the City. Principal is payable annually commencing 2024 on October 1 in amounts from $170,000 to $2,070,000 with fina l payment due October 1, 2024.

The City has pledged future wastewater revenues, net of specified operating expenses, to repay these certificates. The total principal and interest remaining to be paid on the certifi cates is $2,364,978. Interest paid for the current year and total net revenues were $98,326 and $11,947,780, respectively.

On October 1, 2010, the City issued $9,015,000 Water Revenue Bonds, 2010 Series A and $29,650,000 Water Revenue Bonds, 2010 Series B (Federally taxable - Build America Bonds) (2010 Bonds) to finance the construction of the Surface Water Treatment Facility which is designed to pump water from the Mokelumne River, treat and deliver it to the City’s water distribution system. Principal is payable annually on June 1 in amounts ranging from $775,000 to $2,210,000 with final payment due June 1, 2040. The City has pledged future water revenues, net of operation and maintenance costs, to repay these certificates. In fiscal year 2020, the Series B Bonds were refunded, see new debt below. The 2010 Water Revenue Bonds Series A final principal payment was made in Ju ne 2021. 63 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 7 – Long – Term Liabilities (Continued)
O
n August 16, 2012, the City issued $ 17,105,000 2012 Refunding Wastewater Revenue Bonds Series A (2012 Bonds) to advance refund the $17,115,000 principal amount of the 2004 Wastewater Revenue Certific ates of Participation. Principal is payable annually on October 1 in amounts ranging from $1,280,000 to $1,885,000 beginning in 2013 with final payment due in 2023. The City pledged future wastewater revenues, net of specified operating expenses, to repay these certificates. The total principal and interest remaining to be paid on the 2012 Bonds is $ 5,809,750. Principal and interest paid for the current year and total net revenues were $1,951,400 and $11,947,780, respectively.

O
n March 10, 2016, the City issued $20,295,000 2016 Refunding Wastewater Revenue Bonds Series A (2016 Bonds) for an advance refunding of the $21,415,000 principal amount of the 2007 Wastewater Revenue Certificates of Participation.

Principal is payable annually on October 1 in amoun ts ranging from $110,000 to $2,175,000 beginning in 2018 with final payment due in 2037. The City pledged future wastewater revenues, net of specified operating expenses, to repay these certificates. The total principal and interest remaining to be paid on the 2016 bonds is $ 28,162,956. Interest paid for the current year and total net revenues were $846,950 and $9,321,460, respectively. At June 30, 2020, the remaining balance of the refunded debt is $19,960,000.

O
n December 1, 2017, the City issued $7,762,794 2017 Installment Purchase Agreement for an advance refunding of the $7,555,000 principal amount of the 2007 Wastewater Revenue Certificates of Participation. Principal is payable annually on October 1 in amounts ranging from $107,000 to $545,000 beginn ing in 2018 with final payment due in 2037. The City pledged future wastewater revenues, net of specified operating expenses, to repay these certificates. The total principal and interest remaining to be paid on the 2017 Agreement is $ 9,382,749.

O
n June 13, 2018, the City issued $41,610,000 Electric System Revenue Refunding Bonds (2018 Bonds) to allow the City to prepay and cause the immediate defeasance of the outstanding $55,785,000 Certificates of Participation (Electric System Revenue Certificates of Participation 2008 Series A). Principal is payable annually on September 1 in amounts ranging from $1,710,000 to $4,045,000 beginning in 2019 w ith final payment due in 2032. The City has pledged future electric revenues, net of specified operating expenses, to repay these certificates. The total principal and interest remaining to be paid on the certificates is $50,034,500.

O
n April 8, 2020, the City issued $25,390,000 Water Revenue Refunding Bonds (2020 Bonds) to allow the City to prepay and cause the i mmediate defeasance of the outstanding $29,650,000 principal of Lodi Public Financing Authority 2010 Water Revenue Bonds, Series B (Federally Taxable – Build America Bonds). Principal is payable annually on June 1 in amounts ranging from $ 930,000 to 1,835,000 beginning in 20 21 with final payment due in 2040. The City has pledged future water revenues, net of specified operating expenses, to repay these certificates. The total principal and interest remaining to be paid on the certificates is $36,334,550.

Th
e various indentures contain significant limitations and restrictions on annual debt service requirements, maintenance of and flow of moneys through various restricted accounts and minimum revenue bond coverage. The City is in compliance with all such significant limitations and restrictions.

A
nnual debt service requirements to maturity for certificates of participation and bonds are as follows:

Year Ending Governmental Activities Business-type Activities June 30, Principal Interest Principal Interest
2022 1,020,000 635,712 5,265,675 4,238,323 2023 1,065,000 583,587 5,511,416 3,995,169 2024 1,120,000 528,962 5,767,098 3,729,702 2025 1,175,000 470,119 6,511,831 3,401,684 2026 1,240,000 406,726 6,818,707 3,187,421 2027-2031 7,110,000 1,095,722 32,078,166 11,414,485 2032-2036 1,605,000 33,103 24,756,596 4,339,541 2037-2040 - - 11,196,634 817,926
Total $ 14,335,000 $ 3,753,931 $ 97,906,123 $ 35,124,251 64 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021

Note 8 – Pension Plans

Plan Descriptions
All qualifie d permanent and probationary employees are eligible to participate in the City’s separate Miscellaneous and Safety Plans (Plans), agent multiple -employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalP ERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

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

The Plans’ provisions and benefits in effect at June 30, 2021, are summarized as follows:

Miscellaneous Plan

Prior to On or after
Hire date 1-Jan-13 1-Jan-13
Benefit formula 2% @ 55 2% @ 62
Benefit vesting schedule 5 years of service 5 years of service Benefit payments monthly for life monthly for life
Retirement age 50-67 52-67
Monthly benefits, as a % of eligible compensation 1.426%-2.418% 1% to 2.5% Required employee contribution rates 7% 6.75%
Required employer contribution rates 21.80% 21.80%

Safety Plan

Prior to December 22, 2012 to On or after
Hire date 22-Dec-12 31-Dec-12 1-Jan-13
Benefit formula 3% @ 50 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years of service 5 years of service 5 years of service Benefit payments monthly for life monthly for life monthly for life Retirement age 50-55 50-55 50-57
Monthly benefits, as a % of eligible compensation 3% 2.4% to 3% 2% to 2.7% Required employee contribution rates 9% 9% 11.25%
Required employer contribution rates 44.75% 44.75% 44.75%

65 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 8 – Pension Plans (Continued)
Employees Covered
At June 30, 2021 , the most recent actuarial valuation available, the following employees were covered by the benefits of the City’s Plans:

Miscellaneous Safety
Plan Plan
Inactive employees or beneficiaries currently receiving benefits 135 115 Inactive employees entitled but not yet receiving benefits 116 46 Active employees 269 24
Total 520 185

Aggregate
Miscellaneous Safety Total
Contributions - employer $ 9,611,114 $ 7,955,910 $ 17,567,024 C
ontributions
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 both Plans are determined annually on an actuarial ba sis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during 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 c ontribution rate of employees. The contributions for the measurement period were as follows:

Net P
ension Liability
The City’s net pension liability for each Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2020, using an annual actuarial val uation as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures.

A
ctuarial Assumptions
The total pension liabilities in the June 30, 201 9 actuarial valuations were determined using the following actuarial assumptions:

Miscellaneous Plan Safety Plan
Valuation Date June 30, 2019 June 30, 2019
Measurement Date June 30, 2020 June 30, 2020
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 7.15% 7.15%
Inflation 2.63% 2.63%
Investment Rate of
Return 7.25% (1) 7.25% (1)
Mortality Based on rates of CalPERS Experience Study
(1) Net of pension plan investment expenses, including inflation 66 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021

Note 8 – Pension Plans (Continued)
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 201 9 valuation were based on the 2016 CalPERS Experience Study for the period from 1997 to 20 11. Further details of the Experience Study can be found on the CalPERS website.

Discount Rate
The discount rate used to measure the total pension liability was 7.15% f or each Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.15% discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long -term expected discount rate of 7.65% will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CalPERS website.

The long-term expected rate of return on pension plan investments was determined using a building -block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long -term expected rate of return, CalPERS took into account both short-term and long -term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calc ulated over the short- term (first 10 years) and the long -term (11-60 years) using a building -block approach. Using the expected nominal returns for both short- term and long -term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short- term and long -term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.

The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and a sset allocation. These rates of return are net of administrative expenses.

Current Target

Real Return

Real Return
Asset Class

Allocation

Years 1 - 10 (1)

Years 11 + (2)
Global Equity

50.20%

50.00%

0.60%
Fixed Income

28.70%

28.00%

12.50%
Inflation
Sensitive

0.00%

0.00%

0.00%
Private Equity

7.10%

8.00%

-5.10%
Real Estate

11.00%

13.00%

4.60%
Liquidity

1.00%

1.00%

1.60%
Trust Level

2.00%

0.00%

0.00%

67 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 8 – Pension Plans (Continued)
C
hanges in the Net Pension Liability
The changes in the Net Pension Liability for each Plan follows:

Miscellaneous Plan: Increase (Decrease)
Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability
Balance at June 30, 2019 $ 203,985,008 $ 143,515,020 $ 60,469,988 Changes in the year:

Service cost 3,061,982 - 3,061,982
Interest on the total pension liability 14,272,357 - 14,272,357 Changes in assumptions - - -
Changes in benefit terms - - -
Differences between expected and actual
experience (261,709) - (261,709)
Contribution - employer - 5,480,277 (5,480,277)
Contribution - employee - 1,743,741 (1,743,741)
Net investment income (1) - 7,191,594 (7,191,594)
Benefit payments, including refunds of employee
contributions (11,281,823) (11,281,823) - Other changes in fiduciary net position - (202,321) 202,321 Net changes during measurement period 5,790,807 2,931,468 2,859,339 Balance at June 30, 2020 $ 209,775,815 $ 146,446,488 $ 63,329,327 Safety Plan: Increase (Decrease)
Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability
Balance at June 30, 2019 $ 204,368,263 $ 123,013,981 $ 81,354,282 Changes in the year:

Service cost 3,251,866 - 3,251,866
Interest on the total pension liability 14,313,890 - 14,313,890 Changes in assumptions - - -
Changes in benefit terms - - -
Differences between expected and actual
experience (329,854) - (329,854)
Contribution - employer - 6,927,425 (6,927,425)
Contribution - employee - 1,835,228 (1,835,228)
Net investment income (1) - 6,175,068 (6,175,068)
Benefit payments, including refunds of employee
contributions (10,940,141) (10,940,141) - Other changes in fiduciary net position - (173,420) 173,420 Net changes during measurement period 6,295,761 3,824,160 2,471,601 Balance at June 30, 2020 $ 210,664,024 $ 126,838,141 $ 83,825,883 S
ensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the City for each Plan, calculated using the discount rate for each Plan, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1 -percentage point lower or 1-percentage point higher than the current rate:
68 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Miscellaneous
Plan  Safety Plan
1% Decrease  6.15%  6.15%
Net Pension
Liability  $89,685,828   $112,354,313
Current Discount Rate  7.15%  7.15%
Net pension
Liability  $63,329,327   $83,825,883
1% Increase  8.15%  8.15%
Net Pension
Liability  $41,451,990   $60,406,238
Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net  position is available in the separately issued CalPERS financial reports.

Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2021, the City recognized pension expense of $5,496,434 and $6,847,548 for the Miscellaneous and Safety Plans, respectively.

At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Misce llaneous Plan  Safety Plan  Total
Deferred  Deferred  Deferred  Deferred  Deferred  Deferred Outflows of  Inflows of  Outflows of  Inflows of  Outflows of  Inflows of Resources  Resources  Resources  Resources  Resources  Resources Pension contributions subsequent to
measurement date   $   9,611,114    $ ‐     $   7,955,910    $ ‐     $ 17,567,024    $ ‐ Changes of assumptions  ‐   ‐              521,227            182,829             521,227           182,829 Difference between expected and
actual experience            177,654            171,465              931,350            280,341          1,109,004           451,806 Net differences between projected
and actual earnings on plan            966,902   ‐              878,564   ‐           1,845,466   ‐ investments
Total   $ 10,755,670     $    171,465     $ 10,287,051    $    463,170     $ 21,042,721     $    634,635 The
$9,611,114  and  $7,955,910  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 next measurement period or the year ending June 30, 2021. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
69 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021

Note 8 – Pension Plans (Continued)

Year Ending

Miscellaneous

Safety 30-Jun

Plan

Plan Total
2020

$ (574,946)

$ 244,437 $ (330,509)
2021

250,319

577,470 827,789
2022

716,407

540,808 1,257,215
2023

581,311

505,256 1,086,567
Total $ 973,091 $ 1,867,971 $ 2,841,062

Note 9 – Post Employment Benefits Other Than Pensions

A. Plan Description

The City sponsors a single -employer defined -benefit postemployment healthcare plan (Retiree Health Plan) to provide medical insurance benefits to eligible retire d employees and their spouses. The Plan does not issue a publicly available financial report. Medical coverage is provided through CalPERS healthcare program. Employees who retire from the City and receive a CalPERS pension are eligible for postemployment medical benefits. The City contributes the minimum amount provided under Government Code Section 22825 of the Public Employees Medical and Hospital Care Act. In general, retirees must contribute any premium amounts in excess of the City contribution. However, a s described below, a closed group of active employees and retirees receive additional postemployment benefits.

Employees hired prior to the dates shown in the following table are allowed to convert their accumulated sick leave into postemployment medical benefits at retirement as long as they have ten or more years of service with the City.

Group Hired prior to:

Executive Management July 1, 1994
Mid-Management July 1, 1994
Fire Mid-Management December 6, 1995
Police Mid-Management July 1, 1994
General Services July 1, 1995
IBEW July 1, 1995
Maintenance and Operators July 1, 1995
Dispatchers July 9, 1994
Police October 10, 1994
Fire December 6, 1995

B. Eligibility

Employees of the City are eligible for retiree health benefits if they retire from the City and commence pension benefits under PERS (typically on or after age 50 with at least five years of PERS eligible service). Membership in the plan consisted of the following at June 30, 2019, the date of the latest actuarial valuation.

70 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 9 – Post Employment Benefits Other Than Pensions (Continued) B
. Eligibility (Continued)
Eligibility Plan
Active plan members 282
Inactive plan members entitled to, but not yet
receiving benefits 93
Retirees electing coverage 204
Retirees 8
Total 587
C. Fu
nding Policy
C
ontribution requirements of the Retiree Health Plan are bas ed on pay-as-you-go financing. The City’s policy is to fund the normal cost (current accrual for benefits being earned) plus an amortization of the net (unf unded accrued) OPEB liability. For fiscal year 2020-21 , the City contributed $1,772,822.

D. N
et OPEB Liability
T
he following table shows the components of the City’s annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the City’s net OPEB obligation:

Actuarial accrued liability (AAL) $ 26,361,543
Actuarial value of plan assets 2,003,111
Unfunded actuarial accrued liability (UAAL) $ 24,358,432 E. A
ctuarial Methods and Assumptions
A
ctuarial valuations of an ong oing plan involve estimates of the value of reported amounts and assumptions abou t th
e probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contribution of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Projections of bene fits for financial purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include types of benefits provided at the time of each valuation and the historical pattern of sharing benefi t
c
osts between the employer and the plan members to that p oint. The actuarial methods and the assumptions used include techniques that are designed to reduce short- term volatility in actuarial accrued liabilities and the actuaria l v
alue of assets, consistent with the long-term perspective of the calculations.

F. A
ctuarial Valuations
T
he net OPEB liability in the June 30, 2019 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
71 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021

Note 9 – Post Employment Benefits Other Than Pensions (Continued)

F. Actuarial Valuations (Continued)

Actuarial Methods and Assumptions Used to Determine Total OPEB Liability Valuation date: June 30, 2019 Measurement date: June 30, 2020 Actuarial Cost Method Entry Age Normal level percent of pay cost method Actuarial Assumptions:

Discount Rate 3.56%
Inflation 2.50%
Wage Inflation 2.75%
Expected Rate of Return 6.00% per annum. This discount rate assumes the City continues to fully fund for its retiree benefits through the California Employers' Retiree Benefit Trust (CERBT) under its investment strategy 2.

Healthcare Trend Rate An annual healthcare cost trend rate of 6.4% initially reduced by decrements to an ultimate of 4.0% therefore.

G. Discount Rate

The discount rate used to measur e the net OPEB liability w as 3.56%. This discount rate assumes the City continues to fully fund for its retiree health benefits through the “ California Employers Retiree Benefit Trust ” (CERBT) under its investment allocation strategy 2. The rate reflects the OPEB published median i nterest rate for strategy 1 of

7.28% with an additional margin for adverse deviation.

The table below reflects long -term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determi ne the discount rate and asset allocation. These geometric rates of return are net of administrative expenses.

Asset Class

Target Allocation
Long-term Expected Real
Rate of Return1
Global equity 40.00% 4.76%
Fixed income 43.00% 2.01%
TIPS 5.00% 1.20%
Commodities 4.00% 2.39%
Real estate 8.00% 4.53%
1 - Long term expected rate of return in 6.00%

H. Sensitivity of the Net OPEB Liability to changes in the Healthcare Cost Trend Rate

The following presents the net OPEB liability of the City, as well as what the City’s net OPEB li ability would be if it were calculated using a discount rate 1 -percentage point lower (2.56%) or 1-percentage point higher ( 4.56%) than the current discount rate:

Plan's Net OPEB Liability/(Asset)
Discount Rate - 1% Current Discount Discount Rate + 1% (2.56%) Rate (3.56%) (4.56%)

$ 27,181,396 $ 24,358,432 $ 21,984,101

72 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021

Note 9 – Post Employment Benefits Other Than Pensions (Continued)

I. OPEB Liabilities, OPEB Expense and Deferred Outflows/Inflows of Resources to OPEB

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 1 -percentage point lower (5.0%HMO/5.5%PPO decreasing to

4.0%HMO/4.5%PPO) or 1- percentage point higher (7.0%HMO/6.5%PPO decreasi ng to 6.0%HMO/6.5%PPO) than the current healthcare cost trend rates:

J. Change in Net OPEB Liability

For the year ended June 30, 20 21, the City recognized OPEB expense of $ 1,836,904 for the City Plan. At June 30, 2021 the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Outflows Deferred Inflows

of Resources of Resources
Contributions subsequent to measurement date $ 1,885,306 $ - Change of assumptions - 3,220,278 Difference between expected and actual liability - 4,393,056 Difference between expected and actual investment earnings 6,649 -

$ 1,891,955 $ 7,613,334

The $1,885,306 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in the year ending June 30, 2021.

Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows:

Measurement Period
Ended June 30
2022 $ (1,498,756)
2023 (1,490,544)
2024 (1,491,725)
2025 (1,163,749)
2026 (1,111,720)
Thereafter (850,191)
Total $ (7,606,685)

1% Decrease

Current Discount Rate

1% Increase
HMO

4.00%

5.00%

6.00%
PPO

4.50%

5.50%

6.50%
City Plan

$ 21,666,382

24,358,432

27,607,284
73 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 10 – Claims and Benefits
T
he City is exposed to various risks of loss related to torts; theft of, damage to and destruction of ass ets; errors and omissions; injuries to emp loyees; and natural disasters. The City is self -insured as discussed in the following paragraphs for which liabilities are recorded in the Internal Service Fund -Insurance Fund.

T
he City is self -insured for gener al liability up to the first $500,000 per occurrence with claims from $500,000 to $40,000,000 per occurrence and in the aggregate insured through the California Joint Powers Risk Management Authority.

The City has not had any settlements that exceeded its general liability insurance coverage (See Note 12).

T
he City is self-insured for workers’ compensation up to the first $250,000 per claim. Any claims of $250,000 up to California statutory limits are covered under a purchased policy through the membership with the Local Agency Workers’ Compensation Excess Joint Powers Authority with coverage up to $300,000,000 in the current year. The City has not had any settlements that exceeded its workers’ compensation insurance coverage (See Note 1 2).

T
he City is fully self-insured for dental and unemployment for its employees.

G
eneral liability and workers’ compensation claims are administered by an outside agency and all other claims are administered by the City. The City has accrued a liability of $ 9,482,536 at June 30, 2021, for all self -insured claims in the Internal Service Fund- Insurance Funds that includes an amount for incurred but not reported claims. The liability amount is based on the requirements of GASB Statement No. 62, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estima ted. In the opinion of the City, the amounts accrued are adequate to cover claims incurred but not reported in addition to known claims.

C
hanges in the self-insurance liability for the years ended June 30, 2021, 2020, and 2019 are as follows:

FY20-21 FY19-20 FY18-19
Beginning Balance $ 8,665,085 $ 8,065,374 $ 7,994,536 Current Year Claims &
Changes In Estimates 3,528,844 1,979,746 2,042,840 Claim Payments (2,711,393) (1,380,035) (1,972,002) Ending Balance $ 9,482,536 $ 8,665,085 $ 8,065,374 N
ote 11 – Participation in Joint Ventures
Northern California Power Agency
The City, along with fifteen other public agencies, is a member of the Northern California Power Agency (NCPA) that was formed in 1968 as a joint p owers agency. Its membership consists of twelve cities with publicly owned electric utility distribution systems, one port authority, a transit authority, one public utility district and on associate member. NCPA is generally empowered to purchase, generate, transmit, distribute and sell electrical energy. Members participate in the projects of NCPA on an elective basis. A commission comprising of one representative from each member organization governs NCPA. The commission is responsible for the general ma nagement of the affairs, property, and business of NCPA.

Under the direction of the General Manager, the staff of NCPA is responsible for providing various administrative, operating and planning services for NCPA, its associated power corporations and its members.

N
CPA’s project construction and development programs have been individually financed by project revenue bonds collateralized by NCPA’s assignment of all payments, revenues and proceeds associated with its interest in each project. 74 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 11 – Participation in Joint Ventures (Continued)
N
orthern California Power Agency (Continued)
E
ach Project Participant has agreed to pay its proportionate share of debt service and other costs of the related project, notwithstanding the suspension, interruption, interference, reduction or curtailment of output from the project for any reason. Certain of the revenue bonds are additionally supported by municipal bond insurance credit enhancements.

P
roject Financing and Construction
Increase in Non-defaulting Project Participant’s Original Project Entitlement Percentage Upon the failure of any Project Participant to make any payment, which failure constitutes a default under the Member Agreement for the projects, and except as sales and transfers are made pursuant thereto, the Member Agreements provide that Project Entitlement for each non -defaulting Project Participant shall be automatically increased for the remaining term of the Member Agreement; pro rata with those of the non -defaulting Project Participant thereunder; provided, however, that the sum of such increase for any non- defaulting Project Participant shall not exceed, without written consent of such non-defaulting Project Participant, an accumulated maximum of 25% of the non -defaulting Proj ect Participant’s original Project Entitlement Percentage Share.

General Operating Reserve with NCPA
Members of NCPA established a general operating reserve in 1992 for the purposes of providing a vehicle to fund reasonably foreseeable contingent liabilit ies. It was set up primarily to provide the following advantages: minimizes the number and dollar amount of reserve that might otherwise be funded separately in connection with NCPA’s individually financed operating plants, projects and programs; and provides each member with flexibility and unilateral control over the determination of what they will fund, how they will fund it and what expenditures from the reserve will be made on their individual behalf. It provides funding for contingent liabilities that are not budgeted but that may require significant future expenditures. The reserve is segregated by participant and is refundable on demand by the participant.

A
s of June 30, 2021 , the City’s advance receivable in the NCPA General Operating Reserve, whi ch has been credited with annual interest earnings and settlements, is $12,189,516.

Project Participation
The NCPA members and their percentage share at June 30, 2021, which is the most recent available data, are as follows:

Hydro Combustion Multiple Lodi
Geothermal Electric Turbine Capital Transmission Energy NCPA MEMBERS Project Project Project #1 Facilities Project Center Alameda 16.88% 10.00% 21.82% 19.00% 30.36% 0.00%
Bay Area Rapid Transit - - - - - 6.60
Biggs 0.23 - 0.20 - 0.41 0.27
Gridley 0.34 - 0.35 - 0.60 1.96
Healdsburg 3.67 1.66 5.83 - 6.61 1.64 Lodi 10.28 10.37 13.39 39.50 18.49 9.50 Lompoc 3.68 2.30 5.83 5.00 6.62 2.04 Palo Alto - 22.92 - - -
Plumas-Sierra Rural Electric Coop 0.70 1.69 1.82 - 1.26 0.79 Roseville 7.88 12.00 - 36.50 14.18 - Santa Clara 44.39 37.02 41.67 - - 25.75 Ukiah 5.61 2.04 9.09 - 10.10 1.79

OTHER PARTICIPANTS -
Azusa - - - - - 2.79
California Department of Water Resources - - - - - 33.50 Modesto Irrigation District - - - - - 10.71
Power & Water Resources Pooling Agency - - - - - 2.67 Turlock Irrigation District 6.33 - - - 11.38 - 75 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 11 – Participation in Joint Ventures (Continued)
P
roject Financing and Construction (Continued)
Bulk power purchased by the City through NCPA amounted to $ 41,501,170 during the year ended June 30, 2021 and is reflected in utilities expense in the Electric Enterprise Fund.

NCPA Geothermal Project
In addition to federal geothermal leasehold, steam wells, gathering system and related facilities, the project consists of tw o electric generating stations (Plant 1 and Plant 2). With combined 165 MW turbine generator units utilizing low temperature geothermal steam; associated electrical, mechanical and control facilities; a heat dissipation system; a steam gathering system; a transmission tap line; and, other related facilities. Geoth ermal steam for the project is derived from the geothermal property, which includes well pads, access roads, steam wells and re -injection wells.

U
nder a power purchase agreement with NCPA, the City is obligated to pay 10.28% of the operating and debt serv ice costs.

Outstanding long-term debt related to this project was approximately $ 15.5 million at June 30, 2021.

Calaveras Hydroelectric Project
NCPA contracted to finance, manage, construct and operate Hydroelectric Project Number One for the licensed ow ner, Calaveras County Water District. In exchange, NCPA has the right to the electric output of the project for 50 years from February 1982. NCPA has also the option to purchase power from the project in excess of the District’s requirements for the subsequent 50 years, subject to regulatory approval.

U
nder a power purchase agreement, the City is obligated to pay 10.37% of the operating costs and approximately 10.63% of the debt service . At June 30, 2021 , approximately $2 55.8 million in long -term debt used to finance this project was outstanding.

NCPA Combustion Turbine Project #1
The original project consisted of five combustion turbine units; each nominally rated at 25 MW. Concurrent with the final project bond maturity, two units located in Rosevill e were acquired by an NCPA member. The remaining project consists of two units in Alameda and one in Lodi. The project provides capacity during peak load periods and emergency capacity reserves. Excess capacity and energy from the project are also sold to other entities from time to time.

U
nder the NCPA power agreement, the City is obligated to pay 13.39% of the debt service and operating costs. At June 30, 2021, there was no outstanding long-term debt related to this project.

Capital Facilities Project
The Project consists of one 49.9 MW natural gas -fired steam injected combustion turbine generator unit located in Lodi, California. Wastewater is reclaimed from the City of Lodi’s White Slough water pollution control facility, processed to eliminate contaminants, and used in the turbine to produce steam for power enhancement and emissions control.

U
nder a power purchase agreement with NCPA, the City is obligated to pay 39.5% of the operating and debt service costs.

Outstanding long-term debt related to this project was approximately $ 19.3 million at June 30, 2021.

Transmission Project
The project was undertaken to meet certain obligations of NCPA under the NCPA/PG&E Interconnection Agreement. The project includes co -tenancy interest in PG&E’s 230 kV Castle Rock to Lakeville Substation Transmission Line in Sonoma County, additional firm transmission rights in that transmission line and a central dispatch facility. The City is obligated to pay 18.49% of the operating and debt service costs. At June 30 , 2021 there was no outstanding long -term debt related to this project.
76 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021

Note 11 – Participation in Joint Ventures (Continued)

Project Financing and Construction (Continued)

Lodi Energy Center
The Lodi Energy Center project is a 304 MW natural gas -fired, combined-cycle power generation plant located in Lodi on City property. Pursuant to a power sales agreement, NCPA owns and operates the project, selling the capacity and energy to various project participants, including both members and non- members of NCPA. This project is located next to the Capital Facilities Projects listed above.

The City is obligated to pay 17.03% of the debt service and 9.5% of operating costs. At June 30, 202 1, approximately $306.5 million in long-term debt was outstanding.

Audited Statements
The following are the most recent available audited condensed financial statements of NCPA:

At June 30, 2021 , NCPA’s total net outstanding long -term debt was $ 597,178,000 at an average interest rate of 5%. The current portion of long-term debt at June 30, 2021, was $43,400,000.

Complete financial information for NCPA may be obtained at the following administration office:

Northern California Power Agency
651 Commerce Drive
Roseville, CA 95678-6411

Condensed Statement of Net Position
June 30, 2021
(in thousands)
Assets and Deferred Outflows of Resources Current assets $ 206,369 Restricted assets 146,024
Electric plant, net 449,256
Other assets 210,264
Total assets 1,011,913
Deferred outflows of resources 91,950
Total assets and deferred outflows of resources $ 1,103,863 Liabilities, Deferred Inflows of Resources and Net Position Long-term debt, net $ 553,778 Current liabilities 136,520
Non-current liabilities 291,632
Deferred inflows of resources 94,305
Net position Net investment in capital assets (25,088) Restricted 42,444
Unrestricted 10,272
Total liabilities, deferred inflows of resources and net position

$ 1,103,863

77 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 11 – Participation in Joint Ventures (Continued)
P
roject Financing and Construction (Continued)
Condensed Statement of Revenues, Expenses
and Changes in Net Position
Year ended June 30, 2021
(in thousands)
Sales for resale $ 807,535
Operating expenses (768,694)
Other expenses (21,501)
Future recoverable costs (15,622)
Net revenues before refunds 1,718
Refunds to participants (14,481)
Increase in net position (12,763)
Net position, beginning of year 40,391
Net position, end of year $ 27,628
Combined Statement of Cash Flows
Year ended June 30, 2021
(in thousands)
Net cash from operating activities $ 91,973
Net from investing activities 11,764
Net cash from capital and related
financing activities (72,926)
Net cash from noncapital
and related financing activities (6,263) Increase in cash and cash equivalents 24,548
Cash and cash equivalents, beginning
of year 112,688
Cash and cash equivalents end of year $ 137,236 T
ransmission Agency of Northern California
T
he City of Lodi is a member of the Transmission Agency of Northern California (TANC), a California Joint Powers Agency formed in the early 1980’s to build the California Oregon Transmission Project (COTP) – a transmission line connecting the Pacific Northwest with Central California.

O
n April 2, 2014, the Lodi C ity Council approved a 25 -year layoff of the City’s share of the COTP transfer capability, effective July 1, 2014, whereby the City and all of the TANC members who are in the CAISO Balancing Authority lay off their interests to ce rtain other COTP participants. In exchange, these entities pay the City’s allocated share of COTP costs. This layoff arrangement does not change Lodi’s membership status in TANC and does not relieve the City of its obligations under the TANC Agreement in the event of any default in payment by an acquiring party. 78 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 11 – Participation in Joint Ventures (Continued)
P
roject Financing and Construction (Continued)
T
ANC and certain TANC members have arranged for Pacific Gas & Electric (PG&E) to provide TANC and its members with 300 MW of firm bi -directional transmission capacity on its transmission system between its Midway Substation near Buttonwillow, CA and its Tesla Substation near Tracy, CA, near the southern terminus of the COTP under an agreement known as the South of Tesla ( SOT) Principles. The City has utilized its full allocation of Tesla -Midway Transmission Service for power transactions in the past. The City is responsible for 2.07% of TANC’s SOT debt service which as of June 30, 20 21 had an outstanding balance of approximately $2.5 million.

C
omplete financial information for TANC may be obtained at the following administration office:

T
ransmission Agency of Northern California
35 Iron Point Circle, Suite 225
Folsom, CA 95630
N
ote 12 – Membership in Insurance Pools
C
alifornia Joint Powers Risk Management Authority
T
he City is a member, along with sixteen other individual cities and four joint powers authorities, of California Joint Powers Risk Management Authority (CJPRMA) organized under a Joint Powers Agr eement pursuant to the California Government Code for the purpose of sharing the risk of catastrophic general liability, automobile liability and public officials' errors and omissions losses. CJPRMA has a twenty -one member Board of Directors, including a d irector from the City of Lodi. The Board members elect officers of CJPRMA every two years.

T
he ultimate cost of the program to the City depends on the catastrophic losses of all members, as well as the City's own loss experience and will be determined th rough an actuarial analysis of loss history during the ten -year period preceding the three years prior to the end of the current program year. The City periodically pays premiums to the CJPRMA. These premiums are recorded as expen ses in the year paid, as they are a reasonable estimate of the actual cost of the program.

During the year ended June 30, 2021, premiums of $385,861 were paid to CJPRMA for the liability program.

T
he participants at June 30, 2021 , are as follows: Alameda, Chico, Fairfield, Fremont , Livermore, Lodi, N orthern California Cities Self Insurance Fund, Petaluma , Redding, Redwood Empire Municipal Insurance Fund, Richmond, Roseville, San Leandro, San Rafael, Santa Rosa, Small Cities Organized Risk Effort, Stockton, Sunnyvale, Vacaville, Val lejo, and Yolo County Public Agencies Risk Management Insurance Authority.

C
omplete financial information for CJPRMA may be obtained at the following administration office:

C
alifornia Joint Powers Risk Management Authority
3252 Constitution Dr.

Livermore, CA 94551
79 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021

Note 12 – Membership in Insurance Pools (Continued)

Local Agency Workers' Compensation Excess Joint Powers Authority

The City, along with thirty -three other public agencies, is a member of the Local Agency Workers' Compensation Excess Joint Powers Authority (LAWCX), which was formed July 1992, for the purpose of sharing the risk of workers' compensation losses. LAWCX offers $150,000, $ 250,000, $350,000, $500,000 and $1 million self-insured retentions (SIR) or a member can attach directly to the purchased excess insurance. LAWCX cove rs the layer above the member SIR up to $5 million. The City’s self-insured retention is $250,000. LAWCX participates in the California State Association of Counties Excess Insurance Authority (CSAC-EIA) to obtain coverage up to statutory limits . The City paid $ 544,871 in premiums to LAWCX during the year ended June 30, 2021.

The participants at June 30, 2021 , are as follows: City of Alameda, Association of Bay Area Governments Shared Risk Pool (ABAG SHARP) , Bay Cities Joint Powers Insurance Authority ( BCJPIA), City of Benicia, Central Contra Costa County Transit Agency (CCCTA ), California Housing Workers’ Compensation Authority (CHWCA), Central San Joaquin Valley Risk Management Authority (CSJVRMA), City of Clovis, City of Coronado, City of Encinitas, Fire Agencies Self Insurance System (FASIS), City of Gilroy, City of Livermore, City of Lodi, Town of Los Gatos, City of Merced, Monterey County Local Agencies Insurance Authority (MCLAIA), City of Morgan Hill, City of Newark, City of Placentia, City of Pleasanton, Public Agency Risk Sharing Authority of California (PARSAC), City of Roseville, Public Entity Risk Management Authority ( PERMA), City of San Leandro, City of Santa Maria, City of S antee, Small Cities Organized Risk Effort (SCORE), City of South Lake Tahoe, City of Suisun City, City of Vacaville, City of Vallejo, Vector Control J oint Powers Agency (VCJPA) and City of Vista.

Complete financial information for LAWCX may be obtained at the following administration office:

Local Agency Workers’ Compensation Excess Joint Powers Authority 1750 Creekside Oaks Drive, Suite 200
Sacramento, California 95833

California Transit Insurance Pool

The City, along with thirty -three other public agencies is a member of the California Transit Insurance Pool ( Cal TIP), a joint powers insurance authority which was formed for the purpose of sharing the risk of property damage, bodily injury, personal injury and public officials errors and omission s losses for public transit systems.

Liability protection coverage is provided under two programs:

Program I applies to members who choose to utilize Cal Tip’s claims administrator services.

Program II applies to members with self -insured retentions who choose to provide their own claims administrator services.

Cal TIP purchases excess insurance over its $1,000,000 retention up to $20 million per occurrence. Each member is provided with $4 million in excess of the pooled retention for a total of $5 mil lion in coverage and has the option to choose one or both of two additional layers for the full $20 million.

Cal TIP also provides physical damage coverage to its members. This coverage program is optional for all members and offers damage or loss protect ion for transit, staff and maintenance vehicles to transit operators. Cal TIP self-insures up to $100,000, under which members have the option of five levels of deductible ranging fro m $500 to $10,000 per vehicle.

Claims are administered by the Cal Tip’s adjuster.

80 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 12 – Membership in Insurance Pools (Continued)
C
alifornia Transit Insurance Pool (Continued)
T
he City paid $ 131,470 in premiums to Cal TIP during the year ended June 30, 2021 . There have been no reductions in insurance coverage from the prior year and there were no insurance settlements in excess of insurance coverage in any of the last three years.

Self-Insured Limit Physical
Program Retention (in millions) Damage
City of Lodi Transit System I Prefunded 20 Yes
C
omplete financial information for Cal Tip may be obtained at the following administration office:

C
alifornia Transit Insurance Pool
1750 Creekside Oaks Drive, Suite 200
Sacramento, California 95833
N
ote 13 – Deficit in Net Position
A. D
eficit in Net Position
T
he City has a deficit net position in its governmental activities in the amount of ($ 85,690,111) which is primarily attributable to the net pension and OPEB obligations outstanding as of June 30, 20 21.

A
deficit in net position in the amount of ($ 1,015,259) in the ISF Fleet Services Fund at June 30, 20 21, is attributed to the increase in personnel expenses. The City will evaluate the rates charged to departments to eliminate the deficit during the budget process.

A
deficit in net position in the amount of ($ 28,926,492) in the ISF Benefits Fund at June 30, 2021 , is attributed to the OPEB Liability as required by GASB 75.

B. E
xpenditures in Excess Of Appropriations
E
xpenditures In Excess Of Appropriations For the year ended June 30, 201, expenditures exceeded appropriations in the following programs/functions/fund (legal level of budgetary control) of the respective funds:

T
he General Fund expenditures for the Budget and Treasury division were higher than anticipated for these departments due to additional expenditures relating to salaries and benefits . The General Fund, however, did not h
ave excess expenditures over appropriations at the fund level.

Excess Expenditures
Funds Appropriations Expenditures over Appropriations
General Fund:

Budget and Treasury $ 357,037 $ 357,897 $ (860) 81 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 14 – Pollution Remediation Obligation
T
he City relies on groundwater for its drinking water and in the late 1980’s, Perchloroethylene (PCE) and Trichloroethylene (TCE) pollution was discovered in several municipal water supply wells. Investigations conducted by the California Regional Water Quality Control Board (RWQCB) in the early 1990’s under the Well Investigation program revealed numerous areas where TCE was discharged, or where PCE from dry cleaning operations was discharged to the sew er system. In 1997, the Department of Toxic Substances Control (DTSC) and the City entered into a cooperative agreement whereby the City assumed a lead role in the cleanup and agreed to pursue legal action against potential ly responsible parties (PR Ps). The City’s estimate of the pollution remediation obligation was $70 million. The City has settled with all the involved parties.

T
he City received a draft cleanup and abatement order to investigate the discharges of waste, clean up the waste and aba te the effects of the discharges of waste in conformance with the State Water Resources Control Board’s (SWRCB) Resolution No. 92 -49 Policies and Procedures for Investigation and Cleanup and Abatement of Discharges Under the Water Code Section 13304 and wi th the RWQCB’s Water Quality Control Plan for the Sacramento River and San Joaquin River. The City then engaged the services of Treadwell and Rollo to advise the City on courses of action in the preparation of feasibility studies, remedial design, and remedial action plan to comply with the technical and reporting requirements of the SWRCB.

T
he City’s estimated total pollution remediation obligation as of June 30, 2021 , is $15,382,824. This amount is an estimate and subject to changes resulting from price increases or reductions, technology, or changes in applicable laws or regulations.

N
ote 15 – Commitments and Contingencies
L
itigation and claims – The City from time to time is a party to various claims, legal actions, and complaints arising in the ordinary course of business. In the opinion of the City’s administration, the various claims, legal actions, and complaints resulting from such litigation not covered by the City’s self -insurance program (see Note 1 2) would not materially affect the financial position of the City.

W
ater Purchase Agreement with Woodbridge Irrigation District – The City obtains its municipal water supply from wells located within the City, extracting water from the underground aquifer, which is replenished in part by flows of the Mokelumne River. To avoid being wholly dependent upon wells and the possible impacts of eventual overdraft of the groundwater supply, the City made a commitment in 2003 to purchase surface water supply from Woodbridge Irrigation District for an initial term of 40 years. The agreement provides for the purchase of 6,000 acre feet per year and the City pays the District $1.2 million annually. The initial term of t he agreement was for 40 years. In January 2008, the District and the City of Lodi amended the 2003 water sale contract to, among other matters, extend that agreement for four years to October 2047.

A
rbitrage Earnings Rebate Liability – Arbitrage earnings are defined as income earned on the unexpended tax -exempt certificate proceeds in excess of that which would have been earned had the moneys been invested in securities with a yield of the effec tive rate of the certificates. Currently, arbitrage earnings must be rebated to the United States Treasury every five years. There is no cumulativ e arbitrage liability as of June 30, 20 21, for any of the City’s outstanding Certificates of Participation and Revenue Bonds.

C
onstruction and Other Significant Commitments – Commitments are existing arrangements to enter into future transactions or even ts, such construction contracts for ongoing projects and long -term contractual obligations with suppliers for future purchases at specified prices and sometimes specified quantities. Significant commitments as of June 30, 2021 are as follows:
82 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 15 – Commitments and Contingencies (Continued)
Governmental Activities:  Business‐type Activities:

General Fund   $    681,775   Electric Fund   $    3,486,254 Other governmental funds      2,140,876    Wastewater Fund         1,199,797 Water Fund         2,073,564
Transit Fund             127,127
Total governmental activities   $ 2,822,651   Total business‐type activities   $    6,886,742 Note 16
– Restatement of Fund Balance
Net Position
Governmental
Activities
Net Position July 1, 2020   $                42,983,825 Prior Period Adjustment
Sick Leave Conversion  5,850,449
GASB 84  375,940
July 1, 2020, as restated   $                49,210,214 Governmental Activities
Sick leave conversion
During the implementation of GASB 75, entries were made to correctly state the new balances of the accrued liability for the City’s sick leave conversion balances.  The City currently has two sick leave conversion programs: sick leave conversion and sick leave conversion bank.   The sick leave conversion program required a prior period adjustment to recognize the liability balances to be used for future conversions.  The City recorded a prior period adjustment to the government wide statement of activities to reinstate the fund balance.

Business‐type Activities
Capital assets
In the process of recording the current year capital assets, the City recorded prior period adjustments to the beginning net position of the Governmental Activities.  During the analysis of the information provided by the departments for their capital assets,  it  was  determined  that  certain  capital  improvement  projects  and  certain  machinery  and  equipment  was  either completed  or  placed  into  service  in  prior  years  and  not  yet  capitalized  or  was  not  properly  valued  utilizing  a  current replacement or actual cost.   An adjustment to capital assets was booked to correctly report the value of completed projects, placing the machinery and equipment in service.

Governmental funds
The Special Assessment fund was established to account for the special assessments collected on the property tax roll by the City  on  behalf  of  the  property  owners  within  the  Industrial Way  Beckman districts and the Downtown and Cherokee Lane Districts.  In  the previous fiscal years, the Special Assessment fund was accounted for in the Agency Funds.  In  the current fiscal  year,  the  Special  Assessment  fund  was  reclassified  to  the  Special  Revenue  Funds.  The  beginning  fund  balance restatement was $373,185.
83 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2021
Note 16 – Restatement of Fund Balance (Continued)
Governmental funds (Continued)
Net Position
Other     Total
Governmental funds    Governmental  funds
Net Position July 1, 2020   $                14,320,542    $                 54,967,580 Prior Period Adjustment
GASB 84  375,940   375,940
July 1, 2020, as restated   $                14,696,482   $                55,340,520 Note 17
– Subsequent Events
In  March  2021,  Congress  passed  the  American  Rescue  Plan  Act  (ARPA).  ARPA   is  intended  to  provide  direct  relief  to  the American people, rescue the American economy, and work to end the COVID‐19 pandemic.   Under  ARPA more than $360 billion in emergency funding for state, local, territorial, and Tribal governments was distributed to ensure that they are in a position to keep front line public workers on the job and paid, while also effectively distributing the vaccine, scaling testing, reopening schools, and maintaining other vital services.  The  City will receive $15.7 million dollars, with the first portion of $7.8 million being received in July 2021.  The  City is working on finalizing exactly how the complete funding package will be spent.  A portion has been approved by Council to be spent on, utility relief, vaccine incentives and community grants to local businesses.

The  Lodi  Public  Finance  Authority  2012  Lease  Revenue  Bonds  are  callable  April  1,  2022.  Current   projections  suggest  it  is financially advantageous for the City to execute the call option on the bonds.  Staff  will recommend the bonds be called and refunded in the Spring of 2022 to create interest savings that will be accrued to the City’s General Fund.

On December 31, 2021, the employment contract, Memorandum of Understanding (MOU), between the City of Lodi and the International  Brotherhood  of  Electrical  Workers  (IBEW)  expires.  The  City  is  currently  in  negotiations  with  IBEW  on  a successor MOU.
84 R E Q U I R E D

S U P P L E M E N T A R Y

I N F O R M A T I O N
( U N A U D I T E D )

(This pag
e intentionally left blank.)

Measurement Period 2019-20 2018-19 2017-18 2016-17
Total Pension Liability
Service Cost 3,061,982$ 2,951,947$ 3,020,122$ 2,862,495$ Interest 14,272,357 13,863,223 13,374,883 12,923,048 Changes of Benefit Terms - - 47,853 - Differences Between Expected and Actual Experience (261,709) 621,792 830,292 (398,276) Changes of Assumptions - - (950,894) 10,541,016 Benefit Payments, Including Refunds of Employee - - - - Benefit Payments, Including Refunds of Employee Contributions (11,281,823) (10,490,850) (9,814,728) (9,129,724) Net Change in Total Pension Liability 5,790,807 6,946,112 6,507,528 16,798,559 Total Pension Liability - Beginning 203,985,008 197,038,896 190,531,368 173,732,809 Total Pension Liability - Ending (a) 209,775,815 203,985,008 197,038,896 190,531,368 Plan Fiduciary Net Position
Contributions - Employer 5,480,277 5,002,406 4,208,873 3,950,727 Contributions - Employee 1,743,741 1,372,046 1,364,684 1,341,146 Net Investment Income 7,191,594 9,071,083 11,191,848 13,581,013 Benefit Payments, Including Refunds of Employee Contributions (11,281,823) (10,490,850) (9,814,728) (9,129,724) Other Changes in Fiduciary Net Position - - (206,493) (181,224) Other Miscellaneous Income/(Expense) (1)
(202,321) (98,627) (39 1,520) - Net Change in Fiduciary Net Position 2,931,468 4,856,058 6,352,664 9,561,938 Plan Fiduciary Net Position - Beginning (2)
143,515,020 138,658,962 13 2,306,298 12 2,744,360 Plan Fiduciary Net Position - Ending (b) 146,446,488 143,515,020 138,658,962 132,306,298 Plan Net Pension Liability - Ending (a) - (b) 63,329,327$ 60,469,988$ 58,379,934$ 58,225,070$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 69.81% 70.36% 70.37% 69.44%
Covered Payroll (3)
19,355,131$ 18,257,959$ 18 ,995,671$ 17 ,970,339$ Plan Net Pension Liability as a Percentage of
Covered Payroll 327.20% 331.20% 307.33% 324.01%
Notes to Schedule:
(2) Includes ny beginning of year adjustment.

MISCELLANEOUS PLAN

CITY OF LODI

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS (1) During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits in the State of California's agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75.

Additionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68).

Information in this schedule is not available prior to fiscal year 2013-14 measurement period. Additional years will be added to this schedule until 10 years of data is presented. (3) Includes one year's payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-20; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.
87 Measurement Period 2015-16 2014-15 2013-14
Total Pension Liability
Service Cost 2,464,894$ 2,358,112$ 2,478,901$ Interest 12,565,553 12,061,399 11,705,179
Changes of Benefit Terms - - -
Differences Between Expected and Actual Experience 542,177 (1,655,012) - Changes of Assumptions - (2,903,507) -
Benefit Payments, Including Refunds of Employee - - -
Benefit Payments, Including Refunds of Employee Contributions (8,641,550) (8,208,103) (7,729,680) Net Change in Total Pension Liability 6,931,074 1,652,889 6,454,400 Total Pension Liability - Beginning 166,801,735 165,148,846 158,694,446 Total Pension Liability - Ending (a) 173,732,809 166,801,735 165,148,846 Plan Fiduciary Net Position
Contributions - Employer 3,500,179 2,994,958 2,694,850 Contributions - Employee 1,241,136 1,183,452 1,237,916 Net Investment Income 643,509 2,829,910 19,249,151 Benefit Payments, Including Refunds of Employee Contributions (8,641,550) (8,208,103) (7,729,680) Other Changes in Fiduciary Net Position (76,838) (145,538) - Other Miscellaneous Income/(Expense) (1)
- - -
Net Change in Fiduciary Net Position (3,333,564) (1,345,321) 15,452,237 Plan Fiduciary Net Position - Beginning (2)
126,077,924 127,423,245 11 1,971,008
Plan Fiduciary Net Position - Ending (b) 122,744,360 126,077,924 127,423,245 Plan Net Pension Liability - Ending (a) - (b) 50,988,449$ 40,723,811$ 37,725,601$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 70.65% 75.59% 77.16%
Covered Payroll (3)
17,423,446$ 16,572,579$ 16 ,669,363$
Plan Net Pension Liability as a Percentage of
Covered Payroll 292.64% 245.73% 226.32%
Notes to Schedule:
(2) Includes ny beginning of year adjustment.

MISCELLANEOUS PLAN (Continued)

CITY OF LODI

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS (1) During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits in the State of California's agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75.

Additionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68).

Information in this schedule is not available prior to fiscal year 2013-14 measurement period. Additional years will be added to this schedule until 10 years of data is presented.
(3) Includes one year's payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-20; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17. 88 Measurement Period 2019-20 2018-19 2017-18 2016-17
Total Pension Liability
Service Cost 3,251,866$ 3,005,853$ 3,385,583$ 3,336,917$ Interest 14,313,890 13,882,332 13,288,494 12,869,943 Changes of Benefit Terms - - - -
Differences Between Expected and Actual Experience (329,854) 1,853,213 (122,816) 1,123,761 Changes of Assumptions - - (681,450) 10,945,791 Benefit Payments, Including Refunds of Employee - - - - Benefit Payments, Including Refunds of Employee Contributions (10,940,141) (10,350,986) (9,712,985) (9,433,148) Net Change in Total Pension Liability 6,295,761 8,390,412 6,156,826 18,843,264 Total Pension Liability - Beginning 204,368,263 195,977,851 189,821,025 170,977,761 Total Pension Liability - Ending (a) 210,664,024 204,368,263 195,977,851 189,821,025 Plan Fiduciary Net Position
Contributions - Employer 6,927,425 6,462,421 5,549,746 5,220,306 Contributions - Employee 1,835,228 1,173,690 1,079,094 1,095,689 Net Investment Income 6,175,068 7,740,905 9,544,033 11,443,777 Benefit Payments, Including Refunds of Employee Contributions (10,940,141) (10,350,986) (9,712,985) (9,433,148) Other Changes in Fiduciary Net Position - - (174,988) (153,469) Other Miscellaneous Income/(Expense) (1) (173,420) (83,983) (331, 781) - Net Change in Fiduciary Net Position 3,824,160 4,942,047 5,953,119 8,173,155 Plan Fiduciary Net Position - Beginning (2) 123,013,981 118,071,934 112,118, 815 103,945, 660 Plan Fiduciary Net Position - Ending (b) 126,838,141 123,013,981 118,071,934 112,118,815 Plan Net Pension Liability - Ending (a) - (b) 83,825,883$ 81,354,282$ 77,905,917$ 77,702,210$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 60.21% 60.19% 60.25% 59.07%
Covered Payroll (3) 11,816,374$ 10,779,847$ 11,518, 923$ 11,518, 923$ Plan Net Pension Liability as a Percentage of
Covered Payroll 709.40% 754.69% 676.33% 674.56%
Notes to Schedule:
(2) Includes any beginning of year adjustment.

CITY OF LODI

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS

SAFETY PLAN
(3) Includes one year's payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-20; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.
(1) During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits in the State of California's agent OPEB plan.

Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75.

Additionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68).

Information in this schedule is not available prior to fiscal year 2013-14 measurement period. Additional years will be added to this schedule until 10 years of data is presented. 89 Measurement Period 2015-16 2014-15 2013-14
Total Pension Liability
Service Cost 2,890,607$ 2,968,819$ 3,048,048$ Interest 12,357,788 11,827,918 11,390,793
Changes of Benefit Terms - - -
Differences Between Expected and Actual Experience 600,847 (932,918) - Changes of Assumptions - (2,939,033) -
Benefit Payments, Including Refunds of Employee - - -
Benefit Payments, Including Refunds of Employee Contributions (8,730,081) (8,134,067) (7,448,361) Net Change in Total Pension Liability 7,119,161 2,790,719 6,990,480 Total Pension Liability - Beginning 163,858,600 161,067,881 154,077,401 Total Pension Liability - Ending (a) 170,977,761 163,858,600 161,067,881 Plan Fiduciary Net Position
Contributions - Employer 4,660,278 4,176,197 4,106,044 Contributions - Employee 1,062,984 1,007,876 1,058,376 Net Investment Income 558,434 2,397,191 16,070,261 Benefit Payments, Including Refunds of Employee Contributions (8,730,081) (8,134,067) (7,448,361) Other Changes in Fiduciary Net Position (64,882) (119,971) - Other Miscellaneous Income/(Expense) (1) - - -
Net Change in Fiduciary Net Position (2,513,267) (672,774) 13,786,320 Plan Fiduciary Net Position - Beginning (2) 106,458,927 107,131,701 93,345, 381 Plan Fiduciary Net Position - Ending (b) 103,945,660 106,458,927 107,131,701 Plan Net Pension Liability - Ending (a) - (b) 67,032,101$ 57,399,673$ 53,936,180$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 60.79% 64.97% 66.51%
Covered Payroll (3) 11,106,615$ 11,293,867$ 11,194, 123$ Plan Net Pension Liability as a Percentage of
Covered Payroll 603.53% 508.24% 481.83%
Notes to Schedule:
(2) Includes any beginning of year adjustment.

SAFETY PLAN (Continued)

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS

REQUIRED SUPPLEMENTARY INFORMATION

CITY OF LODI
Information in this schedule is not available prior to fiscal year 2013-14 measurement period. Additional years will be added to this schedule until 10 years of data is presented.
(3) Includes one year's payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-20; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.
(1) During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits in the State of California's agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75.

Additionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68). 90 Miscellaneous Plan: 2020-21 (1) 2019-20 (1) 2018-19 (1) 2017-18 (1) Actuarially Determined Contributions 5,323,688$ 4,879,985$ 4,907,206$ 4,208,873$ Contributions in Relation to the Actuarially Determined Contributions (2) (9,611,114) (5,496,434) (5, 002,406) (4, 208,873) Contribution Deficiency (Excess) (4,287,426)$ (616,449)$ (95,200)$ -$ Covered Payroll (3, 4)
19,355,131$ 18,257,959$ 18,995,671$ 17,970,339$ Contributions as a Percentage of Covered Payroll

49.66% 30.10% 25.83% 23.42%
Safety Plan:

Actuarially Determined Contributions 6,739,342$ 6,311,400$ 6,195,073$ 5,549,746$ Contributions in Relation to the Actuarially Determined Contributions (2) (7,955,910) (6,847,548) (6, 462,421) (5, 549,746) Contribution Deficiency (Excess) (1,216,568)$ (536,148)$ (267,348)$ -$ Covered Payroll (3, 4)
11,816,374$ 10,779,847$ 11,886,327$ 11,518,923$ Contributions as a Percentage of Covered Payroll

67.33% 63.52% 52.12% 48.18%
Notes to Schedule:
(1) Historical information is required only for measurement periods for which GASB 68 is applicable. (2) Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions.
(3) Covered-Employee Payroll represented above is based on pensionable earnings provided by the employer. However, GASB 68 defines covered-employee payroll as the total payroll of employees that are provided pensions through the pension plan. Accordingly, if pensionable earnings aredifferent than total earnings for covered-employers, the employer should display in the disclosure footnotes the payroll based on total earnings for the covered group and recalculate the required payroll-related ratios.

Actuarial Cost Method Entry Age Normal
Amortization Method/Period For details, see June 30, 2017 Funding Valuation Report.

Asset Valuation Method Market value of assets.

Inflation 2.625%
Salary Increases Varies by Entry Age and Service
Payroll Growth 2.875%
Investment Rate of Return 7.25% Net of Pension Plan Investment and Administrative Expenses; includes Inflation.

Retirement Age
Mortality

CITY OF LODI

SCHEDULE OF PENSION CONTRIBUTIONS

REQUIRED SUPPLEMENTARY INFORMATION
The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.

The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected on-going mortality improvement using Scale BB published by the Society of Actuaries.

Other information: For changes in previous years' information, refer to past GASB 68 reports. (4) Payroll from June 30, 2018-20 for miscellaneous was assumed to increase by 2.75 percent payroll growth assumption. 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.
91 Miscellaneous Plan: 2016-17 (1) 2015-16 (1) 2014-15 (1) 2013-14 (1) Actuarially Determined Contributions 3,880,495$ 3,500,179$ 2,994,958$ 2,694,850$ Contributions in Relation to the Actuarially Determined Contributions (2) (3,880,495) (3,500,179) (2, 994,958) (2, 694,850) Contribution Deficiency (Excess) -$ -$ -$ -$
Covered Payroll (3, 4)
17,802,886$ 17,423,446$ 16,572,579$ 16,669,363$ Contributions as a Percentage of Covered Payroll

21.80% 20.09% 18.07% 16.17%
Safety Plan:

Actuarially Determined Contributions 5,136,610$ 4,660,278$ 4,176,197$ 4,106,044$ Contributions in Relation to the Actuarially Determined Contributions (2) (5,136,610) (4,660,278) (4, 176,197) (4, 106,044) Contribution Deficiency (Excess) -$ -$ -$ -$
Covered Payroll (3, 4)
11,477,432$ 11,106,615$ 11,293,867$ 11,194,123$ Contributions as a Percentage of Covered Payroll

44.75% 41.96% 36.98% 36.68%
Notes to Schedule:
(1) Historical information is required only for measurement periods for which GASB 68 is applicable. (2) Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions.
(3) Covered-Employee Payroll represented above is based on pensionable earnings provided by the employer. However, GASB 68 defines covered-employee payroll as the total payroll of employees that are provided pensions through the pension plan. Accordingly, if pensionable earnings aredifferent than total earnings for covered-employers, the employer should display in the disclosure footnotes the payroll based on total earnings for the covered group and recalculate the required payroll-related ratios.

Actuarial Cost Method Entry Age Normal
Amortization Method/Period For details, see June 30, 2017 Funding Valuation Report.

Asset Valuation Method Market value of assets.

Inflation 2.625%
Salary Increases Varies by Entry Age and Service
Payroll Growth 2.875%
Investment Rate of Return 7.25% Net of Pension Plan Investment and Administrative Expenses; includes Inflation.

Retirement Age
Mortality
(4) Payroll from June 30, 2018-20 for miscellaneous was assumed to increase by 2.75 percent payroll growth assumption. 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.

The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.

The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected on-going mortality improvement using Scale BB published by the Society of Actuaries.

Other information: For changes in previous years' information, refer to past GASB 68 reports.

SCHEDULE OF PENSION CONTRIBUTIONS (Continued)

REQUIRED SUPPLEMENTARY INFORMATION

CITY OF LODI
92 Measurement period, year ending: 6/30/2020 (1) 6/30/2019 (1) 6/30/2018 (1) 6/30/2017 (1) Total OPEB liability
Service cost 757,587$ 1,092,362$ 1,042,935$ 1,139,099$ Interest 875,524 1,269,594 1,240,787 1,073,783
Changes of benefit terms - - - -
Differences between expected and actual experience (28,866) (5,914,145) - - Changes of assumptions (958,836) (1,584,690) (209,408) (2,518,711) Benefit payments, including refunds of member contributions (1,772,822) (1,940,352) (1,862,969) (1,947,260) Net change in total OPEB liability (1,127,413) (7,077,231) 211,345 (2,253,089) Total OPEB liability - beginning 27,488,956 34,566,187 34,354,842 36,607,931 Total OPEB liability - ending (a) 26,361,543$ 27,488,956$ 34,566,187$ 34,354,842$ OPEB fiduciary net position
Contributions - employer 2,470,847$ 1,940,352$ 1,862,969$ 2,947,260$ Net investment income 81,556 80,425 66,683 79,789 Benefit payments, including refunds of member contributions (1,772,822) (1,940,352) (1,862,969) (1,947,260) Administrative expense (815) (246) (1,997) (309) Net change in plan fiduciary net position 778,766 80,179 64,686 1,079,480 Plan fiduciary net position - beginning 1,224,345 1,144,166 1,079,480 - Plan fiduciary net position - ending (b) 2,003,111$ 1,224,345$ 1,144,166$ 1,079,480$ Plan net OPEB liability - ending (a) - (b) 24,358,432$ 26,264,611$ 33,422,021$ 33,275,362$ Plan fiduciary net position as a percentage of the total OPEB liability 7.60% 4.45% 3.31% 3. 14% Covered-employee payroll 34,262,678$ 32,883,009$ 33,204,023$ 35,314,645$ Plan net OPEB liability as a percentage of covered-employee payroll 71.09% 79.87% 100.66% 94.23% Notes to Schedule:

CITY OF LODI

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS Last Ten Fiscal Years (1)
For the Year Ended June 30, 2021
(1) Information in this schedule is not available prior to FY2017-18 measurement period. Additional years will be added to this schedule until 10 years of data is presented
93 2021 2020 2019 2018 2017
Actuarially Determined Contribution (2)
-$ -$ -$ -$ -$
Contributions in Relation to the
Actuarially Determined Contribution (1,885,306) (2,046,385) (1,940,352) (1,862,949) (2,947,260) Contribution Deficiency (Excess) (1,885,306)$
(2,046,385)$
(1,940,352)$
(1,862,949)$
(2,947,260)$

Covered-employee payroll 34,262,678 32,883,009 33,204,023 34,286,063 34,286,063 Contributions as a percentage of
covered-employee payroll 79.9% 79.9% 100.7% 97.1% 97.1% Actuarially determined contribution
for fiscal year June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 Valuation date: June 30, 2019 June 30, 2019 June 30, 2017 June 30, 2017 June 30, 2017 Actuarial cost method Entry Age Normal Cost Method Entry Age Normal Cost Method Entry Age Normal Cost Method Entry Age Normal Cost Method Entry Age Normal Cost Method Asset valuation method Straight line 5 year period Straight line 5 year period Straight line 5 year period Straight line 5 year period Straight line 5 year period Discount rate 3.56% 3.56% 3.66% 3.60% 3.60%
Inflation 2.50% 2.50% 2.75% 2.75% 2.75%
Payroll increases
Mortality Based on assumptions for PERS, Based on assumptions for PERS, Based on assumptions for PERS, Based on assumptions for PERS, Based on assumptions for PERS, Police & Fire members Police & Fire members Police & Fire members Police & Fire members Police & Fire members June 30, 2016 CalPERS actuarial June 30, 2016 CalPERS actuarial June 30, 2016 CalPERS actuarial June 30, 2016 CalPERS actuarial June 30, 2016 CalPERS actuarial valuation valuation valuation valuation valuation
Notes to Schedule:

CITY OF LODI

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF EMPLOYER OPEB CONTRIBUTIONS
(2) Per GASB 75 paragraph 57c., these disclosure are only required if the employer calculates an Actuarially Determined Contribution (ADC). The City does not currently calculate an ADC. (1) Information in this schedule is not available prior to FY2017-18 measurement period. Additional years will be added to this schedule until 10 years of data is presented For the Year Ended June 30, 2021
Last Ten Fiscal Years (1)
94 See accompanying notes to the required supplementary information.

Variance with
Original Final Actual Final Budget

REVENUES
Taxes 29,443,740$ 29,443,740$ 31,697, 986$ 2,254, 246$ Sales and use tax 17,535,870 19,958,000 24,302, 433 4,344, 433 Licenses and permits 91,550 91,550 69,004 (22, 546)
Intergovernmental revenues 1,166,920 11,640,910 15,116, 622 3,475, 712 Charges for services 1,783,570 1,974,570 2,598, 283 623,713 Fines, forfeits, and penalties 1,300,100 300,700 217,097 (83, 603) Investment and rental income 1,858,390 1,858,390 4,640, 812 2,782, 422 Miscellaneous revenue 296,280 296,280 494,747 198,467
Total revenues 53,476,420 65,564,140 79,136, 984 13,572, 844

EXPENDITURES
Current:

City Manager 956,510 1,021,010 983,634 37,376
City Clerk 770,040 770,040 556,367 213,673
City Attorney 615,140 646,620 588,955 57,665
Internal Services Admin 241,130 241,130 238,076 3,054
Human Resources 695,240 695,240 664,156 31,084
Information Systems 1,693,020 1,693,020 1,586, 133 106,887 Financial Services 1,039,770 1,039,770 1,031, 848 7,922 Revenue Services 1,296,610 1,296,610 1,257, 070 39,540
Budget and Treasury 338,580 357,037 357,897 (860)
Non Departmental 1,452,430 18,367,987 16,565, 014 1,802, 973 Total general government 9,098,470 26,128,464 23,829, 150 2,299, 314 Public protection:

Police 24,921,930 25,061,761 23,894, 807 1,166, 954
Fire 14,461,600 14,751,320 14,111, 112 640,208
Total public protection 39,383,530 39,813,081 38,005, 919 1,807, 162 Public works 2,891,680 2,941,680 2,743, 906 197,774
Library 1,714,770 1,754,230 1,024, 617 729,613
Total expenditures 53,088,450 70,637,455 65,603, 592 5,033, 863

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 387,970 (5,073,315) 13,533,392 18,606,707

OTHER FINANCING SOURCES (USES)
Transfers in 4,697,816 4,697,816 4,697, 816 -
Transfers out (5,458,817) (5,458,817) (5, 458,817) -
Gain on sale of property 1,000 1,000 14,666 13,666
Total other financing sources (uses) (760,001) (760,001) (746, 335) 13,666 Net changes in fund balance (372,031) (5,833,316) 12,787, 057 18,620, 374$ FUND BALANCES, BEGINNING OF YEAR 27,903,041 27,903,041 27,903, 041 FUND BALANCES, END OF YEAR 27,531,010$ 22,069,725$ 40,690, 098 Basis adjustment:

Cummulative pension set aside (15,641,640)
Fund balance (budgetary basis) 25,048,458$
Budgeted Amounts

CITY OF LODI
General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual For the Year Ended June 30, 2021
95 See accompanying notes to the required supplementary information.

Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental revenues 5,007,680$ 8,050,060$ 6,774, 637$ (1, 275,423)$ Charges for services 1,471,380 1,471,380 1,511, 609 40,229 Investment and rental income 223,760 223,760 166,969 (56, 791) Miscellaneous revenue 30,000 30,000 228,186 198,186 Total revenues 6,732,820 9,775,200 8,681, 401 (1, 093,799)

EXPENDITURES
Current:

Public works 2,866,100 3,051,730 2,849, 603 202,127 Capital outlay 2,755,000 8,501,504 4,743, 316 3,758, 188 Total expenditures 5,621,100 11,553,234 7,592, 919 3,960, 315 Excess (deficiency) of revenues over
expenditures 1,111,720 (1,778,034) 1,088,482 2,866,516

OTHER FINANCING SOURCES (USES)
Transfers in 687,440 698,360 287,509 (410, 851)
Transfers out (399,930) (410,850) - 410, 850 Proceeds from sale of property - - 13, 865 13,865
Total other financing sources (uses) 287,510 287,510 301,374 13,864 Net change in fund balance 1,799,160 (1,079,674) 1,389, 856 2,455, 665$ FUND BALANCES, BEGINNING OF YEAR 12,743,997 12,743,997 12,743, 997 FUND BALANCES, END OF YEAR 14,543,157$ 11,664,323$ 14,133, 853 Basis adjustment:

Cummulative pension set aside (298,541)
Fund balance (budgetary basis) 13,835,312$
Budgeted Amounts

CITY OF LODI
Streets
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual For the Year Ended June 30, 2021
96 CITY OF LODI
Notes to the Required Supplementary Information
June 30, 2021
Budgetary Data
The City adopts an annual budget for the General Fund and special revenue funds. These budgets are prepared in accordance with generally accepted a ccounting principles with the exception of deposits into the pension stabilization account that the City budgeted for as expenditures in the General Fund; Streets; Parks, Recreation, and Community Services; and Community Development funds. As part of the City’s internal controls, the City maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with the legal provisions embodied in the annual appropriated budget approved by the City Council. The budgetary comparison schedules present budget and actual data only of funds for which an annual budget was adopted. The budgets for capital projects are primarily "long-term" budgets that emphasize the major programs and capital project plans extending over a number of years. Du e to the long -term nature of these projects, "annual" budget and actual comparisons are not considered meaningful. Formal budgetary integration is not employed for debt service funds since effective budgetary control is alternatively achieved through the b ond indenture provisions. Accordingly, no budgetary information is included in the combining and individual fund statements and schedules for capital projects and debt service funds.

T
he City Council follows the following procedures in establishing the budgetary data reflected in the accompanying required supplementary information and in the budgetary comparison schedules for nonmajor special revenue funds:

O
riginal Budget
O
n or prior to the first regular Council meeting in June of each year, the City M anager submits to the City Council a proposed Financial Plan and Budget for the fiscal year commencing July 1. The budget includes proposed expenditures and the means of financing them.

B
udgeted revenues are adopted by the City Council at the time the budget is approved. Budgeted revenues are modified when the tax base changes, when fees are modified or when new revenue sources are identified.

Public hearings are conducted during meetings of the City Council to obtain citizens' comments. Prior to July 1, the budget is legally enacted through passage of a resolution.

Fi
nal Budget
T
he final budgetary data presented in the required supplementary information and in the budgetary comparison schedules for nonmajor special revenue funds reflects the following changes to the original budget:
• B
udgeted expenditures represent original appropriations adjusted by budget transfers and appropriation amendments. The legal level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount ) is at the department level. The operating budget is prepared and controlled at the department level (e.g., city clerk, city manager, etc.) for the General Fund. Special revenue fund expenditures, including transfers out, are approved by Council at the fund level. • T
he City Manager may transfer appropriations from one activity to another within a department without a pproval from the City Council. All other appropriation adjustments during the year, whether transfers, i ncreases or decreases, require City Council approval.
97 (This pag
e intentionally left blank.)

COMBINING &

INDIVIDUAL FUND

STATEMENTS &

SCHEDULES

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e intentionally left blank.)

N O N M A J O R

G O V E R N M E N T A L

F U N D S
Nonmajor Governmental Funds
include:

Special Revenue Funds account for
the proceeds of specific revenue
sources that are restricted or
committed by law or administrative
action to expenditures for specified
purposes, other than those for major
capital projects:

Debt Service Fund account for the
accumulation of resources for the
repayment of principal and interest on
general long-term debt:

Capital Projects Funds account for the
financial resources to be used for the
acquisition or construction of major
capital facilities, other than those
financed by proprietary funds.

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e intentionally left blank.)

Special revenue funds Capital projects funds Debt service funds Total Other
Governmental Funds
ASSETS
Cash and investments 8,316,729$ 9,883,320$ 2, 239$ 1 8,202,288$ Restricted cash and investments 862,282 - - 86 2,282
Accounts receivable, net 152,001 172,112 - 32 4,113
Interest Receivables 2,778 3,111 - 5, 889
Due from other governmental agencies 65,817 - - 65 ,817 Inventory 1,776 - - 1, 776
Total assets 9,401,383$ 10,058,543$ 2, 239$ 1 9,462,165$

LIABILITIES
Accounts payable and other liabilities 992,555$ 98,690$ -$ 1 ,091,245$ Accrued salaries and wages 42,381 - - 42 ,381
Due to other funds - - - -
Advances from other funds - 148,875 - 14 8,875
Unearned revenue 83,897 - - 83 ,897
Total liabilities 1,118,833 247,565 - 1, 366,398

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 65,816 172,882 - 23 8,698
Total deferred inflows of resources 65,816 172,882 - 23 8,698

FUND BALANCES
Nonspendable
Inventory 1,776 - - 1, 776
Restricted
Road-related projects 85,231 - - 85 ,231
Public safety 165,163 - - 16 5,163
Home and CDBG program (585,276) - - (5 85,276)
Community development 6,410,945 - - 6, 410,945
Debt service - - 2, 239 2, 239
Pension 862,282 - - 86 2,282
Speical assessments 362,908 - - 36 2,908
Committed
Parks, recreation and community services 913,705 - - 91 3,705 Assigned
Capital projects - 9,638,096 - 9, 638,096
Total fund balances 8,216,734 9,638,096 2, 239 17 ,857,069 Total liabilities and fund balances 9,401,383$ 10,058,543$ 2, 239$ 1 9,462,165$

CITY OF LODI
Combining Balance Sheet
Nonmajor Governmental Funds
Summary by Fund Type
June 30, 2021
103
Special revenue funds Capital  projects funds Debt  service funds Total Other
Governmental Funds

REVENUES
Licenses and permits 2,551,510$
‐$
‐$   2,551,510$
Intergovernmental r
evenues 765,877
‐
‐  765,877
Ch
arges for services 2,700,494  3,270,594
‐  5,971,088
Invest
ment and rental income 309,327  75,608
‐  384,935
M
iscellaneous revenue 186,537  356,006
‐  542,543
To
tal revenues 6,513,745  3,702,208
‐  10,215,953
EXPEN

DITURES
Current:

General government 2,018,538
‐
‐  2,018,538

Public protection 104,210
‐
‐  104,210

Pub
lic works 961,969  ‐  ‐  961,969

Community development 2,126,650  ‐  ‐  2,126,650

Parks and recreation 2,827,449  ‐  ‐  2,827,449
Ca
pital outlay 1,391,503  707,822  ‐  2,099,325
Debt service:

I
nterest 4,585  243  689,788  694,616
Prin
cipal retirement 81,955  ‐  1,062,263  1,144,218
To
tal expenditures 9,516,859  708,065  1,752,051  11,976,975 Ex
cess (deficiency) of revenues over
expenditures (3,003,114)  2,994,143  (
1,752,051)  (
1,761,022)
OT
HER FINANCING SOURCES (USES)
Transfers in 4,050,448  ‐  1,752,520  5,802,968
Tran
sfers out (781,359)  (
100,000)  ‐  (
881,359)
To
tal other financing sources (uses) 3,269,089  (
100,000)  1,752,520  4,921,609
Net change in f
und balances 265,975  2,894,143  469  3,160,587
F
und balances ‐ beginning, as restated (Note 16) 7,950,759  6,743,953  1,770  14,696,482 F
und balances ‐ ending 8,216,734$   9,638,096$   2,239$   17,857,069$ CITY OF LODI
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds
Summary by Fund Type
For the Year Ended June 30, 2021
104

NONMAJOR

SPECIAL REVENUE
FUNDS
Parks, Recreation, and Community Services
This fund was established to account for the revenues and expenditures related to the activities of the Hutchins Street Square and Performing Arts Theater and the wide-range of parks and recreation activities and programs offered to the public.

Public Safety
This fund was established to account for the revenues and expenditures related to the City's share of property forfeited by persons convicted of possession and selling illegal drugs and the State of California auto theft prosecution monies along with State and Federal grants related to public safety operations.

Community Development
This fund was established to account for development planning and project review services including land use entitlements, permit processing and review/inspection of public improvements to ensure orderly physical growth and development of the City.

Transportation
This fund was established to account for the receipt of monies from the State of California apportioned to the City for transportation purposes. The State has designated 1/4% of the 6% sales tax levied statewide for local transportation purposes. Funding for this program was provided during the 1971 legislative session with the enactment of the Transportation Development Act, which extended the 6% sales tax to include purchases of gasoline. Revenues allocated to the City of Lodi under this program are divided into two categories: Article 8 funds, which are restricted for the improvement and maintenance of street systems; and Article 4 funds, which are restricted for public transit systems.

Special Assessment Fund
This was established to account for special assessments collected in the property tax roll by the City on behalf of the property owners within the Industrial Way Beckman districts and the Downtown and Cherokee Lane districts.

HOME Program and Community Development Block Grant
This fund was established to account for the City's HOME Program that provides adequate and affordable housing for low and very low-income residents, and Community Development Block Grants provided to the City principally for low and moderate income residents to develop a suitable living environment and expand economic opportunities.

Parks, Recreation &
Community Services Public  Safety
Community
Development
ASSETS
Cash and investments 1,043,855$   256,237$   6,544,967$ Rest
ricted cash and investments 547,313  ‐  314,969
A
ccounts receivables, net 76,794  ‐  ‐
Int
erest receivables 369  102  2,059
Due fro
m other governmental agencies ‐  ‐  ‐
I
nventory 1,776  ‐  ‐
To
tal assets 1,670,107$   256,339$   6,861,995$
LIA

BILITIES
Accounts payable and other liabilities 92,287$   90,313$   125,692$ A
ccrued salaries and w ages 31,129  863  10,389
U
nearned revenue 83,897
‐
‐
To
tal liabilities 207,313  91,176  136,081
DE
FERRED INFLOWS OF RESOURCES
Unavailable revenue ‐
‐
‐
To
tal deferred inflow of resources ‐
‐
‐
To
tal liabilities and deferred inflows of
resources 207,313  91,176  136,081
FUND BA
LANCES
Nonspendable
Inventory 1,776
‐  ‐
Rest
ricted
Road‐related projects ‐  ‐  ‐
P
ublic safety ‐  165,163  ‐
Ho
me and CDBG pr ogram ‐  ‐  ‐
C
ommunity development ‐
‐  6,410,945
P
ension 547,313
‐  314,969
Spe
cial assessments ‐
‐
‐
Co
mmitted
Parks, recreation and community services 913,705  ‐  ‐
To
tal fund balances 1,462,794  165,163  6,725,914
To
tal liabilities, deferred inflows of resources and
fund balances  1,670,107$   256,339$   6,861,995$
Nonmajor Special Revenue Funds
Combining Balance Sheet
CITY OF LODI
June 30, 2021
106
Transportation Special  Assessments
HOME Program and
Community
Development Block
Grants
Total Nonmajor
Special Revenue Funds
ASSETS
Cash and investments 41,788$                         365,351$                       64,531$                         8,316,729$ Restricted cash and investments ‐                                      ‐                                      ‐                                      862,282 Accounts receivables, net 75,207                            ‐                                      ‐                                      152,001 Interest receivables ‐                                      172                                 76                                   2,778 Due from other governmental agencies ‐                                      ‐                                      65,817                            65,817 Inventory ‐                                      ‐                                      ‐                                      1,776 Total assets 116,995$                       365,523$                       130,424$                       9,401,383$ LIA

BILITIES
Accounts payable and other liabilities 31,764$                         2,615$                            649,884$                       992,555$ Accrued salaries and wages ‐                                      ‐                                      ‐                                      42,381 Unearned revenue ‐                                      ‐                                      ‐                                      83,897 Total liabilities 31,764                            2,615                              649,884                         1,118,833 DEFERRED INFLOWS OF RESOURCES
Unavailable revenue ‐                                      ‐                                      65,816                            65,816 Total deferred inflow of resources ‐                                      ‐                                      65,816                            65,816 Total liabilities and d eferred  inflows of resources 31,764                            2,615                              715,700                         1,184,649 FUND BALANCES
Nonspendable
Inventory ‐                                      ‐                                      ‐                                      1,776 Restricted
Road‐related projects 85,231                            ‐                                      ‐                                      85,231 Public safety ‐                                       ‐                                      ‐                                      165,163 Home and CDBG program ‐                                       ‐                                      (585,276)                        (585,276) Community development ‐                                      ‐                                      ‐                                      6,410,945 Pension ‐                                      ‐                                      ‐                                      862,282 Special assessments ‐                                      362,908                         ‐                                      362,908 Committed
Parks, recreation and community services ‐                                      ‐                                      ‐                                      913,705 To
tal fund balances 85,231                            362,908                         (585,276)                        8,216,734 Total liabilities, deferred inflows of resources and
fund balances  116,995$                       365,523$                       130,424$                       9,401,383$ June 30, 2021
Nonmajor Special Revenue Funds
Combining Balance Sheet (Continued)
CITY OF LODI
107
Parks, Recreation &
Community Services Public  Safety
Community
Development

REVENUES
Licenses and permits ‐$                                    ‐ $                                    2,551,510$ Intergovernmental revenues 32,575                            232,841                         29,447 Charges for services 1,165,651                       ‐                                       1,534,843 Investment and rental income 184,860                          3,849                             102,580 Miscellaneous revenue 120,807                          ‐                                       65,730 Total revenues 1,503,893                       236,690                         4,284,110

EXPENDITURES
Current:

General government 1,709,609                      259,252                         ‐ Public protection ‐                                      104,210                         ‐ Public works ‐                                      ‐                                      ‐ Community development ‐
‐                                      2,126,650
Parks and recreation 2,827,449                      ‐                                      ‐ Capital outlay 35,545                           ‐                                      ‐ Debt service:

Principal ‐                                      81,955                           ‐ Interest ‐                                      4,585                             ‐ Total expenditures 4,572,603                      450,002                         2,126,650 Excess (deficiency) of revenues over
expenditures (3,068,710)                     (213,312)                        2,157,460 OTHER FINANCING SOURCES (USES)
Transfers in 4,050,448                      ‐                                      ‐ Transfers out (654,060)                        ‐                                      (127,299) Total other financing sources (uses) 3,396,388                      ‐                                      (127,299) Net change in fund balance s 327,678                         (213,312)                        2,030,161 Fund balances ‐ beginning 1,135,116                      378,475                         4,695,753 Fund balances ‐ ending 1,462,794$                    165,163$                       6,725,914$ For the Year Ended June 30, 2021
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances CITY OF LODI
108
Transportation Special  Assessments
HOME Program and
Community
Development Block
Grants
Total Nonmajor
Special Revenue Funds

REVENUES
Licenses and permits ‐$                                    ‐ $                                    ‐ $                                    2,551,510$ Intergovernmental revenues 75,207                            33,785                           362,022                         765,877 Charges for services ‐                                      ‐                                       ‐                                       2,700,494 Investment and rental income 591                                  2,860                             14,587                           309,327 Miscellaneous revenue ‐                                      ‐                                       ‐                                       186,537 Total revenues 75,798                            36,645                           376,609                         6,513,745

EXPENDITURES
Current:

General government ‐                                      49,677 ‐                                      2,018,538
Public protection ‐                                      ‐                                      ‐                                      104,210 Public works ‐                                      ‐                                      961,969                         961,969 Community development ‐                                      ‐                                      ‐                                      2,126,650 Parks and recreation ‐                                      ‐                                      ‐                                      2,827,449 Capital outlay 63,399                           ‐                                      1,292,559                      1,391,503 Debt service:

Principal ‐                                      ‐                                      ‐                                      81,955 Interest ‐                                      ‐                                      ‐                                      4,585 Total expenditures 63,399                           49,677                           2,254,528                      9,516,859 Excess (deficiency) of revenues over
expenditures 12,399                           (13,032)                          (1,877,919)                     (3,003,114) OTHER FI
NANCING SOURCES (USES)
Transfers in ‐                                      ‐                                      ‐                                      4,050,448 Transfers out ‐                                      ‐                                      ‐                                      (781,359) Total other financing sources (uses) ‐                                      ‐                                      ‐                                      3,269,089 Net change in fund balances 12,399                           (13,032)                          (1,877,919)                     265,975 Fund balances ‐ beginning 72,832                           375,940                         1,292,643                      7,950,759 Fund balances ‐ ending 85,231$                         362,908$                       (585,276)$                      8,216,734$ CITY OF LODI
For the Year Ended June 30, 2021
Nonm
ajor Special Revenue Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) 109
Variance with
Original Final Actual Final Budget

REVENUES
Charges for services 2,130,620 2,130,620$ 1, 165,651$ (9 64,969)$ Intergovernmental revenues 200,000 200,000 32 ,575 (1 67,425) Investment and rental income 545,810 545,810 18 4,860 (3 60,950) Miscellaneous revenue 27,500 27,500 12 0,807 93 ,307
Total revenues 2,903,930 2,903,930 1, 503,893 (1 ,400,037)

EXPENDITURES
Current:

General government 2,973,400 2,973,400 1, 709,609 1, 263,791 Parks and recreation 3,075,630 3,295,804 2, 827,449 46 8,355 Capital Outlay 140,000 1,852,773 35 ,545 1, 817,228
Total expenditures 6,189,030 8,121,977 4, 572,603 3, 549,374

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES (3,285,100) (5,218,047) (3,068,710) 2,149,337

OTHER FINANCING SOURCES (USES)
Transfers in 4,880,450 5,050,890 4, 050,448 (1 ,000,442.00) Transfers out (1,747,800) (1,747,800) (6 54,060) 1, 093,740 Total other financing sources (uses) 3,132,650 3,303,090 3, 396,388 93 ,298 Net changes in fund balance (152,450) (1,914,957) 32 7,678 2, 242,635$ FUND BALANCES, BEGINNING OF YEAR 1,135,116 1,135,116 1, 135,116 FUND BALANCES, END OF YEAR 982,666$ (779,841)$ 1, 462,794 Basis adjustment:

Cummulative pension set aside (547,313)
Fund balance (budgetary basis) 915,481$
Budgeted Amounts

CITY OF LODI
Parks, Recreation & Community Services
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual For the Year Ended June 30, 2021
110
Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental revenues 323,000$ 495,917$ 23 2,841$ (2 63,076)$ Investment and rental income 18,650 18,650 3, 849 (1 4,801) Total revenues 341,650 514,567 23 6,690 (2 77,877)

EXPENDITURES
Current:

General government - 284,707 25 9,252 25 ,455
Public protection 296,500 914,046 10 4,210 80 9,836
Debt service:

Principal retirement - - 81 ,955 (8 1,955)
Interest expense - - 4, 585 (4 ,585)
Total expenditures 296,500 1,198,753 45 0,002 74 8,751
Net change in fund balances 45,150 (684,186) (2 13,312) 47 0,874$ FUND BALANCES, BEGINNING OF YEAR 378,475 378,475 37 8,475 FUND BALANCES, END OF YEAR 423,625$ (305,711)$ 16 5,163$ Budgeted Amounts

CITY OF LODI
Public Safety
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual For the Year Ended June 30, 2021
111
Variance with
Original Final Actual Final Budget

REVENUES
Licenses and permits 1,408,200$ 1,408,200$ 2, 551,510$ 1, 143,310$ Intergovernmental revenues - 300,000 29 ,447 (2 70,553) Charges for services 880,300 880,300 1, 534,843 65 4,543 Investment and rental income 83,960 83,960 10 2,580 18 ,620 Miscellaneous revenue - - 65 ,730 65 ,730
Total revenues 2,372,460 2,672,460 4, 284,110 1, 611,650

EXPENDITURES
Current:

Community development 2,255,090 2,657,580 2, 126,650 53 0,930 Total expenditures 2,255,090 2,657,580 2, 126,650 53 0,930

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES 117,370 14,880 2,157,460 2,142,580

OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out (66,730) (127,300) (1 27,299) 1
Total other financing sources (uses) (66,730) (127,300) (1 27,299) 1 Net change in fund balances 50,640 (112,420) 2, 030,161 2, 142,581$ FUND BALANCES, BEGINNING OF YEAR 4,695,753 4,695,753 4, 695,753 FUND BALANCES, END OF YEAR 4,746,393$ 4,583,333$ 6, 725,914 Basis adjustment:

Cummulative pension set aside (314,969)
Fund balance (budgetary basis) 6,410,945$
Budgeted Amounts

CITY OF LODI
Community Development
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual For the Year Ended June 30, 2021
112
Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental revenues 35,000$ 35,000$ 75,207$ 40,207$ Investment and rental income 220 220 591 371 Total revenues 35,220 35,220 75,798 40,578

EXPENDITURES
Capital outlay 30,000 63,398 63,399 (1)
Total expenditures 30,000 63,398 63,399 (1) Net change in fund balances 5,220 (28,178) 12,399 40,577$ FUND BALANCES, BEGINNING OF YEAR 72,832 72,832 72,832 FUND BALANCES, END OF YEAR 78,052$ 44,654$ 85,231$ Budgeted Amounts

CITY OF LODI
Transportation
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual For the Year Ended June 30, 2021
113
Variance with
Original Final Actual Final  Budget

REVENUES
Intergovernmental revenues 33,830 $   33,
830$   33,
785$   (
45)$
In
vestment and rental income 4,760  4,
760  2,
860  (
1,900)
Tot
al revenues 38,590  38,
590  36,
645  (
1,945)
EXPEND
ITURES
General government 76,000  76,
000  49,
677  26,
323
Tot
al expenditures 76,000  76,
000  49,
677  26,
323
Net
change in fund balances (37,410)  (
37,410)  (
13,032)  24,
378$
FU
ND BALANCES, BEGINNING OF YEAR 375,940  375,
940  375,
940
FU
ND BALANCES, END OF YEAR 338, 530$   338, 530$   362, 908$ Budgeted A
mounts
CITY OF LODI
Special Assessments
Schedule of Revenues, Expenditures,  and Changes in Fund Balances – Budget and Actual For the Year Ended June 30, 2021
114
Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental revenues 647,280$ 1,443,688$ 362,022$ (1, 081,666)$ Investment and rental income 25,350 25,350 14,587 (10, 763) Total revenues 672,630 1,469,038 376,609 (1, 092,429)

EXPENDITURES
Public works 647,280 5,891,908 961,969 4,929, 939 Total expenditures 647,280 5,891,908 961,969 4,929, 939 Net change in fund balances 25,350 (4,422,870) (585, 360) 3,837, 510$ FUND BALANCES, BEGINNING OF YEAR 1,292,643 1,292,643 1,292, 643 FUND BALANCES, END OF YEAR 1,317,993$ (3,130,227)$ 707,283$ Budgeted Amounts

CITY OF LODI
HOME Program and Community Development Block Grants
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual For the Year Ended June 30, 2021
115
(This pag
e intentionally left blank.)

NONMAJOR

GOVERNMENTAL

FUNDS CAPITAL

PROJECT FUNDS
Capital Outlay Reserve
This fund was established to account for the
entire City's construction projects and
capital purchases in excess of $10,000 with
the exception of those funded through
Enterprise Funds. Financing is provided
primarily through transfers from other funds
and from State and Federal grants.

Parks Capital
This fund was established to account for the
acquisition, construction and installation of
capital facilities for the various City parks.

Library
This fund is used to account for the
acquisition, construction and installation of
capital facilities for the Library.

Hutchins Street Square
When the old Lodi High School burned
down, the City purchased the property and
renamed it Hutchins Street Square. The Old
Lodi High Site Foundation was established
which organizes events to raise money for
the capital restoration of Hutchins Street
Square.

(This pag
e intentionally left blank.)

Library Hutchins Street Square
ASSETS
Cash and investments 80,382$ 1,212$
Accounts receivables, net - -
Interest receivables 25 1
Total assets 80,407$ 1,213$

LIABILITIES
Accounts payable and other liabilities -$ -$
Advances from other funds - -
Total liabilities - -

DEFERRRED INFLOWS OF RESOURCES
Unavailable revenue - -
Total deferred inflows of resources - -

FUND BALANCES
Assigned
Capital projects 80,407 1,213
Total fund balances 80,407 1,213
Total liabilities, deferred inflows of
resources and fund balances 80,407$ 1,213$
June 30, 2021

CITY OF LODI
Combining Balance Sheet
Nonmajor Capital Projects Funds
119
Capital Outlay Reserve Parks Capital
Total Nonmajor Capital
Projects Funds
ASSETS
Cash and investments 9,178,007$ 623,719$ 9,883, 320$
Accounts receivables, net 171,712 400 172,112
Interest receivables 2,889 196 3,111
Total assets 9,352,608$ 624,315$ 10,058, 543$

LIABILITIES
Accounts payable and other liabilities 42,922$ 55,768$ 98,690 Advances from other funds 148,875 - 148,875
Total liabilities 191,797 55,768 247,565

DEFERRRED INFLOWS OF RESOURCES
Unavailable revenue 171,712 1,170 172,882
Total deferred inflows of resources 171,712 1,170 172,882

FUND BALANCES
Assigned
Capital projects 8,989,099 567,377 9,638, 096
Total fund balances 8,989,099 567,377 9,638, 096
Total liabilities, deferred inflows of resources and
fund balances 9,352,608$ 624,315$ 10,058,543$
June 30, 2021

CITY OF LODI
Combining Balance Sheet (Continued)
Nonmajor Capital Projects Funds
120
Library Hutchins Street Square

REVENUES
Charges for services -$ -$
Investment and rental income 25 11
Miscellaneous revenue - -
Total revenues 25 11

EXPENDITURES
Current:

Capital outlay - -
Debt service:

Interest - -
Total expenditures - -
Excess (deficiency) of revenues over
expenditures 25 11

OTHER FINANCING SOURCES (USES)
Transfers out (100,000) -
Total other financing sources (uses) (100,000) -
Change in fund balances (99,975) 11
Fund balances - beginning 180,382 1,202
Fund balances - ending 80,407$ 1,213$

CITY OF LODI
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Capital Projects Funds
For the Year Ended June 30, 2021
121
Capital Outlay Reserve Parks Capital
Total Nonmajor Capital
Projects Funds

REVENUES
Charges for services 3,270,594$ -$ 3,270, 594$
Investment and rental income 69,589 5,983 75,608
Miscellaneous revenue 317,110 38,896 356,006
Total revenues 3,657,293 44,879 3,702, 208

EXPENDITURES
Current:

Capital outlay 590,274 117,548 707,822
Debt service:

Interest 243 - 243
Total expenditures 590,517 117,548 708,065
Excess (deficiency) of revenues
over expenditures 3,066,776 (72,669) 2,994,143

OTHER FINANCING SOURCES (USES)
Transfers out - - (100, 000)
Total other financing sources
(uses) - - (100, 000)
Change in fund balances 3,066,776 (72,669) 2,894, 143 Fund balances - beginning 5,922,323 640,046 6,743, 953 Fund balances - ending 8,989,099$ 567,377$ 9,638, 096$ Nonmajor Capital Projects Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)

CITY OF LODI
For the Year Ended June 30, 2021
122

I N T E R N A L

S E R V I C E

F U N D S
Dental
Employee Assistance Program
Chiropractic
Employee Recognition Program
Life/Accidental Insurance
Unemployment Insurance
Medical
Flexible Spending Program
Vision
Long Term Disability
General Liability
Worker's Compensation
Other Insurance
Fleet Services is used to account for the operation,
maintenance and timely replacement of the City's
fleet of vehicles which serve the transportation needs
of all City departments.

Benefits is used to account for the following
employee benefits:

Insurance is used to account for the following
insurances:

Vehicle and Equipment
This fund was established to account for the financing
and replacement of vehicles and equipment for all
funds of the City with the exception of the Enterprise
Funds.

Internal Service Funds are maintained to account
for the internal transfer of services between
operating units of the City and to achieve a level
of operating efficiency that may not be available if
the same activities were performed by multiple
organizations.

(This pag
e intentionally left blank.)

Fleet Services Benefits Insurance
Vehicle and
Equipment
Total Internal Service
Funds
ASSETS
Current assets:

Cash and investments 777,576$ 1,803,998$ 17,077, 712$ 2,401, 764$ 22,061, 050$ Restricted cash and investments 137,737 - 50,638 - 188,375 Receivables: Accounts, net 208 60,327 165,968 - 226,503 Receivables: Interest - 567 5,372 756 6,695
Inventory 203,343 - - - 203,343
Prepaid - 117,598 - - 117,598
Capital assets, net 18,814 - - - 18,814
Total assets 1,137,678 1, 982,490 17,299, 690 2,402, 520 22,822, 378

DEFERRED OUTFLOWS OF RESOURCES
Related to pensions 294,148 - - - 294,148
Related to OPEB 14,379 1,536,646 - - 1,551, 025
Total deferred outflows of resources 308,527 1,536,646 - - 1,845, 173

LIABILITIES
Current liabilities:

Accounts payable and other liabilities 132,740 88,073 19,019 98,236 338,068 Accrued salaries and wages 6,172 - - - 6,172
Accrued compensated absences 57,443 - - - 57,443
Noncurrent liabilities:

Self insurance liability - - 9,482, 536 - 9,482, 536 Accrued compensated absences 266,682 6,390,086 - - 6,656, 768 Net OPEB Liability 185,124 19,783,919 - - 19,969, 043 Net pension liability 1,731,939 - - - 1,731, 939
Total liabilities 2,380,100 26,262,078 9,501, 555 98,236 38,241, 969

DEFERRED INFLOWS OF RESOURCES
Related to pensions 4,689 - - - 4,689
Related to OPEB 57,861 6,183,550 - - 6,241, 411
Total deferred inflows of resources 62,550 6,183,550 - - 6,246, 100

NET POSITION
Investment in capital assets 18,814 - - - 18,814
Unrestricted (deficit) (1,015,259) (28,926,492) 7,798, 135 2,304, 284 (19, 839,332) Total net position (deficit) (996,445)$ (28,926,492)$ 7,798, 135$ 2,304, 284$ (19, 820,518)$

CITY OF LODI
Combining Statement of Net Position
Internal Service Funds
June 30, 2021
125
Fleet Services Benefits Insurance
Vehicle and
Equipment
Total Internal Service
Funds

OPERATING REVENUES
Charges for services 3,023,822$ 8,518,969$ 5,724, 643$ 844,870$ 18,112, 304$ Total operating revenues 3,023,822 8,518,969 5,724, 643 844,870 18,112, 304

OPERATING EXPENSES
Personnel services 981,977 (1,496,690) 310,740 - (203, 973) Supplies, materials and services 1,017,223 6,077,705 1,981, 245 1,866, 838 10,943, 011 Utilities 11,927 - - - 11,927
Depreciation 1,447 - - - 1,447
Claims/premiums 42,300 1,370,343 3,528, 844 - 4,941, 487 Total operating expenses 2,054,874 5,951,358 5,820, 829 1,866, 838 15,693, 899 Operating income (loss) 968,948 2,567,611 (96, 186) (1, 021,968) 2,418, 405

NONOPERATING REVENUES (EXPENSES)
Investment income 19,864 14,834 137,130 27,610 199,438 Other revenues / (expenses) 11,406 - 561,493 23,969 596,868 Gain on sale of City property 1,256 - - 8,360 9,616
Total nonoperating revenues (expenses) 32,526 14,834 698,623 59,939 805,922 Change in net position 1,001,474 2,582,445 602,437 (962, 029) 3,224, 327 Total net position - beginning (1,997,919) (31,508,937) 7,195, 698 3,266, 313 (23, 044,845) Total net position - ending (996,445)$ (28,926,492)$ 7,798, 135$ 2,304, 284$ (19, 820,518)$

CITY OF LODI
Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds
For the Year Ended June 30, 2021
126
Fleet Services Benefits

CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers 12,510$ (60,327)$
Cash from interfund customers 3,023,822 8,518,972
Payments to suppliers (1,000,699) (7,556,756)
Payments to employees (1,010,324) (768,722)
Net cash provided (used) by operating activities 1,025,309 133,167

CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 19,862 15,522
Net cash provided (used) by investing activities 19,862 15,522 Net increase (decrease) in cash and cash equivalents 1,045,171 148,689 Balances - beginning of year (129,858) 1,655,309
Balances - end of the year 915,313$ 1,803,998$
Reconciliation of operating income (loss) to net cash provided (used) by operating activities:

Operating Income (loss) 968,948 2,567,611
Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:

Depreciation Expense 1,447 -
Changes in assets, liabilities and deferred outflow/inflows of resources:

Customer Receivables (152) (60,327)
Inventory (27,801) -
Other assets - (1,491)
Accounts Payable - Supplier 64,740 (110,959)
Accrued salaries and wages 6,172 -
Net pension and OPEB liability (100,301) (2,036,317)
Compensated absences 242,827 -
Self-insurance liability - -
Deferred inflows of resources (38,372) (331,417)
Deferred outflows of resources (104,861) 106,067
Other revenues 12,662 -
Net cash provided (used) by operating activities 1,025,309$ 133,167$ Internal Service Funds
Statement of Cash Flows

CITY OF LODI
For the Year Ended June 30, 2021
127
Insurance Vehicle and Equipment Total

CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers 852,884$ 32,329$ 8 37,396$ Cash from interfund customers 5,404,087 844,870 17 ,791,751 Payments to suppliers (4,740,157) (1,850,680) (1 5,148,292) Payments to employees (310,740) - (2 ,089,786)
Net cash provided (used) by operating activities 1,206,074 (973,481) 1, 391,069

CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 143,878 29,105 20 8,367
Net cash provided (used) by investing activities 143,878 29,105 20 8,367 Net increase (decrease) in cash and cash equivalents 1,349,952 (944,376) 1, 599,436 Balances - beginning of year 15,778,398 3,346,140 20 ,649,989 Balances - end of the year 17,128,350$ 2,401,764$ 22 ,249,425$ Reconciliation of operating income (loss) to net cash provided (used) by operating activities:

Operating Income (loss) (96,186) (1,021,968) 2, 418,405$ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:

Depreciation Expense - - 1, 447
Changes in assets, liabilities and deferred outflow/inflows of resources:

Customer Receivables (29,165) - (8 9,644)
Inventory - - (2 7,801)
Other assets - - (1 ,491)
Accounts Payable - Supplier (47,519) 16,158 (7 7,580)
Accrued salaries and wages - - 6, 172
Net pension and OPEB liability - - (2 ,136,618)
Compensated absences - - 24 2,827
Self-insurance liability 817,451 - 81 7,451
Deferred inflows of resources - - (3 69,789)
Deferred outflows of resources - - 1, 206
Other revenues 561,493 32,329 60 6,484
Net cash provided (used) by operating activities 1,206,074$ (973,481)$ 1, 391,069$ Internal Service Funds (Continued)
Statement of Cash Flows

CITY OF LODI
For the Year Ended June 30, 2021
128

F I D U C I A R Y

F U N D S
Private-Purpose Trust Funds account
for trust agreements under which the
principal and income benefit
individuals, private organizations or
other governments.

(This pag
e intentionally left blank.)

Library
Hutchins St Sq/Holz
Bequest
Total Private-Purpose
Trust Funds
ASSETS
Cash and investments 171,126$ 1,669$ 172,795$
Interest receivable - 1 1
Total assets 171,126 1,670 172,796
Fiduciary Net Position 171,126$ 1,670$ 172,796$

CITY OF LODI
Combining Statement of Fiduciary Net Position
Private-Purpose Trust Funds
June 30, 2021
131
Library
Hutchins St Sq/Holz
Bequest
Total Private-Purpose
Trust Funds

ADDITIONS
Investment and rental income 31,196$ 15$ 31,211$

DEDUCTIONS
Current:

Library 1,398 - 1,398
Changes in fiduciary net position 29,798 15 29,813
Fiduciary Net Position - beginning of the year 141,328 1,655 142,983 Fiduciary Net Position - end of the year 171,126$ 1,670$ 172,796$

CITY OF LODI
Combining Statement of Changes in Fiduciary Net Position Private-Purpose Trust Funds
For the Year Ended June 30, 2021
132

S T A T I S T I C A L

S E C T I O N
( U N A U D I T E D )

(This pag
e intentionally left blank.)

STATISTICAL SECTION
Th
e Statistical Section provides detailed information as a framework for u nderstanding the information in the financial statements, notes and required supplementary information. T his section presents additional data and analysis that may provide the reader with valuable insight regarding the demographics and the overall health of the City.

Financial Trends
These schedules contain trend information to help the reader understand how the City’s financial performance and well-being has changed over time.

Revenue Capacity
These schedules contain information to help the reader assess the factors affecting the City’s most significant local revenue source, the property tax.

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.

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 and to help make comparisons over time and with other governments.

Operating Information
These schedules contain information about the City’s operations and resources to help the reader understand how the City’s financial information relates to the services the city provides and the activities it performs.

Sources
Unless otherwise noted, the information in these schedules are derive d from the comprehensive annual financial report.
135
2021 2020 2019 2018 (2) 2017
Governmental activities:

Net investment in capital assets 122,206 $      117,010 $      116,179 $     119,222 $     117,196 $ Restricted  37,536          33,230          25,751         25,904         15,545 Unrestricted  (85,690)         (107,255)  (115,043)     (117,535)     (77,162) Total governmental activities net position 74,052          42,985          26,887         27,591         55,579 Business‐type activities:

Net investment in capital assets 151,812        137,468        135,175       137,291       129,086 Restricted  18,860          19,594          7,230           20                 3,929 Unrestricted  40,941
28,164          35,812         24,584         16,463
Total business‐type activities net position 211,613        185,226        178,217       161,895       149,478 Primary government:

Net investment in capital assets 274,018        254,478        251,354       256,513       246,282 Restricted  56,396          52,824          32,981         25,924         19,474 Unrestricted  (44,749)         (79,091)         (79,231)        (92,951)        (60,699) Total primary government net position  285,665 $      228,211 $      205,104 $     189,486 $     205,057$ (1) Fiscal year 2015 beginning net position was restated due to the implementation of GASB 68 (2) Fiscal year 2018 beginning net position was restated due to the implementation of GASB 75 Source: City of Lodi Financial Services Division
Fiscal Year
CITY OF LODI
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(Dollar amounts in thousands)
136
2016 2015 (1) 2014 2013 2012
Governmental activities:

Net investment in capital assets 111,256 $     105,944 $     105,462 $     106,828 $     107,587 $ Restricted  13,911         12,001         11,809         12,601         16,176 Unrestricted  (76,984)        (74,146)        2,551           1,157           (3,606) Total governmental activities net position 48,183         43,799         119,822       120,586       120,157 Business‐type activities:

Net investment in capital assets 121,468       119,924       116,156       113,008       109,582 Restricted  3,893           6,810           6,703           6,600           6,533 Unrestricted  14,427
892  16,535         14,827         (34,563)
Total business‐type activities net position 139,788       127,626       139,394       134,435       81,552 Primary government:

Net investment in capital assets 232,724       225,868       221,618       219,836       217,169 Restricted  17,804         18,811         18,512         19,201         22,709 Unrestricted  (62,557)        (73,254)        19,086         15,984         (38,169) Total primary government net position  187,971 $     171,425 $     259,216 $     255,021 $     201,709$ (1) Fiscal year 2015 beginning net position was restated due to the implementation of GASB 68 (2) Fiscal year 2018 beginning net position was restated due to the implementation of GASB 75 Source: City of Lodi Financial Services Division
LAST TEN FISCAL YEARS (CONTINUED)
(Dollar amounts in thousands)
Fiscal Year
CITY OF LODI
NET POSITION BY COMPONENT
137
2021 2020 2019 2018 2017
Expenses
Governmental activities:

General government 24,866 $        13,156 $        11,390 $       11,601 $       9,650 $ Public protection 34,637          35,764          33,396         38,795         33,239 Public works 10,354          9,336             10,986         9,823           10,614 Community development 1,903             2,056             2,187           1,999           1,709 Library 1,152             1,882             785              1,753           1,253 Parks and recreation 3,671             3,873             4,142           4,672           3,663 Interest and fiscal charges 656                712                782              768              824 Total governmental activities expenses 77,239          66,779           63,668         69,411         60,952 Business‐type activities:

Electric 68,307          71,758          64,104         67,943         62,791 Wastewater 11,683          18,049          14,410         16,008         16,318 Water 8,142             14,514          12,138         11,776         11,961 Transit 4,335             4,841             5,086           5,233           4,925 Total business‐type activities expenses  92,467          109,162        95,738         100,960       95,995 Total primary government expenses  169,706        175,941        159,406       170,371       156,947 Program Revenues
Governmental activities:

Charges for services:

General government 2,119             3,240
323  3,670           3,246
Public protection 1,065             619                619              1,000           779 Public works   1,484             1,302             2,631           990              1,209 Community development 4,086             2,805             1,059           2,665           2,838 Library ‐   38                  ‐   37                 43 Parks and recreation   1,176             1,551             1,286           1,698           1,660 Operating grants and contributions 4,582             3,426             7,968           2,287           2,391 Capital grants and contributions    8,418             10,302          6,861            8,737           12,830 Total governmental activities program revenues 22,930          23,283          20,747         21,084         24,996 Business‐type activities:

Charges for services:

Electric 74,197          72,182          67,961         69,247         65,848 Wastewater 16,781          16,097          15,904         14,914         15,106 Water 14,107          14,192          13,345         13,005         12,474 Transit 70                  126                216              227              220 Operating grants and contributions 6,866             7,034             8,261           5,969           4,514 Capital grants and contributions  5,120             2,894             2,092 11,307         7,972
Total business‐type activities program revenues 117,141        112,525        107,779       114,669       106,134 Total primary government program revenues 140,071        135,808        128,526       135,753       131,130 Net (Expense)/Revenue
Governmental activities   (54,309)         (43,496)         (42,919)        (48,327)        (35,956) Business‐type activities  24,674          3,363             12,041         13,709         10,139 Total primary government net expense (29,635)$       (40,133)$ (30,878) $     (34,618) $     (25,817) $
Fiscal Year
CITY OF LODI
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(Dollar amounts in thousands)
138
2016 2015 2014 2013 2012
Expenses
Governmental activities:

General government 10,369 $       9,109 $         9,580 $         8,943 $         9,381 $ Public protection 31,395         27,426         27,884         25,930         25,432 Public works 10,326         10,281         10,644         10,546         10,248 Community development 1,792           1,165           1,174           1,050           1,003 Library 1,389           1,324           1,282           1,342           1,381 Parks and recreation 4,262           3,116           3,164           2,933           2,913 Interest and fiscal charges 822  818  825  416  1,033
Total governmental activities expenses 60,355         53,239          54,553         51,160         51,391 Business‐type activities:

Electric 61,764         64,367         61,974         61,106         62,599 Wastewater 14,024         12,912         12,527         13,423         17,441 Water 10,967         9,905           11,014         (34,877)        7,953 Transit 4,415           4,134           3,834           4,141           4,256 Total business‐type activities expenses  91,170         91,318         89,349         43,793         92,249 Total primary government expenses  151,525       144,557       143,902       94,953         143,640 Program Revenues
Governmental activities:

Charges for services:

General government 1,490           1,971
1,955           2,337           1,718
Public protection 740  609  582  538  500
Public works   734  832  415  224  166
Community development 2,292           1,378           1,219           1,458           993 Library 63                 43                 43                 44                 43 Parks and recreation   1,637           1,360           1,479           1,404           1,241 Operating grants and contributions 2,596           3,369           2,686           2,341           2,300 Capital grants and contributions    10,559         3,131           5,359            4,216           5,025 Total governmental activities program revenues 20,111          12,693         13,738         12,562         11,986 Business‐type activities:

Charges for services:

Electric 67,507         65,237         64,693         63,230         64,251 Wastewater 14,960         14,714         14,305         13,747         13,280 Water 12,161         12,723         12,756         12,441         12,083 Transit 210  230  203  185  186
Operating grants and contributions 5,089           5,186           4,431           5,178           4,214 Capital grants and contributions  2,860           5,284           2,846 4,715           3,206
Total business‐type activities program revenues 102,787       103,374       99,234         99,496         97,220 Total primary government program revenues 122,898       116,067       112,972       112,058       109,206 Net (Expense)/Revenue
Governmental activities   (40,244)        (40,546)        (40,815)        (38,598)        (39,405) Business‐type activities  11,617         12,056         9,885           55,703         4,971 Total primary government net expense (28,627) $     (28,490)$ (30,930) $     17,105 $       (34,434) $
CITY OF LODI
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS (CONTINUED)
(Dollar amounts in thousands)
Fiscal Year
139
2021 2020 2019 2018 2017
General Revenues and Other Changes in Net Position:

Governmental activities:

Taxes:

Property  $     12,672   $     11,728   $     11,050   $     10,325   $      9,984 Special assessments (1)               378                 252                 139                   44  ‐ Sales (1)         24,303           20,084           14,287           11,333          11,749 Document transfer (1)            6,073              5,760              5,399              5,147            4,903 Franchise            9,582              9,612              9,212              9,218            9,099 Business license            2,092              1,884              1,887              1,822            1,736 Transient occupancy               900                 988                 736                 867                849 Grants and contributions not restricted to specific programs (1)         14,166                 475                 441                 601  2 Investment earnings            1,966              1,921              1,576                 311                257 Rent            1,721              1,693              1,553  ‐  ‐ Other               850
953                 353                 933                722 Special item‐gain on sale of parkland ‐  ‐
‐  ‐  ‐
Transfers            4,448
4,270              4,233              4,252            4,051 Total governmental activities         79,151           59,620           50,866           44,853          43,352 Business‐type activities:

Investment earnings            2,223              4,816              1,584                716              816 Litigation‐
environmental lawsuits proceeds ‐  ‐
‐  ‐  ‐
Rent ‐  ‐
‐  ‐  ‐
Other            3,937
3,101              2,321              2,244           2,786 Transfers           (4,448)          (4,270)          (4,233)          (4,252)         (4,051) Total business‐type activities            1,712              3,647  (328) (1,292)            (449) Total primary government          80,863           63,267           50,538           43,561         42,903 Change in Net Position
Governmental activities         24,843           16,124              7,696           (3,474)          7,396 Business‐type activities         26,386             7,010           11,712           12,417           9,690 Total primary government   $     51,229   $     23,134   $     19,408   $       8,943   $    17,086 (1) Certain tax amounts  have been reclassified in fiscal year 2013.

Source:  City of Lodi Financial Services Division
Fiscal Year
CITY OF LODI
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS (CONTINUED)
(Dollar amounts in thousands)
140
2016 2015 2014 2013 2012
General Revenues and Other Changes in Net Position:

Governmental activities:

Taxes:

Property  $      9,373   $      8,969   $      8,290   $      8,075   $    12,103 Special assessments (1) ‐  ‐  ‐                 ‐  ‐
Sales (1)        11,808         10,624           10,111           9,349   ‐ Document
transfer (1)          4,572            4,559            4,315            4,176  ‐ Franchise          9,073
8,976            8,838            8,735            8,712 Business license          1,552            1,486            1,528            1,524            1,628 Transient occupancy              783                666                594                546                486 Grants and contributions not restricted to specific programs (1) ‐  1                 180  ‐           9,277 Investment earnings              326                145                203                  44                132 Rent          1,954            1,942            1,906            1,370  ‐ Other              719
605                528                610            2,052 Special item‐gain on sale of parkland ‐  ‐  ‐
‐  ‐
Transfers          4,469
7,514            4,792            5,682            1,261 Total governmental activities        44,629         45,487           41,285         40,111          35,651 Business‐type activities:

Investment earnings              952                632                757                497               566 Litigation‐ environmental
lawsuits proceeds              100  ‐  ‐
1,107  ‐
Rent 4
4  4  ‐  ‐
Other          3,957
2,745            2,370            1,258            1,244 Transfers          (4,469)         (7,514)         (4,792)         (5,682)         (1,261) Total business‐type activities              544          (4,133)         (1,661)         (2,820)              549 Total primary government         45,173         41,354           39,624         37,291          36,200 Change in Net Position
Governmental activities          4,385            4,941                470            1,513          (3,754) Business‐type activities        12,161           7,923           8,224 52,883            5,520
Total primary government   $    16,546   $    12,864   $      8,694   $    54,396   $      1,766 (1) Certain tax amounts  have been reclassified in fiscal year 2013.

Source:  City of Lodi Financial Services Division
Fiscal Year
CITY OF LODI
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS (CONTINUED)
(Dollar amounts in thousands)
141
2021 2020 2019 2018 2017
General Fund
Reserved 15,641 $      12,671 $      10,717 $    ‐$               ‐ $ Unreserved ‐   ‐   ‐                  ‐                  ‐ Nonspendable 54                ‐   ‐                  ‐                  ‐ Committed 558              712              563            9,031         3,520 Assigned ‐   ‐   ‐                  ‐                  ‐ Unassigned 24,437        14,520        11,172      9,737         11,448 Total General Fund 40,690        27,903        22,452      18,768      14,968 All other governmental funds
Reserved ‐   ‐   ‐                  ‐                  ‐ Unreserved, reported in:

Special revenue funds ‐   ‐   ‐                  ‐                  ‐ Debt service funds ‐  ‐   ‐                  ‐                  ‐ Capital projects funds ‐   ‐   ‐                  ‐                  ‐ Nonspendable 2                  2                  1                1                1 Assigned 9,638          6,744          8,979         ‐                  ‐ Committed 914              690              716            ‐                  ‐ Restricted 21,437        19,629        14,202      16,062      15,263 Unassigned ‐   ‐   ‐                  ‐                  ‐ Total all other governmental funds 31,991        27,065        23,898      16,063      15,264 72,681 $      54,968 $      46,350 $    34,831 $    30,232 $ Source: City of Lodi Financial Services Division
Fiscal Year
CITY OF LODI
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(Dollar amounts in thousands)
142
2016 2015 2014 2013 2012
General Fund
Reserved ‐$               ‐ $               ‐ $               ‐ $               ‐$ Unreserved ‐   ‐   ‐   ‐   ‐
Nonspendable 33              ‐   10              9  6
Committed 465            345            301            277            ‐ Assigned 1,564         26              29              65              50 Unassigned 11,185  12,107  9,134         7,614         6,233 Total General Fund 13,247  12,478  9,474         7,965         6,289 All other governmental funds
Reserved ‐   ‐   ‐   ‐   ‐
Unreserved, reported in:

Special revenue funds ‐   ‐   ‐   ‐   ‐
Debt service funds ‐   ‐   ‐   ‐   ‐
Capital projects funds ‐   ‐   ‐   ‐   ‐
Nonspendable 1  1  4  3  1
Assigned ‐   ‐   ‐   ‐   ‐
Committed ‐   ‐   ‐   ‐   ‐
Restricted 13,867  11,957  11,764  12,556  15,017
Unassigned ‐   ‐   (99)  (512)  (863)
Total all other governmental funds 13,868   11,958  11,669  12,047  14,155 27,115 $    24,436 $    21,143 $    20,012 $    20,444 $ Source: City of Lodi Financial Services Division
Fiscal Year
CITY OF LODI
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS (CONTINUED)
(Dollar amounts in thousands)
143
2021 (2) 2020 (1) 2019 2018 2017
Revenues:

Taxes 31,698 $     30,224 $     28,423 $      27,423 $      26,491 $ Sales and use tax 24,302        20,084        14,287        ‐               ‐ Licenses and permits 2,621          1,774          1,570          1,764          2,015 Intergovernmental revenues 22,657        10,499        9,213          20,807        23,975 Charges for services 10,081        8,333          6,558          6,020          5,722 Fines, forfeits, and penalties  217             1,053          1,274          1,396          906 Investment and rental income 5,193          4,728          2,994          2,325          2,319 Contributions and donations ‐               ‐               ‐               ‐               818 Miscellaneous revenue 1,265          845             812  1,206          ‐ Total revenues 98,034        77,540        65,131        60,941        62,246 Expenditures:

Current:

General government 25,845        13,019        9,609          9,738          9,499 Public protection 38,110        37,410        31,949        30,788        30,201 Public works 6,555          5,436          5,452          4,628          4,608 Community development 2,127          2,249          2,112          1,756          1,651 Library 1,025          1,181          1,166          1,058          1,153 Parks and recreation 2,827          2,764          2,680          2,497          2,378 Capital outlay 6,843          4,679          3,380          8,296          11,592 Debt service:

Interest 696             732             821  805  858
Principal payments 1,142          1,106          1,080          1,028          1,240 Advance refunding escrow ‐   ‐   ‐   ‐   ‐
Total expenditures 85,170        68,576        58,249        60,594        63,180 Excess (deficiency) of revenues
over (under) expenditures 12,864        8,964          6,882          347             (934) Other financing sources (uses):

Transfers in 10,788        10,735        13,201        13,863        11,723 Transfers out (6,340)        (6,464)        (8,968)         (9,611)         (7,672) Proceeds from sale  28               ‐   404  ‐   ‐
Refunding bonds issued ‐   ‐   ‐   ‐   ‐
Payment to refunded bond escrow agent ‐   ‐   ‐   ‐   ‐ Capital lease proceeds ‐   ‐   ‐   ‐   ‐
Loan proceeds ‐   ‐   ‐   ‐   ‐
Total other financing sources (uses) 4,476          4,271          4,637          4,252          4,051 Net change in fund balances 17,340        13,235        11,520        4,599          3,117 Fund balances, beginning of year (1) 55,341        41,733        34,831        30,232        2,963 Fund balances, end of year 72,681 $     54,968 $     46,351 $      34,831 $      6,080 $ Debt service as a percentage of noncapital expenditures 2.3% 2.9% 3.5% 3.5% 4.1% (1) The beginning of year fund balance change was due to a reclassification of the Vehicle and Equipment Fund to an Internal Service Fund. (2) The beginning  of year fund balance change was due to a reclassification of the Special Assessments Fund to a Special Revenue Fund.