Agenda packet — Patterson City Council, February 1, 2022 (part 1 of 2)

City of Patterson Page 1 Updated 1/27/2022 10:24 AM
Agenda
City of Patterson
City Council Regular Meeting
Patterson Public Financing Authority Meeting
West Patterson Financing Authority Meeting
February 1, 2022
7:00 PM

VIA ZOOM TELECONFERENCE

TO AVOID THE SPREAD OF THE COVID VIRUS, THIS COUNCIL MEETING WILL BE HELD IN ACCORDANCE WITH GOVERNMENT CODE SECTION 54953 (e) AND OTHER PROVISIONS OF THE RALPH M. BROWN ACT (CALIFORNIA GOVERNMENT CODE SECTION 54950, ET SEQ.), PATTERSON CITY COUNCIL RESOLUTION NO. 2021-58 AND THE FEDERAL AMERICANS WITH DISABILITIES ACT.

THIS MEETING WILL NOT BE PHYSICALLY OPEN TO THE PUBLIC. ALL

MEMBERS OF THE PUBLIC MAY PARTICIPATE IN THE MEETING VIA TELECONFERENCE BY CALLING 1-669-900-9128, MEETING ID: 693 538 4239, PASSWORD: 20995363 AND WILL BE GIVEN THE OPPORTUNITY TO PROVIDE PUBLIC COMMENT. JOIN FROM A PC, MAC, IPAD, IPHONE, OR ANDROID DEVICE BY USING THIS URL:
https://us02web.zoom.us/j/6935384239?pwd=ZmZwMFdYajRsTjlKTnNTamZCWXFXdz09

THE MEETING WILL BE TELEVISED OR AVAILABLE FOR PUBLIC VIEWING ON COMCAST CABLE CHANNEL 7 ON THE FOLLOWING DAYS: WEDNESDAY AT 3:00 P.M., FRIDAY AT 8:00 P.M. AND SATURDAY AT 12:00 P.M. OR WATCH ON INTERNET VIMEO LINK: https://vimeo.com/channels/patterson/
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk at (209) 895-8014. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. [28 CFR 35.102-35.104 ADA Title II] The City Council agenda and supporting public documents are available for viewing in City Hall, Administration Department, 1 Plaza, 2nd Floor, Patterson, California, during normal business hours. The City Council agenda and City of Patterson Page 2 Updated 1/27/2022 10:24 AM
supporting public documents are also available online on the City web site www.ci.patterson.ca.us listed under Popular Links “City Council Agendas” or please call or email the City Clerk at (209) 895-8014 or [email protected]
If you wish to be notified of future City Council Meetings, please visit our web site www.ci.patterson.ca.us go to Popular Links “City Council Agendas” and Subscribe to “RSS” ═══════════════════════════════════════════════════════════════

1. Call to Order

2. Pledge of Allegiance

3. Statements of Conflict

4. Items from the Public
Any member of the audience desiring to address the Council regarding a matter on the agenda, please raise your hand or if using the zoom app or by pressing *9 on you cell phone at the time the item is announced by the Mayor. The public wishing to address the Council on items that do not appear on the agenda may do so; however, Council will take no action other than referring the item to staff for study and analysis and shall place item on a future agenda (Resolution 92-25) In order that all interested parties have an opportunity to speak, any person addressing the Council will be limited to a maximum of five (5) minutes unless the Mayor grants a longer period of time (Resolution 92-25)
Please State Your Name and City for the Record.

5. Consent Calendar
All items are approved by a single action. Any item may be removed from the Consent Calendar for separate discussion upon request from a member of the Public, Staff and/or Councilmember.

5.1. Motion to Waive Readings - All Readings of Ordinances and Resolutions, Except by Title are hereby waived.

5.2. Approve the Recommended Part-Time Classifications Salary Schedule Effective January 1, 2022.

5.3. Adopt Resolution 2022-04, Authorizing the City to Implement Teleconferenced Public Meetings Pursuant to Assembly Bill 361 Allowing the City to Continue a Hybrid Virtual Meeting Environment.

6. Presentation/Action Item

6.1. Finance - Accept the City of Patterson’s 2020-21 Financial Audit Report. Accept the Single Audit 2020-21 Report. Accept the City of Patterson’s 2020-21 Transportation Development Act Funds Financial Audit Report. Accept the City of Patterson’s 2020-21 Abandoned Vehicle Abatement Program Financial Audit Report.

City of Patterson Page 3 Updated 1/27/2022 10:24 AM
Staff Report: Finance Director Ryan, Pun Group Auditor Ken Pun Council: Motion to Accept the City of Patterson’s 2020-21 Financial Audit Report. Accept the Single Audit 2020-21 Report. Accept the City of Patterson’s 2020-21 Transportation Development Act Funds Financial Audit Report. Accept the City of Patterson’s 2020-21 Abandoned Vehicle Abatement Program Financial Audit Report.

Adjourn to the Patterson Public Financing Authority

6.2. Finance - Accept the Patterson Public Financing Authority’s 2020-21 Financial Audit Report.
a. Call to Order
b. Roll Call
c. Staff Report: Finance Director Ryan, Pun Group Auditor Ken Pun d. PPFA Board: Motion to Accept the Patterson Public Financing Authority’s 2020-21 Financial Audit Report
e. Adjourn to the West Patterson Financing Authority
Adjourn to the West Patterson Financing Authority

6.3. Finance - Accept the West Patterson Financing Authority’s 2020-21 Financial Audit Report.
a. Call to Order
b. Roll Call
c. Staff Report: Finance Director Ryan, Pun Group Auditor Ken Pun d. WPFA Board: Motion to Accept the West Patterson Financing Authority’s 2020-21 Financial Audit Report.
e. Adjourn

7. Public Hearing

7.1. City Attorney - Hold a public hearing to receive public input on redrawing City Council district boundaries in response to data received in the 2020 census.

Staff Report: City Attorney Goldstein, Consultant Doug Yoakam Mayor: Open/Close the Public Hearing

7.2 Discussion and direction regarding City Council options to address alleged misconduct of an Elected Official.

City of Patterson Page 4 Updated 1/27/2022 10:24 AM
Mayor: Open/Close the Public Hearing

8. City Council Reports
A. Appointment of One (1) Member to the Downtown Revitalization Committee

8.A.1. Motion to Appoint One (1) Member to the Downtown Revitalization Committee.

B. Councilmember Alves
. Westside Health Care Task Force (Councilmember Parham alternate) C. Councilmember Parham
. (EDAC) Stanislaus County Economic Development Action Committee (Mayor McCord alternate)
. Hazardous Waste Advisory Committee (Mayor McCord alternate) . Stanislaus County Disaster Council (Mayor McCord alternate) D. Mayor Pro Tem Farinha
. Workforce Development Board (Councilmember Alves alternate) E. Councilmember Homen
. Stanislaus Homeless Alliance (City Manager Irwin 1st alternate, Councilmember Alves 2nd alternate)
. San Joaquin Valley Special City Selection Committee (Councilmember Alves alternate)
. Del Puerto Health Care District (Councilmember Alves 1st alternate, Mayor Pro Tem Farinha 2nd alternate)
F. Mayor McCord
. Stanislaus County Mayor's Meeting
. StanCOG (Councilmember Homen alternate)
. League of California Cities (Mayor Pro Tem Farinha 1st alternate, Councilmember Homen 2nd alternate)

9. Other Matters

10. Adjournment
City of Patterson Page 5 Updated 1/27/2022 10:24 AM

DECLARATION OF POSTING
I, Aracely Alegre, City Clerk of the City of Patterson, California do hereby declare that the foregoing notice was posted on the Bulletin Board at City Hall, 1 Plaza, Patterson, California on Jan. 27, 2022.

The Agenda is also posted for public view on the Bulletin Boards of the Hammon Senior Center, 1033 W. Las Palmas, Patterson, the Patterson Branch Library, 46 N. Salado Avenue, Patterson, and the City of Patterson City Web Site www.ci.patterson.ca.us Aracely Alegre, City Clerk
City of Patterson
Direct No. (209) 895-8012
Email [email protected]
City Council Agenda Report
TO: Mayor McCord and Members of the City Council
FROM: Ken Irwin, City Manager
BY: Di Smith, Human Resources Director
MEETING DATE: February 1, 2022
ITEM NO: 5.2
SUBJECT: Approve the Recommended Part-Time Classifications Salary Schedule Effective January 1, 2022.

RECOMMENDATION
Motion to Approve the Recommended Part-Time Classifications Salary Schedule Effective January 1, 2022.

BACKGROUND
In July of 2021 the City started the formal process of adjusting part-time salary classifications by performing market comparisons and requesting council approval for these adjustments. To maintain that process and to remain consistent with the approval process for full-time salary schedule adjustments staff is requesting approval, in accordance with state law, for the requirement that California workers be paid minimum wage, as per the California Department of Industrial Relations.

Effective January 1, 2022, California’s minimum wage increased. Employers with 25 employees or less wage increased to $14.00 per hour and employers with 26 employees or more are required to pay at least $15.00 per hour. This is in accordance with 2016 legislation, where California was the first state in the nation to commit to raising the minimum wage to $15.00 per hour, over time, statewide by 2022.

ANALYSIS
At this time only part-time classifications with a starting rate below the $15.00 minimum wage, and their corresponding classes, are being adjusted.

Classification adjusted for minimum wage increase:

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Cashier / Lead Cashier
Crossing Guard
Recreation Leader / Lead Recreation Leader
Swim Instructor / Swim Instructor Certified
Salaries for all other classifications remain unchanged.

FISCAL IMPACT
No Fiscal Impact associated with this action. Salary increase was included in the 2021-2022 annual budget.

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Job Classification
Administrative Step A Step B Step C Step D Step E
Account Clerk * $ 17.21 $ 18.08 $ 18.98 $ 19.93 $ 20.92 Accountant * $ 30.55 $ 32.08 $ 33.68 $ 35.36 $ 37.13
Admnistrative Assistant * $ 19.44 $ 20.41 $ 21.43 $ 22.51 $ 23.63 Environmental Compliance Specialist $ 20.54 $ 21.57 $ 22.65 $ 23.78 $ 24.97 Student Intern $ 16.83 $ 17.67 $ 18.56 $ 19.48 $ 20.46
Recreation Step A Step B Step C Step D Step E
Cashier $ 15.00 $ 15.25 $ 15.50 $ 15.75 $ 16.00
Crossing Guards $ 15.00 $ 15.25 $ 15.50 $ 15.75 $ 16.00 Facility Attendant $ 15.50 $ 15.75 $ 16.00 $ 16.25 $ 16.50 Lead Cashier $ 16.00 $ 16.25 $ 16.50 $ 16.75 $ 17.00
Lead Recreation Leader $ 16.00 $ 16.25 $ 16.50 $ 16.75 $ 17.00 Lifeguard $ 16.00 $ 16.25 $ 16.50 $ 16.75 $ 17.00
Pool Manager $ 16.75 $ 17.00 $ 17.25 $ 17.50 $ 17.75
Pool Manager Instructor Certified $ 17.00 $ 17.25 $ 17.50 $ 17.75 $ 18.00 Recreation Coordinator * $ 18.51 $ 19.43 $ 20.41 $ 21.43 $ 22.50 Recreation Leader $ 15.00 $ 15.25 $ 15.50 $ 15.75 $ 16.00 Recreation Specialist $ 16.75 $ 17.00 $ 17.25 $ 17.50 $ 17.75 Senior Lifeguard $ 16.50 $ 16.75 $ 17.00 $ 17.25 $ 17.50 Senior Lifeguard Instructor $ 17.50 $ 17.75 $ 18.00 $ 18.25 $ 18.50 Senior Lifeguard Instructor Certified $ 17.75 $ 18.00 $ 18.25 $ 18.50 $ 18.75 Sports Official $ 15.00 $ 15.25 $ 15.50 $ 15.75 $ 16.00 Swim Instructor $ 15.00 $ 15.25 $ 15.50 $ 15.75 $ 16.00 Swim Instructor Certified $ 15.25 $ 15.50 $ 15.75 $ 16.00 $ 16.25 Operations and Maintenance and Public
Works Step A Step B Step C Step D Step E
Facility Custodian $ 16.50 $ 16.75 $ 17.00 $ 17.25 $ 17.50 Maintenance Worker (All Divisions) $ 16.83 $ 17.67 $ 18.56 $ 19.49 $ 20.46 Wastewater Operator * $ 20.93 $ 21.97 $ 23.07 $ 24.23 $ 25.44 Water Operator * $ 20.41 $ 21.43 $ 22.50 $ 23.63 $ 24.81 * Hourly rate same as it's full-time equivalent classification Approved and Adopted by Council on: 02/01/2022
Part-Time Hourly Rate
City of Patterson
Part-Time Salary Schedule
Effective January 1, 2022

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Attachment: Part-Time Salary Schedules Effective 01.01.2022 PENDING APPROVAL 02.01.2022 (Updated Part-Time Salary Schedule) City Council Agenda Report
TO: Mayor McCord and Members of the City Council
FROM: Ken Irwin, City Manager
BY: Nubia Goldstein, City Attorney
MEETING DATE: February 1, 2022
ITEM NO: 5.3
SUBJECT: Adopt Resolution 2022-04, Authorizing the City to Implement Teleconferenced Public Meetings Pursuant to Assembly Bill 361 Allowing the City to Continue a Hybrid Virtual Meeting Environment.

RECOMMENDATION
Motion to Adopt Resolution 2022-04, Authorizing the City to Implement Teleconferenced Public Meetings Pursuant to Assembly Bill 361 Allowing the City to Continue a Hybrid Virtual Meeting Environment.

BACKGROUND
On September 16, 2021, Governor Newsom signed Assembly Bill (“AB”) 361 which allows cities to continue to meet remotely during proclaimed states of emergency under modified Ralph M. Brown Act requirements that are similar but not identical to the rules and procedures established by the previous Executive Orders temporarily suspending provisions of the Brown Act. On September 20, 2021, Governor Newsom signed Executive Order N-15-21 to suspend AB 361 until October 1, 2021. Over the past year, meetings of the City’s legislative bodies have been held with virtual teleconference components.

AB 361, until January 1, 2024, would authorize a local agency to use teleconferencing without complying with the teleconferencing requirements imposed by the Brown Act when a local legislative body holds a meeting during a declared state of emergency by the governor and when state or local health officials have imposed or recommended measures to promote social distancing.

REASONS FOR RECOMMENDATION

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On June 11, 2021, Governor Newsom issued Executive Order N-08-21, which among other things rescinded his prior Executive Order N-29-20 and set a date of October 1, 2021, for public agencies to transition back to public meetings held in full compliance with the Brown Act.

As the Delta variant has surged in California, the Legislature has taken action to extend the COVID-19 exceptions to the Brown Act’s teleconference requirements, subject to some additional safeguards. AB 361 allows a local agency to use teleconferencing without complying with the Brown Act provisions in any of the following circumstances:
• The local legislative body holds a meeting during a proclaimed state of emergency by the governor, and state or local officials have imposed or recommended measures to promote social distancing.
• The local legislative body holds a meeting during a proclaimed state of emergency by the governor for the purpose of determining, by majority vote, whether as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees.
• The local legislative body holds a meeting during a proclaimed state of emergency by the governor and has determined, by majority vote that, as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees.

A local agency that holds a meeting under these circumstances would be required by AB 361 to do all of the following, in addition to giving notice of the meeting and posting agendas as required under the Brown act. These additional requirements are intended to protect the public’s right to participate in the meetings of local agency legislative bodies.

Pursuant to AB 361 local agencies are required to do all of the following in addition to meeting notice requirements under the Brown Act:
• Allow the public to access the meeting and require that the agenda provide an opportunity for the public to directly address the legislative body pursuant to the Brown Act’s other teleconferencing provisions.
• In each instance when the local agency provides notice of the teleconferenced meeting or posts its agenda, give notice for how the public can access the meeting and provide public comment.
• Identify and include in the agenda an opportunity for all persons to attend via a call-in or an internet-based service option; the legislative body need not provide a physical location for the public to attend or provide comments.
• Conduct teleconference meetings in a manner that protects the statutory and constitutional rights of the public.
• Stop the meeting until public access is restored in the event of a service disruption that either prevents the local agency from broadcasting the meeting to the public using the call-in or internet-based service option or is within the local agency’s control and

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prevents the public from submitting public comments (any actions taken during such a service disruption can be challenged under the Brown Act’s existing challenge provisions).
• Not require comments be submitted in advance (though the legislative body may provide that as an option) and provide the opportunity to comment in real time. • Provide adequate time for public comment, either by establishing a timed public comment period or by allowing a reasonable amount of time to comment. • If the legislative body uses a third-party website or platform to host the teleconference, and the third-party service requires users to register to participate, the legislative body must provide adequate time during the comment period for users to register and may not close the registration comment period until the comment period has elapsed.

AB 361 also provides that if a local agency conducts teleconference meetings in reliance on AB 361, the local agency must make the following findings by majority vote every 30 days to continue using the bill’s exemption to the Brown Act teleconferencing rules:
•The legislative body has reconsidered the circumstances of the emergency; and • Either of the following circumstances exists: The state of emergency continues to directly impact the ability of members to meet safely in person, or State or local officials continue to impose or recommend social distancing measures.

The goal of AB 361 is “to improve and enhance public access to local agency meetings during the COVID-19 pandemic and future applicable emergencies, by allowing broader access through teleconferencing options” consistent with Executive Order N-29-20. AB 361 contains an urgency clause which became effective upon signing with a sunset of January 1, 2024. However, shortly after signing AB 361, Governor Newsom signed Executive Order N-15-21 to suspend AB 361 until October 1, 2021.

FISCAL IMPACTS
There is no fiscal impact.

ENVIRONMENTAL:

Authorizing Teleconference Public Meetings is not a “project” under the California Environmental Quality Control Act. (Pub. Resources Code, § 21065.)

ALTERNATIVE ACTIONS

1. Adopt Resolution No. 2022-04;

2. Continue the item for later consideration of the City Council with direction to staff for additional analysis; or

3. Reject Resolution No. 2022-04

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{CW108806.1}
RESOLUTION NO. 2022-04

A RESOLUTION OF THE CITY OF PATTERSON CITY COUNCIL

PROCLAIMING A LOCAL EMERGENCY AND AUTHORIZING

REMOTE TELECONFERENCE MEETINGS OF THE LEGISLATIVE

BODIES OF THE CITY OF PATTERSON PURSUANT TO ASSEMBLY
BILL 361 AND BROWN ACT PROVISIONS
WHEREAS, the City Council of the City of Patterson (the “City”) is committed to preserving public access and participation in meetings of the legislative bodies of the City; and
WHEREAS, all meetings of the City’s legislative bodies are open and public, as required by the Ralph M. Brown Act (Gov. Code, §§ 54950 – 54963), so that any member of the public may attend, participate, and watch the City’s legislative bodies conduct their business; and
WHEREAS, on September 16, 2021, Governor Newsom signed Assembly Bill (“AB”) 361, amending Government Code section 54953, subdivision (e) to allow for remote teleconferencing participation in meetings by members of a legislative body without compliance with the requirements of Government Code section 54953, subdivision (b)(3), subject to the existence of certain conditions; and WHEREAS, a required condition for remote teleconferencing participation in meetings by members of a legislative body is that a state of emergency is declared by the Governor, pursuant to Government Code section 8625, proclaiming the existence of conditions of disaster or of extreme peril to the safety of persons and property within the state caused by conditions as described in Government Code section 8558; and WHEREAS, a proclamation is made when there is an actual incident, threat of disaster, or extreme peril to the safety of persons and property within the jurisdictions that are within the City’s boundaries, caused by natural, technological, or human-caused disasters; and
WHEREAS, it is further required that state or local officials have imposed or recommended measures to promote social distancing or the legislative body meeting in person would present imminent risks to the health and safety of attendees; and WHEREAS, such conditions now exist in the City, specifically, on March 4, 2020, Governor Gavin Newsom proclaimed a State of Emergency to exist in California as a result of the threat of COVID-19; despite sustained efforts, the virus continues to spread and is impacting nearly all sectors of California; and

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Attachment: Resolution No. 2022-04 AB361 (4th Approval Feb. 1, 2022) Initial Approval Oct. 19, 2021 (Resolution No. 2022-04 AB 361 Zoom Via {CW108806.1}
WHEREAS, there has been a significant increase in COVID-19 cases in Stanislaus County due primarily to the Omicron variant of SARS-CoV-2, the virus that causes COVID-19. Emerging evidence indicates that the Omicron variant is far more transmissible than prior variants of the virus, may cause more severe illness, and can be spread by fully vaccinated individuals; and
WHEREAS, as a consequence of the declared emergency, the City Council does hereby find that the legislative body of the City shall conduct their meetings without compliance with Government Code section 54953, subdivision (b)(3), as authorized by Section 54953, subdivision (e), and that such legislative bodies shall comply with the requirements to provide the public with access to the meetings as prescribed in Section 54953, subdivision (e)(2); and
WHEREAS, pursuant to Government Code section 54953, subdivision (e)(3), in order to continue to teleconference without compliance with Government Code section 54953, subdivision (b)(3), the City Council shall, not later than 30 days after teleconferencing for the first time pursuant to this Resolution, and every 30 days thereafter, make the following findings by majority vote: The legislative body has reconsidered the circumstances of the state of emergency and any of the following conditions exist: (1) the state of emergency continues to directly impact the ability of the members to meet safely in person or (2) state or local officials continue to impose or recommend measures to promote social distancing; and
WHEREAS, the City reserves the option to hold in-person meetings, consistent with local health officer directives, or to continue a practice of remote meetings that still allow multiple options for public participation.

NOW, THEREFORE, THE CITY OF COUNCIL OF THE CITY OF
PATTERSON DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. Recitals. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference.

Section 2. Proclamation of Local Emergency. The City Council hereby proclaims that a local emergency exists throughout the City, and that the legislative body meeting in person could present imminent risks to the health and safety of attendees due to the prevalence of COVID-19 in Stanislaus County and the state, such that the City reserves the right to continue virtual meetings or conduct in-person meetings, consistent with local health guidance or duly issued orders.

Section 3. Remote Teleconference Meetings. The legislative body and designees of the City are hereby authorized and directed to take all actions necessary to carry out the intent and purpose of this Resolution, including conducting open and public

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Attachment: Resolution No. 2022-04 AB361 (4th Approval Feb. 1, 2022) Initial Approval Oct. 19, 2021 (Resolution No. 2022-04 AB 361 Zoom Via {CW108806.1}
meetings in accordance with Government Code section 54953, subdivision (e), and other applicable provisions of the Brown Act.

Section 4. Effective Date of Resolution. This Resolution shall take effect immediately upon its adoption and shall be effective until the earlier of (i) November 18, 2021, or (ii) such time the City Council makes a subsequent finding by majority vote in accordance with Government Code section 54953, subdivision (e)(3), to extend the time during which the legislative bodies of the City may continue to teleconference without compliance with paragraph (3) of subdivision (b) of section 54953.

PASSED AND ADOPTED by the City Council of the City of Patterson at a meeting of said City Council held on the 1
st day of February 2022, by the following roll call vote:

AYES:

NOES:

EXCUSED:

APPROVED:
____________________________________
Dennis McCord
Mayor of the City of Patterson
ATTEST:
__________________________________________
Aracely Alegre
City Clerk of the City of Patterson

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Attachment: Resolution No. 2022-04 AB361 (4th Approval Feb. 1, 2022) Initial Approval Oct. 19, 2021 (Resolution No. 2022-04 AB 361 Zoom Via {CW108806.1}
I hereby certify that the foregoing is a full, correct, and true copy of a resolution passed by the City Council of the City of Patterson, a Municipal Corporation of the County of Stanislaus, State of California, at a regular meeting held on the 1 st day of
February 2022, and I further certify that said resolution is in full force and effect and has never been rescinded or modified.

DATED:

City Clerk of the City of Patterson

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Attachment: Resolution No. 2022-04 AB361 (4th Approval Feb. 1, 2022) Initial Approval Oct. 19, 2021 (Resolution No. 2022-04 AB 361 Zoom Via City Council Agenda Report
TO: Mayor McCord and Members of the City Council
FROM: Ken Irwin, City Manager
BY: Saadiah Ryan, Finance Director
MEETING DATE: February 1, 2022
ITEM NO: 6.1
SUBJECT: Accept the City of Patterson’s 2020-21 Financial Audit Report. Accept the Single Audit 2020-21 Report. Accept the City of Patterson’s 2020-21 Transportation Development Act Funds Financial Audit Report. Accept the City of Patterson’s 2020-21 Abandoned Vehicle Abatement Program Financial Audit Report.

RECOMMENDATION
Accept the City of Patterson’s 2020-21 Financial Audit Report.

Accept the Single Audit 2020-21 Report.

Accept the City of Patterson’s 2020-21 Transportation Development Act Funds Financial Audit Report.

Accept the City of Patterson’s 2020-21 Abandoned Vehicle Abatement Program Financial Audit Report.

BACKGROUND
The City of Patterson publish financial statements presented in conformance with Generally Accepted Accounting Principles (GAAP). The financial statements were audited by the independent public accounting firm of The Pun Group, LLP, whose unmodified opinion is included within the financial section of the report. Unmodified opinion indicates that the financial statements present fairly the financial position of the City of Patterson as of June 30, 2021, and the results of operations, in accordance with generally accepted accounting principles. As part of the audit, The Pun Group, LLP also reviewed and performed tests of the City’s internal accounting control procedures to determine if there are any material weaknesses or instances of non-compliance. Based on the audit, there is no instance non-compliance.

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All non-Federal entities that expend $750,000 or more of Federal awards in a year are required to obtain an annual audit to comply with both the Single Audit Act Requirements and Federal Government’s Office of Management and Budget (OMB) standards. The Single Audit had been completed and the independent auditors have indicated that the City of Patterson has no instance noncompliance.

The City of Patterson’s 2020-21 financial report, 2020-21 Single Audit Report, 2020-21 Abandoned Vehicle Abatement Program financial report and 2020-21 Transportation Development Act Funds financial report are available on the City’s website and are attached to this staff report.

Representative of The Pun Group will be present to discuss the audit and answer questions.

ANALYSIS
The General Fund is the main unrestricted operating fund of the City of Patterson. On June 30, 2021, the City’s General Fund has a fund balance of $13.7 million, which included unassigned, available funds of approximately $6.5 million, assigned of $2.9 million, committed of $3.7 million, restricted of $360,000 and nonspendable $106,000. The available General Fund balance was more than the amount projected as the beginning balance in the adopted budget for FY 2020-21. This is due to higher actual than budgeted in property tax $319,000 sales tax $2.9 million and operation and maintenance expenditures is lower than budgeted $1.9 million.

Net Position in the City’s enterprise funds totaled approximately $43.0 million as of June 30, 2021, which was $394,000 lower than the ending balance in the prior fiscal year. Of the $43.0 million in net position, $37.0 million is invested in capital assets, $3.13 million restricted and $2.9 million unrestricted.

FISCAL IMPACT
Acceptance of this report does not affect the City’s budget or its financial condition. The report merely reflects an audit of the City’s financial records at June 30, 2021.

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CITY OF PATTERSON
Presentation to the City Council
For the Fiscal Year Ended June 30, 2021
February 1, 2022

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Attachment: 2021_City of Patterson_City Council Meeting 2-1-22 (Updated) (Accept City's 2 CONTENTS • Scope of Work • Required Communications (AU -C 260)
• Audit Responsibilities • Approach to the Audit • Overview of Financial Statements • Financial Indicators and Key Pension/OPEB Information • Audit Results – City • Audit Results – PPFA • Audit Results - WPFA • Thank You!

6.1.a
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Attachment: 2021_City of Patterson_City Council Meeting 2-1-22 (Updated) (Accept City's 3 Scope of Work

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Attachment: 2021_City of Patterson_City Council Meeting 2-1-22 (Updated) (Accept City's 4 Scope Of Work • Financial Audit • City of Patterson’s Annual Comprehensive Financial Report • Patterson Public Financing Authority Financial Statements • West Patterson Public Financing Authority Financial Statements • Single Audit (Uniform Guidance) • Compliance Examination Engagement Reports • Transportation Development Act Compliance • Abandoned Vehicle Abatement Program Compliance • Agreed-Upon Procedures Engagement Report • GANN Limit – FY21/22 • Other Non-Audit Services • Assistance in Preparing Financial Statements

6.1.a
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Attachment: 2021_City of Patterson_City Council Meeting 2-1-22 (Updated) (Accept City's 5 Required Communications (AU-C 260)

6.1.a
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Attachment: 2021_City of Patterson_City Council Meeting 2-1-22 (Updated) (Accept City's 6 Required Communications (AU-C 260)
• Ethics and Independence
• Significant Accounting Policies
• The City disclosed the summary of significant accounting policies in Note 1 to the financial statements.
• The City implemented GASB Statements No. 84, Fiduciary Activities; No. 90, Majority Equity Interests– an Amendment of GASB Statements No. 14 and No. 61; No. 98, The Annual Comprehensive Financial Report
• Significant Estimates
• Fair Value on Investments
• Depreciation on Capital Assets
• Net Pension Liability
• Net OPEB Liability

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Attachment: 2021_City of Patterson_City Council Meeting 2-1-22 (Updated) (Accept City's 7 Required Communications (AU-C 260)
• Sensitive Disclosures
• Note 1 – Summary of Significant Accounting Policies
• Note 12 – Pension Plans
• Note 13 – Other Postemployment Benefits
• Note 18 – Commitments and Contingencies
• Note 19 – Prior Period Adjustments
• Note 20 – Subsequent Events – American Rescue Plan Act

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Attachment: 2021_City of Patterson_City Council Meeting 2-1-22 (Updated) (Accept City's 8 Required Communications (AU-C 260)
• Misstatements
• There were no corrected or uncorrected misstatements reported. • Consultation with Other Accountants
• Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and other matters. • Significant Difficulties
• We encountered no significant difficulties in dealing with management. • Disagreement with Management
• We did not have any disagreement with management in terms of accounting treatments nor audit procedures performed.

6.1.a
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Attachment: 2021_City of Patterson_City Council Meeting 2-1-22 (Updated) (Accept City's 9 Audit Responsibilities

6.1.a
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Attachment: 2021_City of Patterson_City Council Meeting 2-1-22 (Updated) (Accept City's 10 Management Auditors
Responsible for preparation of the financial
statements
Perform the audit
Present the financial statements in accordance with
accounting principles generally accepted in the
United States of America
Ensure the audit is in conformity with Auditing
Standards Generally Accepted in the United States
of America and standards applicable to Financial
Audits contained in Government Auditing Standards
Adopt sound accounting policies Communicate with “Those Charged with Governance”
Establish and maintain internal controls over
financial reporting and compliance
Assess audit risk of internal control over financial
reporting and compliance
Provide evidence supporting the amounts and
disclosures in the financial statements
Determine fairness presentation of the financial
statements
Prevent and detect fraud Render opinions
Audit Responsibilities

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Attachment: 2021_City of Patterson_City Council Meeting 2-1-22 (Updated) (Accept City's 11 Approach to the Audit

6.1.a
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Attachment: 2021_City of Patterson_City Council Meeting 2-1-22 (Updated) (Accept City's 12 The Pun Group’s Approach to the Audit
• Phase I – Detailed Planning
• Phase II – Risk Based Review of Internal
Controls Over Systems and Compliance
(Interim)
• Phase III – Validation and Testing of
Account Balances (Year-End)
• Phase IV – Review Financial Statements
and Issue Audit Opinions
Initiation
&
Planning
Meeting
Risk
Assessment,
Controls &
Review Entity
/ Environment
Assess,
Analyze,
and
Transaction
Testing
Reporting
& Project
Closure

6.1.a
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Attachment: 2021_City of Patterson_City Council Meeting 2-1-22 (Updated) (Accept City's 13 OVERVIEW OF THE FINANCIAL

STATEMENTS

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Attachment: 2021_City of Patterson_City Council Meeting 2-1-22 (Updated) (Accept City's 14 2021 2020 Change
Assets $ 161,159,709 $ 154,035,173 $ 7,124,536
Deferred Outflows of Resources 2,968,951 2,220,438 748,513 Liabilities 87,535,388 88,501,463 (966,075)
Deferred Inflows of Resources 1,695,155 909,176 785,979 Net Position:

Net investments in capital assets 59,507,530 61,274,713 (1,767,183) Restricted 14,976,923 10,752,749 4,224,174
Unrestricted 413,664 (5,182,490) 5,596,154
Total Net Position $ 74,898,117 $ 66,844,972 $ 8,053,145 Net Position @ June 30
(Governmental Activities)

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Attachment: 2021_City of Patterson_City Council Meeting 2-1-22 (Updated) (Accept City's 15 2021 2020 Total
Program Revenues
Charges for services $ 6,918,926 $ 5,872,870 $ 1,046,056 Operating grants and contributions 3,564,498 2,040,401 1,524,097 Capital grants and contributions 4,333,162 3,609,391 723,771 Total program revenues 14,816,586 11,522,662 3,293,924
Expenses $ 29,459,366 $ 30,970,188 $ (1,510,822)
Net Cost of Services (14,642,780) (19,447,526) 4,804,746 General Revenues 21,046,884 20,534,333 512,551
Transfers 1,649,041 1,642,806 6,235
Change in Net Position $ 8,053,145 $ 2,729,613 $ 5,323,532 Change in Net Position
(Governmental Activities)

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Attachment: 2021_City of Patterson_City Council Meeting 2-1-22 (Updated) (Accept City's 16 2021 2020 Change
Assets $ 74,039,289 $ 74,665,612 $ (626,323)
Deferred Outflows of Resources 2,162,688 1,844,909 317,779 Liabilities 32,258,729 32,547,441 (288,712)
Deferred Inflows of Resources 887,475 513,396 374,079
Net Position:

Net investments in capital assets 36,978,338 37,930,411 (952,073) Restricted 3,133,810 983,202 2,150,608
Unrestricted 2,943,625 4,536,071 (1,592,446)
Total Net Position $ 43,055,773 $ 43,449,684 $ (393,911) Net Position @ June 30
(Business-Type Activities)

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Attachment: 2021_City of Patterson_City Council Meeting 2-1-22 (Updated) (Accept City's 17 2021 2020 Total
Program Revenues
Charges for services $ 14,354,933 $ 13,649,198 $ 705,735 Capital grants and contributions - 8,493 (8,493)
Total program revenues 14,354,933 13,657,691 705,735
Expenses $ 13,363,297 $ 13,851,720 $ (488,423)
Net Cost of Services 991,636 (194,029) 1,185,665
General Revenues 263,494 4,502,898 (4,239,404)
Transfers (1,649,041) (1,642,806) (6,235)
Change in Net Position $ (393,911) $ 2,666,063 $ (3,059,974) Change in Net Position
(Business-Type Activities)

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Attachment: 2021_City of Patterson_City Council Meeting 2-1-22 (Updated) (Accept City's 18 2021 2020 Change
Assets $ 16,932,625 $ 12,122,112 $ 4,810,513
Liabilities $ 3,001,725 $ 2,989,743 $ 11,982
Deferred Inflows of Resources $ 215,638 $ 56,041 $ 159,597 Fund Balance
Nonspendable 106,172 104,997 1,175
Restricted 360,498 344,809 15,689
Committed 3,762,470 3,751,813 10,657
Assigned 2,896,296 2,889,800 6,496
Unassigned 6,589,826 1,984,909 4,604,917
Total Fund Balance 13,715,262 9,076,328 4,638,934
Total Liabilities, Deferred Inflows
of Resources, and Fund Balance $ 16,932,625 $ 12,122,112 $ 4,810,513 General Fund – Fund Balance @ June 30

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Attachment: 2021_City of Patterson_City Council Meeting 2-1-22 (Updated) (Accept City's 19 2021 2020 Change
Revenues $ 20,865,061 $ 18,211,866 $ 2,653,195
Expenditures (18,752,448) (19,404,380) 651,932
Revenues over Expenditures 2,112,613 (1,192,514) 3,305,127 Other Financing Sources and Uses 2,526,321 2,095,703 430,618 Change in Fund Balance $ 4,638,934 $ 903,189 $ 3,735,745 General Fund – Change in Fund Balance

6.1.a
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Attachment: 2021_City of Patterson_City Council Meeting 2-1-22 (Updated) (Accept City's 20 Financial Indicators and
Key Pension/OPEB Information

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Attachment: 2021_City of Patterson_City Council Meeting 2-1-22 (Updated) (Accept City's 21 2021 2020
Net Cost of Services $ 14,642,780 $ 19,447,526
Less: Interest Expenses (3,818,561) (3,942,429)
10,824,219 15,505,097
Tax Revenues 16,696,612 13,103,770
Ratio 64.83% 118.33%
Net Cost of Services to Tax Revenues
(Governmental Activities)

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Attachment: 2021_City of Patterson_City Council Meeting 2-1-22 (Updated) (Accept City's 22 2021 2020
Unassigned Fund Balance $ 6,589,826 $ 1,984,909
Committed for Contingencies 3,762,470 3,751,813
Available Fund Balance 10,354,317 5,738,742
Annual Expenditures 18,752,448 19,404,380
Ratio 55.22% 29.57%
Available Fund Balance to Annual Expenditures
(General Fund)

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Attachment: 2021_City of Patterson_City Council Meeting 2-1-22 (Updated) (Accept City's 23 Net Pension Liability Sensitivity Analysis
Discount Rate - 1% Current Discount Discount Rate + 1%
(6.15%) Rate (7.15%) (8.15%)
Miscellaneous $ 10,811,232 $ 6,665,091 $ 3,239,265
Safety 5,064,943 3,299,373 1,850,556
Total $ 15,876,175 $ 9,964,464 $ 5,089,821
Plan's Net Pension Liability

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Attachment: 2021_City of Patterson_City Council Meeting 2-1-22 (Updated) (Accept City's 24 Net OPEB Liability Sensitivity Analysis
Discount Rate - 1% Current Discount Discount Rate + 1%
(1.44%) Rate (2.44%) (3.44%)
$ 15,394,055 $ 12,997,781 $ 11,112,317
Healthcare Cost
-1% Trend Rates 1%
$ 11,137,677 $ 12,997,781 $ 15,671,408
Plan's Net OPEB Liability
Plan's Net OPEB Liability

6.1.a
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Attachment: 2021_City of Patterson_City Council Meeting 2-1-22 (Updated) (Accept City's 25 Audit Results - City

6.1.a
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Attachment: 2021_City of Patterson_City Council Meeting 2-1-22 (Updated) (Accept City's 26 Audit Results – City Audit
• Unmodified Opinions – By Opinion Unit
• Financial Statements are fairly presented in all material respects • In conformity with GAAP
• Significant accounting policies have been consistently applied • Estimates are reasonable
• Disclosures are properly reflected in the financial statements • Transportation Development Act Report – In Compliance • Abandoned Vehicle Abatement Program Report – In Compliance • Single Audit – Unmodified Opinions are issued to all Major Program • The City complied, in all material respect, with the types of compliance requirements that could have a direct and material effect
• GANN Limit AUP Report (FY21/22) – Procedures performed without exception

6.1.a
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Attachment: 2021_City of Patterson_City Council Meeting 2-1-22 (Updated) (Accept City's 27 Audit Results – Patterson Public Financing
Authority

6.1.a
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Attachment: 2021_City of Patterson_City Council Meeting 2-1-22 (Updated) (Accept City's 28 Audit Results – PPFA Audit
• Opinion
• Unmodified Opinion
• Financial Statements are fairly presented in all material respect • Accounting policies have been consistently applied
• Estimates are reasonable
• Disclosures are properly reflected in the financial statements • Other Results
• No disagreement with Management
• No material weaknesses and/or significant deficiencies were not identified in internal control over financial reporting
• No accounting issues
• No inappropriate activities were noted

6.1.a
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Attachment: 2021_City of Patterson_City Council Meeting 2-1-22 (Updated) (Accept City's 29 Audit Results – West Patterson Financing
Authority

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Attachment: 2021_City of Patterson_City Council Meeting 2-1-22 (Updated) (Accept City's 30 Audit Results – WPFA Audit
• Opinion
• Unmodified Opinion
• Financial Statements are fairly presented in all material respect • Accounting policies have been consistently applied
• Estimates are reasonable
• Disclosures are properly reflected in the financial statements • Other Results
• No disagreement with Management
• No material weaknesses and/or significant deficiencies were not identified in internal control over financial reporting
• No accounting issues
• No inappropriate activities were noted

6.1.a
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Attachment: 2021_City of Patterson_City Council Meeting 2-1-22 (Updated) (Accept City's HQ
- ORANGE COUNTY
200 E. Sandpointe Avenue
Suite 600
Santa Ana, CA 92707

SAN DIEGO
4365 Executive Drive
Suite 710
San Diego, CA 92121

BAY AREA
2121 North California Blvd.

Suite 290
Walnut Creek, CA 94596

LAS VEGAS
1050 Indigo Drive
Suite 110
Las Vegas, NV 89145

PHOENIX
4742 North 24th Street
Suite 300
Phoenix, AZ 85016
Engagement Partner:

Vanessa Burke, CPA, CPFO
Direct 602-274-9966
[email protected]
Engagement Director:

Andrew Roth, CPA
Direct 602-274-9966
[email protected]

6.1.a
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Attachment: 2021_City of Patterson_City Council Meeting 2-1-22 (Updated) (Accept City's

6.1.b
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Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21)

6.1.b
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Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21)

6.1.b
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Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21)

6.1.b
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Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2021
Table of Contents
Page
INTRODUCTORY SECTION (Unaudited)
Letter of Transmittal ...................................................................................................................................................... i Principal Officials .......................................................................................................................................................... v Organizational Chart ...................................................................................................................................................... vi

FINANCIAL SECTION
Independent Auditors’ Report on Financial Statements ......................................................................................... 1 Management’s Discussion and Analysis
(Required Supplementary Information) (Unaudited) .............................................................................................. 5 Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position ................................................................................................................................ 18 Statement of Activities .................................................................................................................................... 20 Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet ............................................................................................................................................ 26 Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position .......................................................................... 29 Statement of Revenues, Expenditures, and
Changes in Fund Balances .................................................................................................................. 30 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities ....................................................................................................................... 32 Proprietary Fund Financial Statements:

Statement of Net Position ......................................................................................................................... 34 Statement of Revenues, Expenses, and Changes in Net Position ............................................................. 35 Statement of Cash Flows ........................................................................................................................... 36 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position ......................................................................................................... 41 Statement of Changes in Fiduciary Net Position ...................................................................................... 42 Notes to the Basic Financial Statements ............................................................................................................. 47

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Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2021
Table of Contents (Continued)
Page
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited)
Notes to the Budgetary Comparison Schedule ..................................................................................................... 95 Budgetary Comparison Schedule:

General Fund ................................................................................................................................................... 96 Public Safety Special Revenue Fund ............................................................................................................... 97 Defined Benefits Pension Plans – CalPERS:

Schedule of Proportionate Share of the Net Pension Liability ........................................................................ 98 Schedule of Plan Contributions ..................................................................................................................... 100 Schedule of Changes in Net OPEB Liability and Related Ratios:

Other Postemployment Benefits .................................................................................................................... 102 Supplementary Information:

Nonmajor Special Revenue Funds:

Combining Balance Sheet ............................................................................................................................. 106 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ..................................... 114 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:

Debt Service Fund:

Patterson Public Financing Authority ..................................................................................................... 122 Special Revenue Funds:

Landscape Maintenance District ............................................................................................................. 123 Benefit Assessment Districts .................................................................................................................. 124 CSA #15 Assessment District ................................................................................................................. 125 CFD 2001-01 Patterson Gardens Fire Suppression Assessment ............................................................. 126 Beautification Committee ....................................................................................................................... 127 State HCD Rehab Program ..................................................................................................................... 128 Federal CDBG Grant .............................................................................................................................. 129 First Time Home Buyers ......................................................................................................................... 130 Federal HOME ........................................................................................................................................ 131 Neighborhood Stabilization Program ...................................................................................................... 132 Gas Tax ................................................................................................................................................... 133 Local Transportation ............................................................................................................................... 134 Local Transportation Non-Motorized ..................................................................................................... 135 Street Project ........................................................................................................................................... 136 Measure L ............................................................................................................................................... 137 Developer Housing In-Lieu Fee .............................................................................................................. 138 Westside Drainage Study ........................................................................................................................ 139 CFD 2013-1 ............................................................................................................................................ 140 CFD 2015-2 ............................................................................................................................................ 141 CFD 2018-2 VOP Maintenance .............................................................................................................. 142

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Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2021
Table of Contents (Continued)
Page
FINANCIAL SECTION (Continued)
Supplementary Information (Continued)
Custodial Funds:

Combining Statement of Fiduciary Net Position – Custodial Funds ............................................................... 145 Combining Statement of Changes in Fiduciary Net Position – Custodial Funds ............................................ 146 STATISTICAL SECTION (Unaudited)
Description of Statistical Section Contents .................................................................................................................. 149 Financial Trends:

Net Position by Classification – Last Ten Fiscal Years ......................................................................................... 150 Changes in Net Position – Last Ten Fiscal Years .................................................................................................. 152 Fund Balance, Governmental Funds – Last Ten Fiscal Years ............................................................................... 156 Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years ......................................................... 158 Revenue Capacity:

Tax Revenues by Source – Last Ten Fiscal Years ................................................................................................. 160 Water Sold by Customer Type – Last Five Fiscal Years ....................................................................................... 162 Water and Wastewater Utility Rates – Last Ten Fiscal Years ............................................................................... 163 City-Wide Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ............... 164 Taxable Property by Use Code, City-Wide – Last Six Fiscal Years ...................................................................... 166 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years ................................................................... 167 Principal Property Taxpayers – Last Fiscal Year and Nine Years Ago ................................................................. 169 Principal Sales Tax Producers – Last Fiscal Year and Nine Years Ago ................................................................ 170 Historical Sales Tax Amounts by Benchmark Year – Last Ten Fiscal Years ........................................................ 172 Demographic and Economic Information:

Demographic and Economic Statistics - Last Ten Fiscal Years ............................................................................ 175 Principal Employers Last Fiscal Year and Five Years Ago ................................................................................... 176 Operating Information:

Direct and Overlapping Governmental Activities Debt ......................................................................................... 177 Full-Time Equivalent City Government Employees
By Function/Program/Department – Last Five Fiscal Years ........................................................................... 178 Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................................... 181

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Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
1 Plaza
P.O. Box 667
Patterson, California 95363
Phone (209) 895-8000
December 29, 2021
To the Honorable Mayor,
Members of the City Council, and the
Citizens of City of Patterson, California
We are pleased to present the City of Patterson’s (“City”) Annual Comprehensive Financial Report (“ACFR”) for the year ended June 30, 2021. The information in this ACFR is prepared in accordance with Generally Accepted Accounting Principles (“GAAP”) and included an unmodified opinion on the report by the City’s independent certified accountants. Although we rely on the standards and expertise of these external auditors, the responsibility for the accuracy and fairness of this report rests with the City.

An overview of the City’sfinancial activitiesfor the fiscal year is discussed in the Management’s Discussion and Analysis (“MD&A”) section of the ACFR.

CITY PROFILE
The City wasincorporated in 1919 and is located in Stanislaus County, on Highway 33, along the Interstate 5 corridor, and is approximately 280 miles north of Los Angeles, 92 miles south of Sacramento, 89 miles southeast of San Francisco and 45 miles southeast of Livermore. The City has a permanent staffing level of 121 City employees and serves approximately 23,300 residents in a land area of 6.0 square miles.

The City operates utilizing the Council‐Manager form of government. The Mayor and four Council members are elected for staggered two‐year and four‐year terms respectively to govern the City. The City recently went to District elections for Council members. The Mayor is still an at‐large election. The City Council is responsible for establishing policies, adopting the annual budget, appointing commissions and committees, and hiring the City Manager and City Attorney. The City Manager is responsible for implementing the Council’s policies, overseeing the day‐to‐day operations of the City, and appointing the directors of the various City’s departments.

City Departments and areas of responsibility are comprised of the following:

General Government includes staff and activities associated with the City Council, City Manager, City Clerk, City Attorney, Human Resources, Risk Management, Finance and Information Technology.

Public Safety includes Stanislaus Sheriff which includes, Detectives, Communications, Patrol, Investigations and Traffic and Parking Enforcement divisions, as well as Fire with Emergency Services, Prevention Services and Advance Life Support Services (ALS).

Community Development includes Economic Development, Housing, Code Enforcement and Planning.

Engineering includes Building, Capital Projects, and Engineering. i

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Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) ii
Public Works includes Wastewater, Garbage, Water, Streets and Park Maintenance.

Parks and Recreation includes Community Services, Senior Center and Programs, Youth Programs, and Crossing Guards.

ECONOMIC CONDITION AND OUTLOOK
The City has enjoyed strong economic growth over the lastseveral years. Although the economy hassome uncertainty due to the COVID‐19 Pandemic, the City of Patterson remains focused on several interested new businesses that have visited our business Parks over the last year. Factors that will impact our economic strength are the online sales which, in some instances, do not provide the City with a “point‐of‐ sale” taxable nexus. The City isstill fortunate to have a more diverse revenue structure which can continue to benefit from Measure L; the ½ cents transaction and use tax over 25 years, SB1 revenue, new businesses such as the Hampton Hotel, Valero Gas Station, Hamen Truck Wash, Starbucks, Patterson Family Pharmacy, Rancho Fresco, and Cannabis retail and manufacturing.

The City’s water, sewer, and garbage rates were approved in the last few years and will provide stable enterprise funding to provide a high level of infrastructure maintenance in these areas.

Our budget provides for a continuation of high levels of service, capital improvement projects provided by grants and Capital Facility fees, and continued funds to further improve the City and maintain public safety staffing, and new programs to enhance community quality of life for our City’s residents.

Several new businesses coming to Patterson this coming year include S2A Modular, Patterson travel Center, and La Quinta Hotel. A new Javi’s restaurant was also approved for a location in the Historic downtown core. The new truck wash located in the business park has opened, and the new Hampton hotel is taking guests as well. The 700,000 sf building in the Keystone Business Park is completed and awaiting new tenants. Self‐Help Enterprise has broken ground and have built 20 Self‐Help homes and are permitted to build 20 more. The Self Help Apartments have been constructed and they have 100% occupancy along with a waiting list. The Patterson Ranch Projects have installed streets and underground facilities and have built several model homes. To date approximately 200 homes have been sold.

Patterson Ranch will provide approximately 250 affordable homes that fit into the middle‐income affordable category.

The City received CARES grant in the amount of $1.06 million in FY 2021 to help City funding some of the operation and maintenance costs related to COVID‐19 prevention and public safety related costs.

The American Rescue Plan Act will also be contributing to our General Fund. The City expects to see $4.2 million over a two‐year period that can be used to help stimulate our economy and provide much needed economic stimulus and programming to assist businesses and our volunteer organizations.

In response to the COVID‐19 pandemic, the current year budget includes $1.3 million in departmental budget reductions in non‐essential areas such as consulting services, software upgrades, and non‐critical maintenance, and the staffing hours and head count. In addition, a temporary hiring freeze had been implemented. Furthermore, staff will continue providing services at current staffing levels, with no new positions included in the budget with the exception of our School Cross Walk program. Our previous vendor has halted their cross‐walk program due to the Pandemic and have become unresponsive.

The City is fortunate to experience an unexpected Sales tax increase approximately $3.18 million in FY 2021. Majority of the increase is due to change in sales tax reporting by one of top sale tax producers in the business and industry group. The City is looking forward to lifting the cost cutting measures and hiring freeze to run operations as normal.

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Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) iii

INTERNAL CONTROLS
The management of the City is responsible for establishing and maintaining internal controls designated to ensure that the assets of the City are protected from loss, theft or misuse, and that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with GAAP.

Internal controls are designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: the cost of a controlshould not exceed the benefits likely to be derived; and the evaluation of costs and benefits requires estimates and judgments by management. All internal control evaluations occur within the stated framework. City management believes the City’s internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions.

BUDGETARY CONTROL
As part of the City’s internal controls, it maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the appropriated budget approved by the City Council. Annually, departments work with the City Manager and Finance Department to submit operating budget requests for the year. The City Manager then makes recommendations to the City Council regarding the budget. After public discussion and evaluations of their recommendations, the City Council adopts the budget for the fiscal year with or without modifications.

Expenditures are controlled at the fund level for all budgeted departments within the City. At this level, expenditures may not legally exceed appropriations. The City Manager or his designee is authorized to transfer funds between departments within the same fund, and limit expenditures in response to lower than expected revenues whenever necessary. The budgets are adopted on a basissubstantially consistent with GAAP. Any amendment to the total level of appropriations for a fund or transfers between funds must be approved by the City Council.

MAJOR INITIATIVES AND PROJECTS
As part of the budget preparation process, the City Council articulates goals and objectives for the next year and evaluates the progress made on the goals established as part of the previous budget. The following represent some of the most significant goals established for Fiscal Years 2020‐2021 budget process:
 Continued progression of our Strategic Plan.
 Increase in project revenues through grants, Measure L, and SB1 for street maintenance, and infrastructure projects.
 Leverage technology to improve efficiency and service delivery.  Continued application processes for grant opportunities to fund COVID‐19 expenditures, public safety and Parks renovation project.
 Continue review and analysis of development and redevelopment activities with new marketing materials, including the new City tag line and design of our Wayfinding strategies.

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Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) iv
Some of the specific projects underway in Fiscal Year 2020‐2021 included the following:
 I‐5 Interchange PS&E design and construction
 Salado Creek Bike Trail Project
 Street maintenance projects‐Las Palmas Overlay Phase 1  Kinshire Street Rehabilitation ‐ Design & construction Phase I New Commercial Development included:
 Loves Travel Center
 La Quinta Hotel
 Caligrows Cannabis Campus
 Del Lago Family Fun Center
New Residential Development included:
 Patterson Ranch will provide approximately 250 affordable homes that fit into the middle‐income affordable category.
 K.HOV Homes is expected to develop 12 units/parcels.
 K.B. Homes is expected to develop 56 units/parcels.

Acknowledgements
This ACFR was prepared by the City’s Finance Department staff. This report is representative of the staff’s ongoing effort and commitment to provide excellent service to Patterson residents. Our Thank you is also extended to the independent auditor of The PUN Group, LLP for their review of this report and to the City Council for their stewardship and commitment to assist in ensuring the long‐term fiscal health of the City.

Respectfully submitted,
Ken Irwin
City Manager

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Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) v

CITY OF PATTERSON
Annual Comprehensive Financial Report

FISCAL YEAR
2020 - 2021
City Council
MAYOR
Dennis McCord

COUNCIL MEMBERS
Shivaugn Alves, District A
Alfred Parham, District B
Dominic Farinha, District C
Cynthia Homen, District D
Executive Staff
Kenneth Irwin, City Manager
Maricela Vela, City Clerk
Joshua Clayton, Chief of Police
Jeffery Gregory, Chief of Fire
Di Smith, Director of Human Resource
Michael Willett, Director of Public Works
Fernando Ulloa, Director of Engineering, Building & Capital Projects Saadiah Ryan, Director of Finance
Juliene Flanders, Recreation & Community Services Director David James, Community Development Director
Nubia Goldstein, City Attorney
Douglas L. White, Deputy City Attorney

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Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Citizens
City Council
City Manager City Attorney
Fire
Boards and
Commissions
Administration Public Works & Parks Engineering & Capital Projects Community Development Recreation Police
Human
Resources
Finance
Information
Systems
Organizational Chart
City Clerk
vi

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Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members
of the City Council of the City of Patterson
Patterson, California
Report on Financial Statements

We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Patterson, California (the “City”), as of and for the year ended June 30, 2021, and the related notes to the basic 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 statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States.

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’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 presentation 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 control. 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 appropriate 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

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Patterson, California

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

Emphasis of a Matter
Implementation of GASB Statement No. 84
As discussed in Note 1 to the financial statements, the City implemented GASB Statement No. 84, Fiduciary Activities. As a result of the implementation, the City converted the former agency funds, which previously reported assets and liabilities only, to custodial funds and reported a restatement of its net position in the amount of $14,522,618. Our opinion is not modified with respect to this matter.

Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion, Analysis, the Budgetary Comparison Schedules – General Fund and Major Special Revenue Funds, the Schedule of Proportionate Share of the Net Pension Liability, the Schedule of Plan Contributions, and the Schedule of Changes in Net OPEB Liability and Related Ratios, as identified in the accompanying table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

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 Section, 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.

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 statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Combining and Individual Nonmajor Fund Financial Statements and Budgetary Comparison Schedules are fairly stated in all material respects in relation to the basic financial statements as a whole.

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Patterson, California

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

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 29, 2021, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Walnut Creek, California
December 29, 2021

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Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
5 As management of the City of Patterson, California, (City) we offer readers of the City of Patterson’s Annual Comprehensive Financial Report this narrative overview and analysis of the financial performance of the City for the year ended June 30, 2021. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found in the introductory section of this report, and with the City’s Annual Comprehensive Financial Report, which follow this discussion.

Financial Highlights
 Changes in Net Position: The government’s total net position increased by $7,659,234. The governmental activities increased by $8,053,145 and business-type activities decreased by $393,911 at the end of fiscal year June 30, 2021. The increased in total net position is related to increase in Taxes revenue by 27%, increase in capital grants and contribution by 20%, increase in operating grants and contribution by 75% and decrease in governmental expenditures by 5% and decrease in Enterprise Funds expenditure by 4% due to cost cutting measure in response to COVID-19 pandemic unknown impact to City’s financial performance.  Long Term Debt: The City of Patterson’s total debt decreased by $2,963,972, because of debt service payments.  Governmental Activities: As of June 30, 2021, the City’s governmental activities reported an ending net position of $74,898,117, an increase of $8,053,145 when compared with the prior year due to increase in operating grants and contributions, capital grants and contributions, taxes, and other revenues.  Business-Type Activities: As of June 30, 2021, the City’s total net position decreased by $393,911 due to decrease in Water operating revenue by 23% and Sewer operating revenue by 4%. The decrease in water operations revenue was due to receiving Water settlement in the amount $2.6 million in FY 2020. In addition, annual Sewer revenue rate increase of 6% was delayed and took effect in January of 2022.  General Fund: As of June 30, 2021, committed, assigned and unassigned fund balance of the general fund was $13,715,262. Of these funds $6,658,766 is committed or assigned for specific purposes in accordance with City policies and budgetary guidelines. The remaining balance is unassigned.

Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements consist of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the basic financial statements. This report also contains required and other supplementary information in addition to the basic financial statements themselves. Certain accounts in prior year financial statements have been reclassified for comparative purposes to conform with the presentation in the current year financial statements.

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

The statement of net position presents information on all the City of Patterson’s assets, deferred outflows of resources, liabilities, and deferred inflow of resources with the difference between the four reported as net positions. Over time, increase or decreases in net position may serve as a useful indicator of whether the financial position of the City of Patterson is improving or deteriorating.

The statement of activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).

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Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2021
6 Both government-wide financial statements distinguish functions of the City of Patterson that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City of Patterson include general government, public safety, community development, public works and parks and recreation.

The government-wide financial statements include the City of Patterson and a component unit the Patterson Public Financing Authority. Financial information for this component unit is reported within the funds of the City.

The government-wide financial statements can be found on pages 18 – 21 of this report.

Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Patterson, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All the funds of the City of Patterson can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as balances on spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.

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

The City of Patterson maintains thirty-eight governmental funds. Information is presented separately in the governmental fund balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances. Data from the other thirteen governmental funds is combined into a single, aggregated presentation. Individual fund data for each of these other governmental funds is provided in the form of combining statements in the supplementary information.

The City of Patterson adopts an annual appropriated budget for its general fund. A budgetary comparison schedule has been provided for the general fund to demonstrate compliance with this budget in the required supplementary information. Budgetary comparisons for other funds are provided in the supplementary information of this report.

The governmental fund financial statements can be found on pages 26 – 32 of this report.

Proprietary funds. The City of Patterson maintains three proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City of Patterson uses enterprise funds to account for its Water, Sewer and Garbage operations.

Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Water, Sewer and Garbage operations.

The proprietary fund financial statements can be found on pages 34 – 37 of this report.

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Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2021
7 Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City of Patterson’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The fiduciary fund financial statement can be found on page 41– 42 of this report.

Notes to the basic financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 47 – 92 of this report.

Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City of Patterson’s General Fund budgetary comparison schedule, pension and changes in net pension liabilities and related ratio schedules, pension contribution schedules, and other post-employment funding progress schedule. Required supplementary information can be found on pages 95 – 102 of this report.

The combining statements referred to earlier in connection with other governmental funds and agency funds are presented immediately following the required supplementary information. Combining and individual fund statements and schedules can be found on pages 106 – 146 of this report.

Government-wide Financial Analysis
As noted earlier, net positions may serve over time as a useful indicator of a government’s financial position. In the case of the City of Patterson, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $117,953,890 at the close of the most recent fiscal year.

By far, the largest portion of the City of Patterson’s net positions, 81.80 percent, reflects its net investment in capital assets (i.e., land, buildings, improvements other than buildings, machinery and equipment, infrastructure, and construction in progress). The City of Patterson uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City of Patterson’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 from other sources since the capital assets themselves cannot be used to liquidate these liabilities. 2021 2020 2021 2020 2021 2020
Current and other assets 99,614,197 $ 92,726,942 $ 26,550,394 $ 25,446,614 $ 126,164,591 $ 118,173,556 $ Capital assets, not being depreciated 13,203,658 12,980,443 10,939,954 13,485,978 24,143,612 26,466,421 Capital assets, being depreciated, net 48,341,854 48,327,788 36,548,941 35,733,020 84,890,795 84,060,808 Total Assets 161,159,709 154,035,173 74,039,289 74,665,612 235,198,998 228,700,785 Deferred Outflow of Resources 2,968,951 2,220,438 2,162,688 1,844,909 5,131,639 4,065,347 Long-term liabilities outstanding 78,861,283 80,279,563 30,407,404 30,712,475 109,268,687 110,992,038 Other liabilities 8,674,105 8,221,900 1,851,325 1,834,966 10,525,430 10,056,866 Total Liabilities 87,535,388 88,501,463 32,258,729 32,547,441 119,794,117 121,048,904 Deferred Inflow of Resources 1,695,155 909,176 887,475 513,396 2,582,630 1,422,572 Net Positions:

Net Investment in Capital Assets 59,507,530 61,274,713 36,978,338 37,930,411 96,485,868 99,205,124 Restricted 14,976,923 10,752,749 3,133,810 983,202 18,110,733 11,735,951 Unrestricted 413,664 (5,182,490) 2,943,625 4,536,071 3,357,289 (646,419) Net Position 74,898,117 $ 66,844,972 $ 43,055,773 $ 43,449,684 $ 117,953,890 $ 110,294,656 $ Total
Net Position
Governmental Activities Business‑Type Activities

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Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2021
8 Additional portion of the City of Patterson’s net position, 15.35 percent, represents resources that are subject to external restrictions on how they may be used. The remaining balance of $3,357,289 may be used to meet the government’s ongoing obligation to citizens and creditors but is subject to designation for specific City programs.

At the end of the current fiscal year, the City of Patterson is able to report positive balances in all categories of net position for the government as a whole, as well as for its separate governmental and business-type activities. At year-end, 85.88 percent of the City of Patterson’s business-type activities’ net assets were invested in capital assets.

Additional information on the change in net position can be found on page 18 – 19 of this report. 2021 2020 2021 2020 2021 2020

REVENUES
Program revenues
Charges for services $ 6,918,926 $ 5,872,870 14,354,933 $ 13,649,198 $ 21,273,859 $ 19,522,068 $ Operating grants and contributions 3,564,498 2,040,401 - - 3,564,498 2,040,401 Capital grants and contributions 4,333,162 3,609,391 - 8,493 4,333,162 3,617,884 Total program revenues 14,816,586 11,522,662 14,354,933 13,657,691 29,171,519 25,180,353 General revenues
Taxes 16,696,612 13,103,770 - - 16,696,612 13,103,770
Investment earnings 3,442,805 4,145,959 43,762 205,023 3,486,567 4,350,982 Revenue from Fiduciary Fund 527,556 - 155,744 - 683,300 - Miscellaneous 379,911 3,284,604 63,988 4,297,875 443,899 7,582,479 Total general revenues 21,046,884 20,534,333 263,494 4,502,898 21,310,378 25,037,231 TOTAL REVENUES 35,863,470 32,056,995 14,618,427 18,160,589 50,481,897 50,217,584

EXPENSES
General government 4,196,700 4,514,103 - - 4,196,700 4,514,103 Police 5,859,954 5,838,153 - - 5,859,954 5,838,153
Fire 5,592,559 5,367,429 - - 5,592,559 5,367,429
Community development and planning 1,829,511 2,084,354 - - 1,829,511 2,084,354 Public works 5,414,262 4,687,210 - - 5,414,262 4,687,210 Parks and recreation 2,747,819 4,536,510 - - 2,747,819 4,536,510 Interest and fiscal charges 3,818,561 3,942,429 - - 3,818,561 3,942,429 Water - - 5,056,402 5,404,924 5,056,402 5,404,924
Sewer - - 5,532,181 5,533,806 5,532,181 5,533,806
Garbage - - 2,774,714 2,912,990 2,774,714 2,912,990
TOTAL EXPENSES 29,459,366 30,970,188 13,363,297 13,851,720 42,822,663 44,821,908

CHANGES IN NET POSITION BEFORE
TRANSFERS 6,404,104 1,086,807 1,255,130 4,308,869 7,659,234 5,395,676 Transfers 1,649,041 1,642,806 (1,649,041) (1,642,806) - - CHANGES IN NET POSITION 8,053,145 2,729,613 (393,911) 2,666,063 7,659,234 5,395,676 Net position at beginning of year 66,844,972 64,115,359 43,449,684 40,783,621 110,294,656 104,898,980 Net position at end of year 74,898,117 $ 66,844,972 $ 43,055,773 $ 43,449,684 $ 117,953,890 $ 110,294,656 $ Total
Changes in Net Position
Governmental Activities Business‑type Activities

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Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2021
9 Governmental activities. Overall, governmental revenues increased by $3.81 million or 11.9 percent from prior year. Key elements of the change are as follows:
 Total taxes increased by $3.59 million or 27% due to an increase in property taxes by $307,301, and sales tax by $3.18 million. The number of residential and commercial developments completed in FY2021 have increased and triggered the increase in property tax. Sales tax increased significantly in the business and industry sector, due to a change in reporting of sales tax by one of the top sales tax producers.  Charges for services increased by $1.04 million or 18 percent mainly due to increase in Cannabis fines approximately $200,000 as well as other Community/Senior Center Fee, Aquatic Center Fee, City Hall Annex Fees increased approximately $636,000. An increase in parking fines, residential developments, and the assessment fees associated with those developments contributed to the increase as well.  Capital grants and contributions increased by $723,771 due to an increase in San Joaquin Valley Air Pollution Control District grant approximately $239,000 to purchase several electric vehicles. Amount received under the Urban Greening Grant increased by $196,000 to fund Salado Creek bike trail project. Additionally, there was an increase in Measure L revenue funding local streets & roads in the amount of $359,000. Finally, salary reimbursement from West Stanislaus Fire increase by $91,000 due to various fire incidents in Northern California.
 Operating grants and contributions increased by $1.52 million due to the CARES COVID-19 grant in the amount of $1.06 million received in FY2021, SJVAPCD grant revenue by approximately $ 240,000, and salary and vehicle reimbursement from Fire District by approximately $147,000.

Overall, expenses decreased by $1,510,822 or 0.05 percent compared to the prior year. Major decrease in expenditures were related to Park and Recreation’s operations and maintenance due to program closures, capital outlay, and delay in City Hall expansion.

Additional information on activities and change in net position can be found on pages 20 – 21 of this report.

Business-type activities. Water operating revenue decreased by $1.9 million, and expenses decreased by $12,000 in fiscal year 2021, resulting in operating income of $1.86 million. Revenue decreased due to water settlement revenue of $2.6 million received in FY 2020.The financial impact is being mitigated by an increase in number of customers and water rate increases of 11%. Decrease in water expense was due to cost cutting measures and delay of water capital projects because of the uncertainty of COVID-19 pandemic. The Water Fund’s net position was $23,291,054. Of this amount, $18,453,272 was invested in net investment in capital assets, $3,066,323 was restricted $1,771,459 was unrestricted.

Sewer operating revenue decreased by $178,545 and expenses increased by $28,521 in fiscal year 2021. The decrease in operating revenue is related to delaying the 6% Sewer rate increase until January 1, 2022, and a waiver of penalties to provide relief to customers during the COVID-19 pandemic. The increase in expenses was due to salaries and benefits to back fill positions that were vacant in prior year. As of June 30, 2021, the Sewer fund’s net position was $18,441,737.

Of this amount, $18,492,207 was invested in net investment in capital assets, $67,487 was restricted and ($117,957) was unrestricted.

Garbage operating revenue increased by $199,989 in fiscal year 2021. The increase was due to an increase in garbage rates of 6% and an increase in number of customers. Garbage expenses decreased by $55,549 in fiscal year 2021 was due to cost cutting measures. As of June 30, 2021, the Garbage Fund’s net position was $1,322,982. Of this amount $32,859 was invested in net investment in capital assets and $1,290,123 was unrestricted.

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Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2021
10 Financial Analysis of the Government’s Funds
As noted earlier, the City of Patterson uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental funds. The focus of the City of Patterson’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 of Patterson’s financing requirements. Spendable fund balance may serve as a useful measure of a government’s net resources at the end of the fiscal year.

As of the end of current fiscal year, the City of Patterson’s governmental funds reported combined ending fund balances of $93,285,593, an increase of $6,643,260 in comparison with the prior year. The increase was due to increase in Taxes $3.59 million, charges of services by $1.04 million, operating grant and contribution by $1.5 million, capital grants and contribution by $723,000 and decrease in other revenue by $1.2 million. The City’s governmental funds ending fund balances of $16,893,199 or 18.11 percent constitute committed, assigned and unassigned fund balance, which is available for spending at the government’s discretion within the guidelines of the funding sources. The remainder of fund balance, $76,392,394, is either non-spendable or restricted for purposes imposed by creditors, grantors, contributors, laws, or regulations of other governments or through enabling legislation.

Proprietary funds. The City of Patterson’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail.

Unrestricted net position of the Enterprise Funds at the end of the year amounted to $2,943,625, a decrease of $1,659,825 from the prior year. This balance will be used to fund water, sewer and garbage operations and planned capital improvements. Other factors concerning the finance of these funds have already been addressed in the discussion of the City of Patterson’s business-type activities.

General Fund Financial Highlights
The General Fund is the chief operating fund of the City of Patterson. At the end of the current fiscal year, committed, assigned and unassigned fund balance of the general fund was $13,248,685, while total fund balance was $13,715,262.

The general fund’s ending fund balance increased by $4,638,934 in comparison with the prior year. As a measure of the General Fund’s liquidity, it may be useful to compare only the committed, assigned, and unassigned fund balance to total fund expenditures. Committed, assigned and unassigned fund balance represents 68.16 percent of the total general fund expenditures, most of which is committed or assigned to meet future long-term obligations. The key factors in the increase of General Fund’s fund balance as follows:
 Overall, General Fund revenues (including transfers in) increased year-over-year by $3,696,022 and expenditures (including transfers out) decreased by $39,723. Tax related revenue increased by $3,496,280 due to increases in property tax current secured and real estate transfer tax by $210,000 as City residential and commercial real estate construction completed in FY 2021 an influx of residents moved to Patterson. Sales tax increased significantly due to one of the sales tax producers reporting change, and commercial businesses opened in FY 2021 such as Valero gas station, restaurants, Hamen truck wash, Starbucks to name a few. Motor vehicle in lieu followed similar trend as property tax increasing by $107,000. Transient Occupancy Tax increased by $85,000 due to the opening of Hampton Inn operating full year in FY 2021. Intergovernmental grants experienced an overall increase of $2.24 million due to San Joaquin Valley Air Pollution Control grant increasing by $239,000 to fund electric vehicles, CARES grant by $1.6 million to fund COVID-19 related expenditures, Urban Greening grant increased by $196,000, and other reimbursements from the Fire District.  The overall decrease in expenditures was attributed to cost cutting measures at various division salaries and benefits observing hiring freeze, Recreation program closures and delay in capital outlay.

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Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2021
11 General Fund Budgetary Highlights
For the fiscal year ended June 30, 2021, General Fund’s revenue final amended budget increased over the original budget by $113,000 and actual revenue increased by $2.5 million from final amended budget. The expenditure final amended budget increased by $723,000 over original budget and the actual expenditures were $1.94 million lower than the final amended budget. These can be briefly summarized as follows:
 The revenue final budget is higher than the original budget due to sales tax projected higher by $1.3 million, property tax by $341,000, increase in CARES grant by $284,000, decrease in License, permits and fees by $477,000 and decrease in State Urban Greening Grant by $1.6 million.  The actual revenue is higher than final budget due to sales tax increase by $2.9 million due to a sales tax reporting change from one of the top sales tax producers.  The expenditure final budget is higher than original budget by $723,000 due budget adjustment up for Fire overtime by $78,000 and overtime-strike team by $24,000, Naomi House project by $288,000, General contract services HR by $35,000, capital outlay $105,000 and North and South Park Improvement project by $109,000.  General government actual expenditure is lower than final budget due to COVID-19 expenditure actual lower than budget by $356,000.
 Police actual expenditures are lower than final budget due to delay in hiring the SCO and clerical staff and salary vacancy savings by $306,000, SRO services and COPS grant came in lower than budget by $97,000.  Fire actual expenditure lower than final budget due to salary vacancy savings by $100,000 and delayed intern program.
 Public Works actual expenditure is lower than final budget expenditure due to delay in North and South Park Improvement expenditure by $107,000 to FY 2022.
 Park and Recreation actual expenditures lower than final budget expenditure due to temporary program closure because of COVID-19 pandemic and reduction in part-time staff by $135,000. In addition, Park and Maintenance and City Hall Annex departments are re-classified from Park and Recreation division to Public Work division in FY 2021.

Capital Asset and Debt Administration
Capital assets. The City of Patterson’s net investment in capital assets for its governmental and business-type activities as of June 30, 2021, amounts to $109,034,407, a decrease of $1.49 million or 1.35 percent of total capital assets over prior year. This investment in capital assets includes land, buildings, improvements, machinery and equipment, park facilities, and streets.

Additional information on the City of Patterson’s capital assets can be found in Note 6 to the basic financial statements. 2021 2020 2021 2020
Land 5,271,125 $ 5,271,125 $ 6,196,328 $ 6,196,328 $
Construction in progress 7,932,533 7,709,318 4,743,626 7,289,650 Building 16,668,753 17,268,460 - -
Improvements 7,033,692 7,567,964 - -
Infrastructure 23,743,745 22,655,849 35,083,425 33,994,020 Equipments 895,664 835,515 1,465,516 1,739,000
Total 61,545,512 $ 61,308,231 $ 47,488,895 $ 49,218,998 $ Capital Assets (Net of depreciation)
Governmental Activities Business‑Type Activities

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Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2021
12 Long-Term debt. At the end of the current fiscal year, the City of Patterson’s total long-term debt outstanding decreased to $2.96 million, a decrease attributable to the normal scheduled debt service. Sewer Revenue bonds and loan payable of $6.2 million are to be paid out of sewer revenues. 2019 Water Revenue bond $16.9 million are to be paid out of the water revenues.

Additional information on the City of Patterson’s long-term debt can be found in Note 7 and Note 8 to the basic financial statements.
2021 2020
Governmental activities
Compensated absences 512,606 $ 468,489 $
PPFA 2013 Heartland Ranch Revenue Bonds 2,292,005 2,725,976 PPFA 2013 Series A revenue bonds 56,419,259 58,050,813
PPFA 2013 Series B revenue bonds 5,575,000 5,740,000
2018 Lease Revenue bonds 2,037,982 2,172,830
Capital leases - 33,518
Settlement payable 364,000 364,000
Total governmental activities 67,200,852 69,555,626
Business-type activities
Water
Compensated absences 123,062 108,403
2019A Water revenue bond 9,656,513 9,741,040
2019B Water revenue refunding bond 7,259,799 7,528,312
Total for water fund 17,039,374 17,377,755
Sewer
Compensated absences 112,107 94,969
State revolving fund loan 449,629 493,475
2009 sewer bonds 260,000 340,000
2017 Sewer Refunding Revenue Bond 2,572,900 2,602,300
Bank of america loan 1,350,053 1,388,999
CEC loan 1,646,186 1,744,753
Total for sewer fund 6,390,875 6,664,496
Garbage
Compensated absences 29,192 26,388
Total for garbage fund 29,192 26,388
Total business-type activities 23,459,441 $ 24,068,639 $

LONG-TERM LIABILITIES

6.1.b
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Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2021
13 Economic Condition, Outlook, and Activity
The City has enjoyed strong economic growth over the last several years. Although the economy has some uncertainty due to the COVID-19 Pandemic, the City of Patterson remains focused on several interested new businesses that have visited our business Parks over the last year. We are also directing the American Rescue Plan funds in ways that will significantly help our City budget, bring in several new part time positions, and unfreeze positions in the Police and Fire Departments. Factors that will impact our economic strength are the online sales which, in some instances, do not provide the City with a “point-of-sale” taxable nexus. The City is still fortunate to have a more diverse revenue structure which can continue to benefit from Measure L; the ½ cents transaction and use tax over 25 years, SB1 revenue, new businesses such as the La Quinta Hotel, Love Travel Center, Grocery Outlet, Dutch Brothers Coffee, a possible Retail Center and Cannabis retail and manufacturing.

The City’s water, sewer, and garbage rates are still providing for stable enterprise funding, which, in turn, provide a high level of infrastructure maintenance and services for our Patterson residents.

Our budget provides for a continuation of high levels of service, capital improvement projects provided by grants, impact fees, and Capital Facility fees, and continued funds to further improve the City and maintain public safety staffing, and new programs to enhance the quality of life for our City’s residents.

Self-Help Enterprise has pulled 29 permits for the single-family residential development (Stonegate Shire), and 138 units for the Self-Help Apartments. Villages of Patterson will also follow suit with potential 98 units at Clayton Shire, 104 units for Cromwell Shire 1 & 2, 39 units for the VOP triplexes, 125 units for the VOP Apartments and Baldwin Ranch North with 250 units.

Next Year’s Budget
The following factors were taken into consideration during the preparation of the City’s budget for the fiscal year 2021- 2022.
 The second year of the pandemic has shown a few signs of recovery in the economy, as of May, Stanislaus County reported an 8.8% unemployment rate, while San Joaquin County reported a 9.2%, which by comparison of last year’s 16% is vast improvement.
 The inflation rate stayed slightly higher at 2.4 percent than the typical average rate.  The expected increase in commercial and residential developments will contribute to increases in major revenue sources such as building permits, property tax and sales tax.  The availability of both Federal/State grants and State Revolving Fund Loan (SRF).  The American Rescue Plan Act in the amount of $4.2 million will be allocated to the City Patterson. Wise spending will help the City to respond, rebuild and recover from the pandemic. Focusing on economic recovery, stabilizing the government, and uplifting our communities.  State legislation mandating a steady increase toward a minimum wage increase to $15 per hour by 2022 point to further increases in weekly wages.
 The accumulation of Measure L revenue provides the funding source for the street capital projects that are being carefully orchestrated to begin upon completion of various underground capital pipeline projects.  During the Sewer rate study, the City incorporated the 5-year long range capital improvement plan. The City will begin WQCF and Collection System projects to enhance and improve the quality of our community’s sewer infrastructure.

Requests for Information
This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Director, City of Patterson, 1 Plaza, Patterson, CA 95363.

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BASIC FINANCIAL STATEMENTS
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GOVERNMENT-WIDE FINANCIAL STATEMENTS
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Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:

Cash and investments 28,856,460 $ 12,168,891 $ 41,025,351 $ Restricted cash and investments - 468,952 468,952
Receivables:

Accounts 5,156,703 1,948,677 7,105,380
Interest 2,823 6,555 9,378
Due from Fiduciary Funds 67,161 - 67,161
Prepaid items 109,510 12,500 122,010
Total current assets 14,601,843 34,196,389 48,798,232
Noncurrent assets:

Cash and investments with fiscal agents 938,185 11,948,551 12,886,736 Investments held in trust 62,736,310 - 62,736,310
Notes and loans receivable 1,743,313 - 1,743,313
Capital assets:

Non-depreciable 13,203,658 10,939,954 24,143,612
Depreciable, net 48,341,854 36,548,941 84,890,795
Capital assets, net 61,545,512 47,488,895 109,034,407
Total noncurrent assets 59,437,446 126,963,320 186,400,766 Total assets 74,039,289 161,159,709 235,198,998

DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding - 334,507 334,507
OPEB-related deferred outflows of resources 1,106,768 553,885 1,660,653 Pension-related deferred outflows of resources 1,862,183 1,274,296 3,136,479 Total deferred outflows of resources 2,162,688 2,968,951 5,131,639 Primary Government
City of Patterson
Statement of Net Position
June 30, 2021
See accompanying Notes to the Basic Financial Statements. 18 6.1.b
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Activities Activities Total

LIABILITIES
Current liabilities:

Accounts payable 2,005,378 580,790 2,586,168
Accrued liabilities 474,908 7,722 482,630
Accrued interest payable 1,190,897 64,466 1,255,363
Unearned revenue 494,661 - 494,661
Deposits payable 1,248,457 104,300 1,352,757
Due within one year:

Compensated absences 512,606 264,361 776,967
Settlement liabilities 364,000 - 364,000
Long-term debt 2,383,198 829,686 3,212,884
Total current liabilities 1,851,325 8,674,105 10,525,430 Noncurrent liabilities:

Due in more than one year:

Long-term debt 63,941,048 22,365,394 86,306,442
Net OPEB liability 8,978,820 4,018,961 12,997,781
Aggregate net pension liability 5,941,415 4,023,049 9,964,464 Total noncurrent liabilities 30,407,404 78,861,283 109,268,687 Total liabilities 32,258,729 87,535,388 119,794,117

DEFERRED INFLOWS OF RESOURCES
OPEB-related deferred inflows of resources 1,652,469 847,356 2,499,825 Pension-related deferred inflows of resources 42,686 40,119 82,805 Total deferred inflows of resources 887,475 1,695,155 2,582,630

NET POSITION
Net investment in capital assets 59,507,530 36,978,338 96,485,868 Restricted for:

Special programs 14,976,923 - 14,976,923
Capital projects 2,620,013 - 2,620,013
Debt service 513,797 - 513,797
Total restricted 14,976,923 3,133,810 18,110,733
Unrestricted 2,943,625 413,664 3,357,289
Total net position $ 43,055,773 74,898,117 $ 117,953,890 $ Primary Government
City of Patterson
Statement of Net Position (Continued)
June 30, 2021
See accompanying Notes to the Basic Financial Statements. 19 6.1.b
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Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Governmental activities:

General government 4,196,700 $ 553,126 $ 1,388,476 $ - $ Police 5,859,954 177,795 109,638 -
Fire 5,592,559 1,965,540 704,455 -
Community development and planning 1,829,511 796,707 4,380 - Public works 5,414,262 961,761 1,352,549 4,330,408
Parks and recreation 2,747,819 2,463,997 5,000 2,754
Interest and fiscal charges 3,818,561 - - -
Total governmental activities 6,918,926 29,459,366 3,564,498 4,333,162 Business-type Activities:

Water 5,056,402 6,336,607 - -
Sewer 5,532,181 4,440,546 - -
Garbage 2,774,714 3,577,780 - -
Total business-type activities 14,354,933 13,363,297 - - Total primary government $ 21,273,859 42,822,663 $ 3,564,498 $ 4,333,162 $ Program Revenues
City of Patterson
Statement of Activities
For the Year Ended June 30, 2021
See accompanying Notes to the Basic Financial Statements. 20 6.1.b
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Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Governmental Business-Type
Functions/Programs Activities Activities Total
Governmental Activities:

General government (2,255,098) $ - $ (2,255,098) $
Police - (5,572,521) (5,572,521)
Fire - (2,922,564) (2,922,564)
Community development and planning (1,028,424) - (1,028,424) Public Works 1,230,456 - 1,230,456
Parks and recreation (276,068) - (276,068)
Interest and fiscal charges (3,818,561) - (3,818,561)
Total governmental activities - (14,642,780) (14,642,780) Business-type Activities:

Water 1,280,205 - 1,280,205
Sewer (1,091,635) - (1,091,635)
Garbage 803,066 - 803,066
Total business-type activities 991,636 - 991,636
Total primary government 991,636 (14,642,780) (13,651,144) General revenues and transfers:

General revenues:

Taxes:

Property taxes 6,196,152 - 6,196,152
Sales taxes 10,029,499 - 10,029,499
Franchise taxes 222,803 - 222,803
Other taxes 248,158 - 248,158
Total taxes 16,696,612 - 16,696,612
Investment earnings 3,442,805 43,762 3,486,567
Revenue from Fiduciary Fund 527,556 155,744 683,300
Miscellaneous 379,911 63,988 443,899
Transfers (1,649,041) 1,649,041 -
Total general revenues and transfers (1,385,547) 22,695,925 21,310,378 Changes in net position (393,911) 8,053,145 7,659,234
Net Position:

Beginning of year 43,449,684 66,844,972 110,294,656
End of year $ 43,055,773 74,898,117 $ 117,953,890 $
Changes in Net Position
Net (Expense) Revenue and
City of Patterson
Statement of Activities (Continued)
For the Year Ended June 30, 2021
See accompanying Notes to the Basic Financial Statements. 21 6.1.b
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FUND FINANCIAL STATEMENTS
23 6.1.b
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GOVERNMENTAL FUND FINANCIAL STATEMENTS
25 6.1.b
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Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) CFD 2003-1 Patterson
Public Safety/ Public
General Fire Protection Financing
Fund Services Fund Authority
ASSETS
Cash and investments 7,913,784 $ - $ 502,551 $
Cash and investments with fiscal agents - - 938,185
Investments held in trust - - 62,736,310
Receivables:

Accounts 43,134 4,303,525 -
Interest - 1,770 41
Notes and loans 16,632 - -
Due from other funds 4,523,581 - -
Due from Fiduciary Funds 67,161 - -
Prepaid items 3,338 106,172 -
Total assets $ 46,472 16,932,625 $ 64,177,087 $

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND FUND BALANCES
LIABILITIES:

Accounts payable 1,268,610 $ 19,571 $ - $
Accrued liabilities 456,530 18,378 -
Due to other funds 3,171,909 - 1,127,813
Unearned revenue 102,017 - -
Deposit and other liabilities 1,174,568 - -
Total liabilities 3,209,858 3,001,725 1,127,813
DEFERRED INFLOWS OF RESOURCES:

Unavailable revenue 215,638 - -
Total deferred inflows of resources - 215,638 -
FUND BALANCES:

Nonspendable 106,172 3,338 -
Restricted - 360,498 63,049,274
Committed 3,762,470 - -
Assigned - 2,896,296 -
Unassigned (deficit) 6,589,826 (3,166,724) -
Total Fund Balances (3,163,386) 13,715,262 63,049,274
Total Liabilities, Deferred Inflows
of Resource, and Fund Balances $ 46,472 16,932,625 $ 64,177,087 $ Major Funds
June 30, 2021
City of Patterson
Balance Sheet
Governmental Funds
See accompanying Notes to the Basic Financial Statements. 26 6.1.b
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Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Other Total
Governmental Governmental
Funds Funds
ASSETS
Cash and investments $ 28,856,460 20,440,125 $
Cash and investments with fiscal agents 938,185 -
Investments held in trust 62,736,310 -
Receivables:

Accounts 5,156,703 810,044
Interest 6,555 4,744
Notes and loans 1,743,313 1,726,681
Due from other funds 4,523,581 -
Due from Fiduciary Funds 67,161 -
Prepaid items 109,510 -
Total assets $ 104,137,778 22,981,594 $

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND FUND BALANCES
LIABILITIES:

Accounts payable $ 2,005,378 717,197 $
Accrued liabilities 474,908 -
Due to other funds 4,523,581 223,859
Unearned revenue 494,661 392,644
Deposit and other liabilities 1,248,457 73,889
Total liabilities 8,746,985 1,407,589
DEFERRED INFLOWS OF RESOURCES:

Unavailable revenue 2,105,200 1,889,562
Total deferred inflows of resources 2,105,200 1,889,562 FUND BALANCES:

Nonspendable 109,510 -
Restricted 76,282,884 12,873,112
Committed 10,936,194 7,173,724
Assigned 2,935,161 38,865
Unassigned (deficit) 3,021,844 (401,258)
Total Fund Balances 93,285,593 19,684,443
Total Liabilities, Deferred Inflows
of Resource, and Fund Balances $ 104,137,778 22,981,594 $ City of Patterson
Balance Sheet (Continued)
Governmental Funds
June 30, 2021
See accompanying Notes to the Basic Financial Statements. 27 6.1.b
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Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Total fund balances of governmental funds $ 93,285,593
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 governmental funds. 61,545,512
Pension-related deferred outflows/inflows of resources in the governmental activities were not financial resources (uses) and therefore were not reported in the Governmental Funds Balance Sheet.

Pension-related deferred outflows of resources 1,862,183 Pension-related deferred inflows of resources (42,686)
OPEB-related deferred outflows/inflows of resources in the governmental activities were not financial resources (uses) and therefore were not reported in the Governmental Funds Balance Sheet.

OPEB-related deferred outflows of resources 1,106,768
OPEB-related deferred inflows of resources (1,652,469)
Interest payable on long-term debt does not require current financial resources. Therefore, interest payable is not reported as a liability in the Governmental Funds Balance Sheet. (1,190,897) Unavailable revenues reported on the Governmental Fund Financial Statements resulting from activities in which revenues were earned but were not available are reclassified as revenues in the Government-Wide Financial Statements. 2,105,200 Long-term liabilities are not due and payable in the current period and therefore are not reported in the Governmental Funds Balance Sheet.

Long-term debt (66,324,246)
Settlement payable (364,000)
Compensated absences (512,606)
Net OPEB liability (8,978,820)
Aggregated net pension liability (5,941,415)
Net position of governmental activities $ 74,898,117
City of Patterson
Reconciliation of the Governmental Funds
Balance Sheet to the Government-Wide Statement of Net Position June 30, 2021
See accompanying Notes to the Basic Financial Statements. 29 6.1.b
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Public Safety/ Public
General Fire Protection Financing
Fund Services Fund Authority
REVENUES:

Taxes:

Property $ - 6,196,152 $ - $
Sales - 10,029,499 -
Franchise - 222,803 -
Other - 248,158 -
Licenses, permits, and fees 1,067,612 - -
Charges for services 277,580 1,197,629 -
Intergovernmental:

Federal grant and subsidies 1,153,029 - -
Other governmental 1,148,507 - -
Fines, forfeitures and penalties 339,080 - -
Use of money and property - - -
Investment income (loss) (113,314) - 3,420,541
Revenue from Fiduciary Fund - - 527,556
Miscellaneous 94,776 295,955 -
Total revenues 1,292,405 20,865,061 3,948,097
EXPENDITURES:

Current:

General government 3,489,638 - -
Police - 5,410,959 -
Fire 2,801,504 2,481,200 -
Community development and planning 1,707,485 - -
Public works 3,097,430 - -
Park and recreation 1,878,060 - -
Capital outlay - 478,597 -
Debt service:

Principal - 134,848 2,258,971
Interest and fiscal charges 74,231 - 3,747,210
Total expenditures 2,801,504 18,752,448 6,006,181

REVENUES OVER (UNDER)
EXPENDITURES (1,509,099) 2,112,613 (2,058,084)
OTHER FINANCING SOURCES (USES):

Transfers in 3,212,592 977,330 -
Transfers out (686,271) - -
Total financing sources (uses) 977,330 2,526,321 -
Net change in fund balances (531,769) 4,638,934 (2,058,084) FUND BALANCES:

Beginning of year 9,076,328 (2,631,617) 65,107,358
End of year 13,715,262 $ (3,163,386) $ 63,049,274 $
Major Funds
For the Year Ended June 30, 2021
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances City of Patterson
See accompanying Notes to the Basic Financial Statements. 30 6.1.b
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Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Other Total
Governmental Governmental
Funds Funds
REVENUES:

Taxes:

Property $ 6,196,152 - $
Sales 10,029,499 -
Franchise 222,803 -
Other 248,158 -
Licenses, permits, and fees 3,872,859 2,805,247
Charges for services 4,651,557 3,176,348
Intergovernmental:

Federal grant and subsidies 1,804,688 651,659
Other governmental 4,139,068 2,990,561
Fines, forfeitures and penalties 339,080 -
Use of money and property 146,138 146,138
Investment income (loss) 3,382,847 75,620
Revenue from Fiduciary Fund 527,556 -
Miscellaneous 393,511 2,780
Total revenues 35,953,916 9,848,353
EXPENDITURES:

Current:

General government 3,539,563 49,925
Police 5,410,959 -
Fire 5,289,020 6,316
Community development and planning 21,109 1,728,594
Public works 3,899,114 801,684
Park and recreation 1,878,060 -
Capital outlay 2,964,721 2,486,124
Debt service:

Principal 2,427,337 33,518
Interest and fiscal charges 3,822,329 888
Total expenditures 30,959,697 3,399,564

REVENUES OVER (UNDER)
EXPENDITURES 4,994,219 6,448,789
OTHER FINANCING SOURCES (USES):

Transfers in 6,985,786 2,795,864
Transfers out (5,336,745) (4,650,474)
Total financing sources (uses) 1,649,041 (1,854,610)
Net change in fund balances 6,643,260 4,594,179
FUND BALANCES:

Beginning of year 86,642,333 15,090,264
End of year $ 93,285,593 19,684,443 $
City of Patterson
Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Governmental Funds
For the Year Ended June 30, 2021
See accompanying Notes to the Basic Financial Statements. 31 6.1.b
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Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Net change in fund balances - total governmental funds $ 6,643,260 Amounts reported for governmental activities in the Statement of Activities are different because:

Governmental funds reported capital outlay as expenditures. However, in the Government-Wide Statement of Activities and Changes in Net Position, the cost of those assets was allocated over their estimated useful lives as depreciation expense. This was the amount of capital assets recorded in the current period. 2,964,721 Depreciation expense on capital assets was reported in the Government-Wide Statement of Activities and Changes in Net Position, but it did not require the use of current financial resources. Therefore, depreciation expense was not reported as expenditures in the Governmental Funds. (2,726,749)
The net effect of various miscellaneous transactions involving capital assets (i.e. sales, trade-ins, and donations) decreased net position. (691)
Repayment of long-term liabilities was an expenditures in governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position Principal payment of long-term debt 2,427,337
Amortization of bond discount (28,446)
Interest expenses on long-term debt was reported in the Government-Wide Statement of Activities, but it did not require the use of current financial resources. This amount represented the changes in accrued interest from prior year. 32,214 Compensated absences expenses reported in the Government-Wide Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. (44,117) Revenues in the Government-Wide Statement of Activities that do not provide current financial resources and are not reported as revenue in the governmental funds. (90,446) Certain pension expenses reported in the Government-Wide Statement of Activities do not require the use of current financial resources and therefore, are not reported as expenditures in governmental funds.

Changes in pension related deferred outflows of resources 115,004 Changes in net pension liabilities (615,208)
Changes in pension related deferred inflows of resources 55,559 Certain OPEB expenses reported in the Government-Wide Statement of Activities do not require the use of current financial resources and therefore, are not reported as expenditures in governmental funds.

Changes in OPEB related deferred outflows of resources 633,509 Changes in net OPEB liabilities (471,264)
Changes in OPEB related deferred inflows of resources (841,538) Change in net position of governmental activities $ 8,053,145 City of Patterson
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities For the Year Ended June 30, 2021
See accompanying Notes to the Basic Financial Statements. 32 6.1.b
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PROPRIETARY FUND FINANCIAL STATEMENTS
33 6.1.b
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ASSETS
Current assets:

Cash and investments 7,666,791 $ 2,800,033 $ 1,702,067 $ 12,168,891 $ Restricted cash and investments - 468,952 - 468,952
Accounts receivable 856,272 612,588 479,817 1,948,677
Interest receivable 1,777 651 395 2,823
Prepaid items 5,706 5,554 1,240 12,500
Total current assets 3,887,778 8,530,546 2,183,519 14,601,843 Noncurrent assets:

Cash and investments with fiscal agents 11,881,064 67,487 - 11,948,551 Capital assets:

Non-depreciable 6,998,590 3,941,364 - 10,939,954
Depreciable, net 16,333,375 20,182,707 32,859 36,548,941 Capital assets, net 23,331,965 24,124,071 32,859 47,488,895 Total noncurrent assets 24,191,558 35,213,029 32,859 59,437,446 Total assets 28,079,336 43,743,575 2,216,378 74,039,289

DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding 156,555 177,952 - 334,507
OPEB-related deferred outflows of resources 229,988 258,084 65,813 553,885 Pension-related deferred outflows of resources 504,145 590,491 179,660 1,274,296 Total deferred outflows of resources 1,026,527 890,688 245,473 2,162,688

LIABILITIES
Current liabilities:

Accounts payable 374,487 138,173 68,130 580,790
Accrued liabilities 3,956 1,706 2,060 7,722
Deposits payable 104,300 - - 104,300
Accrued interest 16,608 47,858 - 64,466
Compensated absences - due within one year 112,107 123,062 29,192 264,361 Long-term liabilities - due within one year 514,686 315,000 - 829,686 Total current liabilities 783,280 968,663 99,382 1,851,325 Noncurrent liabilities:

Long-term liabilities - due in more than one year 16,601,312 5,764,082 - 22,365,394 Net OPEB liability 1,812,277 1,834,078 372,606 4,018,961 Aggregate net pension liability 1,591,624 1,864,226 567,199 4,023,049 Total noncurrent liabilities 9,462,386 20,005,213 939,805 30,407,404 Total liabilities 10,245,666 20,973,876 1,039,187 32,258,729

DEFERRED INFLOWS OF RESOURCES
OPEB-related deferred inflows of resources 353,461 399,869 94,026 847,356 Pension-related deferred inflows of resources 15,872 18,591 5,656 40,119 Total deferred inflows of resources 418,460 369,333 99,682 887,475

NET POSITION
Net investment in capital assets 18,453,272 18,492,207 32,859 36,978,338 Restricted:

Capital projects 2,620,013 - - 2,620,013
Debt service 446,310 67,487 - 513,797
Total restricted 67,487 3,066,323 - 3,133,810
Unrestricted 1,771,459 (117,957) 1,290,123 2,943,625
Total net position $ 18,441,737 23,291,054 $ 1,322,982 $ 43,055,773 $ City of Patterson
Statement of Net Position
Proprietary Funds
June 30, 2021
Major Funds
See accompanying Notes to the Basic Financial Statements. 34 6.1.b
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OPERATING REVENUES:

Charges for services 6,337,510 $ 4,419,740 $ 3,540,022 $ 14,297,272 $ Fees, fines, and penalties (903) 20,806 37,758 57,661
Miscellaneous 42,152 21,472 364 63,988
Total operating revenues 4,462,018 6,378,759 3,578,144 14,418,921 OPERATING EXPENSES:

Salaries and benefits 2,272,943 2,380,801 772,148 5,425,892 Contractual and professional services 170,630 439,417 1,772,947 2,382,994 Supplies and operating costs 1,024,602 678,212 216,840 1,919,654 Depreciation 1,045,942 1,850,577 12,779 2,909,298
Total operating expenses 5,349,007 4,514,117 2,774,714 12,637,838 OPERATING INCOME (LOSS) (886,989) 1,864,642 803,430 1,781,083 NONOPERATING REVENUES (EXPENSES):

Investment income 27,305 10,887 5,570 43,762
Interest expense (542,285) (183,174) - (725,459)
Total Nonoperating revenues (expenses) (172,287) (514,980) 5,570 (681,697) INCOME (LOSS) BEFORE TRANSFERS (1,059,276) 1,349,662 809,000 1,099,386

TRANSFERS
Revenue from Fiduciary Fund - 155,744 - 155,744
Transfers in 80,144 161,332 1,284 242,760
Transfers out (660,497) (655,395) (575,909) (1,891,801) Total Transfers (338,319) (580,353) (574,625) (1,493,297) CHANGES IN NET POSITION (1,397,595) 769,309 234,375 (393,911) NET POSITION:

Beginning of year 22,521,745 19,839,332 1,088,607 43,449,684 End of year 23,291,054 $ 18,441,737 $ 1,322,982 $ 43,055,773 $ City of Patterson
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2021
Major Funds
See accompanying Notes to the Basic Financial Statements. 35 6.1.b
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Cash Flows from Operating Activities:

Cash received from customers 6,134,571 $ 4,323,052 $ 3,476,765 $ 13,934,388 $ Cash paid to suppliers (932,070) (1,395,402) (2,095,679) (4,423,151) Cash paid to employees (2,074,661) (2,199,299) (596,490) (4,870,450) Other 42,152 21,472 364 63,988
Net cash provided by operating activities 749,823 3,169,992 784,960 4,704,775 Cash Flows from Noncapital Financing Activities:

Transfers in 80,144 161,332 1,284 242,760
Transfers out (660,497) (655,395) (575,909) (1,891,801) Net cash (used in) noncapital financing activities (580,353) (494,063) (574,625) (1,649,041) Cash Flows from Capital and Related Financing Activities:

Acquisition and construction of capital assets (788,262) (390,933) - (1,179,195) Revenue from Fiduciary Fund - 155,744 - 155,744
Principal paid on revenue bonds and loan (305,000) (290,759) - (595,759) Interest paid on capital debt (585,843) (185,310) - (771,153) Net cash provided by (used in) capital and related
financing activities (711,258) (1,679,105) - (2,390,363) Cash Flows from Investing Activities:

Interest 33,244 14,427 6,807 54,478
Net cash provided by investing activities 14,427 33,244 6,807 54,478 Net increase (decrease) in cash and cash equivalents (441,071) 943,778 217,142 719,849 Cash and Cash Equivalents:

Beginning of year 18,604,077 3,777,543 1,484,925 23,866,545 End of year 19,547,855 $ 3,336,472 $ 1,702,067 $ 24,586,394 $ Reconciliation of Cash and Cash Equivalents to the
Statement of Net Position:

Cash and investment 7,666,791 $ 2,800,033 $ 1,702,067 $ 12,168,891 $ Restricted cash and investments - 468,952 - 468,952
Cash and investments with fiscal agent 11,881,064 67,487 - 11,948,551 Total cash and investment $ 3,336,472 19,547,855 $ 1,702,067 $ 24,586,394 $ City of Patterson
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2021
Major Funds
See accompanying Notes to the Basic Financial Statements. 36 6.1.b
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Reconciliation of Operating Income (Loss) to
Net Cash Provided by Operating Activities
Operating income (loss) 1,864,642 $ (886,989) $ 803,430 $ 1,781,083 $ Adjustments to reconcile operating income (loss) to
net cash provided by operating activities:

Depreciation expense 1,045,942 1,850,577 12,779 2,909,298 Change in assets and liabilities:

Accounts receivable (169,974) (117,494) (101,015) (388,483) Prepaid items (5,338) (253) (872) (6,463)
OPEB-related deferred outflows of resources (130,649) (150,260) (39,879) (320,788) Pension-related deferred outflows of resources 9,666 34,160 (52,500) (8,674) Accounts payable 268,500 (277,520) (105,020) (114,040)
Accrued liabilities 1,927 1,706 (958) 2,675
Deposits payable (32,062) - - (32,062)
Compensated absences 14,659 17,138 2,804 34,601
Net OPEB liability 97,188 111,776 29,888 238,852
Aggregate net pension liability 53,647 (5,525) 186,575 234,697 OPEB-related deferred inflows of resources 173,551 199,601 (34,998) 338,154 Pension-related deferred inflows of resources (21,707) (27,094) 84,726 35,925 Total adjustments 1,636,812 1,305,350 (18,470) 2,923,692 Net cash provided by (used in) operating activities $ 749,823 3,169,992 $ 784,960 $ 4,704,775 $ Major Funds
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2021
City of Patterson
See accompanying Notes to the Basic Financial Statements. 37 6.1.b
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38 6.1.b
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FIDUCIARY FUNDS FINANCIAL STATEMENTS
39 6.1.b
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40 6.1.b
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Funds
ASSETS
Cash and investments $ 9,356,212
Restricted cash and investments 186,322
Cash and investments with fiscal agents 4,515,276
Accounts receivable 190,906
Interest receivable 6,484
Notes receivable 1,010,595
Total assets 15,265,795

LIABILITIES
Accounts payable 14,296
Due to City 67,161
Total liabilities 81,457

NET POSITION
Restricted for:

Individuals, organizations, and other governments 15,184,338 Total net position $ 15,184,338
City of Patterson
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2021
See accompanying Notes to the Basic Financial Statements. 41 6.1.b
Packet Pg. 103 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Custodial
Funds
ADDITIONS:

Special assessments for other governments $ 7,437,373
Investment income 85,837
Total additions 7,523,210
DEDUCTIONS:

Administration 67,842
Payments on conduit bonds - principal 1,686,445
Payments on conduit bonds - interest 4,400,903
Projects payments 23,000
Contributions to City 683,300
Total deductions 6,861,490
Change in net position 661,720
NET POSITION:

Beginning of year, as restated 14,522,618
End of period $ 15,184,338
City of Patterson
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2021
See accompanying Notes to the Basic Financial Statements. 42 6.1.b
Packet Pg. 104 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) 43 NOTES TO THE BASIC FINANCIAL STATEMENTS

6.1.b
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6.1.b
Packet Pg. 106 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Index to the Notes to the Basic Financial Statements
For the Year Ended June 30, 2021
45 Note 1 – Summary of Significant Accounting Policies ............................................................................................... 47 A. Financial Reporting Entity .......................................................................................................................... 47 B. Basis of Accounting and Measurement Focus ............................................................................................ 48 C. Cash and Investments .................................................................................................................................. 51 D. Restricted Cash and Investments ................................................................................................................. 52 E. Accounts and Interest Receivable ................................................................................................................ 52 F. Capital Assets .............................................................................................................................................. 53 G. Long-Term Debt .......................................................................................................................................... 53 H. Compensated Absences ............................................................................................................................... 54 I. Pensions ....................................................................................................................................................... 54 J. Other Postemployment Benefits (“OPEB”) ................................................................................................ 55 K. Property Taxes ............................................................................................................................................. 55 L. Net Position ................................................................................................................................................. 56 M. Fund Balances ............................................................................................................................................. 56 N. Use of Estimates .......................................................................................................................................... 57 O. New Governmental Accounting Standards Implemented ........................................................................... 57 P. Upcoming Governmental Accounting Standards Implementation .............................................................. 58 Note 2 – Cash and Investments .................................................................................................................................... 60 A. Cash Deposits .............................................................................................................................................. 60 B. Investments .................................................................................................................................................. 61 C. External Investment Pool ............................................................................................................................ 62 D. Risk Disclosures .......................................................................................................................................... 62 E. Fair Value Measurement ............................................................................................................................. 63 Note 3 – Loan and Notes Receivable ........................................................................................................................... 64 A. Governmental Activities .............................................................................................................................. 64 B. Fiduciary Fund ............................................................................................................................................. 65 Note 4 – Interfund Transactions .................................................................................................................................. 65 A. Due From and To Other Funds .................................................................................................................... 65 B. Transfers In and Out .................................................................................................................................... 66 Note 5 – Due from Fiduciary Funds ............................................................................................................................ 66 Note 6 – Capital Assets ................................................................................................................................................. 67 A. Governmental Activities .............................................................................................................................. 67 B. Business-Type Activities ............................................................................................................................. 68 Note 7 – Long-Term Obligations ................................................................................................................................. 68 A. Governmental Activities .............................................................................................................................. 68 B. Business-Type Activities ............................................................................................................................. 71

6.1.b
Packet Pg. 107 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021
46 Note 8 – Compensated Absences .................................................................................................................................. 76 A. Governmental Activities .............................................................................................................................. 76 B. Business-Type Activities ............................................................................................................................. 76 Note 9 – Conduit Debt .................................................................................................................................................. 76 Note 10 – Fund Balances .............................................................................................................................................. 77 Note 11 – Risk Management ......................................................................................................................................... 78 Note 12 – Pension Plans ................................................................................................................................................ 79 A. Summary ..................................................................................................................................................... 79 B. General Information about Pension Plans ................................................................................................... 80 C. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions ...................................................................................................... 81 D. Payable to the Pension Plan ......................................................................................................................... 85 Note 13 – Other Postemployment Benefits ................................................................................................................. 85 A. Summary ..................................................................................................................................................... 85 B. General Information about OPEB ............................................................................................................... 86 C. Net OPEB Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB .......................................................................................................... 86 Note 14 – Deferred Compensation Plan ...................................................................................................................... 89 Note 15 – Other Required Disclosures ........................................................................................................................ 89 A. (Deficit) Net Position/Fund Balances .......................................................................................................... 89 B. Expenditures Exceeding Appropriations ..................................................................................................... 90 Note 16 – Settlement with Eli Development Corporation ......................................................................................... 90 Note 17 – Net Investment in Capital Assets ................................................................................................................ 90 Note 18 – Commitments and Contingencies ............................................................................................................... 90 A. Litigation ..................................................................................................................................................... 90 B. Grants .......................................................................................................................................................... 90 C. Other Matters ............................................................................................................................................... 90 Note 19 – Prior Period Adjustments ............................................................................................................................ 91 A. Fiduciary Fund Financial Statements .......................................................................................................... 91 Note 20 – Subsequent Events ....................................................................................................................................... 91 A. American Rescue Plan Act ................................................................................................................................ 91 B. CFD 2018-1 (Villages of Patterson) Special Tax Bonds, Series 2021 ............................................................... 91 C. CFD 2005-1 (West Patterson Business Park) Special Tax Bonds, Series 2021 ................................................ 92

6.1.b
Packet Pg. 108 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements
For the Year Ended June 30, 2021
47 Note 1 – Summary of Significant Accounting Policies
The accompanying basic financial statements of the City of Patterson, California (the “City”), have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as applied to governmental agencies. The Governmental Accounting Standards Board (“GASB”) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City’s accounting policies are described below.

A. Financial Reporting Entity
The City of Patterson (the “City”) operates under a Council-Manager form of government and provides the following services as authorized: public safety (police, fire and civil defense), highway and streets, sanitation, health and social services, culture-recreation, education, public improvements, planning and zoning, and general administrative services. The City also provides water, garbage, and sewer service.

In evaluating how to define the City for financial reporting purposes, management has considered all potential component units. The primary criteria for including a potential component unit within the reporting entity are the governing body’s financial accountability and a financial benefit or burden relationship and whether it is misleading to exclude. A primary government is financially accountable and shares a financial benefit or burden relationship, if it appoints a voting majority of an organization’s governing body and it is able to impose its will on the organization, or if there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on the primary government. A primary government may also be financially accountable if an organization is fiscally dependent on the primary government regardless of whether the organization has a separately elected governing board, a governing board appointed by a higher level of government, or a jointly appointed board, and there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on the primary government.

Blended Component Units
Although the following are legally separate from the City, they have been “blended” as though they are part of the City because the component unit’s governing body is substantially the same as the City’s and there is a financial benefit or burden relationship between the City and the component unit; management of the City has operational responsibilities for the component unit; and/or the component units provide services entirely, or almost entirely, to the City or otherwise exclusively, or almost exclusively, benefits the City, even though it does not provide services directly to it.

Patterson Public Financing Authority: The Patterson Public Financing Authority (“PPFA”) was formed in 2001 pursuant to a joint exercise of powers agreement between the City of Patterson and the former Redevelopment Agency of the City of Patterson. The Authority is authorized to borrow money for the purpose of financing the acquisition of bonds, notes, and other obligations of, or for the purpose of making loans to, public entities, including the City and to provide financing for public capital improvements for lease to public entities, including the City. The members of the City Council also sit as the Board of Directors of the Authority. The financial activities of the PPFA are reported in the debt service fund.

6.1.b
Packet Pg. 109 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
48 Note 1 – Summary of Significant Accounting Policies (Continued) A. Financial Reporting Entity (Continued)
The City also participates in the following organization that does not meet the definition of a component unit:

West Patterson Financing Authority: The West Patterson Financing Authority (the Authority) was formed in 2001 pursuant to a joint exercise of powers agreement between the City of Patterson and the former Redevelopment Agency of the City of Patterson. The primary activity of the Authority is issuing special tax bonds on behalf of the West Patterson Financing Authority Community Facilities District No. 2001-1 (Public Improvements). The proceeds of the special tax bonds are used to finance the costs of certain engineering, design, construction and other expenses related to public infrastructure improvements.

On October 18, 2005, pursuant to Resolution No. 2005-04 of the Board of Directors of the Authority, the Authority founded its Community Facilities District No. 2005-1 (West Patterson Business Park) and authorized special tax levies therein.

On June 2, 2015, pursuant to Resolution No.2015-03 of the Board of Directors of the Authority, the Authority founded its Community Facilities District No. 2015-1 (Arambel-KND) and authorized special tax levies therein.

On October 16, 2018, pursuant to Resolution No. 2018-04 of the Board of Directors of the Authority, the Authority founded its Community Facilities District No. 2018-1 (Villages of Patterson) and authorized special tax levies therein. The participating landowners have been invoiced for the costs to form CFD 2018-1.

The financial activities of the Authority are included in the City's agency funds. Separate financial statements for the Authority may be obtained from the City at 1 Plaza, Patterson, CA 95363.

B. Basis of Accounting and Measurement Focus
Fund Accounting
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled.

Deferred Outflows/Inflows of Resources
The Statement of Net Position reports separate sections for Deferred Outflows of Resources, and Deferred Inflows of Resources, when applicable.

Deferred Outflows of Resources represent outflows of resources (consumption of net position) that apply to future periods and that, therefore, will not be recognized as an expense until that time.

Deferred Inflows of Resources represent inflows of resources (acquisition of net position) that apply to future periods and that, therefore, are not recognized as revenue until that time.

6.1.b
Packet Pg. 110 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
49 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Government–Wide Financial Statements
The City’s government-wide financial statements include a statement of net position and a statement of activities.

These statements present summaries of governmental and business-type activities for the City accompanied by a total column. Fiduciary activities of the City are not included in these statements.

These financial statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying statement of net position. The statement of activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.

Certain types of transactions are reported as program revenues for the City in three categories:
 Charges for services
 Operating grants and contributions
 Capital grants and contributions
Certain eliminations have been made in regards to interfund activities, payables and receivables. All internal balances in the statement of net position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. However, those transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:
 Due from and to other funds
 Transfers in and out
Governmental Fund Financial Statements
Governmental fund financial statements include a balance sheet and a statement of revenues, expenditures and changes in fund balances for all major governmental funds and non-major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in net position as presented in these statements to the net position presented in the government-wide financial statements. The City has presented all major funds that met the applicable criteria.

All governmental funds are accounted for on a spending or “current financial resources” measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the balance sheet. The statement of revenues, expenditures and changes in fund balances present increases (revenue and other financing sources) and decreases (expenditures and other financing uses) in fund balances.

Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. The City defines available to be within 60 days.

The primary revenue sources, which have been treated as susceptible to accrual by the City, are taxes, intergovernmental revenues, interest and charges for services. Certain indirect costs are included in program expenses reported for individual functions and activities. Expenditures are recorded in the accounting period in which the related fund liability is incurred.

6.1.b
Packet Pg. 111 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
50 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Governmental Fund Financial Statements (Continued)
Grant revenues are recognized in the fiscal year in which all eligibility requirements are met. Under the terms of grant agreements, the City may fund certain programs with a combination of cost-reimbursement grants, categorical block grants, and general revenues. Thus, both restricted and unrestricted net position are available to finance program expenditures. The City's policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary.

The reconciliation of the fund financial statements to the government-wide financial statements is provided to explain the differences.

Governmental funds of the City are outlined below:

General Fund - This is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

CFD 2003-1 Public Safety/Fire Protection Services Fund - This fund accounts funds for public safety with the first priority being fire and emergency medical service in new developments. This fund account for all special tax revenue levied and all direct and incidental costs related to public safety incurred within the district.

Patterson Public Financing Authority - The Authority is authorized to borrow money for the purpose of financing the acquisition of bonds, notes, and other obligations of, or for the purpose of making loans to, public entities, including the City and to provide financing for public capital improvements for lease to public entities, including the City.

Other Governmental Funds – Other Governmental Funds is the aggregate of all the non-major governmental funds.

Proprietary Fund Financial Statements
Proprietary fund financial statements include a statement of net position, a statement of revenues, expenses and changes in net position, and a statement of cash flows for each major proprietary fund.

Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the statement of net position. The statement of revenues, expenses and changes in net position presents increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. In these funds, receivables have been recorded as revenue and provisions have been made for uncollectible amounts.

Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as nonoperating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as nonoperating expenses.

6.1.b
Packet Pg. 112 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
51 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Proprietary Fund Financial Statements (Continued)
Proprietary funds of the City are outlined below:

Water Fund - This fund accounts for all financial transactions relating to the City's water service. Services are on a user charge basis to residents and business owners in Patterson.

Sewer Fund - This fund accounts for all financial transactions relating to the City's wastewater treatment collection and treatment. Services are on a user charge basis to residents and business owners located in Patterson.

Garbage Fund - This fund accounts for all financial transactions relating to the City's solid waste service.

Services are on a user charge basis to residents and business owners located in Patterson.

Fiduciary Fund Financial Statements
Fiduciary fund financial statements consist of a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position. The City has one type of fiduciary fund, custodial funds. Custodial funds are used to report fiduciary activities that are not required to be reported in pension (and other employee benefit) trust funds, investment trust funds, or private-purpose trust funds. Fiduciary funds are accounted for using the accrual basis of accounting. The City reports the following fiduciary funds:

Custodial Funds –The City accounts for various assessment districts for which the City acts as an agent for debt service activity, as the City is prohibited from levying additional taxes for these districts. Such funds include Community Facilities Districts.

C. Cash and Investments
The City pools its available cash for investment purposes. The City’s cash and investments considered to be cash equivalents, consist of cash on hand, demand deposits, and short-term investments with original maturity of three months or less from the date of acquisition. Cash and cash equivalents are combined with investments and reported as Cash and Investments.

Highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. Market value is used as fair value for those securities for which market quotations are readily available.

The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period-end cash and investment balances.

Interest income from cash and investments with fiscal agents is credited directly to the related fund.

6.1.b
Packet Pg. 113 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
52 Note 1 – Summary of Significant Accounting Policies (Continued) C. Cash and Investments (Continued)
The City participates in an investment pool managed by the State of California titled Local Agency Investment Fund (LAIF) which has invested a portion of the pool funds in structured notes and asset-backed securities.

LAIF’s investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these structured notes and asset-backed securities are subject to market risk as to change in interest rates.

U.S. GAAP defines fair value, establishes a framework for measuring fair value and establishes disclosures about fair value measurement. Investments, unless otherwise specified, recorded at fair value in the Statements of Net Position, are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Levels of inputs are as follows:

Level 1 – Inputs are unadjusted, quoted prices for identical assets and liabilities in active markets at the measurement date.

Level 2 – Inputs, other than quoted prices included in Level 1, that are observable for the assets or liabilities through corroboration with market data at the measurement date.

Level 3 – Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the assets or liabilities at the measurement date.

D. Restricted Cash and Investments
Certain restricted cash and investments are held by a fiscal agent for the redemption of bonded debt and for acquisition and construction of capital projects.

E. Accounts and Interest Receivable
In the government-wide statements, receivables consist of all revenues earned at year-end and not yet received.

Receivables are recorded in the financial statements net of any allowance for doubtful accounts if applicable, and estimated refunds due. Major receivable balances for the governmental activities include sales and use taxes, franchise taxes, grants, police fines and other fees. Business-type activities report utilities and interest earnings as their major receivables.

In the fund financial statements, material receivables in governmental funds include revenue accruals such as sales tax, franchise tax, and grants and other similar intergovernmental revenues since they are usually both measurable and available. Nonexchange transactions collectible but not available are deferred in the fund financial statements in accordance with modified accrual, but not deferred in the government-wide financial statements in accordance with the accrual basis. Interest and investment earnings are recorded when earned only if paid within 60 days since they would be considered both measurable and available. Proprietary fund material receivables consist of all revenues earned at year-end and not yet received. Utility accounts receivable and interest earnings compose the majority of proprietary fund receivables.

6.1.b
Packet Pg. 114 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
53 Note 1 – Summary of Significant Accounting Policies (Continued) F. Capital Assets
Capital assets are valued at historical cost or estimated historical cost if actual historical cost was not available.

Donated capital assets are valued at their estimated acquisition value on the date donated. City policy has set the capitalization threshold at $5,000. Depreciation is recorded on a straight-line basis over estimated useful lives of the assets as follows:

Buildings and improvements 20-40 years
Machinery and Equipment 3-6 years
Streets and roads 20 years
Curbs, gutters, sidewalks, and 20 years
Storm drains 75 years
For all infrastructure systems, the City elected to use the Basic Approach for infrastructure reporting. The City defines infrastructure as the basic physical assets that allow the City to function. The assets include streets, sewer, and park lands. Each major infrastructure system can be divided into subsystems. For example, the street system can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, landscaping and land. These subsystems were not delineated in the basic financial statements. The appropriate operating department maintains information regarding the subsystems.

Interest accrued during capital assets construction, if any, is capitalized for the business-type and proprietary funds as part of the asset cost.

In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for the same as in the government-wide statements.

G. Long-Term Debt
In the government-wide financial statements and the proprietary fund financial statements, long-term liabilities, and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type Statement of Net Position. Initial issue bond premiums and discounts, are deferred and amortized over the life of the bonds using the straight-line method. The difference between the reacquisition price of refunding bonds and the net carrying amount of refunded debt (deferred amount on refunding) is amortized over the shorter of the lives of the refunding debt or remaining life of the refunded debt.

Bond issuance costs except for insurance, are expenses in the period incurred. Amortization of bond premiums or discounts, issuance costs, and deferred amounts on refunding is included in interest expense.

In the fund financial statements, governmental fund types recognize bond premiums, discounts, and issuance costs during the period issued. The face amount of debt issued is reported as other financing sources. Premiums received are reported as other financing sources, while discounts are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

6.1.b
Packet Pg. 115 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
54 Note 1 – Summary of Significant Accounting Policies (Continued) H. Compensated Absences
Government-Wide Financial Statements
City employees have vested interest in varying levels of vacation and sick leave based on their length of employment and bargaining unit they belong to. Vacation leave is payable to employees at the time a vacation is taken or upon termination of employment. Sick leave is payable only when an employee is unable to work due to personal or family illness. There is no cap on the amount of sick leave that can be accrued. Employees with less than five years of employment do not have vested privilege on sick leave and their sick leave is forfeited upon termination. Eligible employees are accruing their vacation time on a monthly basis based on their years of continuous service. Effective July 1, 2016, the City changed its vesting procedures for department heads, going forward department heads will vest their annual vacation at the beginning of the year, whereas all other eligible employees vest in their vacation on a monthly basis. The amount of compensated absences is accrued when incurred in the government-wide financial statements.

Fund Financial Statements
In governmental funds, compensated absences are recorded as expenditures in the years paid, as it is the City’s policy to liquidate any unpaid compensated absences at June 30 from future resources, rather than currently available financial resources. When an employee is terminated at fiscal year end, the amount of his or her reimbursable unused vacation is recorded as a liability in the governmental funds. In proprietary funds, compensated absences are expensed to the various funds in the period they are earned, and such fund’s share of the unpaid liability is recorded as a long-term liability of the fund.

The amount of accrued sick pay is not due upon termination and therefore is not recorded as a liability for the City.

I. 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 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 (Note 12). For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value.

The following timeframes are used for pension reporting:

Valuation Date June 30, 2019
Measurement Date June 30, 2020
Measurement Period July 1, 2019 to June 30, 2020
Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.

6.1.b
Packet Pg. 116 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
55 Note 1 – Summary of Significant Accounting Policies (Continued) J. Other Postemployment Benefits (“OPEB”)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s Retiree Benefits Plan (“OPEB Plan”) and additions to/deductions from OPEB Plan's fiduciary net position have been determined on the same basis as they are reported by the Plan (Note 13). For this purpose, the OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value, except for money market investments, which are reported at amortized cost.

The following timeframes are used for OPEB reporting:

Valuation Date June 30, 2020
Measurement Date June 30, 2020
Measurement Period July 1, 2019 to June 30, 2020
Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. The first amortized amounts are recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The amortization period differs depending on the source of gain or loss. The difference between projected and actual earnings is amortized on a straight-line basis over 5 years. All other amounts are amortized on a straight-line basis over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) at the beginning of the measurement period.

K. Property Taxes
The County of Stanislaus levies, bills, and collects property taxes and special assessments for the City. Property taxes levied are recorded as revenue when received, in the fiscal year or levy, due to the adoption of the "alternate method of property tax distribution", known as the Teeter Plan, by the City and the County of Stanislaus. The Teeter Plan authorizes the Auditor/Controller of the County of Stanislaus to allocate 100% of the secured property taxes billed, but not yet paid. The County of Stanislaus remits tax monies to the City in three installments as follows:
 55% remitted in January
 40% remitted in May
 5% remitted in June
Tax collections are the responsibility of the County Tax Collector. Taxes and assessments on secured and utility rolls which constitute a lien against the property, may be paid in two installments; the first is due November 1 of the fiscal year and is delinquent if not paid by December 10; and the second is due on March 1 of the fiscal year and is delinquent if not paid by April 10. Unsecured personal property taxes do no constitute a lien against real property unless the tax becomes delinquent. Payment must be made in one installment, which is delinquent if not paid by August 31 of the fiscal year. Significant penalties are imposed by the County for late payment.

Property valuations are established by the Assessor of the County of Stanislaus for the secured and unsecured property tax rolls. Under the provisions of Article XIIIA of the State Constitution, properties are assessed at 100% of purchase price or value in 1978 whichever is later. From this base assessment, subsequent annual increases in valuation are limited to a maximum of 2 percent. However, increases to full value are allowed for property improvements or upon change in ownership. Personal property is excluded from these limitations, and is subject to annual reappraisal.

6.1.b
Packet Pg. 117 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
56 Note 1 – Summary of Significant Accounting Policies (Continued) L. Net Position
For government-wide and proprietary fund financial statements, net position is categorized as follows:

Net Investment in Capital Assets – This component of net position consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of those assets.

Restricted – This component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets.

Unrestricted – This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position.

When expenses are incurred for purposes for which both restricted and unrestricted net position is available, the City’s policy is to apply restricted net position first.

M. Fund Balances
For governmental fund financial statements, fund balances are categorized as follows:

Nonspendable – Items that cannot be spent because they are not in spendable form, such as prepaid items and inventories and long term receivables, or items that are legally or contractually required to be maintained intact, such as principal of an endowment or revolving loan funds.

Restricted – Restricted fund balances encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes externally imposed restrictions by creditors, such as through debt covenants, grantors, contributors, laws or regulations of other governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation.

Committed – Committed fund balances encompass the portion of net fund resources, the use of which is constrained by limitations imposed by the formal action of the government’s highest level of decision making authority normally through resolutions, etc., and that remain binding unless rescinded or modified in the same manner. The City Council is considered the highest authority for the City.

Assigned – Assigned fund balances encompass the portion of net fund resources reflecting the government’s intended use of resources. Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose. The City’s policy hereby delegates the authority to assign amounts to be used for specific purposes to the City Manager and the Finance Director for the purpose of reporting these amounts in the annual financial statements.

Unassigned – This amount is for any portion of the fund balances that do not fall into one of the above categories. The General Fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than the General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed or assigned for those purposes, it may be necessary to report negative unassigned fund balance in that particular fund.

6.1.b
Packet Pg. 118 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
57 Note 1 – Summary of Significant Accounting Policies (Continued) M. Fund Balances (Continued)
When expenditures are incurred for purposes for which both restricted and unrestricted fund balances are available, the City’s policy is to apply restricted fund balances first, then unrestricted fund balances as they are needed.

When expenditures are incurred for purposes where only unrestricted fund balances are available, the City uses the unrestricted resources in the following order: committed, assigned, and unassigned.

N. Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosure. Accordingly, actual results could differ from those estimates.

O. New Governmental Accounting Standards Implemented
During fiscal year ended June 30, 2021, the City has implemented the following new GASB Pronouncements:

GASB Statement No. 84
In January 2017, GASB issued Statement No. 84, Fiduciary Activities. This Statement establishes criteria for identifying fiduciary activities of all state and local governments. The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and postemployment benefit arrangements that are fiduciary activities. Application of this statement is effective for the City’s fiscal year ending June 30, 2021. As a result of the implementation, the City converted the former agency funds, which previously reported assets and liabilities only, to custodial funds and reported a restatement of its net position in the amount of $14,522,618.

GASB Statement No. 90
In August 2018, GASB issued Statement No. 90, Majority Equity Interests– An Amendment of GASB Statements No. 14 and No. 61. This Statement improves the consistency and comparability of reporting a government’s majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain component units. It defines a majority equity interest and specifies that a majority equity interest in a legally separate organization should be reported as an investment if a government’s holding of the equity interest meets the definition of an investment. A majority equity interest that meets the definition of an investment should be measured using the equity method, unless it is held by a special-purpose government engaged only in fiduciary activities, a fiduciary fund, or an endowment (including permanent and term endowments) or permanent fund. Those governments and funds should measure the majority equity interest at fair value. Application of this statement did not have a material effect on the City’s financial statements for the fiscal year ending June 30, 2021.

GASB Statement No. 98
In October 2021, GASB issued Statement No. 98, The Annual Comprehensive Financial Report, to establish the term annual comprehensive financial report and its acronym ACFR. That new term and acronym replace instances of comprehensive annual financial report and its acronym in generally accepted accounting principles for state and local governments. Application of this statement did not have a material financial effect on the City’s financial statements for the fiscal year ending June 30, 2021.

6.1.b
Packet Pg. 119 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
58 Note 1 – Summary of Significant Accounting Policies (Continued) P. Upcoming Governmental Accounting Standards Implementation The City is currently evaluating its accounting practices to determine the potential impact on the financial statements for the following GASB Statements:

GASB Statement No. 87
In June 2017, GASB issued Statement No. 87, Leases. 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 operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities. Application of this statement is effective for the City’s fiscal year ending June 30, 2022.

GASB Statement No. 89
In June 2018, GASB issued Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period. This Statement establishes accounting requirements for interest cost incurred before the end of a construction period. Such interest cost includes all interest that previously was accounted for in accordance with the requirements of paragraphs 5–22 of Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements, which are superseded by this Statement. 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. Application of this statement is effective for the City’s fiscal year ending June 30, 2022.

GASB Statement No. 91
In May 2019, GASB issued Statement No. 91, Conduit Debt Obligations. The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. 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. Application of this statement is effective for the City’s fiscal year ending June 30, 2023.

GASB Statement No. 92
In January 2020, GASB issued Statement No. 92, Omnibus 2020. The primary objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. Application of this statement is effective for the City’s fiscal year ending June 30, 2022.

6.1.b
Packet Pg. 120 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
59 Note 1 – Summary of Significant Accounting Policies (Continued) P. Upcoming Governmental Accounting Standards Implementation (Continued) GASB Statement No. 93
In March 2020, GASB issued Statement No. 93, Replacement of Interbank Offered Rates. Some governments have entered into agreements in which variable payments made or received depend on an interbank offered rate (IBOR)—most notably, the London Interbank Offered Rate (LIBOR). As a result of global reference rate reform, LIBOR is expected to cease to exist in its current form at the end of 2021, prompting governments to amend or replace financial instruments for the purpose of replacing LIBOR with other reference rates, by either changing the reference rate or adding or changing fallback provisions related to the reference rate. The objective of this Statement is to address those and other accounting and financial reporting implications that result from the replacement of an IBOR. Application of this statement is effective for the City’s fiscal year ending June 30, 2022.

GASB Statement No. 94
In March 2020, GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements. The primary objective of this Statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). As used in this Statement, a PPP is an arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange-like transaction. Application of this statement is effective for the City’s fiscal year ending June 30, 2023.

GASB Statement No. 96
In May 2020, GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements. This Statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). 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) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA.

Application of this statement is effective for the City’s fiscal year ending June 30, 2023.

GASB Statement No. 97
In June 2020, GASB issued Statement 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. The primary objectives of this Statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (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 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. Application of this statement is effective for the City’s fiscal year ending June 30, 2022.

6.1.b
Packet Pg. 121 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
60 Note 2 – Cash and Investments
The following is a summary of pooled cash and investments and restricted cash and investments at June 30, 2021:

Governmental Business-type Fiduciary
Activities Activities Funds Total
Cash and investments 28,856,460 $ 12,168,891 $ 9,356,212 $ 50,381,563 $ Restricted cash and investments - 468,952 186,322 655,274 Cash and investments with fiscal agents 938,185 11,948,551 4,515,276 17,402,012 Investments held in trust 62,736,310 - - 62,736,310
Total cash and investments $ 24,586,394 92,530,955 $ 14,057,810 $ 131,175,159 $ Primary Government
Cash, cash equivalents, and investments, consisted of the following at June 30, 2021:

Cash and cash equivalents:

Cash on hand 1,245 $
Deposits with financial institutions 32,854,138
Total cash and cash equivalents 32,855,383
Investments:

Local obligation bonds 62,736,310
Money market mutual funds 17,402,012
Central San Joaquin Valley Risk Authority (CSJVRMA) 4,012,291 Local Agency Investment Fund (LAIF) 14,169,163
Total investments 98,319,776
Total cash and investments $ 131,175,159
A. Cash Deposits
The carrying amounts of the City’s demand deposits were $32,854,138 at June 30, 2021. Bank balances were $32,879,717 at that date. The total amount of which was collateralized or insured with securities held by the pledging financial institutions in the City’s name is discussed below.

The California Government Code requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name.

The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City may waive collateral requirements for cash deposits; however, the City has not waived the collateralization requirements.

6.1.b
Packet Pg. 122 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
61 Note 2 – Cash and Investments (Continued)
B. Investments
Investments Authorized by the California Code and the City’s Investments Policy The table below identifies the investment types that are authorized by the City's investment policy. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy.

Maximum Maximum
Maximum Percentage of Investment in
Maturity Portfolio one Issuer
U.S. Treasure Obligations 5 years None None
U.S. Agency Securities 5 years None None
Certificates of Deposit 2 years None None
Local Agency Investment Fund (LAIF) N/A None None
Money Market Funds N/A None None
Annuities N/A None None
Mutual Funds N/A 5% None
Corporate Notes (Minimum rating of "AAA") 5 years 5% None Local Agency Bonds (Local obligation bonds) 5 years None None Authorized Investment Type
* The table is based on state law requirements or investment policy requirements, whichever is more restrictive.

Investments Authorized by Debt Agreements
Investment of debt issuances held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy. The table below identifies the investment types that are authorized by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Maximum Maximum
Maximum Percentage of Investment in
Maturity Portfolio one Issuer
U.S. Treasure Obligations 5 years None None
U.S. Agency Securities 5 years None None
Certificates of Deposit 2 years None None
Local Agency Investment Fund (LAIF) None None None
Money Market Funds None None None
Annuities None None None
Mutual Funds None None None
Corporate Notes (Minimum rating of "AAA") None None None Local Agency Bonds (Local obligation bonds) 5 years None None Authorized Investment Type

6.1.b
Packet Pg. 123 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
62 Note 2 – Cash and Investments (Continued)
C. External Investment Pool
The City is a participant in LAIF, which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City’s investments in LAIF at June 30, 2021 included a portion of pool funds invested in Structure Notes and Asset-Backed Securities:

Structured Notes are debt securities (other than asset-backed securities) whose cash-flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options.

Asset-Backed Securities, the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from pool of assets such as principal and interest repayments from a pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables.

As of June 30, 2021, the City had $14,169,163 invested in LAIF, which had invested 1.10% of the pool investment funds in Structured Notes and Asset-Back Securities. LAIF determines fair value on its investment portfolio based on market quotations for those securities where market quotations are readily available and based on amortized cost or best estimate for those securities where market value is not readily available. The City valued its investments in LAIF as of June 30, 2021, by multiplying its account balance with LAIF times a fair value factor determined by LAIF. This fair value factor was determined by dividing all LAIF participants’ total aggregate amortized cost by total aggregate fair value. The credit quality rating of LAIF is unrated as of June 30, 2021.

D. Risk Disclosures
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City's interest rate risk is mitigated is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

Information about the sensitivity of the fair values of the City's investments to market rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity as of June 30, 2021:
12 Months
Fair Value or Less 1-5 Years 6-10 Years Thereafter
Investments:

Local obligation bonds 62,736,310 $ 398,640 $ 1,574,202 $ 170,809 $ 60,592,659 $ Money market mutual funds 17,402,012 17,402,012 - - -
Central San Joaquin Valley Risk Authority (CSJVRMA) 4,012,291 4,012,291 - - - Local Agency Investment Fund (LAIF) 14,169,163 14,169,163 - - - Total investments $ 35,982,106 98,319,776 $ 1,574,202 $ 170,809 $ 60,592,659 $ Maturity

6.1.b
Packet Pg. 124 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
63 Note 2 – Cash and Investments (Continued)
D. Risk Disclosures (Continued)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code or debt agreements, and the actual rating as of the fiscal year for each investment type.

Minimum
Legal
Fair Value Rating S&P Moody's
Investments:

Local obligation bonds 62,736,310 $ N/A Not rated Not rated Money market mutual funds 17,402,012 N/A AAAm Aaa-mf
Central San Joaquin Valley Risk Authority (CSJVRMA) 4,012,291 N/A Not rated Not rated Local Agency Investment Fund (LAIF) 14,169,163 N/A Not rated Not rated Total investments $ 98,319,776
Credit Rating
Disclosures Relating to Concentration of Credit Risk
The City held the following investments in a single issuer (other than U.S. Treasury securities, external investment pools and mutual funds) that represented 5% or more of total City investment as of June 30, 2021:

Issuer Investment Type Amount
West Patterson Financing Authority Local obligation bonds 62,736,310 $ Disclosures Relating to Custodial Credit Risk
The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g. brokerdealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. None of the City’s investments was subject to custodial credit risk.

E. Fair Value Measurement
Fair value of assets measured on a recurring basis at June 30, 2021, are as follows:

Investments measured by fair value level: June 30, 2021 Level 1 Level 2 Level 3 Central San Joaquin Valley Risk Authority (CSJVRMA) - 4,012,291 4,012,291 - Total investments by fair value level - 4,012,291 $ 4,012,291 $ - $ Investments not subject to the fair value hierarchy:

Local obligation bonds 62,736,310 $
Local Agency Investment Funds (LAIF) 14,169,163
Money market mutual funds 17,402,012
Total investments not subject to the fair value hierarchy 94,307,485 Total investments $ 98,319,776

6.1.b
Packet Pg. 125 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
64 Note 2 – Cash and Investments (Continued)
E. Fair Value Measurement (Continued)
Debt and equity securities classified in Level 1 are valued using prices quoted in active markets for those securities.

Debt and equity securities classified in Level 2 are valued using the following approaches:
• U.S. Treasuries, U.S. Agencies, and Commercial Paper: quoted prices for identical securities in markets that are not active;
• Medium term notes: quoted prices for similar securities in active markets; and • Asset-backed securities: recent appraisals of the asset value.

Note 3 – Loan and Notes Receivable
A. Governmental Activities
The City engages in programs designed to encourage business enterprises, construction or improvements in lowto- moderate income housing, or other projects. Under these programs, grants or loans are provided with favorable terms to businesses, homeowners or developers who agree to spend these funds in accordance with the City's terms. Although these notes are expected to be repaid in full, their balance has been offset in the fund financial statements by deferred inflows of resources, as they are not expected to be repaid within the first 60 days of fiscal year 2021.

Summary of changes in loans and notes receivable for the year ended June 30, 2021 is as follows:

Loans and Notes Loans and Notes Unavailable
Receivable Receivable Revenue
Balance Balance Balance
July 1, 2020 Additions Deletions June 30, 2021 June 30, 2021 Housing Authority of the County of Stanislaus 290,000 $ - $ - $ 290,000 $ 290,000 $ Greater Valley Housing Development Corporation 900,000 - - 900,000 900,000 Housing Rehabilitation and Affordable Housing 672,834 - (119,521) 553,313 553,313 Total loans and notes receivable $ - 1,862,834 $ (119,521) $ 1,743,313 $ 1,743,313 $ Housing Authority of the County of Stanislaus
The City has a 30-year note receivable with the Housing Authority of the County of Stanislaus in the amount of $290,000. The note does not bear interest and principal payments are deferred for 30 years. The balance of this note has been offset by deferred inflows of resources in the amount of $290,000 in the fund financial statements.

Greater Valley Housing Development Corporation
On February 1, 2007, the City entered into a loan agreement with the Greater Valley Housing Development Corporation in the amount of $900,000. These funds were used to build an elderly housing project for low-income senior citizens known as the "Las Palmas Place Senior Apartments". Funding for this loan is derived from developer fees collected over the past few years. As of June 30, 2018, the City had advanced the full amount of $900,000 to the Greater Valley Housing Development Corporation. The balance of this loan has been offset by a related deferred revenue. There are no payments of principal and interest during the first three years of the initial term of this loan. Commencing on the fourth anniversary (February 2011) all accrued interest and principal shall be repaid as long as the Project is generating positive cash flow as determined by a formula in the promissory note. As positive cash flow was not generated during the year, the interest and principal amount is still outstanding.

6.1.b
Packet Pg. 126 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
65 Note 3 – Loan and Notes Receivable (Continued)
A. Governmental Activities (Continued)
Housing Rehabilitation and Affordable Housing
The City has provided loans to various homeowners and businesses for rehabilitation. The loans have various interest rates and payment dates. The balance of these loans receivable at June 30, 2021 was $553,313.

B. Fiduciary Fund
Notes receivable as of June 30, 2021, was as follows:

Balance Balance
July 1, 2020 Additions Deletions June 30, 2021
Darron Silva Promissory Note 1,026,547 $ - $ (15,952) $ 1,010,595 $ Total notes receivable $ - 1,026,547 $ (15,952) $ 1,010,595 $ Darron Silva Promissory Note
On November 21, 2018, the City entered into a promissory note secured by deed of trust dated February 19, 2020 with Darron Silva, a developer within the City, in the amount of $1,045,000 for the sale of land to be developed.

On March 22, 2020 an amended promissory note secured by deed of trust was executed for the benefit of the City and encumbering the parcel. The promissory note bears 5% fixed interest rate per annum, payable at $5,610 per month for a term of 5 years amortized over 30 years. The outstanding principal amount plus any accrued and unpaid interest shall be due and payable on August 1, 2024. The balance of the note receivable at June 30, 2021 was $1,010,595.

Note 4 – Interfund Transactions
A. Due From and To Other Funds
Due from and to other funds as of June 30, 2021, was as follows:

Receivable Fund Payable Fund Amount Purpose
General Fund Patterson Public Financing Authority 1,127,813 $ Overdrawn Cash General Fund Public Safety 3,171,909 Overdrawn Cash
General Fund Federal CDBG Grant 2003 223,859 Overdrawn Cash Total $ 4,523,581

6.1.b
Packet Pg. 127 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
66 Note 4 – Interfund Transactions (Continued)
B. Transfers In and Out
Transfers in and out for the year ended June 30, 2021, was as follows:

Transfers In Transfers Out Amount Purpose
General Fund CDBG 13,797 $ Indirect overhead
General Fund Federal HOME Funds 2,000 Indirect overhead General Fund Gas Tax 300,000 Capital projects
General Fund CSA#15 Assessment District 4,059 Indirect overhead General Fund Landscape Maintenance District 1,070,860 Indirect overhead General Fund Benefit Assessment Districts 116,933 Indirect overhead General Fund Water 573,639 Indirect overhead
General Fund Sewer 655,395 Indirect overhead
General Fund Garbage 475,909 Indirect overhead
Subtotal 3,212,592
Public Safety General Fund 397,330 Assessments
Public Safety Patterson Garden Fire Suppression Assessment 500,000 Assessments Public Safety CFD 2015-2 80,000 Assessments
Subtotal 977,330
Street Project General Fund 142,780 Capital projects
Street Project Benefit Assessment Districts 100,000 Capital projects Street Project Benefit Assessment Districts 350,648 Capital projects Street Project CFD 2013-1 96,636 Capital projects
Street Project Gas Tax 616,436 Capital projects
Street Project Water Fund 86,858 Capital projects
Street Project Local Transportation Fund 109,242 Capital projects Street Project Measure L 781,866 Capital projects
Street Project Street Improvement Impact Fee 500,000 Capital projects Subtotal 2,784,466
Sewer General Fund 64,733 Debt service
Sewer Sewer Impact Fee 71,500 Indirect overhead
Sewer Benefit Assessment Districts 25,099 Indirect overhead Subtotal 161,332
Local Transportation Fund Measure L 11,398 Capital projects Water Fund General Fund 80,144 Indirect overhead
Garbage General Fund 1,284 Debt service
Total $ 7,228,546
Note 5 – Due from Fiduciary Funds
Due from fiduciary funds as of June 30, 2021, was as follows:

Receivable Fund Payable Fund Amount Purpose
General Fund CFD 2018-1 Villages of Patterson Infrastructure 67,161 $ Overdrawn Cash Total $ 67,161

6.1.b
Packet Pg. 128 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
67 Note 6 – Capital Assets
A. Governmental Activities
Summary of changes in capital assets for governmental activities for the year ended June 30, 2021 is as follows:

Balance Adjustments/ Balance
July 1, 2020 Additions Deletions Transfers June 30, 2021 Capital assets, not being depreciated
Land 5,271,125 $ - $ - $ - $ 5,271,125 $
Construction in progress 7,709,318 2,463,136 - (2,239,921) 7,932,533 Total capital assets, not being depreciated 2,463,136 12,980,443 - (2,239,921) 13,203,658 Capital assets, being depreciated
Buildings 23,972,872 - - - 23,972,872
Improvements 15,826,045 175,707 - 55,903 16,057,655
Infrastructure 30,003,906 325 - 2,184,018 32,188,249
Equipments 6,456,072 325,553 (20,723) - 6,760,902
Subtotal 76,258,895 501,585 (20,723) 2,239,921 78,979,678 Less: accumulated depreciation
Buildings (6,704,412) (599,707) - - (7,304,119)
Improvements (8,258,081) (765,882) - - (9,023,963)
Infrastructure (7,348,057) (1,096,447) - - (8,444,504)
Equipments (5,620,557) (264,713) 20,032 - (5,865,238)
Subtotal (27,931,107) (2,726,749) 20,032 - (30,637,824) Total capital assets, being depreciated, net (2,225,164) 48,327,788 (691) 2,239,921 48,341,854 Total capital assets, net $ 237,972 61,308,231 $ (691) $ - $ 61,545,512 $ Governmental activities depreciation expenses for capital assets for the year ended June 30, 2021 are as follows:

General government $ 449,197
Fire 275,928
Public works 1,326,324
Park and recreation 675,300
Total depreciation 2,726,749 $

6.1.b
Packet Pg. 129 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
68 Note 6 – Capital Assets (Continued)
B. Business-Type Activities
Summary of changes in capital assets for business-type activities for the year ended June 30, 2021 is as follows:

Balance Adjustments/ Balance
July 1, 2020 Additions Deletions Transfers June 30, 2021 Capital assets, not being depreciated
Land 6,196,328 $ - $ - $ - $ 6,196,328 $
Construction in progress 7,289,650 958,862 - (3,504,886) 4,743,626 Total capital assets, not being depreciated 958,862 13,485,978 - (3,504,886) 10,939,954 Capital assets, being depreciated
Infrastructure 63,635,420 - - 3,513,847 67,149,267
Equipments 5,558,329 220,333 - (8,961) 5,769,701
Subtotal 69,193,749 220,333 - 3,504,886 72,918,968
Less: accumulated depreciation
Infrastructure (29,641,400) (2,424,442) - - (32,065,842) Equipments (3,819,329) (484,856) - - (4,304,185)
Subtotal (33,460,729) (2,909,298) - - (36,370,027)
Total capital assets, being depreciated, net (2,688,965) 35,733,020 - 3,504,886 36,548,941 Total capital assets, net $ (1,730,103) 49,218,998 $ - $ - $ 47,488,895 $ Business-type activities depreciation expenses for capital assets for the year ended June 30, 2021 are as follows:

Water 1,045,942 $
Sewer 1,850,577
Garbage 12,779
Total depreciation 2,909,298 $
Note 7 – Long-Term Obligations
A. Governmental Activities
Summary of changes in long-term liabilities for the governmental activities for the year ended June 30, 2021 is as follows:

Original Balance Balance Due Within Due In More
Issuance July 1, 2020 Additions Deletions June 30, 2021 One Year Than One Year Private Placement:

PPFA 2013 Heartland Ranch Revenue Bonds 4,963,568 $ 2,725,976 $ - $ (433,971) $ 2,292,005 $ 443,630 $ 1,848,375 $ PPFA 2013 Series A Revenue Bonds 67,190,000 58,705,000 - (1,660,000) 57,045,000 1,650,000 55,395,000 Less: Bond Discount (853,389) (654,187) - 28,446 (625,741) - (625,741) PPFA 2013 Series B Revenue Bonds 6,465,000 5,740,000 - (165,000) 5,575,000 150,000 5,425,000 2018 Lease Revenue Bonds 2,429,000 2,172,830 - (134,848) 2,037,982 139,568 1,898,414 Direct Borrowing:

Capital leases 161,990 33,518 - (33,518) - - -
Settlement payable 1,300,000 364,000 - - 364,000 364,000 - Total long-term debt $ 69,087,137 81,656,169 $ - $ (2,398,891) $ 66,688,246 $ 2,747,198 $ 63,941,048 $

6.1.b
Packet Pg. 130 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
69 Note 7 – Long-Term Obligations (Continued)
A. Governmental Activities (Continued)
2013 Heartland Ranch Revenue Bonds
On July 30, 2013, the Patterson Public Financing Authority issued $4,963,568 of revenue refunding bonds (Series 2013 Heartland Ranch Revenue Bonds) to repay, in part, the principal of the Authority's 2002 Heartland Ranch Revenue bond. Interest on the bonds is payable semi-annually on March 2 and September 2 of each year through September 2, 2027, beginning on March 2, 2014. The interest rate on the bonds is 3.73 percent. Principal payments are due annually beginning on September 2, 2014. At June 30, 2021, the outstanding balance of the 2013 Heartland Ranch Revenue bonds was $2,292,005.

The annual debt service requirements are as follows:

Year Ending
June 30, Principal Interest Total
2022 443,630 $ 77,218 $ 520,848 $
2023 462,628 60,316 522,944
2024 470,959 42,905 513,864
2025 273,775 29,016 302,791
2026 284,557 18,603 303,160
2027 356,456 13,425 369,881
Total 2,292,005 $ 241,483 $ 2,533,488 $
2013 PPFA Series A Bonds
On August 14, 2013, the Patterson Public Financing Authority issued $67,190,000 of special tax refunding bonds (Senior Series 2013A) to purchase, in part, the 2013-A1, 2013-A2, and 2013-B special tax bonds issued by the West Patterson Financing Authority. Interest on the bonds is payable semi-annually on March 1 and September 1 of each year through September 1, 2039, beginning on March 1, 2014. The interest rate on the bond is 3.00 percent. Principal payments are due annually beginning on September 1, 2014. The bonds are secured by a first pledge of the investment revenues and funds on deposit in the Bond Fund, Reserve Fund, and Special Tax Fund.

At June 30, 2021, the outstanding balance of the 2013 PPFA Series A bonds was $57,045,000.

The annual debt service requirements are as follows:

Year Ending
June 30, Principal Interest Total
2022 1,650,000 $ 3,108,988 $ 4,758,988 $
2023 1,770,000 3,031,738 4,801,738
2024 1,870,000 2,938,400 4,808,400
2025 2,030,000 2,836,025 4,866,025
2026 2,205,000 2,724,856 4,929,856
2027-2031 13,085,000 11,687,556 24,772,556
2032-2036 16,465,000 7,599,344 24,064,344
2037-2040 17,970,000 2,168,325 20,138,325
Total 57,045,000 $ 36,095,232 $ 93,140,232 $

6.1.b
Packet Pg. 131 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
70 Note 7 – Long-Term Obligations (Continued)
A. Governmental Activities (Continued)
2013 PPFA Series B Bonds
On August 14, 2013, the Patterson Public Financing Authority issued $6,465,000 of special tax refunding bonds (Subordinate Series 2013B) to purchase, in part, the 2013-A1, 2013-A2, and 2013-B special tax bonds Issued by the West Patterson Financing Authority. Interest on the bonds is payable semi-annually on March 1 and September 1 of each year through September 1, 2039, beginning on March 1, 2014. The interest rate on the bonds is 5.875 percent. Principal payments are due annually beginning on September 1, 2014. The bonds are secured by a first pledge of the investment revenues and funds on deposit in the Bond Fund, Reserve Fund, and Special Tax Fund. At June 30, 2021, the outstanding balance of the 2013 PPFA Series B bonds was $5,575,000.

The annual debt service requirements are as follows:

Year Ending
June 30, Principal Interest Total
2022 150,000 $ 323,125 $ 473,125 $
2023 165,000 313,872 478,872
2024 175,000 303,884 478,884
2025 195,000 293,016 488,016
2026 210,000 281,119 491,119
2027-2031 1,275,000 1,196,297 2,471,297
2032-2036 1,625,000 768,597 2,393,597
2037-2040 1,780,000 218,844 1,998,844
Total 5,575,000 $ 3,698,754 $ 9,273,754 $
2018 Lease Revenue Bonds
In June 2018, the Patterson Public Financing Authority issued $2,429,000 of Lease Revenue Bonds, Series 2018 through ZMFU II, INC., a corporation organized under the laws of the State of Utah. The proceeds were utilized to provide funding for acquisition of land for a multipurpose center and adjacent park site. The bonds mature annually in amounts ranging from $62,400 to $102,760. Interest is due and payable semiannually at a rate of 3.47 percent. At June 30, 2021, the outstanding balance of the 2018 Lease Revenue Bonds was $2,037,982.

The annual debt service requirements are as follows:

Year Ending
June 30, Principal Interest Total
2022 139,568 $ 69,518 $ 209,086 $
2023 144,453 64,633 209,086
2024 149,510 59,577 209,087
2025 154,743 54,344 209,087
2026 160,158 48,927 209,085
2027-2031 888,905 156,523 1,045,428
2032-2034 400,645 17,527 418,172
Total 2,037,982 $ 471,049 $ 2,509,031 $

6.1.b
Packet Pg. 132 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
71 Note 7 – Long-Term Obligations (Continued)
A. Governmental Activities (Continued)
Capital Lease
Self-Contained Breathing Apparatus (SCBA) and Rapid Intervention Team (R.I.T) Equipment On June 7, 2016, the City approved the execution of a lease-purchase agreement in the amount of $161,990 with Government Capital Corporation to provide a tax-exempt financing mechanism to purchase SCBA and R.I.T equipment. The lease payments due on January 1, 2017 through January 1, 2021 with an interest rate of 2.65 percent. At June 30, 2021, the outstanding balance of the capital lease was paid in full.

Settlement Payable
On June 20, 2012, the City filed a complaint against Keystone Corporation and the Keystone Pacific Business Park for breach of contract (“Keystone”) based on Keystone’s failure to pay its share of General Plan updates costs incurred by the City. After this filing, the City and Keystone immediately began settlement discussions and requested the case be stayed. Subsequently, a Request for Dismissal was filed on June 24, 2013.

Following the dismissal, the City and Keystone had settlement discussions regarding possible money owed to Keystone for the environmental and engineering work performed in relation to the Keystone project, which was not the subject of the City’s breach of contract claim.

Under the terms of the settlement agreement, the total amount the City will pay Keystone is $1,300,000. Of that sum, $936,000 will be paid in three annual installments, beginning July 15, 2014 with the final payment due in July 2016. The remaining amount of the settlement in the amount of $364,000 will be paid to Keystone upon collection from the entitlement or development of undeveloped land in the West Patterson Business Park. The settlement agreement does not require payment of the $364,000 in any particular time frame other than as early in the entitlement or development process as possible, but no later than entering into development agreements or approving tentative maps or final maps on currently underdeveloped land in the West Patterson Business Park. At June 30, 2021, the remaining balance of the settlement payable was $364,000.

B. Business-Type Activities
Summary of changes in long-term liabilities for the business-type activities for the year ended June 30, 2021 is as follows:

Original Balance Balance Due Within Due In More
Issuance July 1, 2020 Additions Deletions June 30, 2021 One Year Than One Year Water Fund:

Public Offering:
2019A Water Revenue Bonds 9,215,000 $ 9,165,000 $ - $ (65,000) $ 9,100,000 $ 65,000 $ 9,035,000 $ Add: Bond Premium - 576,040 - (19,527) 556,513 - 556,513 2019B Water Revenue Refunding Bonds 7,015,000 6,680,000 - (240,000) 6,440,000 250,000 6,190,000 Add: Bond Premium - 848,312 - (28,513) 819,799 - 819,799 Total water fund 17,269,352 16,230,000 - (353,040) 16,916,312 315,000 16,601,312 Sewer Fund:

Public Offering:
2009 Sewer Revenue Bonds 3,195,000 340,000 - (80,000) 260,000 85,000 175,000 Private Placement:
2017 Sewer Refunding Revenue Bonds 2,712,200 2,602,300 - (29,400) 2,572,900 30,400 2,542,500 Direct Borrowing:

State Revolving Fund loan 774,790 493,475 - (43,846) 449,629 44,985 404,644 Banc of America loan 951,540 1,388,999 - (38,946) 1,350,053 55,538 1,294,515 CEC loan 2,876,172 1,744,753 - (98,567) 1,646,186 298,763 1,347,423 Total sewer fund 6,569,527 10,509,702 - (290,759) 6,278,768 514,686 5,764,082 Total business-type activities $ 23,838,879 26,739,702 $ - $ (643,799) $ 23,195,080 $ 829,686 $ 22,365,394 $

6.1.b
Packet Pg. 133 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
72 Note 7 – Long-Term Obligations (Continued)
B. Business-Type Activities (Continued)
2019A Water Revenue Bonds
On December 24, 2019, the Patterson Public Financing Authority issued $9,215,000 Water Revenue Bonds, Series 2019A (“Series 2019A”). The City entered into an Installment Sale Agreement dated December 1, 2019 with the Patterson Public Financing Authority to assist with the financing of certain water system improvements in the amount of $9,591,000. The Series 2019A bonds are scheduled to mature on each June 1 from 2021 to 2049 with serial bonds from 2021 to 2039 and principal amounts ranging from $50,000 to $120,000 and term bonds maturing in 2044 in the amount of $3,415,000 and 2049 in the amount of $4,080,000. Interest rates range from

2.75 percent to 4.00 percent. The Series 2019A bonds are secured by a pledge of Net Revenues of the water System and are on parity with the Water Revenue Bonds, Series 2010. The Series 2019A bonds were sold with a net original issue premium of $585,803 and costs of issuance of $209,803 (including the underwriter’s discount, the fee for bond insurance and a surety fee for the reserve fund). At June 30, 2021, the outstanding balance of the 2019A Water Revenue Bonds was $9,100,000.

The annual debt service requirements are as follows:

Year Ending
June 30 Principal Interest Total
2022 65,000 $ 316,694 $ 381,694 $
2023 70,000 314,744 384,744
2024 70,000 312,644 382,644
2025 75,000 310,544 385,544
2026 70,000 307,544 377,544
2027-2031 410,000 1,491,919 1,901,919
2032-2036 500,000 1,403,319 1,903,319
2037-2041 1,630,000 1,288,769 2,918,769
2042-2046 3,690,000 761,700 4,451,700
2047-2050 2,520,000 152,700 2,672,700
Total 9,100,000 $ 6,660,577 $ 15,760,577 $
2019B Water Revenue Refunding Bonds
On March 3, 2020 the PPFA issued $7,015,000 in Water Revenue Refunding Bonds, Series 2019B (“Series 2019B”) in order to refund in full the Series 2010 Water Revenue Bonds. The City entered into a First Supplemental Installment Sale Agreement dated March 1, 2021. Proceeds from the issuance of the bonds were held by the Bank of New York Mellon as Escrow Agent in escrow to redeem the remaining principal and accrued interest due on the Water Revenue Bonds, Series 2010 on June 1, 2021.

The Series 2019B bonds are scheduled to mature as serial bonds on each June 1 from 2021 to 2039 with an interest rate of 4.00 percent. The bonds are secured by a pledge of net revenues of the water system and are on parity with the Series 2019A bonds. The bonds were sold with a net original issue premium of $855,441 and costs of issuance of $158,580 (including the underwriter’s discount, the fee for bond insurance and a surety fee for the reserve fund).

Interest on the refunding bonds is payable each December 1 and June 1 beginning on June 1, 2020. Principal is payable each June 1 beginning June 1, 2021 to June 1, 2039. At June 30, 2021, the outstanding balance of the 2019B Sewer Refunding Revenue Bonds was $6,440,000.

6.1.b
Packet Pg. 134 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
73 Note 7 – Long-Term Obligations (Continued)
B. Business-Type Activities (Continued)
2019B Water Revenue Refunding Bonds (Continued)
The annual debt service requirements are as follows:

Year Ending
June 30 Principal Interest Total
2022 250,000 $ 257,600 $ 507,600 $
2023 260,000 247,600 507,600
2024 270,000 237,200 507,200
2025 280,000 226,400 506,400
2026 295,000 215,200 510,200
2027-2031 1,655,000 890,200 2,545,200
2032-2036 2,015,000 531,000 2,546,000
2037-2041 1,415,000 114,800 1,529,800
Total 6,440,000 $ 2,720,000 $ 9,160,000 $
2009 Sewer Revenue Bonds
In May 2009, the Patterson Financing Authority authorized the issuance of $3,195,000 of revenue bonds (Series 2009) to (i) finance, together with other available moneys, certain wastewater system improvements, (ii) fund a reserve for the bonds, and (iii) to pay the cost of issuance of the bonds. The bonds were issued at a discount of $9,180 and issuance costs totaled $219,345. Principal is payable on June 1 of each year through June 2039.

Interest is payable semi-annually, on each June 1 and December 1. Interest rates range from 1.55 percent to 5.50 percent. The bonds are secured by a pledge and lien on the net revenues of the City's municipal wastewater enterprise. During fiscal year 2017-18 the bonds were partially refunded by the issuance of the 2017 Sewer Revenue Bonds. At June 30, 2021, the outstanding balance of the 2009 Sewer Revenue Bonds was $260,000.

The annual debt service requirements are as follows:

Year Ending
June 30 Principal Interest Total
2022 85,000 $ 12,350 $ 97,350 $
2023 85,000 8,313 93,313
2024 90,000 4,275 94,275
Total 260,000 $ 24,938 $ 284,938 $
2017 Sewer Refunding Revenue Bonds
On September 5, 2017, Resolution 2017-49 approved the refinancing of a portion of the Patterson Public Financing Authority Revenue Bonds, Series 2009 (City of Patterson Wastewater System Financing Project) (the “2009 Bonds”). The 2009 Bonds were originally issued to finance the costs of acquiring and constructing wastewater system improvements, fund a reserve fund and pay costs of issuance.

The refinancing in the amount of $2,712,200 closed on September 21, 2017 as a direct placement to Capital One Public Funding at an interest rate of 3.4 percent. The refinancing refunded the 2039 term bond of the 2009 Bonds consisting of sinking fund payments from 2025 to 2039. Savings from the refinancing were capitalized in the amount of $469,905 and will be held by the City to provide additional funding for wastewater capital projects.

6.1.b
Packet Pg. 135 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
74 Note 7 – Long-Term Obligations (Continued)
B. Business-Type Activities (Continued)
2017 Sewer Refunding Revenue Bonds (Continued)
Interest on the refinancing is payable each December 1 and June 1 beginning December 1, 2017. Principal is payable each June 1 beginning June 1, 2018 to June 1, 2039. The 2009 Bond that were not part of the refinancing continue to be paid as regularly scheduled until they are paid off on June 1, 2024. At June 30, 2021, the outstanding balance of the 2017 Sewer Refunding Revenue Bonds was $2,572,900.

The annual debt service requirements are as follows:

Year Ending
June 30 Principal Interest Total
2022 30,400 $ 87,479 $ 117,879 $
2023 31,500 86,445 117,945
2024 32,600 85,374 117,974
2025 128,700 84,266 212,966
2026 132,800 79,890 212,690
2027-2031 740,700 328,059 1,068,759
2032-2036 878,100 193,463 1,071,563
2037-2041 598,100 41,279 639,379
Total 2,572,900 $ 986,255 $ 3,559,155 $
State Revolving Fund Loan
In 2008, the City entered into an agreement with the State Water Resource Board for a loan in the amount of $1,069,602. However, the project for the loan did not commence until the current fiscal year. The loan amount is based on the amount of draws by the City for reimbursable costs. The loan does not bear interest; however the City bears a grant charge of 2.6 percent. The loan matures in October 2029. At June 30, 2021, the outstanding balance of the State Revolving Fund Loan was $449,629.

The annual debt service requirements are as follows:

Year Ending
June 30 Principal Interest Total
2022 44,985 $ 11,690 $ 56,675 $
2023 46,155 10,521 56,676
2024 47,355 9,321 56,676
2025 48,586 8,089 56,675
2026 49,849 6,826 56,675
2027-2030 212,699 14,003 226,702
Total 449,629 $ 60,450 $ 510,079 $
Banc of America Public Capital Loan
In 2014, the City entered into an agreement with Banc of America Public Capital for a loan in the amount of $1,668,961 which was allocated between the General and Sewer Funds. Interest is calculated at 3.46 percent per annum payable each April and October 25. Principal payments are due semi-annually on April 25 and October 25 are payable from energy savings from different funds that benefitted from solar panels, streetlights, and energy efficient fixtures. In 2015, the remaining General Fund balance of $686,473 was transferred to the Sewer fund. At June 30, 2021, the outstanding balance of the Banc of America Public Capital Loan was $1,350,053.

6.1.b
Packet Pg. 136 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
75 Note 7 – Long-Term Obligations (Continued)
B. Business-Type Activities (Continued)
Banc of America Loan (Continued)
The annual debt service requirements are as follows:

Year Ending
June 30 Principal Interest Total
2022 55,538 $ 46,235 $ 101,773 $
2023 73,458 44,160 117,618
2024 92,790 41,452 134,242
2025 113,620 38,063 151,683
2026 136,041 33,940 169,981
2027-2030 878,606 58,377 936,983
Total 1,350,053 $ 262,227 $ 1,612,280 $
CEC Loan
In 2014, the City entered into an agreement with the California Energy Commission for a loan in the amount of $2,876,172. Interest is calculated at 1.0 percent per annum payable each June and December 22. Principal payments are due semi-annually on June 22 and December 22 and are paid from energy savings from the different funds that benefit from the solar panels, streetlights, and energy efficient fixtures. At June 30, 2021, the outstanding balance of the CEC loan was $1,646,186.

The annual debt service requirements are as follows:

Year Ending
June 30 Principal Interest Total
2022 298,763 $ 14,974 $ 313,737 $
2023 201,658 12,973 214,631
2024 203,651 10,980 214,631
2025 205,721 8,910 214,631
2026 207,783 6,847 214,630
2027-2029 528,610 7,966 536,576
Total 1,646,186 $ 62,650 $ 1,708,836 $

6.1.b
Packet Pg. 137 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
76 Note 8 – Compensated Absences
The City’s liability for vested and unpaid compensated absences (vacation and vested sick leave) was $698,249 at June 30, 2021.

A. Governmental Activities
For the governmental activities, compensated absences are generally liquidated by the General Fund.

Summary of changes in compensated absences for the year ended June 30, 2021 is as follows:

Balance Balance Due Within Due In More
July 1, 2020 Additions Deletions June 30, 2021 One Year Than One Year Governmental Activities $ 438,635 468,489 $ (394,518) $ 512,606 $ 512,606 $ - $ Classification
B. Business-Type Activities
Summary of changes in compensated absences for the year ended June 30, 2021 is as follows:

Balance Balance Due Within Due In More
July 1, 2020 Additions Deletions June 30, 2021 One Year Than One Year Business-Type Activities:

Water Fund 108,403 $ 100,696 $ (86,037) $ 123,062 $ 123,062 $ - $ Sewer Fund 94,969 100,051 (82,913) 112,107 112,107 -
Garbage Fund 26,388 20,972 (18,168) 29,192 29,192 -
Total business-type activities $ 221,719 229,760 $ (187,118) $ 264,361 $ 264,361 $ - $ Classification
Note 9 – Conduit Debt
Special assessment districts in various parts of the City have issued debt to finance infrastructure improvements and facilities within their boundaries. The City is the collecting and paying agent for the debts issued by these Districts, but does not have a direct, contingent or moral obligation for the payment of this debt. Therefore, these debts are not included in the general long-term liabilities of the City.

The outstanding balance of each of these issues as of June 30, 2021 was as follows:

Heartland Ranch Authority Bonds 2,143,652 $
Community Facilities District No. 2013-A1 Special Tax Bonds 31,273,171 Community Facilities District No. 2013-A2 Special Tax Bonds 25,606,715 Community Facilities District No. 2013-B Special Tax Bonds 3,712,772 Community Facilities District No. 2005-1 Business Park Special Tax Bonds 9,265,000 Community Facilities District No. 2015-1 Special Tax Bonds 4,685,000 Total $ 76,686,310

6.1.b
Packet Pg. 138 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
77 Note 10 – Fund Balances
At June 30, 2021, fund balances classification is as follows:

CFD 2003-1 Patterson
Public Safety/ Public Other
General Fire Protection Financing Governmental
Fund Services Fund Authority Funds Total
Nonspendable:

Prepaid items 106,172 $ 3,338 $ - $ - $ 109,510 $
Total nonspendable 3,338 106,172 - - 109,510
Restricted:

Debt service 360,498 - 63,049,274 - 63,409,772
Assessment Districts - - - 3,205,841 3,205,841
Grants - - - 543,055 543,055
Streets and roads - - - 3,469,862 3,469,862
Measure L - - - 4,043,415 4,043,415
Developer housing in-lieu - - - 1,053,567 1,053,567
Community Facilities Districts - - - 425,608 425,608
Impact fee - - - 131,764 131,764
Total restricted - 360,498 63,049,274 12,873,112 76,282,884 Committed:

Contingencies 3,762,470 - - - 3,762,470
Capital projects - - - 7,173,724 7,173,724
Total committed - 3,762,470 - 7,173,724 10,936,194
Assigned:

General government operations 976,022 - - 38,865 1,014,887 Pension and OPEB 1,571,713 - - - 1,571,713
Capital projects 348,561 - - - 348,561
Total assigned - 2,896,296 - 38,865 2,935,161
Unassigned (deficit) (3,166,724) 6,589,826 - (401,258) 3,021,844 Total $ (3,163,386) 13,715,262 $ 63,049,274 $ 19,684,443 $ 93,285,593 $

6.1.b
Packet Pg. 139 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
78 Note 11 – Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters for which the City obtains insurance coverage.

Public entity risk pools are formally organized and separate entities established under the Joint Exercise of Powers Act of the State of California. As separate legal entities, those entities exercise full powers and authorities within the scope of the related Joint Powers Agreements including the preparation of annual budgets, accountability for all funds, the power to make and execute contracts and the right to sue and be sued. Each risk pool is governed by a board consisting of representatives from member municipalities. Each board controls the operations of the respective risk pool, including selection of management and approval of operating budgets, independent of any influences by member municipalities beyond their representation of that board. Obligations and liabilities of these risk pools are not the City's responsibility.

Since 1986, the City has joined together with other cities to form a public entity risk pool known as the Central San Joaquin Valley Risk Management Authority - CSJVRMA (the Authority), a joint powers authority established in accordance with the California government code. The relationship between the City and the Authority is such that the Authority is not a component unit of the City for financial reporting purposes. Financial statements for the Authority may be obtained from the Authority's management.

The Authority is currently operating as a common risk management and insurance program for 54 member cities. The program's general objectives are to formulate, develop, and administer, on the behalf of the member cities, a program of insurance, to obtain lower cost for that coverage, and to develop a comprehensive loss control program. A member may withdraw from the Authority only by giving six-month notice. Cities applying for membership in the Authority may do so on approval of a two-thirds vote of the board of the Authority.

The latest financial information of the CSJVRMA for fiscal year ended June 30, 2021, is as follows:

Total Assets 150,621,596 $
Total Liabilities 129,774,819 $
Net Position 20,846,777 $
Operating Revenues 55,391,674 $
Operating Expenses 54,084,619 $
Nonoperating Revenues (Expenses) (224,620) $
Change in Net Position 1,082,435 $

6.1.b
Packet Pg. 140 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
79 Note 12 – Pension Plans
A. Summary
Governmental Business-Type
Activities Activities Total
Deferred outflows of resources:

Pension contribution after measurement date:

Miscellaneous 514,744 $ 776,472 $ 1,291,216 $
Safety 552,488 - 552,488
Difference between expected and actual experience:

Miscellaneous 136,152 207,320 343,472
Safety 255,850 - 255,850
Difference in projected and actual earnings on
pension investments:

Miscellaneous 75,581 122,416 197,997
Safety 71,709 - 71,709
Adjustments due to differences in proportions
Miscellaneous 75,241 114,571 189,812
Safety 109,905 - 109,905
Differences between City's contributions and
proportionate share of contributions
Miscellaneous 35,146 53,517 88,663
Safety 35,367 - 35,367
Total deferred outflows of resources $ 1,274,296 1,862,183 $ 3,136,479 $ Net pension liabilities:

Miscellaneous 2,642,042 $ 4,023,049 $ 6,665,091 $
Safety 3,299,373 - 3,299,373
Total net pension liabilities $ 4,023,049 5,941,415 $ 9,964,464 $ Deferred inflows of Resources:

Change in assumptions:

Miscellaneous 18,845 $ 28,693 $ 47,538 $
Safety 10,990 - 10,990
Adjustments due to differences in proportions
Miscellaneous 7,503 11,426 18,929
Differences between City's contributions and
proportionate share of contributions
Safety 5,348 - 5,348
Total deferred inflows of resources $ 40,119 42,686 $ 82,805 $ Pension expenses:

Miscellaneous 666,585 $ 1,015,011 $ 1,681,596 $
Safety 780,328 - 780,328
Total pension expenses $ 1,015,011 1,446,913 $ 2,461,924 $

6.1.b
Packet Pg. 141 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
80 Note 12 – Pension Plans (Continued)
B. General Information about Pension Plans
Plan Description
The City contributes to the California Public Employees’ Retirement System (“CalPERS”), a cost-sharing multiple-employer defined benefit pension plan. CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. CalPERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by State statute and City ordinance. Copies of the CalPERS annual financial report may be obtained from their Executive Office located at 400 P Street, Sacramento, California 95814.

Employees Covered by Benefit Terms
At June 30, 2020, measurement date, the following employees were covered by the benefit terms:

Miscellaneous Safety
Miscellaneous PEPRA Safety PEPRA
Active employees 48 55 13 6
Transferred and terminated employees 51 24 8 3
Retired employees and beneficiaries 42 - 35 -
Total 141 79 56 9
Benefit Provided
CalPERS provide retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Classic and PEPRA Safety CalPERS member becomes eligible for service retirement upon attainment of age 55 with at least 5 years of credited service. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 62 with at least 5 years of service. The service retirement benefit is a monthly allowance equal to the product of the benefit factor, years of service, and final compensation.

The final compensation is the monthly average of the member's highest 36 full-time equivalent monthly pay.

Following are the benefit provisions for each plan:

Miscellaneous Safety
Miscellaneous PEPRA Safety PEPRA
Benefit formula 2.7% @ 55 2.0% @ 62 3.0% @ 50 2.7% @ 57 Benefit vesting schedule 5 years service 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life monthly for life Retirement age 55 62 50 50-57
Monthly benefits, as a % of
eligible compensation 2.7% 2.0% 3.0% 2.0% to 2.7%
Required employee contribution rate 8.000% 6.750% 9.000% 13.000% Required employer contribution rate 13.515% 7.732% 22.437% 13.044%

6.1.b
Packet Pg. 142 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
81 Note 12 – Pension Plans (Continued)
B. General Information about Pension Plans (Continued)
Contributions
For the year ended June 30, 2021, the contributions recognized as part of pension expense for each Plan are as follows:

Miscellaneous Safety Total
Contributions - employer 1,291,216 $ 552,488 $ 1,843,704 $ C. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions Proportionate Share of Net Pension Liability and Pension Expense The following table shows the plan’s proportionate share of the risk pool collective net pension liability over the measurement period:

Plan Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Miscellaneous
Balance at: 6/30/19 (Valuation date) 28,654,207 $ 22,526,868 $ 6,127,339 $ Balance at: 6/30/20 (Measurement date) 31,156,284 24,491,193 6,665,091 Net changes during 2019-2020 2,502,077 1,964,325 537,752 Safety
Balance at: 6/30/19 (Valuation date) 12,121,995 $ 9,134,775 $ 2,987,220 $ Balance at: 6/30/20 (Measurement date) 13,000,896 9,701,523 3,299,373 Net changes during 2019-2020 878,901 566,748 312,153
The City’s net pension liability/(asset) for each Plan is measured as the proportionate share of the net pension liability/(asset). The net pension liability/(asset) of each of the Plans is measured as of June 30, 2020, and the total pension liability/(asset) for each Plan used to calculate the net pension liability/(asset) was determined by an actuarial valuation as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. The City’s proportion of the net pension liability/(asset) was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability/(asset) for each Plan as of June 30, 2018 and 2020 was as follows:

Miscellaneous Safety Total
Proportion - June 30, 2019 0.15301% 0.04785% 0.20086%
Proportion - June 30, 2020 0.15801% 0.04952% 0.20754%
Change - Increase/(Decrease) 0.00500% 0.00167% 0.00667%

6.1.b
Packet Pg. 143 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
82 Note 12 – Pension Plans (Continued)
C. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Proportionate Share of Net Pension Liability and Pension Expense (Continued) For the year ended June 30, 2021, the City recognized pension expense of $1,681,596 and $780,328, 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:

Deferred outflows Deferred inflows
of Resources of Resources
Contribution made after the measurement date 1,291,216 $ - $ Difference between expected and actual
experience 343,472 -
Changes of assumptions - 47,538
Net difference between projected and actual
earnings on pension plan investments 197,997 -
Employer contributions in excess/(under)
proportionate share of contributions 88,663 -
Adjustments due to difference in proportions 189,812 18,929 Total 2,111,160 $ 66,467 $
Miscellaneous Plan
Deferred outflows Deferred inflows
of Resources of Resources
Contribution made after the measurement date 552,488 $ - $ Difference between expected and actual
experience 255,850 -
Changes of assumptions - 10,990
Net difference between projected and actual
earnings on pension plan investments 71,709 -
Employer contributions in excess/(under)
proportionate share of contributions 35,367 5,348
Adjustments due to difference in proportions 109,905 -
Total 1,025,319 $ 16,338 $
Safety Plan
Deferred outflows Deferred inflows
of Resources of Resources
Contribution made after the measurement date 1,843,704 $ - $ Difference between expected and actual
experience 599,322 -
Changes of assumptions - 58,528
Net difference between projected and actual
earnings on pension plan investments 269,706 -
Employer contributions in excess/(under)
proportionate share of contributions 124,030 5,348
Adjustments due to difference in proportions 299,717 18,929 Total 3,136,479 $ 82,805 $
Aggregate Total

6.1.b
Packet Pg. 144 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
83 Note 12 – Pension Plans (Continued)
C. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Proportionate Share of Net Pension Liability and Pension Expense (Continued) For the Miscellaneous Plan and Safety Plan, $1,291,216 and $552,488, respectively, was reported as deferred outflows of resources related to pensions resulting from City’s contributions subsequent to the measurement date and will be recognized as a reduction of the net pension liability in the year ended June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Measurement Period
Ended June 30 Miscellaneous Plan Safety Plan Total
2022 197,096 $ 154,565 $ 351,661 $
2023 277,636 164,542 442,178
2024 183,780 101,456 285,236
2025 94,965 35,930 130,895
2026 - - -
Thereafter - - -
Total 753,477 $ 456,493 $ 1,209,970 $
Deferred Outflows/(Inflows) of Resources
Actuarial Assumptions
The total pension liabilities in the June 30, 2019 actuarial valuations were determined using the following actuarial assumptions:

Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Salary Increases
Investment Rate of Return
Mortality Rate Table
Post Retirement Benefit Increase
Entry Age Normal

7.15%

2.75%
Varies by Entry Age and Service

7.65%
Derived using CalPERS’ Membership Data for all Funds. The mortality table used was developed based on CalPERS’ specific data. The table includes 20 years of mortality improvements using Society of Actuaries Scale BB.

Contract COLA up to 2.75% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.75% thereafter.

The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2019 valuation were based on the results of a January 2015 actuarial experience study for the period 1997 to 2011. Further details of the Experience Study can be found on the CalPERS website.

6.1.b
Packet Pg. 145 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
84 Note 12 – Pension Plans (Continued)
C. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Discount Rate
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. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated 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 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 asset allocation. These geometric rates of return are net of administrative expenses.

Asset Class
New Strategic
Allocation
Real Return Years
1 - 10 1
Real Return Years
11 + 2
Global equity 50.00% 4.80% 5.98%
Global fixed income 28.00% 1.00% 2.62%
Inflation sensitive assets 0.00% 7.00% 1.81%
Private equity 8.00% 6.30% 7.23%
Real assets 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
1 An expected inflation of 2.00% was used for this period. 2 An expected inflation of 2.92% was used for this period.

The discount rate used to measure the total pension liability was 7.15% for the 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 7.15% is applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained from the CalPERS website under the GASB 68 Section.

According to Paragraph 30 of Statement 68, the long-term discount rate should be determined without reduction for pension plan administrative expense. The 7.00% investment return assumption used in this accounting valuation is net of administrative expenses. Administrative expenses are assumed to be 15 basis points. An investment return excluding administrative expenses would have been 7.15%. Using this lower discount rate has resulted in a slightly higher Total Pension Liability and Net Pension Liability. The difference was deemed immaterial to the Public Agency Cost Sharing Multiple-Employer Defined Benefit Pension Plan.

6.1.b
Packet Pg. 146 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
85 Note 12 – Pension Plans (Continued)
C. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net position liability for the Plan, calculated using the discount rate for each Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

Discount Rate - 1% Current Discount Discount Rate + 1%
(6.15%) Rate (7.15%) (8.15%)
Miscellaneous 10,811,232 $ 6,665,091 $ 3,239,265 $
Safety 5,064,943 3,299,373 1,850,556
Total 15,876,175 $ 9,964,464 $ 5,089,821 $
Plan's Net Pension Liability/(Asset)
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

D. Payable to the Pension Plan
At June 30, 2021, the City had no outstanding amounts owed to the pension plan for contributions for the year ended June 30, 2021.

Note 13 – Other Postemployment Benefits
A. Summary
Governmental Business-Type
Activities Activities Total
Deferred outflows of resources:

Employer contributions made
subsequent to the measurement date 111,011 $ 55,556 $ 166,567 $ Changes in assumptions 995,757 498,329 1,494,086
Total deferred outflows of resources $ 553,885 1,106,768 $ 1,660,653 $ Net OPEB liability:

Net OPEB liability 8,978,820 $ 4,018,961 $ 12,997,781 $ Total OPEB liability $ 4,018,961 8,978,820 $ 12,997,781 $ Deferred inflows of Resources:

Difference between expected and actual experience 1,204,949 $ 617,876 $ 1,822,825 $ Change in assumption 447,520 229,480 677,000
Total deferred inflows of resources $ 847,356 1,652,469 $ 2,499,825 $ Net OPEB Expense $ 367,998 822,150 $ 1,190,148 $

6.1.b
Packet Pg. 147 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
86 Note 13 – Other Postemployment Benefits (Continued)
B. General Information about OPEB
Plan Description
Employees of the Miscellaneous bargaining group and other non-represented employees, who retire from the City with ten years or more of contiguous City service, are eligible for a Post-Retirement Health Benefit for themselves and spouse or child or children. This benefit is finite in nature and provides for the cost of benefits for one year only. This cost is computed at the rate of the current health care premiums and the current dental premiums, in place at the time of retirement.

Eligibility
Employees become eligible to retire under PEMHCA and receive City-paid healthcare benefits upon attainment of age 50 and 5 years of covered PERS service, or by attaining qualifying disability retirement status. The City has selected the unequal contribution method, where it contributes a percent of the amount paid for actives to its eligible retirees. The percent increases each year until the City's contribution for retirees eventually equals that for similarly stated active employees. The City currently covers 100% of the cost of medical coverage for active employees and their dependents up to, but not exceeding, the dollar amount of the family premium for the lowest cost HMO.

Membership in the plan consisted of the following at June 30, 2020, the measurement date:

Active employees 122
Transferred and terminated employees 11
Retired employees and beneficiaries 13
Total 146
Contributions
The obligation of the City to contribute to the plan is established and may be amended by the City Council. The City Council has established a policy of funding the actuarially determined contribution (ADC) on a pay as you go basis. For the fiscal year ended June 30, 2020, the City’s average contribution rate was 2.12% of coveredemployee payroll. Employees are not required to contribute to the plan.

C. Net OPEB Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2020. The total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2020. The net OPEB liability at June 30, 2021 was $12,997,781.

6.1.b
Packet Pg. 148 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
87 Note 13 – Other Postemployment Benefits (Continued)
C. Net OPEB Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)
Actuarial Assumptions
The net OPEB liability in the June 30, 2020 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:

Actuarial Assumptions:

Discount Rate
Inflation
Aggregate payroll increases
Expected long-term investment rate of return
Mortality, Termination, and Disability
Mortality Improvement Scale
Healthcare Trend Rate - Non-Medicare
Healthcare Trend Rate - Medicare
Modified projected fully generational with Scale MP-2019

2.44%

2.75%

3.00%
n/a
CalPERS 1997-2015 Experience Study
An annual healthcare cost trend rate of 7.25% initially reduced by decrements to an ultimate of 4.0% in 2076.

An annual healthcare cost trend rate of 6.3% initially reduced by decrements to an ultimate of 4.0% in 2076.

The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period July 1, 2019 through June 30, 2020.

Discount Rate
The discount rate used to measure the net OPEB liability was 2.44% percent. This discount rate is the mid-point, rounded to five basis points, of the range of 3-20 year municipal bond rate indices; S&P Municipal bond 20 Year High Grade Rate Index, Bond Buyer 20-Bond GO Index, and Fidelity GO AA 20 Year Bond Index.

Change in the Net OPEB Liability
Net OPEB
Liability
Balance at June 30, 2019 (Measurement Date) 12,287,665 $ Changes Recognized for the Measurement Period:

Service Cost 930,865
Interest on the total OPEB liability 413,592
Difference between expected and actual experience (1,584,352) Changes of assumptions 1,127,249
Benefit payments (177,238)
Net Changes during July 1, 2019 to June 30, 2020 710,116 Balance at June 30, 2020 (Measurement Date) 12,997,781 $

6.1.b
Packet Pg. 149 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
88 Note 13 – Other Postemployment Benefits (Continued)
C. Net OPEB Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate 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 a discount rate that is 1-percentage-point lower (1.44 percent) or 1-percentage- point higher (3.44 percent) than the current discount rate:

Discount Rate - 1% Current Discount Discount Rate + 1%
(1.44%) Rate (2.44%) (3.44%)
$ 12,997,781 15,394,055 $ 11,112,317 $
Plan's Net OPEB Liability
Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates:

Healthcare Cost
-1% Trend Rates 1%
$ 12,997,781 11,137,677 $ 15,671,408 $
Plan's Net OPEB Liability
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2021, the City recognized OPEB expense of $1,190,148. 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
Difference between expected and actual experience - $ 1,822,825 $ Changes of assumptions 1,494,086 677,000
Employer contributions made
subsequent to the measurement date 166,567 -
Total 1,660,653 $ 2,499,825 $
The difference between projected OPEB plan investment earnings and actual earnings is amortized over a five year period. The remaining gains and losses are amortized over the expected average remaining service life. The expected average remaining service life is 10.7 years, which was determined as of June 30, 2020, the beginning of the measurement period, for employees covered by the OPEB plan benefit terms as of the valuation date.

6.1.b
Packet Pg. 150 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
89 Note 13 – Other Postemployment Benefits (Continued)
C. Net OPEB Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued)
Amount reported as deferred outflows of resources related to OPEB will be recognized as future OPEB expense as follows:

Measurement Period Deferred Outflows/
Ended June 30 (Inflows) of Resources
2022 (155,698) $
2023 (155,698)
2024 (155,698)
2025 (155,698)
2026 (155,698)
Thereafter (227,249)
$ (1,005,739)
Note 14 – Deferred Compensation Plan
The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portion of their current salary until future years. Under these plans, participants are not taxed on the deferred portion of their compensation until distributed to them. Distributions are not available to the employees until termination, retirement, death or unforeseeable emergency as defined by the Plan.

Note 15 – Other Required Disclosures
A. (Deficit) Net Position/Fund Balances
At June 30, 2021, the following funds had a fund balances (deficit) or unrestricted net position (deficit):

Fund Fund Type Deficit
Public Safety Special Revenue 3,163,386 $
CSA #15 Assessment District Special Revenue 5,120
Federal CDBG Grant 2003 Special Revenue 281,585
Local Transportation Fund Special Revenue 113,343
Heartland Ranch Infrastructure Capital Projects 1,210
The City plans to eliminate the deficits through the reduction in future expenditures and/or the use of new funding sources.

6.1.b
Packet Pg. 151 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
90 Note 15 – Other Required Disclosures (Continued)
B. Expenditures Exceeding Appropriations
For the year ended June 30, 2021, expenditures exceeded appropriations in the following funds/functions:

Fund Function Excess Expenditures
Public Safety Special Revenue Fund Fire 231,348
Patterson Public Financing Authority
Debt Service Fund Debt service: Principal 9,502
CSA #15 Assessment District Special Revenue Fund Community development and planning 4,725 CFD 2001-01 Patterson Gardens
Public Safety Special Revenue Fund Fire 5,716
CFD 2013-1 Special Revenue Fund Public works 9,176
CFD 2018-2 VOP Maintenance Special Revenue Fund General government 7,695 Note 16 – Settlement with Eli Development Corporation
On September 17, 2013, Eli Development Corporation submitted a reimbursement request to the City, pursuant to the development agreement between the City and Northeast Territories Patterson, LP, entered into as of December 19, 2006. The City has received the requested evidence from Eli Development Corporation and has determined that only a portion of the amount requested is subject to reimbursement. The landowner has proposed terms for settlement of the dispute and a release agreement has been prepared, subject to landowner review and acceptance. Therefore, the reimbursement would come from other parties and landowners, not the City.

Note 17 – Net Investment in Capital Assets
Net Investment in Capital Assets at June 30 consisted of the following:

Governmental Business-Type
Activities Activities
Net investment in capital assets:

Capital assets, nondepreciable 13,203,658 $ 10,939,954 $ Capital assets, depreciable/amortizable, net 48,341,854 36,548,941 Unspent bond proceeds - Restricted cash and investment - 468,952 Unspent bond proceeds - Cash with fiscal agent - 11,881,064 Deferred amount on refunding - 334,507
Long-term debt:
2018 Lease Revenue Bonds (2,037,982) -
2019A Water Revenue Bonds - (9,656,513)
2019B Water Revenue Refunding Bonds - (7,259,799)
2009 Sewer Revenue Bonds - (260,000)
2017 Sewer Refunding Revenue Bonds - (2,572,900)
State Revolving Fund loan - (449,629)
Banc of America loan - (1,350,053)
CEC loan - (1,646,186)
Total net investment in capital assets 59,507,530 $ 36,978,338 $

6.1.b
Packet Pg. 152 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
91 Note 18 – Commitments and Contingencies
A. Litigation
The City is a defendant in certain legal actions arising in the normal course of operations. The accompanying basic financial statements reflect a liability for the probable amounts of loss associated with these claims.

B. Grants
Amounts received or receivable from granting agencies are subject to audit and adjustment by grantor agencies.

While no matters of non-compliance were disclosed by the audit of the financial statements or single audit of the Federal grant programs, grantor agencies may subject grant programs to additional compliance tests, which may result in disallowed costs. In the opinion of management, future disallowances of current or prior grant expenditures, if any, would not have a material adverse effect on the financial position of the City.

C. Other Matters
As of January 30, 2021, in the opinion of City Management, there were no additional outstanding matters that would have a significant effect on the financial position of the funds of the City.

Note 19 – Prior Period Adjustments
A. Fiduciary Fund Financial Statements
The beginning net position at July 1, 2020 of the Fiduciary Fund Financial Statements was restated as follows:

West CFD 2005-1
Patterson West
Financing Patterson CFD 2015-1 Heartland VOP
Authority Business Park Arambel-KDN Ranch 2013 Infrastructure Total Net position, as previously reported, at July 1, 2020 - $ - $ - $ - $ - $ - $ To implement GASB 84 9,378,041 4,239,966 361,711 537,531 5,369 14,522,618 Net position at July 1, 2020, as restated $ 4,239,966 9,378,041 $ 361,711 $ 537,531 $ 5,369 $ 14,522,618 $ Note 20 - Subsequent Events
A. American Rescue Plan Act
On March, 2021, the American Rescue Plan Act was signed into delivering $65 billion of direct and flexible aid to cities and towns across the nation to provide substantial flexibility for each government to meet local needs— including support for households, small businesses, impacted industries, essential workers, and the communities hardest hit by the crisis. Based on the City’s population, the City was allocated $5,388,220 and received in two installments starting July 2021.

B. CFD 2018-1 (Villages of Patterson) Special Tax Bonds, Series 2021 On October 27, 2021 the West Patterson Financing Authority issued $4,465,000 Community Facilities District No. 2018-1 (Villages of Patterson) Special Tax Bonds, Series 2021 (“CFD 2018-1 Series 2021”).

6.1.b
Packet Pg. 153 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
92 Note 20 - Subsequent Events (Continued)
B. CFD 2018-1 (Villages of Patterson) Special Tax Bonds, Series 2021 (Continued) The CFD 2018-1 Series 2021 bonds are not an obligation nor a debt of the City. The CFD 2018-1 Series 2021 bonds are secured and payable solely from a pledge of Special Tax Revenues to be levied by the Authority on real property within the boundaries of the district, from the proceeds of any foreclosure actions brought following a delinquency in the payment of the special taxes, and from amounts held in certain funds under the Fiscal Agent Agreement dated October 1, 2021. The bonds were sold as non-rated securities, have a final maturity date of 2051 with coupons ranging from 3.00% to 4.00% and yields ranging from 1.51% to 2.74%. The CFD 2018-1 Series 2021 bonds were issued to (i) construct and acquire certain public facilities of benefit to the district, (ii) provide for the establishment of a reserve fund, and (iii) pay the costs of issuance of the CFD 2018-1 Series 2021 bonds.

Interest on the Bonds is payable semiannually on March 1 and September 1 of each year, commencing March 1, 2022. Principal on the CFD 2018-1 Series 2021 bonds is payable annually beginning September 1, 2022 and each year thereafter until September 1, 2051.

C. CFD 2005-1 (West Patterson Business Park) Special Tax Bonds, Series 2021 In December 2021, the West Patterson Financing Authority is expected to issue $6,800,000 Community Facilities District No. 2005-1 (West Patterson Business Park) Special Tax Bonds, Series 2021 (“CFD 2005-1 Series 2021”).

The CFD 2005-1 Series 2021 bonds are not an obligation nor a debt of the City. The CFD 2005-1 Series 2021 bonds are secured and payable solely from a pledge of Special Tax Revenues, on parity with bonds issued in 2015, to be levied by the Authority on real property within the boundaries of the District, from the proceeds of any foreclosure actions brought following a delinquency in the payment of the special taxes, and from amounts held in certain funds under the Fiscal Agent Agreement dated September 1, 2015 and the Supplement Agreement No. 1 to Fiscal Agent Agreement dated as of December 1, 2021. The CFD 2005-1 Series 2021 bonds are expected to be sold as non-rated securities and have a final maturity date of 2049. The CFD 2005-1 Series 2021 bonds are being issued to (i) construct and acquire certain public facilities of benefit to the District, (ii) provide for the establishment of a reserve fund, and (iii) pay the costs of issuance of the 2021 Bonds. Interest on the CFD 2005-1 Series 2021 bonds is payable semiannually on March 1 and September 1 of each year, commencing March 1, 2022. Principal on the 2021 Bonds is payable annually beginning September 1, 2022 and each year thereafter until September 1, 2049.

6.1.b
Packet Pg. 154 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) 93 REQUIRED SUPPLEMENTARY INFORMATION

6.1.b
Packet Pg. 155 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) 94 This page intentionally left blank.

6.1.b
Packet Pg. 156 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Notes to the Budgetary Comparison Schedule
Budgetary Information
For the Year Ended June 30, 2021
95 The City maintains budgetary controls in order to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. The City maintains an encumbrance accounting system to provide management with information regarding obligations against appropriations. Budgetary compliance is based on expenditures during the period (U.S.GAAP), rather than expenditures and encumbrances (non-GAAP). Because appropriations lapse at June 30, encumbrances outstanding at June 30, 2021 are disclosed in the notes to the financial statements. Appropriations for fiscal year 2021 will provide authority to complete those transactions.

The City is required by its municipal code to adopt an annual budget on or before June 30 for the ensuing fiscal year.

From the effective date of the budget, the amounts become the "annual appropriated budget".

The following procedures are performed by the City in establishing the budgetary data reflected in the financial statements:

1. The Finance Director submits a preliminary budget by June 30 of each year to City Council. This allows the City to continue normal operations until the final budget is adopted in September. The operating budget includes proposed expenditures and the means of financing them.

2. Public hearings are conducted to obtain taxpayers' comments.

3. The appropriated budget is prepared by fund, department, and division. The government department heads may make transfers of appropriation within a department. Transfers of appropriations between departments requires approval of the City Manager. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the fund level.

4. The budget is legally adopted through the passage of a council resolution.

5. The City Council may amend the budget by resolution during the fiscal year. The City Manager may transfer appropriations from one program, activity, or object to another within the same fund. All appropriations lapse at the end of the fiscal year to the extent they have not been expended. Capital project funds are based on a project time frame, rather than a fiscal year "operating" time frame appropriating unused appropriations from year to year until project completion.

6. A budget review is presented to the City Council by the City Manager mid-year and approved additions or changes are legally adopted through Council resolution.

7. Formal budgetary integration is employed as a management control device during the year for the General Fund, Special Revenue Funds, and the Capital Project Funds.

8. Budgets for the General, Special Revenue, and Capital Project Funds are adopted on a basis consistent with United States generally accepted accounting principles.

9. The City did not adopt a budget for the following fund: Police Asset Forfeiture Special Revenue Fund.

6.1.b
Packet Pg. 157 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Budgetary Comparison Schedule
General Fund
For the Year Ended June 30, 2021
96 Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Taxes:

Property 5,535,805 $ 5,876,791 $ 6,196,152 $ 319,361 $
Sales 5,741,522 7,057,327 10,029,499 2,972,172
Franchise 220,000 220,000 222,803 2,803
Other 114,491 174,230 248,158 73,928
Licenses, permits, and fees 1,917,646 1,439,847 1,067,612 (372,235) Charges for services 411,980 464,980 277,580 (187,400)
Intergovernmental:

Federal grant and subsidies 1,101,960 1,386,892 1,153,029 (233,863) Other governmental 2,721,153 1,107,274 1,148,507 41,233 Fines, forfeitures and penalties 185,000 224,576 339,080 114,504 Interest 36,700 36,700 (113,314) (150,014)
Miscellaneous 261,690 373,191 295,955 (77,236)
Total revenues 18,361,808 18,247,947 20,865,061 2,503,253 EXPENDITURES:

Current:

General government 3,777,191 3,853,892 3,489,638 364,254 Police 5,848,272 5,858,329 5,410,959 447,370
Fire 2,672,316 2,780,114 2,481,200 298,914
Community development and planning 1,794,484 1,835,181 1,707,485 127,696 Public works 3,091,707 3,126,490 3,097,430 29,060
Park and recreation 2,370,847 2,355,514 1,878,060 477,454 Capital outlay 204,546 672,887 478,597 194,290
Debt service:

Principal 134,848 134,848 134,848 -
Interest and fiscal charges 74,237 74,237 74,231 6
Total expenditures 20,691,492 19,968,448 18,752,448 1,939,044

REVENUES OVER (UNDER)
EXPENDITURES (2,329,684) (1,720,501) 2,112,613 4,442,297 OTHER FINANCING SOURCES (USES):

Transfers in 3,831,813 3,438,592 3,212,592 (226,000)
Transfers out (2,205,291) (913,930) (686,271) 227,659
Total other financing sources (uses) 2,524,662 1,626,522 2,526,321 1,659 Net change in fund balances $ 194,978 (93,979) $ 4,638,934 4,443,956 $ FUND BALANCE:

Beginning of year 9,076,328
End of year $ 13,715,262
Budgeted Amounts

6.1.b
Packet Pg. 158 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Budgetary Comparison Schedule
Public Safety Special Revenue Fund
For the Year Ended June 30, 2021
97 Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Charges for services 1,124,715 $ 1,124,715 $ 1,197,629 $ 72,914 $ Miscellaneous 62,000 71,600 94,776 23,176
Total revenues 1,196,315 1,186,715 1,292,405 96,090
EXPENDITURES:

Current:

Fire 2,205,359 2,570,156 2,801,504 (231,348)
Total expenditures 2,570,156 2,205,359 2,801,504 (231,348)

REVENUES OVER (UNDER)
EXPENDITURES (1,373,841) (1,018,644) (1,509,099) (135,258) OTHER FINANCING SOURCES (USES):

Transfers in 580,000 976,567 977,330 763
Transfers out (393,221) - - -
Total other financing sources (uses) 976,567 186,779 977,330 763 Net change in fund balances $ (397,274) (831,865) $ (531,769) (134,495) $ FUND BALANCE:

Beginning of year (2,631,617)
End of year $ (3,163,386)
Budgeted Amounts

6.1.b
Packet Pg. 159 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Schedule of Proportionate Share of the Net Pension Liability Last Ten Years
For the Year Ended June 30, 2021
98 Measurement period, year ended 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 1 Plan's proportion of the net pension liability 0.1580126% 0.1530113% 0.1496090% 0.1499839% 0.1499839% 0.1557567% 0.1455000% Plan's proportionate share of the net pension liability 6,665,091 $ 6,127,339 $ 5,638,335 $ 5,912,437 $ 5,141,345 $ 4,273,133 $ 3,638,246 $ Plan's covered payroll 4,605,966 $ 4,471,812 $ 4,341,565 $ 4,215,111 $ 4,092,341 $ 3,973,147 $ 3,857,424 $ Plan's proportionate share of the net pension liability as a percentage of covered payroll 144.71% 137.02% 129.87% 140.27% 125.63% 107.55% 94.32% Plan's fiduciary net position 24,491,193 $ 22,526,868 $ 19,926,425 $ 16,132,739 $ 13,690,393 $ 12,687,998 $ 12,287,961 $ Plan's fiduciary net position as a percentage of the
total pension liability 78.61% 78.62% 77.94% 73.18% 72.70% 74.81% 77.16% Plan's proportionate share of aggregate
employer contributions 1,103,312 $ 1,043,720 $ 900,310 $ 821,442 $ 693,115 $ 748,691 $ 691,154 $ 1 Information only presented from the implementation year Miscellaneous Plan

6.1.b
Packet Pg. 160 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Schedule of Proportionate Share of the Net Pension Liability (Continued) Last Ten Years
For the Year Ended June 30, 2021
99 Measurement period, year ended 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 1 Plan's proportion of the net pension liability 0.049523% 0.047853% 0.046974% 0.045984% 0.046120% 0.046242% 0.026700% Plan's proportionate share of the net pension liability 3,299,373 $ 2,987,220 $ 2,756,215 $ 2,747,657 $ 2,388,655 $ 1,905,383 $ 1,661,368 $ Plan's covered payroll 1,369,049 $ 1,329,174 $ 1,290,460 $ 1,252,874 $ 1,216,383 $ 1,177,974 $ 1,094,057 $ Plan's proportionate share of the net pension liability as a percentage of covered payroll 241.00% 224.74% 213.58% 219.99% 196.37% 161.75% 151.85% Plan's fiduciary net position 9,701,523 $ 9,134,775 $ 8,394,137 $ 7,539,289 $ 6,653,977 $ 6,545,084 $ 6,325,433 $ Plan's fiduciary net position as a percentage of the
total pension liability 74.62% 75.36% 75.28% 73.23% 73.58% 77.45% 79.20% Plan's proportionate share of aggregate
employer contributions 494,902 $ 457,665 $ 393,732 $ 337,685 $ 312,567 $ 364,763 $ 312,579 $ 1 Information only presented from the implementation year Safety Plan

6.1.b
Packet Pg. 161 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Schedule of Plan Contributions
Last Ten Years
For the Year Ended June 30, 2021
100
Fiscal Year: 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-141 Contractually determined
contribution (actuarially determined) 1,291,216 $ 1,103,312 $ 1,043,720 $ 900,310 $ 821,442 $ 693,115 $ 748,691 $ 691,154 $ Contributions in relation to the
actuarially determined contributions (1,291,216) (1,103,312) (1,043,720) (900,310) (821,442) (693,115) (748,691) (691,154) Contribution deficiency (excess) $ - - $ - $ - $ - $ - $ - $ - $ Covered payroll 4,744,145 $ 4,605,966 $ 4,471,812 $ 4,341,565 $ 4,215,111 $ 4,092,341 $ 3,973,147 $ 3,857,424 $ Contributions as a percentage of
covered payroll 27.22% 23.95% 23.34% 20.74% 19.49% 16.94% 18.84% 17.92% Notes to Schedule
Methods and assumptions used to determine contribution rates:

2.63%
Actuarial Value of Assets. For details, see June 30, 2016 Funding Valuation Report.

For details, see June 30, 2018 Funding Valuation Report Entry Age Normal
The actuarial methods and assumption used to set the actuarially determined contributions for Fiscal Year 2021 were derived from the June 30, 2018

7.00% net of pension plan investment and administrative expenses.

2.875%
Varies by entry age and service
The probabilities of retirement are based on the 2014 CalPERS Experience Study for the period from 1997 and The probabilities of mortality are based on the 2014 CalPERS Experience Study for the period from 1997 to 2011.

Pre-retirement and Post-retirement mortality rates include 5 years of projected mortality improvement using Scale

6.1.b
Packet Pg. 162 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Schedule of Plan Contributions (Continued)
Last Ten Years
For the Year Ended June 30, 2021
101
Fiscal Year: 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-141 Contractually determined
contribution (actuarially determined) 552,488 $ 494,902 $ 457,665 $ 393,732 $ 337,685 $ 312,567 $ 364,763 $ 312,579 $ Contributions in relation to the
actuarially determined contributions (552,488) (494,902) (457,665) (393,732) (337,685) (312,567) (364,763) (312,579) Contribution deficiency (excess) $ - - $ - $ - $ - $ - $ - $ - $ Covered payroll 1,410,121 $ 1,369,049 $ 1,329,174 $ 1,290,460 $ 1,252,874 $ 1,216,383 $ 1,177,974 $ 1,094,057 $ Contributions as a percentage of
covered payroll 39.18% 36.15% 34.43% 30.51% 26.95% 25.70% 30.97% 28.57% Notes to Schedule
Methods and assumptions used to determine contribution rates:

Actuarial cost method
Amortization method/period
Asset valuation method
Inflation
Salary increases
Payroll growth
Investment rate of return
Retirement age
Mortality
1 Information only presented from the implementation year Safety Plan
The actuarial methods and assumption used to set the actuarially determined contributions for Fiscal Year 2021 were derived from the June 30, 2018 Entry Age Normal
For details, see June 30, 2018 Funding Valuation Report Actuarial Value of Assets. For details, see June 30, 2016 Funding Valuation Report.

2.63%
Varies by entry age and service

2.875%

7.00% net of pension plan investment and administrative expenses.

The probabilities of retirement are based on the 2014 CalPERS Experience Study for the period from 1997 and The probabilities of mortality are based on the 2014 CalPERS Experience Study for the period from 1997 to 2011. Pre-retirement and Post-retirement mortality rates include 5 years of projected mortality improvement

6.1.b
Packet Pg. 163 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) City of Patterson
Schedule of Changes in Net OPEB Liability and Related Ratios Last Ten Years
For the Year Ended June 30, 2021
102
Measurement period, year ending: 6/30/2020 6/30/2019 6/30/2018 6/30/2017 1 Total OPEB liability
Service cost 930,865 $ 868,965 $ 951,252 $ 1,055,000 $
Interest 413,592 393,931 394,277 327,000
Changes of benefit terms - - (891,666) -
Differences between expected and actual experience (1,584,352) - (552,203) - Changes of assumptions 1,127,249 490,438 102,481 (1,129,000) Benefit payments, including refunds of member contributions (177,238) (163,179) (179,631) (175,000) Change in total OPEB liability 1,590,155 710,116 (175,490) 78,000 Total OPEB liability - beginning 10,697,510 12,287,665 10,873,000 10,795,000 Total OPEB liability - ending (a) $ 12,287,665 12,997,781 $ 10,697,510 $ 10,873,000 $ OPEB fiduciary net position
Contributions - employer 177,238 $ 163,179 $ 179,631 $ 175,000 $ Net investment income - - - -
Benefit payments, including refunds of member contributions (177,238) (163,179) (179,631) (175,000) Administrative expense - - - -
Change in plan fiduciary net position - - - -
Plan fiduciary net position - beginning - - - -
Plan fiduciary net position - ending (b) - - - -
Plan net OPEB liability - ending (a) - (b) $ 12,287,665 12,997,781 $ 10,697,510 $ 10,873,000 $ Plan fiduciary net position as a percentage of the total OPEB liability 0.00% 0.00% 0.00% 0.00% Covered-employee payroll $ 8,196,189 8,559,266 $ 7,352,843 $ 6,620,000 $ Plan net OPEB liability as a percentage of covered-employee payroll 151.86% 149.92% 145.49% 164.24% 1 Information only presented from the implementation year

6.1.b
Packet Pg. 164 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21)

SUPPLEMENTARY INFORMATION
103

6.1.b
Packet Pg. 165 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) This page intentionally left blank.
104

6.1.b
Packet Pg. 166 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21)

NON-MAJOR GOVERNMENTAL FUNDS
105

6.1.b
Packet Pg. 167 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) CFD 2001-01
Landscape Benefit CSA #15 Patterson
Maintenance Assessment Assessment Gardens Beautification District Districts District Public Safety Committee
ASSETS
Cash and investments 812,723 $ 2,233,915 $ 7,647 $ 212,615 $ 38,856 $ Receivables:

Accounts 19,972 5,320 183 9,190 -
Interest 186 518 2 48 9
Notes and loans - - - - -
Total assets $ 2,239,753 832,881 $ 7,832 $ 221,853 $ 38,865 $

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
LIABILITIES:

Accounts payable 81,407 $ 7,239 $ 12,952 $ - $ - $
Due to other funds - - - - -
Unearned revenue - - - - -
Deposits and other liabilities - - - - -
Total liabilities 7,239 81,407 12,952 - -
DEFERRED INFLOWS OF RESOURCES:

Unavailable revenue - - - - -
Total deferred inflows of resources - - - - -
FUND BALANCES:

Restricted 751,474 2,232,514 - 221,853 -
Committed - - - - -
Assigned - - - - 38,865
Unassigned (deficit) - - (5,120) - -
Total fund balances 2,232,514 751,474 (5,120) 221,853 38,865 Total liabilities, deferred inflows
of resources and fund balances $ 2,239,753 832,881 $ 7,832 $ 221,853 $ 38,865 $ (Continued)
City of Patterson
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2021
Special Revenue Funds
106

6.1.b
Packet Pg. 168 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) CDBG State Federal First Time Federal
HA Loan HCD Rehab CDBG Home HOME
Fund Program Grant Buyers Funds
ASSETS
Cash and investments - $ 157,157 $ - $ 192,205 $ 197,632 $ Receivables:

Accounts - - 13,797 - 2,239
Interest - 37 - 45 46
Notes and loans 293,489 54,167 - 82,388 208,577
Total assets $ 211,361 293,489 $ 13,797 $ 274,638 $ 408,494 $

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
LIABILITIES:

Accounts payable - $ - $ - $ - $ - $
Due to other funds - - 223,859 - -
Unearned revenue - 1 71,523 - 11,650
Deposits and other liabilities - - - - -
Total liabilities 1 - 295,382 - 11,650
DEFERRED INFLOWS OF RESOURCES:

Unavailable revenue 293,489 54,167 - 82,387 208,577
Total deferred inflows of resources 54,167 293,489 - 82,387 208,577 FUND BALANCES:

Restricted - 157,193 - 192,251 188,267
Committed - - - - -
Assigned - - - - -
Unassigned (deficit) - - (281,585) - -
Total fund balances 157,193 - (281,585) 192,251 188,267 Total liabilities, deferred inflows
of resources and fund balances $ 211,361 293,489 $ 13,797 $ 274,638 $ 408,494 $ (Continued)
Special Revenue Funds
June 30, 2021
City of Patterson
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
107

6.1.b
Packet Pg. 169 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Local
Neighborhood Local Transportation
Stabilization Transportation Fund Street Project
Program Gas Tax Fund Non Motorized Fund
ASSETS
Cash and investments 5,343 $ 283,885 $ 183,765 $ 85,159 $ 2,984,963 $ Receivables:

Accounts - 138,884 - - 255,428
Interest 1 66 34 20 720
Notes and loans 28,560 - - - -
Total assets $ 422,835 33,904 $ 183,799 $ 85,179 $ 3,241,111 $

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
LIABILITIES:

Accounts payable - $ - $ - $ - $ 104,053 $
Due to other funds - - - - -
Unearned revenue - - 297,142 12,328 -
Deposits and other liabilities - - - - -
Total liabilities - - 297,142 12,328 104,053
DEFERRED INFLOWS OF RESOURCES:

Unavailable revenue 28,560 - - - 162,882
Total deferred inflows of resources - 28,560 - - 162,882 FUND BALANCES:

Restricted 5,344 422,835 - 72,851 2,974,176
Committed - - - - -
Assigned - - - - -
Unassigned (deficit) - - (113,343) - -
Total fund balances 422,835 5,344 (113,343) 72,851 2,974,176 Total liabilities, deferred inflows
of resources and fund balances $ 422,835 33,904 $ 183,799 $ 85,179 $ 3,241,111 $ (Continued)
Special Revenue Funds
City of Patterson
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
June 30, 2021
108

6.1.b
Packet Pg. 170 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Developer
Housing Police Westside
Measure L In-Lieu Asset Drainage
Fund Fee Forfeiture Study CFD 2013-1
ASSETS
Cash and investments 4,222,911 $ 1,053,322 $ 4,297 $ 65,584 $ 420,701 $ Receivables:

Accounts 324,725 - - - 1,986
Interest 963 245 1 15 98
Notes and loans - 1,059,500 - - -
Total assets $ 2,113,067 4,548,599 $ 4,298 $ 65,599 $ 422,785 $

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
LIABILITIES:

Accounts payable 505,184 $ - $ - $ - $ 1,475 $
Due to other funds - - - - -
Unearned revenue - - - - -
Deposits and other liabilities - - - - -
Total liabilities - 505,184 - - 1,475
DEFERRED INFLOWS OF RESOURCES:

Unavailable revenue - 1,059,500 - - -
Total deferred inflows of resources 1,059,500 - - - -
FUND BALANCES:

Restricted 4,043,415 1,053,567 4,298 - 421,310
Committed - - - 65,599 -
Assigned - - - - -
Unassigned (deficit) - - - - -
Total fund balances 1,053,567 4,043,415 4,298 65,599 421,310 Total liabilities, deferred inflows
of resources and fund balances $ 2,113,067 4,548,599 $ 4,298 $ 65,599 $ 422,785 $ (Continued)
City of Patterson
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
June 30, 2021
Special Revenue Funds
109

6.1.b
Packet Pg. 171 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) CFD 2015-2 CFD 2018-2 Community General
Public VOP Facility Government Public Safety
Safety Maintenance Impact Fee Impact Fee Impact Fee
ASSETS
Cash and investments 45,645 $ 75,910 $ 566,031 $ 418,097 $ 571,548 $ Receivables:

Accounts - 37,685 - - -
Interest 11 18 131 97 133
Notes and loans - - - - -
Total assets $ 113,613 45,656 $ 566,162 $ 418,194 $ 571,681 $

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
LIABILITIES:

Accounts payable - $ 792 $ - $ - $ - $
Due to other funds - - - - -
Unearned revenue - - - - -
Deposits and other liabilities - 26,713 - - -
Total liabilities 27,505 - - - -
DEFERRED INFLOWS OF RESOURCES:

Unavailable revenue - - - - -
Total deferred inflows of resources - - - - -
FUND BALANCES:

Restricted 45,656 86,108 - - -
Committed - - 566,162 418,194 571,681
Assigned - - - - -
Unassigned (deficit) - - - - -
Total fund balances 86,108 45,656 566,162 418,194 571,681 Total liabilities, deferred inflows
of resources and fund balances $ 113,613 45,656 $ 566,162 $ 418,194 $ 571,681 $ (Continued)
City of Patterson
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
June 30, 2021
Special Revenue Funds Capital Projects Funds
110

6.1.b
Packet Pg. 172 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Parkland Street
In-Lieu Improvement Water Storm Drain Sewer
Fee Impact Fee Impact Fee Impact Fee Impact Fee
ASSETS
Cash and investments 57,327 $ 706,620 $ 2,873,051 $ 1,233,603 $ 89 $ Receivables:

Accounts - - - - -
Interest 13 164 667 287 -
Notes and loans - - - - -
Total assets $ 706,784 57,340 $ 2,873,718 $ 1,233,890 $ 89 $

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
LIABILITIES:

Accounts payable - $ - $ - $ 4,095 $ - $
Due to other funds - - - - -
Unearned revenue - - - - -
Deposits and other liabilities - - - - -
Total liabilities - - - 4,095 -
DEFERRED INFLOWS OF RESOURCES:

Unavailable revenue - - - - -
Total deferred inflows of resources - - - - -
FUND BALANCES:

Restricted - - - - -
Committed 57,340 706,784 2,873,718 1,229,795 89
Assigned - - - - -
Unassigned (deficit) - - - - -
Total fund balances 706,784 57,340 2,873,718 1,229,795 89 Total liabilities, deferred inflows
of resources and fund balances $ 706,784 57,340 $ 2,873,718 $ 1,233,890 $ 89 $ (Continued)
City of Patterson
Combining Balance Sheet (Continued)
Capital Projects Funds
Non-Major Governmental Funds
June 30, 2021
111

6.1.b
Packet Pg. 173 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Delta Aquatic Heartland Downtown
Mendota Center Future Water Ranch Assistance
Storm Gate Construction Acquisition Infrastructure Fee
ASSETS
Cash and investments 173,987 $ 264,579 $ 137,682 $ 45,955 $ 107,321 $ Receivables:

Accounts - - 635 - -
Interest 40 61 32 11 25
Notes and loans - - - - -
Total assets $ 264,640 174,027 $ 138,349 $ 45,966 $ 107,346 $

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
LIABILITIES:

Accounts payable - $ - $ - $ - $ - $
Due to other funds - - - - -
Unearned revenue - - - - -
Deposits and other liabilities - - - 47,176 -
Total liabilities - - - 47,176 -
DEFERRED INFLOWS OF RESOURCES:

Unavailable revenue - - - - -
Total deferred inflows of resources - - - - -
FUND BALANCES:

Restricted - - - - -
Committed 174,027 264,640 138,349 - 107,346
Assigned - - - - -
Unassigned (deficit) - - - (1,210) -
Total fund balances 264,640 174,027 138,349 (1,210) 107,346 Total liabilities, deferred inflows
of resources and fund balances $ 264,640 174,027 $ 138,349 $ 45,966 $ 107,346 $ (Continued)
City of Patterson
Combining Balance Sheet (Continued)
Capital Projects Funds
Non-Major Governmental Funds
June 30, 2021
112

6.1.b
Packet Pg. 174 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Total
Non-major
Governmental
Funds
ASSETS
Cash and investments $ 20,440,125
Receivables:

Accounts 810,044
Interest 4,744
Notes and loans 1,726,681
Total assets $ 22,981,594

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
LIABILITIES:

Accounts payable $ 717,197
Due to other funds 223,859
Unearned revenue 392,644
Deposits and other liabilities 73,889
Total liabilities 1,407,589
DEFERRED INFLOWS OF RESOURCES:

Unavailable revenue 1,889,562
Total deferred inflows of resources 1,889,562
FUND BALANCES:

Restricted 12,873,112
Committed 7,173,724
Assigned 38,865
Unassigned (deficit) (401,258)
Total fund balances 19,684,443
Total liabilities, deferred inflows
of resources and fund balances $ 22,981,594
(Concluded)
City of Patterson
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
June 30, 2021
113

6.1.b
Packet Pg. 175 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) CFD 2001-01
Landscape Benefit CSA #15 Patterson
Maintenance Assessment Assessment Gardens Beautification District Districts District Public Safety Committee
REVENUES:

Taxes:

Licenses, permits, and fees - $ - $ - $ - $ - $
Charges for services 1,754,921 482,747 8,499 521,518 -
Intergovernmental:

Federal grant and subsidies - - - - -
Other governmental - - - - -
Use of money and property - - - - -
Investment income(loss) 2,448 8,786 27 294 146
Miscellaneous - - - - -
Total revenues 491,533 1,757,369 8,526 521,812 146
EXPENDITURES:

Current:

General government - - - - -
Fire - - - 6,316 -
Community development and planning - - 21,109 - -
Public works 607,933 125,030 - - 270
Capital outlay - - - - -
Debt service:

Principal - - - - -
Interest and fiscal charges - - - - -
Total expenditures 125,030 607,933 21,109 6,316 270

REVENUES OVER (UNDER)
EXPENDITURES 366,503 1,149,436 (12,583) 515,496 (124)
OTHER FINANCING SOURCES (USES):

Transfers in - - - - -
Transfers out (1,070,860) (492,680) (4,059) (500,000) - Total financing sources (uses) (492,680) (1,070,860) (4,059) (500,000) - Net change in fund balances (126,177) 78,576 (16,642) 15,496 (124) FUND BALANCES:

Beginning of year 2,358,691 672,898 11,522 206,357 38,989 End of year 751,474 $ 2,232,514 $ (5,120) $ 221,853 $ 38,865 $ (Continued)
Non-Major Governmental Funds
For the Year Ended June 30, 2021
City of Patterson
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Special Revenue
114

6.1.b
Packet Pg. 176 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) CDBG State Federal First Time Federal
HA Loan HCD Rehab CDBG Home HOME
Fund Program Grant Buyers Funds
REVENUES:

Taxes:

Licenses, permits, and fees - $ - $ - $ - $ - $
Charges for services - - - - -
Intergovernmental:

Federal grant and subsidies - - - - -
Other governmental - - - - -
Use of money and property - 709 - 138,012 7,417
Investment income(loss) - 1,296 - 2,177 3,173
Miscellaneous - - - - -
Total revenues 2,005 - - 140,189 10,590
EXPENDITURES:

Current:

General government - - - - 2,000
Fire - - - - -
Community development and planning - - - - -
Public works - - - - -
Capital outlay - - - - -
Debt service:

Principal - - - - -
Interest and fiscal charges - - - - -
Total expenditures - - - - 2,000

REVENUES OVER (UNDER)
EXPENDITURES 2,005 - - 140,189 8,590
OTHER FINANCING SOURCES (USES):

Transfers in - - - - -
Transfers out - - (13,797) - (2,000)
Total financing sources (uses) - - (13,797) - (2,000)
Net change in fund balances 2,005 - (13,797) 140,189 6,590 FUND BALANCES:

Beginning of year 155,188 - (267,788) 52,062 181,677
End of year - $ 157,193 $ (281,585) $ 192,251 $ 188,267 $ (Continued)
Non-Major Governmental Funds
For the Year Ended June 30, 2021
City of Patterson
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Special Revenue Funds
115

6.1.b
Packet Pg. 177 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Local
Neighborhood Local Transportation
Stabilization Transportation Fund Street Project
Program Gas Tax Fund Non Motorized Fund
REVENUES:

Taxes:

Licenses, permits, and fees - $ - $ - $ - $ - $
Charges for services - - - - -
Intergovernmental:

Federal grant and subsidies - - - - 651,659
Other governmental - 948,005 - - 228,544
Use of money and property - - - - -
Investment income(loss) 19 1,685 954 281 6,626
Miscellaneous - - - - -
Total revenues 949,690 19 954 281 886,829
EXPENDITURES:

Current:

General government - - 6,366 - -
Fire - - - - -
Community development and planning - - - - -
Public works - - - - 52,721
Capital outlay - - - - 1,845,180
Debt service:

Principal - - - - -
Interest and fiscal charges - - - - -
Total expenditures - - 6,366 - 1,897,901

REVENUES OVER (UNDER)
EXPENDITURES 949,690 19 (5,412) 281 (1,011,072)
OTHER FINANCING SOURCES (USES):

Transfers in - - - 11,398 2,784,466
Transfers out - (916,436) (109,242) - -
Total financing sources (uses) (916,436) - (109,242) 11,398 2,784,466 Net change in fund balances 33,254 19 (114,654) 11,679 1,773,394 FUND BALANCES:

Beginning of year 389,581 5,325 1,311 61,172 1,200,782
End of year 5,344 $ 422,835 $ (113,343) $ 72,851 $ 2,974,176 $ (Continued)
City of Patterson
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
Special Revenue Funds
For the Year Ended June 30, 2021
116

6.1.b
Packet Pg. 178 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Developer
Housing Police Westside
Measure L In-Lieu Asset Drainage
Fund Fee Forfeiture Study CFD 2013-1
REVENUES:

Taxes:

Licenses, permits, and fees - $ 4,380 $ - $ - $ - $
Charges for services - - - - 203,098
Intergovernmental:

Federal grant and subsidies - - - - -
Other governmental 1,792,987 - - - -
Use of money and property - - - - -
Investment income(loss) 17,419 3,925 471 245 1,352
Miscellaneous - - - - -
Total revenues 8,305 1,810,406 471 245 204,450
EXPENDITURES:

Current:

General government - - - - 18,377
Fire - - - - -
Community development and planning - - - - -
Public works - - - - 13,376
Capital outlay 551,415 - - - -
Debt service:

Principal - - - - -
Interest and fiscal charges - - - - -
Total expenditures - 551,415 - - 31,753

REVENUES OVER (UNDER)
EXPENDITURES 8,305 1,258,991 471 245 172,697
OTHER FINANCING SOURCES (USES):

Transfers in - - - - -
Transfers out (793,264) - - - (96,636)
Total financing sources (uses) - (793,264) - - (96,636) Net change in fund balances 8,305 465,727 471 245 76,061 FUND BALANCES:

Beginning of year 1,045,262 3,577,688 3,827 65,354 345,249 End of year 4,043,415 $ 1,053,567 $ 4,298 $ 65,599 $ 421,310 $ (Continued)
City of Patterson
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
Special Revenue Funds
For the Year Ended June 30, 2021
117

6.1.b
Packet Pg. 179 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Special Revenue Funds
CFD 2015-2 CFD 2018-2 Community General
Public VOP Facility Government Public Safety
Safety Maintenance Impact Fee Impact Fee Impact Fee
REVENUES:

Taxes:

Licenses, permits, and fees - $ - $ 598,886 $ 111,443 $ 27,986 $ Charges for services 90,459 99,195 - - -
Intergovernmental:

Federal grant and subsidies - - - - -
Other governmental - - - - 21,025
Use of money and property - - - - -
Investment income(loss) 218 118 1,187 1,575 2,101
Miscellaneous - - - - -
Total revenues 99,313 90,677 600,073 113,018 51,112
EXPENDITURES:

Current:

General government 26 7,695 - 9,762 -
Fire - - - - -
Community development and planning - - - - -
Public works - 2,354 - - -
Capital outlay - - - 49,908 -
Debt service:

Principal - - - - 33,518
Interest and fiscal charges - - - - 888
Total expenditures 10,049 26 - 59,670 34,406

REVENUES OVER (UNDER)
EXPENDITURES 89,264 90,651 600,073 53,348 16,706
OTHER FINANCING SOURCES (USES):

Transfers in - - - - -
Transfers out (80,000) - - - -
Total financing sources (uses) - (80,000) - - -
Net change in fund balances 89,264 10,651 600,073 53,348 16,706 FUND BALANCES:

Beginning of year (3,156) 35,005 (33,911) 364,846 554,975 End of year 45,656 $ 86,108 $ 566,162 $ 418,194 $ 571,681 $ (Continued)
For the Year Ended June 30, 2021
Capital Projects Funds
City of Patterson
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
118

6.1.b
Packet Pg. 180 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Parkland Street
In-Lieu Improvement Water Storm Drain Sewer
Fee Impact Fee Impact Fee Impact Fee Impact Fee
REVENUES:

Taxes:

Licenses, permits, and fees 1,844 $ 23,321 $ 1,784,756 $ 4,335 $ 2,034 $ Charges for services - 15,911 - - -
Intergovernmental:

Federal grant and subsidies - - - - -
Other governmental - - - - -
Use of money and property - - - - -
Investment income(loss) 229 3,592 8,060 4,681 199
Miscellaneous - - - - -
Total revenues 42,824 2,073 1,792,816 9,016 2,233
EXPENDITURES:

Current:

General government 5,699 - - - -
Fire - - - - -
Community development and planning - - - - -
Public works - - - - -
Capital outlay - - - 39,621 -
Debt service:

Principal - - - - -
Interest and fiscal charges - - - - -
Total expenditures - 5,699 - 39,621 -

REVENUES OVER (UNDER)
EXPENDITURES 42,824 (3,626) 1,792,816 (30,605) 2,233
OTHER FINANCING SOURCES (USES):

Transfers in - - - - -
Transfers out - (500,000) - - (71,500)
Total financing sources (uses) (500,000) - - - (71,500) Net change in fund balances (457,176) (3,626) 1,792,816 (30,605) (69,267) FUND BALANCES:

Beginning of year 1,163,960 60,966 1,080,902 1,260,400 69,356 End of year 57,340 $ 706,784 $ 2,873,718 $ 1,229,795 $ 89 $ (Continued)
City of Patterson
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
Capital Projects Funds
For the Year Ended June 30, 2021
119

6.1.b
Packet Pg. 181 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Delta Aquatic Heartland Downtown
Mendota Center Future Water Ranch Assistance
Storm Gate Construction Acquisition Infrastructure Fee
REVENUES:

Taxes:

Licenses, permits, and fees - $ 161,437 $ - $ - $ 84,825 $ Charges for services - - - - -
Intergovernmental:

Federal grant and subsidies - - - - -
Other governmental - - - - -
Use of money and property - - - - -
Investment income(loss) 649 739 506 172 270
Miscellaneous - - 2,780 - -
Total revenues 162,176 649 3,286 172 85,095
EXPENDITURES:

Current:

General government - - - - -
Fire - - - - -
Community development and planning - - - - -
Public works - - - - -
Capital outlay - - - - -
Debt service:

Principal - - - - -
Interest and fiscal charges - - - - -
Total expenditures - - - - -

REVENUES OVER (UNDER)
EXPENDITURES 162,176 649 3,286 172 85,095
OTHER FINANCING SOURCES (USES):

Transfers in - - - - -
Transfers out - - - - -
Total financing sources (uses) - - - - -
Net change in fund balances 162,176 649 3,286 172 85,095 FUND BALANCES:

Beginning of year 102,464 173,378 135,063 (1,382) 22,251 End of year 174,027 $ 264,640 $ 138,349 $ (1,210) $ 107,346 $ (Continued)
Capital Projects Funds
City of Patterson
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
For the Year Ended June 30, 2021
120

6.1.b
Packet Pg. 182 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Total
Non-major
Governmental
Funds
REVENUES:

Taxes:

Licenses, permits, and fees $ 2,805,247
Charges for services 3,176,348
Intergovernmental:

Federal grant and subsidies 651,659
Other governmental 2,990,561
Use of money and property 146,138
Investment income(loss) 75,620
Miscellaneous 2,780
Total revenues 9,848,353
EXPENDITURES:

Current:

General government 49,925
Fire 6,316
Community development and planning 21,109
Public works 801,684
Capital outlay 2,486,124
Debt service:

Principal 33,518
Interest and fiscal charges 888
Total expenditures 3,399,564

REVENUES OVER (UNDER)
EXPENDITURES 6,448,789
OTHER FINANCING SOURCES (USES):

Transfers in 2,795,864
Transfers out (4,650,474)
Total financing sources (uses) (1,854,610)
Net change in fund balances 4,594,179
FUND BALANCES:

Beginning of year 15,090,264
End of year $ 19,684,443
(Concluded)
City of Patterson
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
For the Year Ended June 30, 2021
121

6.1.b
Packet Pg. 183 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Investment income (loss) 3,207,093 $ 3,207,093 $ 3,420,541 $ 213,448 $ Miscellaneous 527,556 527,556 527,556 -
Total revenues 3,734,649 3,734,649 3,948,097 213,448
EXPENDITURES:

Debt service:

Principal 1,870,514 2,249,469 2,258,971 (9,502)
Interest and fiscal charges 3,862,321 3,897,148 3,747,210 149,938 Total expenditures 6,146,617 5,732,835 6,006,181 140,436 Net change in fund balances $ (2,411,968) (1,998,186) $ (2,058,084) 353,884 $ FUND BALANCE:

Beginning of year 65,107,358
End of year $ 63,049,274
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Patterson Public Financing Authority Debt Service Fund
For the Year Ended June 30, 2021
122

6.1.b
Packet Pg. 184 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Charges for services 1,730,111 $ 1,730,111 $ 1,754,921 $ 24,810 $ Interest 6,296 6,296 2,448 (3,848)
Total revenues 1,736,407 1,736,407 1,757,369 20,962
EXPENDITURES:

Current:

Public works 1,773,546 1,773,546 607,933 1,165,613
Total expenditures 1,773,546 1,773,546 607,933 1,165,613

REVENUES OVER (UNDER)
EXPENDITURES (37,139) (37,139) 1,149,436 1,186,575
OTHER FINANCING SOURCES (USES):

Transfers out - - (1,070,860) (1,070,860)
Total financing sources (uses) - - (1,070,860) (1,070,860) Net change in fund balance $ (37,139) (37,139) $ 78,576 115,715 $ FUND BALANCE:

Beginning of year 672,898
End of year $ 751,474
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Landscape Maintenance District Special Revenue Fund
For the Year Ended June 30, 2021
123

6.1.b
Packet Pg. 185 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Charges for services 480,968 $ 480,968 $ 482,747 $ 1,779 $ Interest 15,034 15,034 (6,248) 8,786
Total revenues 496,002 496,002 491,533 (4,469)
EXPENDITURES:

Current:

Public works 525,858 526,308 125,030 401,278
Total expenditures 526,308 525,858 125,030 401,278

REVENUES OVER (UNDER)
EXPENDITURES (30,306) (29,856) 366,503 396,809
OTHER FINANCING SOURCES (USES):

Transfers out - (375,747) (492,680) (116,933)
Total financing sources (uses) (375,747) - (492,680) (116,933) Net change in fund balance $ (406,053) (29,856) $ (126,177) 279,876 $ FUND BALANCE:

Beginning of year 2,358,691
End of year $ 2,232,514
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Benefit Assessment Districts Special Revenue Fund
For the Year Ended June 30, 2021
124

6.1.b
Packet Pg. 186 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Charges for services 8,500 $ 8,500 $ 8,499 $ (1) $
Interest 151 151 27 (124)
Total revenues 8,651 8,651 8,526 (125)
EXPENDITURES:

Current:

Community development and planning 16,384 16,384 21,109 (4,725) Total expenditures 16,384 16,384 21,109 (4,725)

REVENUES OVER (UNDER)
EXPENDITURES (7,733) (7,733) (12,583) (4,850)
OTHER FINANCING SOURCES (USES):

Transfers out - - (4,059) (4,059)
Total financing sources (uses) - - (4,059) (4,059)
Net change in fund balance $ (7,733) (7,733) $ (16,642) (8,909) $ FUND BALANCE:

Beginning of year 11,522
End of year $ (5,120)
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual CSA #15 Assessment District Special Revenue Fund
For the Year Ended June 30, 2021
125

6.1.b
Packet Pg. 187 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Charges for services 516,560 $ 516,560 $ 521,518 $ 4,958 $ Interest 612 612 294 (318)
Total revenues 517,172 517,172 521,812 4,640
EXPENDITURES:

Current:

Fire 600 600 6,316 (5,716)
Total expenditures 600 600 6,316 (5,716)

REVENUES OVER (UNDER)
EXPENDITURES 516,572 516,572 515,496 (1,076)
OTHER FINANCING SOURCES (USES):

Transfers out (500,000) (500,000) (500,000) -
Total financing sources (uses) (500,000) (500,000) (500,000) - Net change in fund balance $ 16,572 16,572 $ 15,496 (1,076) $ FUND BALANCE:

Beginning of year 206,357
End of year $ 221,853
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Patterson Gardens Public Safety Special Revenue Fund
For the Year Ended June 30, 2021
126

6.1.b
Packet Pg. 188 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Interest 200 $ 200 $ 146 $ (54) $
Total revenues 200 200 146 (54)
EXPENDITURES:

Current:

Public works 300 300 270 30
Total expenditures 300 300 270 30
Net change in fund balance $ (100) (100) $ (124) (24) $ FUND BALANCE:

Beginning of year 38,989
End of year $ 38,865
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Beautification Committee Special Revenue Fund
For the Year Ended June 30, 2021
127

6.1.b
Packet Pg. 189 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Use of money and property 601 $ 601 $ 709 $ 108 $
Interest 1,218 1,218 1,296 78
Total revenues 1,819 1,819 2,005 186
FUND BALANCE:

Beginning of year 155,188
End of year $ 157,193
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual State HCD Rehab Program Special Revenue Fund
For the Year Ended June 30, 2021
128

6.1.b
Packet Pg. 190 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Intergovernmental:

Federal grant and subsidies 199,496 $ 15,988 $ - $ (15,988) $ Total revenues 15,988 199,496 - (15,988)
EXPENDITURES:

Current:

General government 15,988 15,988 - 15,988
Total expenditures 15,988 15,988 - 15,988

REVENUES OVER (UNDER)
EXPENDITURES - 183,508 - -
OTHER FINANCING SOURCES (USES):

Transfers out - - (13,797) (13,797)
Total financing sources (uses) - - (13,797) (13,797)
Net change in fund balance $ - 183,508 $ (13,797) (13,797) $ FUND BALANCE:

Beginning of year (267,788)
End of year $ (281,585)
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Federal CDBG Grant Special Revenue Fund
For the Year Ended June 30, 2021
129

6.1.b
Packet Pg. 191 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Use of money and property 3,067 $ 3,067 $ 138,012 $ 134,945 $ Interest 2,885 2,885 2,177 (708)
Total revenues 5,952 5,952 140,189 134,237
Net change in fund balance $ 5,952 5,952 $ 140,189 134,237 $ FUND BALANCE:

Beginning of year 52,062
End of year $ 192,251
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual First Time Home Buyers Special Revenue Fund
For the Year Ended June 30, 2021
130

6.1.b
Packet Pg. 192 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Intergovernmental:

Federal grant and subsidies 97,480 $ 97,480 $ - $ (97,480) $ Use of money and property 1,669 1,669 7,417 5,748
Interest 2,193 2,193 3,173 980
Total revenues 101,342 101,342 10,590 (90,752)
EXPENDITURES:

Current:

General government 2,000 2,000 2,000 -
Capital outlay 95,480 95,480 - 95,480
Total expenditures 97,480 97,480 2,000 95,480

REVENUES OVER (UNDER)
EXPENDITURES 3,862 3,862 8,590 4,728
OTHER FINANCING SOURCES (USES):

Transfers out - - (2,000) (2,000)
Total financing sources (uses) - - (2,000) (2,000)
Net change in fund balance $ 3,862 3,862 $ 6,590 2,728 $ FUND BALANCE:

Beginning of year 181,677
End of year $ 188,267
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Federal HOME Special Revenue Fund
For the Year Ended June 30, 2021
131

6.1.b
Packet Pg. 193 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Use of money and property 509 $ 509 $ - $ (509) $
Interest 537 537 19 (518)
Total revenues 1,046 1,046 19 (1,027)
Net change in fund balance $ 1,046 1,046 $ 19 (1,027) $ FUND BALANCE:

Beginning of year 5,325
End of year $ 5,344
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Neighborhood Stabilization Program Special Revenue Fund For the Year Ended June 30, 2021
132

6.1.b
Packet Pg. 194 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Intergovernmental:

Other governmental 1,045,798 $ 1,045,798 $ 948,005 $ (97,793) $ Interest 284 284 1,685 1,401
Total revenues 1,046,082 1,046,082 949,690 (96,392)
EXPENDITURES:

Capital outlay 7,500 7,500 - 7,500
Total expenditures 7,500 7,500 - 7,500

REVENUES OVER (UNDER)
EXPENDITURES 1,038,582 1,038,582 949,690 (88,892)
OTHER FINANCING SOURCES (USES):

Transfers out (450,000) (916,436) (916,436) -
Total financing sources (uses) (916,436) (450,000) (916,436) - Net change in fund balance $ 122,146 588,582 $ 33,254 (88,892) $ FUND BALANCE:

Beginning of year 389,581
End of year $ 422,835
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Gas Tax Special Revenue Fund
For the Year Ended June 30, 2021
133

6.1.b
Packet Pg. 195 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Intergovernmental:

Other governmental - $ 269,251 $ - $ (269,251) $
Interest 3,591 3,591 954 (2,637)
Total revenues 272,842 3,591 954 (271,888)
EXPENDITURES:

Current:

General government - 6,400 6,366 34
Total expenditures 6,400 - 6,366 34

REVENUES OVER (UNDER)
EXPENDITURES 266,442 3,591 (5,412) (271,854)
OTHER FINANCING SOURCES (USES):

Transfers out - (136,423) (109,242) 27,181
Total financing sources (uses) (136,423) - (109,242) 27,181 Net change in fund balance $ 130,019 3,591 $ (114,654) (244,673) $ FUND BALANCE:

Beginning of year 1,311
End of year $ (113,343)
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Local Transportation Special Revenue Fund
For the Year Ended June 30, 2021
134

6.1.b
Packet Pg. 196 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Interest 400 $ 400 $ 281 $ (119) $
Total revenues 400 400 281 (119)
OTHER FINANCING SOURCES (USES):

Transfers in - - 11,398 11,398
Total financing sources (uses) - - 11,398 11,398
Net change in fund balance $ 400 400 $ 11,679 11,279 $
FUND BALANCE:

Beginning of year 61,172
End of year $ 72,851
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Local Transportation Non-Motorized Special Revenue Fund For the Year Ended June 30, 2021
135

6.1.b
Packet Pg. 197 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Intergovernmental:

Federal grant and subsidies 801,826 $ 1,635,478 $ 651,659 $ (983,819) $ Other governmental 823,543 334,222 228,544 (105,678)
Interest 9,656 9,656 6,626 (3,030)
Total revenues 1,979,356 1,635,025 886,829 (1,092,527)
EXPENDITURES:

Current:

Public works 63,000 63,000 52,721 10,279
Capital outlay 4,980,557 2,454,277 1,845,180 609,097
Total expenditures 2,517,277 5,043,557 1,897,901 619,376

REVENUES OVER (UNDER)
EXPENDITURES (537,921) (3,408,532) (1,011,072) (473,151) OTHER FINANCING SOURCES (USES):

Transfers in 3,350,772 2,469,171 2,784,466 315,295
Transfers out (791,456) - - -
Total financing sources (uses) 2,469,171 2,559,316 2,784,466 315,295 Net change in fund balance $ 1,931,250 (849,216) $ 1,773,394 (157,856) $ FUND BALANCE:

Beginning of year 1,200,782
End of year $ 2,974,176
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Street Project Special Revenue Fund
For the Year Ended June 30, 2021
136

6.1.b
Packet Pg. 198 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Intergovernmental:

Other governmental 1,124,762 $ 1,124,762 $ 1,792,987 $ 668,225 $ Interest 5,889 5,889 17,419 11,530
Total revenues 1,130,651 1,130,651 1,810,406 679,755
EXPENDITURES:

Current:

Capital outlay 2,805,625 1,142,226 551,415 590,811
Total expenditures 1,142,226 2,805,625 551,415 590,811

REVENUES OVER (UNDER)
EXPENDITURES (11,575) (1,674,974) 1,258,991 1,270,566
OTHER FINANCING SOURCES (USES):

Transfers in 1,147,758 - - -
Transfers out (339,195) (281,185) (793,264) (512,079)
Total financing sources (uses) (281,185) 808,563 (793,264) (512,079) Net change in fund balance $ (292,760) (866,411) $ 465,727 758,487 $ FUND BALANCE:

Beginning of year 3,577,688
End of year $ 4,043,415
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure L Special Revenue Fund
For the Year Ended June 30, 2021
137

6.1.b
Packet Pg. 199 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Licenses, permits, and fees - $ 4,380 $ 4,380 $ - $
Interest 13,514 13,514 3,925 (9,589)
Total revenues 17,894 13,514 8,305 (9,589)
Net change in fund balance $ 17,894 13,514 $ 8,305 (9,589) $ FUND BALANCE:

Beginning of year 1,045,262
End of year $ 1,053,567
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Developer Housing In-Lieu Fee Special Revenue Fund
For the Year Ended June 30, 2021
138

6.1.b
Packet Pg. 200 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Interest 1,000 $ 1,000 $ 245 $ (755) $
Total revenues 1,000 1,000 245 (755)
Net change in fund balance $ 1,000 1,000 $ 245 (755) $
FUND BALANCE:

Beginning of year 65,354
End of year $ 65,599
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Westside Drainage Study Special Revenue Fund
For the Year Ended June 30, 2021
139

6.1.b
Packet Pg. 201 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Charges for services 57,937 $ 100,211 $ 203,098 $ 102,887 $ Interest 1,800 1,800 1,352 (448)
Total revenues 102,011 59,737 204,450 102,439
EXPENDITURES:

Current:

General government 25,400 25,400 18,377 7,023
Public works 4,200 4,200 13,376 (9,176)
Total expenditures 29,600 29,600 31,753 (2,153)

REVENUES OVER (UNDER)
EXPENDITURES 72,411 30,137 172,697 100,286
OTHER FINANCING SOURCES (USES):

Transfers out - (96,636) (96,636) -
Total financing sources (uses) (96,636) - (96,636) -
Net change in fund balance $ (24,225) 30,137 $ 76,061 100,286 $ FUND BALANCE:

Beginning of year 345,249
End of year $ 421,310
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual CFD 2013-1 Special Revenue Fund
For the Year Ended June 30, 2021
140

6.1.b
Packet Pg. 202 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Charges for services 91,223 $ 91,223 $ 90,459 $ (764) $ Interest 301 301 218 (83)
Total revenues 91,524 91,524 90,677 (847)
EXPENDITURES:

Current:

General government 26 26 26 -
Total expenditures 26 26 26 -

REVENUES OVER (UNDER)
EXPENDITURES 91,498 91,498 90,651 (847)
OTHER FINANCING SOURCES (USES):

Transfers out (80,000) (80,000) (80,000) -
Total financing sources (uses) (80,000) (80,000) (80,000) - Net change in fund balance $ 11,498 11,498 $ 10,651 (847) $ FUND BALANCE:

Beginning of year 35,005
End of year $ 45,656
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual CFD 2015-2 Public Safety Special Revenue Fund
For the Year Ended June 30, 2021
141

6.1.b
Packet Pg. 203 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Charges for services 27,395 $ 27,395 $ 99,195 $ 71,800 $ Interest 300 300 118 (182)
Total revenues 27,695 27,695 99,313 71,618
EXPENDITURES:

Current:

General government - - 7,695 (7,695)
Public works 3,000 3,000 2,354 646
Total expenditures 3,000 3,000 10,049 (7,049)
Net change in fund balance $ 24,695 24,695 $ 89,264 64,569 $ FUND BALANCE:

Beginning of year (3,156)
End of year $ 86,108
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual CFD 2018-2 VOP Maintenance Special Revenue Fund
For the Year Ended June 30, 2021
142

6.1.b
Packet Pg. 204 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21)

CUSTODIAL FUNDS
143

6.1.b
Packet Pg. 205 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) This page intentionally left blank.
144

6.1.b
Packet Pg. 206 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) CFD 2001-1 CFD 2005-1
West Patterson West CFD 2018-1
Financing Patterson CFD 2015-1 Heartland VOP
Authority Business Park Arambel-KDN Ranch 2013 Infrastructure Total ASSETS
Cash and investments 5,423,657 $ 3,242,960 $ - $ 374,194 $ 315,401 $ 9,356,212 $ Restricted cash and investments - 186,222 100 - - 186,322 Cash and investments with fiscal agents 3,052,611 802,253 429,721 230,691 - 4,515,276 Accounts receivable 3,628 90,098 - 4,373 92,807 190,906 Interest receivable 762 5,448 - 162 112 6,484
Notes receivable - 1,010,595 - - - 1,010,595
Total assets 4,235,825 9,582,409 429,821 609,420 408,320 15,265,795

LIABILITIES
Accounts payable 10,050 - - 2,500 1,746 14,296
Due to City - - 67,161 - - 67,161
Total liabilities - 10,050 67,161 2,500 1,746 81,457

NET POSITION
Restricted for:

Individuals, organizations, and other
governments, as restated 4,235,825 9,572,359 362,660 606,920 406,574 15,184,338 Total Net Position $ 4,235,825 9,572,359 $ 362,660 $ 606,920 $ 406,574 $ 15,184,338 $ Fiduciary Funds - Custodial Funds
June 30, 2021
City of Patterson
Combining Statement of Fiduciary Net Position
145

6.1.b
Packet Pg. 207 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) CFD 2001-1 CFD 2005-1
West Patterson West CFD 2018-1
Financing Patterson CFD 2015-1 Heartland VOP
Authority Business Park Arambel-KDN Ranch 2013 Infrastructure Total ADDITIONS:

Special assessments for other governments 5,466,376 $ 643,606 $ 280,337 $ 629,563 $ 417,491 $ 7,437,373 $ Investment income 72,530 11,448 550 683 626 85,837
Total additions 655,054 5,538,906 280,887 630,246 418,117 7,523,210 DEDUCTIONS:

Administration 572 8,082 8,975 33,301 16,912 67,842
Payments on conduit bonds - principal 1,571,445 90,000 25,000 - - 1,686,445 Payments on conduit bonds - interest 3,749,571 405,369 245,963 - - 4,400,903 Projects payments 23,000 - - - - 23,000
Contributions to City - 155,744 - 527,556 - 683,300
Total deductions 659,195 5,344,588 279,938 560,857 16,912 6,861,490 Changes in net position (4,141) 194,318 949 69,389 401,205 661,720 NET POSITION:

Beginning of year, as restated 9,378,041 4,239,966 361,711 537,531 5,369 14,522,618 End of year 9,572,359 $ 4,235,825 $ 362,660 $ 606,920 $ 406,574 $ 15,184,338 $ City of Patterson
Combining Statement of Changes in Fiduciary Net Position Fiduciary Funds - Custodial Funds
For the Year Ended June 30, 2021
146

6.1.b
Packet Pg. 208 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21)

STATISTICAL SECTION
147

6.1.b
Packet Pg. 209 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) This page intentionally left blank.
148

6.1.b
Packet Pg. 210 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Contents Page
150
Helps readers understand how the City's financial position and well-being have changed over time. 160
175
Help readers understand the socioeconomic environment within which the City's financial activities take place, and provides information to facilitate comparisons of financial statement information over time and among other governments.
177
Information about the City's operations and resources to help readers use financial information to understand and assess the related services the City provides and the activities it performs.

Operating Information……………………………………………………………………………………
The Statistical Section provides financial statement users with additional historical perspective, context, and detail to assist in using the information in the financial statements, notes to financial statements, and required supplementary information to understand and assess a government's economic condition.

The Statistical Section is required by the Governmental Accounting Standards Board (GASB) to be reported in the following sections:

Helps readers understand and assess the City's ability to generate its own sources of revenue, the most significant local revenue source being sales and use tax.

STATISTICAL SECTION
Financial Trends Information…………………………………………………………………………… Revenue Capacity Information…………………………………………………………………………..

Demographic and Economic Information……………………………………………………………… 149

6.1.b
Packet Pg. 211 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) 2021 2020 2019 2018 2017
Governmental activities:

Investment in capital assets 59,507,530 $ 61,274,713 $ 60,390,350 $ 60,721,785 $ 55,621,936 $ Restricted 14,976,923 10,752,749 11,572,138 8,385,204 6,391,176 Unrestricted net position (deficit) 413,664 (5,182,490) (7,892,944) (4,612,193) 1,816,668 Total Net Position 74,898,117 $ 66,844,972 $ 64,069,544 $ 64,494,796 $ 63,829,780 $ Business-type activities:

Investment in capital assets 36,978,338 $ 37,930,411 $ 37,746,179 $ 37,346,159 $ 38,857,716 $ Restricted 3,133,810 983,202 469,817 469,905 -
Unrestricted net position (deficit) 2,943,625 4,536,071 2,567,625 (77,313) 517,319 Total Net Position 43,055,773 $ 43,449,684 $ 40,783,621 $ 37,738,751 $ 39,375,035 $ Source: City of Patterson Finance Department
Note: Some prior year balances may have been restated from previous financial statements to reflect the new GASB implementations or prior period reinstatements
City of Patterson
Table 1
Net Position by Classification
Last Ten Fiscal Years
Fiscal Year
150

6.1.b
Packet Pg. 212 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) 2016 2015 2014 2013 2012
Governmental activities:

Investment in capital assets 55,756,984 $ 50,237,700 $ 47,460,440 $ 46,822,970 $ 42,804,314 $ Restricted 5,270,127 4,867,200 4,866,877 4,983,481 5,670,040 Unrestricted net position (deficit) 1,909,873 987,000 7,418,444 11,140,880 15,213,609 Total Net Position 62,936,984 $ 56,091,900 $ 59,745,761 $ 62,947,331 $ 63,687,963 $ Business-type activities:

Investment in capital assets 35,232,028 $ 34,725,800 $ 34,941,039 $ 36,814,164 $ 38,967,545 $ Restricted 4,102,582 5,303,228 5,437,345 5,772,477 5,809,966 Unrestricted net position (deficit) 1,250,675 1,737,680 4,704,599 3,395,687 2,879,695 Total Net Position 40,585,285 $ 41,766,708 $ 45,082,983 $ 45,982,328 $ 47,657,206 $ Source: City of Patterson Finance Department
Note: Some prior year balances may have been restated from previous financial statements to reflect the new GASB implementations or prior period reinstatements
City of Patterson
Table 1
Net Position by Classification (Continued)
Last Ten Fiscal Years
Fiscal Year
151

6.1.b
Packet Pg. 213 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Fiscal Year
2021 2020 2019 2018 2017
Expenses
Governmental activities:

General government 4,196,700 $ 4,514,103 $ 3,167,076 $ 3,328,847 $ 2,259,261 $ Police 5,859,954 5,838,153 6,711,694 6,880,924 4,458,567 Fire 5,592,559 5,367,429 4,937,738 2,699,018 3,532,864
Community development and planning 1,829,511 2,084,354 2,523,052 1,724,146 3,024,928 Public works 5,414,262 4,687,210 4,455,175 4,790,738 2,631,811 Parks and recreation 2,747,819 4,536,510 4,618,872 4,473,167 3,277,134 Interest and fiscal charges 3,818,561 3,942,429 4,360,669 3,847,304 3,955,958 Total governmental activities 29,459,366 $ 30,970,188 $ 30,774,276 $ 27,744,144 $ 23,140,523 $ Business-type activities:

Water 5,056,402 $ 5,404,924 $ 4,561,024 $ 4,917,985 $ 4,481,750 $ Sewer 5,532,181 5,533,806 5,287,098 5,297,929 4,893,962 Garbage 2,774,714 2,912,990 2,545,016 2,397,523 2,310,200 Total business-type activities 13,363,297 $ 13,851,720 $ 12,393,138 $ 12,613,437 $ 11,685,912 $ Total expenses 42,822,663 $ 44,821,908 $ 43,167,414 $ 40,357,581 $ 34,826,435 $ Program Revenues
Governmental activities:

Charges for services:

General government 553,126 $ 374,895 $ 653,327 $ 4,797 $ 678,608 $ Police 177,795 86,776 198,638 300,973 218,337
Fire 1,965,540 1,741,172 1,620,028 720,761 587,593
Community development and planning 796,707 810,870 530,975 65,114 645,985 Public works 961,761 968,384 920,656 2,362,593 2,161,045 Parks and recreation 2,463,997 1,890,773 1,763,473 1,690,041 1,481,692 Operating grants and contributions 3,564,498 2,040,401 2,064,434 2,767,848 1,590,404 Capital grants and contributions 4,333,162 3,609,391 2,262,266 1,877,817 1,112,733 Total governmental activities 14,816,586 $ 11,522,662 $ 10,013,797 $ 9,789,944 $ 8,476,397 $ Business-type activities:

Water 6,336,607 $ 5,660,058 $ 4,764,097 $ 4,197,555 $ 3,680,373 $ Sewer 4,440,546 4,610,985 4,665,525 4,344,858 4,011,227 Garbage 3,577,780 3,378,155 3,228,053 3,079,843 2,921,089 Operating grants and contributions - - 34,318 68,852 701,283 Capital grants and contributions - 8,493 - - -
Total business-type Activities 14,354,933 $ 13,657,691 $ 12,691,993 $ 11,691,108 $ 11,313,972 $ Total program revenues $ 25,180,353 29,171,519 $ 22,705,790 $ 21,481,052 $ 19,790,369 $ Net (Expense) Program Revenues
Governmental activities (14,642,780) $ (19,447,526) $ (20,760,479) $ (17,954,200) $ (14,664,126) $ Business-type activities 991,636 (194,029) 298,855 (922,329) (371,940) Total Primary Government (13,651,144) $ (19,641,555) $ (20,461,624) $ (18,876,529) $ (15,036,066) $ City of Patterson
Table 2
Changes in Net Position
Last Ten Fiscal Years
152

6.1.b
Packet Pg. 214 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Fiscal Year
2016 2015 2014 2013 2012
Expenses
Governmental activities:

General government 2,003,932 $ 2,650,997 $ 3,945,285 $ 2,807,815 $ 2,333,516 $ Police 4,156,842 3,298,276 3,987,323 3,821,033 3,261,512 Fire 3,594,435 3,381,961 3,339,030 2,809,442 2,245,100
Community development and planning 1,258,725 1,213,617 1,460,591 1,136,097 1,116,622 Public works 4,652,522 4,043,774 4,412,453 3,835,002 3,509,406 Parks and recreation 2,696,555 2,558,315 2,463,941 2,223,206 2,157,614 Interest and fiscal charges 3,935,590 4,118,232 80,122 60,882 68,414 Total governmental activities 22,298,601 $ 21,265,172 $ 19,688,745 $ 16,693,477 $ 14,692,184 $ Business-type activities:

Water 3,567,751 $ 3,734,709 $ 3,474,567 $ 3,363,991 $ 3,216,668 $ Sewer 4,221,112 4,091,034 3,867,142 3,406,173 3,386,088 Garbage 2,080,840 2,069,439 1,971,695 2,003,563 1,666,878 Total business-type activities 9,869,703 $ 9,895,182 $ 9,313,404 $ 8,773,727 $ 8,269,634 $ Total expenses 32,168,304 $ 31,160,354 $ 29,002,149 $ 25,467,204 $ 22,961,818 $ Program Revenues
Governmental activities:

Charges for services:

General government 108,119 $ 166,427 $ 38,738 $ 92,657 $ 74,190 $ Police 268,929 392,009 217,030 244,926 207,306
Fire 413,973 681,690 376,520 505,790 334,540
Community development and planning 390,721 885,242 385,554 676,548 676,078 Public works 2,000,190 2,296,599 1,802,849 1,716,066 1,957,980 Parks and recreation 1,804,685 1,780,112 1,628,009 1,557,024 1,521,838 Operating grants and contributions 998,122 1,318,671 1,236,474 1,173,683 1,121,738 Capital grants and contributions 342,867 556,120 861,536 2,061,872 601,377 Total governmental activities 6,327,606 $ 8,076,870 $ 6,546,710 $ 8,028,566 $ 6,495,047 $ Business-type activities:

Water 3,389,473 $ 3,972,456 $ 4,156,756 $ 4,039,314 $ 3,528,681 $ Sewer 3,855,492 3,406,079 3,275,496 3,004,341 2,708,584 Garbage 2,800,845 2,667,681 2,475,705 2,274,016 2,147,980 Operating grants and contributions - - - - -
Capital grants and contributions (1,582) - - - -
Total business-type Activates 10,044,228 $ 10,046,216 $ 9,907,957 $ 9,317,671 $ 8,385,245 $ Total program revenues $ 18,123,086 16,371,834 $ 16,454,667 $ 17,346,237 $ 14,880,292 $ Net (Expense) Program Revenues
Governmental activities (15,970,995) $ (13,188,302) $ (13,142,035) $ (8,664,911) $ (8,197,137) $ Business-type activities 174,525 151,034 594,553 543,944 115,611 Total Primary Government (15,796,470) $ (13,037,268) $ (12,547,482) $ (8,120,967) $ (8,081,526) $ City of Patterson
Table 2
Changes in Net Position (Continued)
Last Ten Fiscal Years
153

6.1.b
Packet Pg. 215 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) 2021 2020 2019 2018 2017
General Revenues:

Governmental activities:

Taxes:

Property tax 6,196,152 $ 3,621,765 $ 3,386,596 $ 3,417,541 $ 3,414,365 $ Sales tax 10,029,499 6,840,520 5,837,364 5,027,535 5,502,627 Franchise tax 222,803 211,963 205,047 206,354 274,792
Motor vehicle in lieu - 2,267,086 2,089,248 1,947,375 1,844,519 Other taxes 248,158 162,436 136,047 717,288 137,847
Use of money and property - - 473,114 - -
Revenue from Fiduciary Fund 527,556 2,387,683 1,745,012 1,681,843 - Investment earnings 3,442,805 4,145,959 4,179,507 4,515,819 4,312,058 Other revenue 379,911 896,921 1,038,772 203,070 633,427 Transfers (Note 6) 1,649,041 1,642,806 1,290,335 1,271,753 895,861 Special / Extraordinary item - - - - -
Total governmental activities 22,695,925 $ 22,177,139 $ 20,381,042 $ 18,988,578 $ 17,015,496 $ Business-type activities:

Use of money and property 43,762 $ 205,023 $ 171,436 $ 74,144 $ 31,002 $ Revenue from Fiduciary Fund 155,744 1,648,115 3,850,536 500,786 - Other revenue 63,988 2,649,760 14,378 64,483 26,549
Transfers (Note 6) (1,649,041) (1,642,806) (1,290,335) (1,271,753) (895,861) Total business-type activities (1,385,547) $ 2,860,092 $ 2,746,015 $ (632,340) $ (838,310) $ Total general revenues $ 25,037,231 21,310,378 $ 23,127,057 $ 18,356,238 $ 16,177,186 $ Change in Net Position
Governmental activities 8,053,145 $ 2,729,613 $ (379,437) $ 1,034,378 $ 2,351,370 $ Business-type activities: (393,911) 2,666,063 3,044,870 (1,554,669) (1,210,250) Total 7,659,234 $ 5,395,676 $ 2,665,433 $ (520,291) $ 1,141,120 $ City of Patterson
Table 2
Changes in Net Position (Continued)
Last Ten Fiscal Years
Fiscal Year
154

6.1.b
Packet Pg. 216 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) 2016 2015 2014 2013 2012
General Revenues:

Governmental activities:

Taxes:

Property tax 3,172,489 $ 2,657,306 $ 2,068,125 $ 2,103,703 $ 1,900,394 $ Sales tax 5,045,260 3,732,177 3,394,908 2,358,667 1,542,190 Franchise tax 188,834 179,313 174,558 161,946 168,451
Motor vehicle in lieu 1,693,793 1,596,755 1,288,025 1,238,447 1,199,856 Other taxes 549,654 719,718 769,476 595,982 676,915
Use of money and property 4,530,279 4,491,782 117,176 205,181 159,602 Revenue from Fiduciary Fund - - - - -
Investment earnings 6,075,652 - 809,908 - 980,003
Other revenue 188,402 159,416 - - -
Transfers (Note 6) 1,371,990 2,117,754 201,549 307,230 217,324 Special / Extraordinary item - - 1,083,500 2,253,123 791,584 Total governmental activities 22,816,353 $ 15,654,221 $ 9,907,225 $ 9,224,279 $ 7,636,319 $ Business-type activities:

Use of money and property 14,451 $ 13,985 $ 34,679 $ 34,301 $ 32,583 $ Revenue from Fiduciary Fund - - - - -
Other revenue - - - - -
Transfers (Note 6) (1,371,990) (2,117,754) (1,083,500) (2,253,123) (980,003) Total business-type activities (1,357,539) $ (2,103,769) $ (1,048,821) $ (2,218,822) $ (947,420) $ Total general revenues $ 13,550,452 21,458,814 $ 8,858,404 $ 7,005,457 $ 6,688,899 $ Change in Net Position
Governmental activities 6,845,358 $ 2,465,919 $ (3,234,810) $ 559,368 $ (560,818) $ Business-type activities: (1,183,014) (1,952,735) (454,268) (1,674,878) (831,809) Total 5,662,344 $ 513,184 $ (3,689,078) $ (1,115,510) $ (1,392,627) $ City of Patterson
Table 2
Changes in Net Position (Continued)
Last Ten Fiscal Years
Fiscal Year
155

6.1.b
Packet Pg. 217 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) 2021 2020 2019 2018 2017
FUND BALANCES:

General Fund
Nonspendable 106,172 $ 104,997 $ 84,466 $ 73,526 $ 68,630 $ Restricted 360,498 344,809 290,150 146,789 144,229
Committed 3,762,470 3,751,813 3,725,949 3,658,050 3,642,337 Assigned 2,896,296 2,889,800 2,879,593 2,883,371 2,879,809 Unassigned 6,589,826 1,984,909 1,192,981 873,038 1,502,483 Total General Fund 13,715,262 $ 9,076,328 $ 8,173,139 $ 7,634,774 8,237,488 All Other Governmental Funds
Nonspendable 3,338 $ - $ - $ 2,865 $ 574 $
Restricted 75,922,386 75,515,298 74,293,766 75,770,466 76,995,568 Committed 7,173,724 4,986,655 4,905,500 4,905,500 6,016,084 Assigned 38,865 - 40,109 - -
Unassigned (deficit) (3,567,982) (2,935,948) (2,777,683) (1,283,973) (729,053) Total All Other Governmental Funds $ 77,566,005 79,570,331 $ 76,461,692 $ 79,394,858 $ 82,283,173 $ Total Fund Balance 93,285,593 $ 86,642,333 $ 84,634,831 $ 87,029,632 $ 90,520,661 $ City of Patterson
Table 3
Fund Balance, Governmental Funds
Last Ten Fiscal Years
Fiscal Year
156

6.1.b
Packet Pg. 218 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) 2016 2015 2014 2013 2012
FUND BALANCES:

General Fund
Nonspendable 78,491 $ - $ 850 $ 850 $ - $
Restricted 51,773 40,508 81,663 209,823 173,885
Committed 3,626,143 3,605,039 3,605,039 3,594,200 3,580,604 Assigned 1,879,546 2,051,675 2,246,696 3,555,248 5,389,558 Unassigned 1,564,376 568,385 283,289 - 195,478
Total General Fund 7,200,329 $ 6,265,607 $ 6,217,537 $ 7,360,121 $ 9,339,525 $ All Other Governmental Funds
Nonspendable - $ - $ - $ - $ - $
Restricted 78,162,371 78,664,140 2,935,022 3,445,665 4,024,858 Committed 5,734,508 6,335,270 5,833,844 6,516,526 6,465,547 Assigned 38,985 105 - - -
Unassigned (deficit) (283,235) (135,283) (152,677) (25,708) (35,484) Total All Other Governmental Funds $ 84,864,232 83,652,629 $ 8,616,189 $ 9,936,483 $ 10,454,921 $ Total Fund Balance 90,852,958 $ 91,129,839 $ 14,833,726 $ 17,296,604 $ 19,794,446 $ City of Patterson
Table 3
Fund Balance, Governmental Funds (Continued)
Last Ten Fiscal Years
Fiscal Year
157

6.1.b
Packet Pg. 219 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) 2021 2020 2019 2018 2017
Revenues:

Taxes:

Property 6,196,152 $ 3,621,765 $ 3,386,596 $ 3,417,541 $ 3,414,365 $ Sales 10,029,499 6,840,520 5,837,364 5,027,535 5,502,627 Franchise 222,803 211,963 205,047 206,354 274,792
Motor vehicle in lieu - 2,267,086 2,089,248 1,947,375 1,844,519 Other 248,158 162,436 136,047 131,701 137,847
License, permits, and fees 3,872,859 2,135,391 1,360,937 2,055,853 1,791,391 Charges for current services 4,651,557 4,446,008 4,369,186 5,519,738 3,849,087 Intergovernmental 5,943,756 6,225,231 3,483,936 2,028,281 1,989,969 Fines, forfeitures and penalties 339,080 66,683 181,044 146,100 157,307 Investment earnings 3,528,985 4,152,528 4,198,697 4,535,040 4,312,058 Revenue from Fiduciary Fund 527,556 2,387,683 1,745,012 1,681,843 - Miscellaneous revenues 393,511 981,021 1,189,088 355,285 612,457 Total Revenues 35,953,916 $ 33,498,315 $ 28,182,202 $ 27,052,646 23,886,419 Expenditures:

Current:

General government 3,539,563 $ 3,803,016 $ 2,899,263 $ 2,656,904 $ 2,507,830 $ Police 5,410,959 5,373,752 5,374,098 6,377,259 4,218,306 Fire 5,289,020 5,057,265 4,696,647 2,437,226 3,574,689
Community development and planning 1,728,594 2,021,174 2,545,955 1,654,039 1,485,366 Public Works 3,899,114 3,323,065 3,267,381 3,707,312 2,874,435 Parks and recreation 1,878,060 3,713,674 4,014,566 3,719,906 2,466,882 Capital outlay 2,964,721 3,417,460 2,776,974 7,237,219 2,080,160 Debt service:

Principal 2,427,337 2,476,386 2,225,040 2,250,465 2,060,273 Interest and fiscal charges 3,822,329 3,947,827 4,067,414 4,204,098 3,954,933 Total Expenditures $ 33,133,619 30,959,697 $ 31,867,338 $ 34,244,428 $ 25,222,874 $ Excess (deficiency) of revenue over $ 364,696 4,994,219 $ (3,685,136) $ (7,191,782) $ (1,336,455) $ (under) expenditures
Other financing sources (uses)
Proceeds from capital leases - $ - $ - $ - $ 161,990 $
Proceeds from loan repayments - - - - -
Proceeds from issuance of bonds - - - 2,429,000 -
Transfers in 6,985,786 3,339,258 3,818,998 4,107,492 3,012,930 Transfers out (5,336,745) (1,696,452) (2,528,663) (2,835,739) (2,117,069) Total Other Financing Sources $ 1,642,806 1,649,041 $ 1,290,335 $ 3,700,753 $ 1,057,851 $ Net Change in Fund Balance $ 2,007,502 6,643,260 $ (2,394,801) $ (3,491,029) $ (278,604) $ Debt Service as a Percentage of Noncapital Expenditure 22.32% 21.62% 21.63% 23.90% 25.99% Source: City of Patterson Finance Department
City of Patterson
Table 4
Changes in Fund Balance of Governmental Funds
Last Ten Fiscal Years
Fiscal Year
158

6.1.b
Packet Pg. 220 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) 2016 2015 2014 2013 2012
Revenues:

Taxes:

Property 3,172,489 $ 2,657,306 $ 2,068,125 $ 2,103,703 $ 1,900,394 $ Sales 5,045,260 3,732,177 3,394,908 2,358,667 1,542,190 Franchise 188,834 179,313 174,558 161,946 168,451
Motor vehicle in lieu 1,693,793 1,596,755 1,288,025 1,238,447 1,199,856 Other 549,654 719,718 769,476 595,982 676,915
License, permits, and fees 983,115 2,016,921 557,204 1,165,199 1,152,693 Charges for current services 3,763,566 4,021,749 3,680,478 3,497,197 3,426,554 Intergovernmental 1,340,990 1,844,850 2,138,010 1,437,603 1,723,115 Fines, forfeitures and penalties 239,936 193,350 211,018 130,614 192,685 Investment earnings 4,530,279 4,577,761 117,176 205,181 159,602 Revenue from Fiduciary Fund - - - - -
Miscellaneous revenues 188,402 1,565,122 416,362 307,229 217,324 Total Revenues 21,696,318 $ 23,105,022 $ 14,815,340 $ 13,201,768 $ 12,359,779 $ Expenditures:

Current:

General government 2,704,512 $ 2,744,062 $ 2,602,651 $ 2,260,009 $ 1,756,247 $ Police 4,290,965 4,039,064 3,916,598 3,800,959 3,229,131 Fire 3,274,834 3,069,601 2,822,442 2,500,294 2,096,942
Community development and planning 1,374,632 1,240,042 1,254,394 973,757 991,918 Public Works 2,691,886 2,746,358 3,114,271 2,736,664 2,811,602 Parks and recreation 1,940,339 1,841,033 1,741,109 1,555,750 1,182,646 Capital outlay 1,432,210 1,873,381 3,344,428 2,464,827 1,548,410 Debt service:

Principal 1,765,836 3,105,901 286,833 282,583 300,578
Interest and fiscal charges 4,016,686 4,123,116 80,122 60,882 68,414 Total Expenditures $ 24,917,148 23,357,310 $ 19,162,848 $ 16,635,725 $ 13,985,888 $ Excess (deficiency) of revenue over $ (1,812,126) (1,660,992) $ (4,347,508) $ (3,433,957) $ (1,626,109) $ (under) expenditures
Other financing sources (uses)
Proceeds from capital leases - $ - $ - $ - $ - $
Proceeds from loan repayments 12,116 760 717,421 208,962 197,739 Proceeds from issuance of bonds - - - - -
Transfers in 4,711,665 4,655,106 3,295,570 2,435,589 2,668,660 Transfers out (3,339,675) (3,223,826) (2,212,070) (1,779,196) (1,877,076) Total Other Financing Sources $ 1,432,040 1,384,106 $ 1,800,921 $ 865,355 $ 989,323 $ Net Change in Fund Balance $ (380,086) (276,886) $ (2,546,587) $ (2,185,827) $ (636,786) $ Debt Service as a Percentage of Noncapital Expenditure 26.37% 31.37% 2.32% 2.42% 2.97% Source: City of Patterson Finance Department
Fiscal Year
City of Patterson
Table 4
Changes in Fund Balance of Governmental Funds (Continued) Last Ten Fiscal Years
159

6.1.b
Packet Pg. 221 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) 2021 2020 2019 2018 2017
Revenues:

Taxes:

Property 6,196,152 $ 3,621,765 $ 3,386,596 $ 3,417,541 $ 2,931,682 $ Sales 10,029,499 6,840,520 5,837,364 5,027,535 5,502,627 Franchise 222,803 211,963 205,047 206,534 274,792
Motor vehicle in lieu - 2,267,086 2,089,248 1,947,375 1,844,519 Other 248,158 162,436 136,047 131,701 137,847
Total Revenues $ 13,103,770 16,696,612 $ 11,654,302 $ 10,730,686 $ 10,691,467 $ Source: City of Patterson Finance Department
Fiscal Year
City of Patterson
Table 5
Tax Revenues by Source
Last Ten Fiscal Years
160

6.1.b
Packet Pg. 222 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) 2016 2015 2014 2013 2012
Revenues:

Taxes:

6.1.b
Packet Pg. 223 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) 2021 2020 2019 2018 2017
Type of Customer
Residential 1,146,893 cf 1,095,305 cf 1,018,052 cf 1,049,166 cf 1,116,364 cf Commercial/Industrial 132,374 165,164 151,297 123,676 99,656 Irrigation 450,848 444,466 334,844 287,977 260,565
Total 1,730,115 cf 1,704,935 cf 1,504,193 cf 1,460,819 cf 1,476,585 cf Source: City of Patterson Finance Department
Fiscal Year
City of Patterson
Table 6a
Water Sold by Customer Type
Last Five Fiscal Years
162

6.1.b
Packet Pg. 224 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Wastewater
Fiscal Year
Monthly
Base Rate
Additional
Per 100cf**
Monthly Base
Rate
2021 $ 15.12 $ 3.48 $ 49.94
2020 $ 13.62 $ 3.14 $ 49.94
2019 $ 12.27 $ 2.82 $ 49.94
2018 11.06 $ 2.54 $ 44.44 $
2017 11.06 $ 2.54 $ 44.44 $
2016 11.04 $ 2.76 $ 41.92 $
2015 11.04 $ 2.76 $ 39.55 $
2014 10.62 $ 2.65 $ 37.31 $
2013 10.21 $ 2.55 $ 35.20 $
2012 9.82 $ 2.45 $ 33.21 $
100 cf = 100 cubic feet (748 gallons)
Rates are based on 3/4" meter, which is the standard household meter size. **The Utility charges an excess use rate above normal demand.

Source: City of Patterson Finance Department
City of Patterson
Table 6b
Water and Wastewater Utility Rates
Last Ten Fiscal Years
Water
163

6.1.b
Packet Pg. 225 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) 2011-12 2012-13 2013-14 2014-15 2015-16*
Residential Property $ - - $ - $ - $ 1,067,738,189 $
Commercial Property - - - - 106,365,150
Industrial Property - - - - 278,228,208
Other Property 1,174,200,272 1,146,822,457 1,243,040,268 1,490,319,496 187,566,714 Unsecured Property 22,827,604 21,466,697 22,211,957 69,354,774 81,491,675 Less: Tax-Exempt Property 19,583,220 19,891,800 18,900,554 18,375,785 35,591,679 Taxable Assessed Value $ 1,177,444,656 1,148,397,354 $ 1,246,351,671 $ 1,541,298,485 $ 1,685,798,257 $ Total Direct Tax Rate (1) 1.124542 1.132936 1.126574 1.092819 1.097113 Estimated Actual Taxable Value (2) $ 1,177,444,656 1,148,397,354 $ 1,246,351,671 $ 1,541,298,485 $ 2,474,212,386 $ Factor of Taxable Assessed Value (2) 1.000000 1.000000 1.000000 1.000000 1.467680 Source: County Assessor data, MuniServices, LLC / Avenue Insights & Analytics 2015-16 is the city's first ACFR publication, therefore prior year data availability is limited. (-) indicates data not available
*Other property includes state unitary $99,152.
(1) Total Direct Tax Rate is represented by TRA 5-001
(2.) Estimated Actual Value is derived from a series of calculations comparing median assessed values from 1940 to current median sale prices.

Based on these calculations a factor was extrapolated and applied to current assessed values.

Fiscal Year
City of Patterson
Table 6
City-Wide Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
164

6.1.b
Packet Pg. 226 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) 2016-17 2017-18 2018-19 2019-20 2020-21
Residential Property $ 1,221,805,158 1,125,435,937 $ 1,336,735,402 $ 1,420,672,172 $ 1,472,464,677 $ Commercial Property 141,903,335 134,692,261 162,332,795 175,943,468 201,385,521 Industrial Property 460,796,304 461,416,004 464,865,277 470,160,844 537,164,362 Other Property 66,537,768 62,594,490 73,659,817 141,632,148 113,983,444 Unsecured Property 84,553,479 87,592,650 82,368,182 87,689,106 83,230,002 Less: Tax-Exempt Property 38,086,325 36,416,220 38,436,037 42,869,663 44,893,026 Taxable Assessed Value $ 1,937,329,719 1,835,315,122 $ 2,081,525,436 $ 2,253,228,075 $ 2,363,334,980 $ Total Direct Tax Rate (1) 1.095707 1.104825 1.106684 1.141246 1.136632 Estimated Actual Taxable Value (2) $ 2,880,528,379 2,515,245,600 $ 3,191,213,893 $ 3,457,556,850 $ 2,968,433,744 $ Factor of Taxable Assessed Value (2) 1.370471 1.486855 1.533113 1.534490 1.256036 Source: County Assessor data, MuniServices, LLC / Avenue Insights & Analytics 2015-16 is the city's first ACFR publication, therefore prior year data availability is limited. (-) indicates data not available
*Other property includes state unitary $99,152.
(1) Total Direct Tax Rate is represented by TRA 5-001
(2.) Estimated Actual Value is derived from a series of calculations comparing median assessed values from 1940 to current median sale prices.

Based on these calculations a factor was extrapolated and applied to current assessed values.

City of Patterson
Table 6
City-Wide Assessed Value and Estimated Actual Value of Taxable Property (Continued) Last Ten Fiscal Years
Fiscal Year
165

6.1.b
Packet Pg. 227 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Category 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Residential 1,067,738,189 $ 1,125,435,937 $ 1,221,805,158 $ 1,336,735,402 $ 1,420,672,172 $ 1,472,464,677 $ Industrial 278,228,208 461,416,004 460,796,304 464,865,277 470,160,844 537,164,362 Commercial 106,365,150 134,692,261 141,903,335 162,332,795 175,943,468 201,385,521 Vacant 34,897,566 41,941,904 49,709,923 59,900,775 111,593,169 79,088,199 Agriculture 13,022,637 14,009,788 14,548,636 11,793,401 14,729,866 14,082,823 Unknown 138,855,433 5,164,703 1,245,101 1,096,217 9,299,298 18,838,976 Rural 739,952 1,337,947 712,923 727,181 5,866,493 1,818,114 Unitary 476,983 88,243 88,243 88,243 88,243 99,152
Miscellaneous 51,126 51,905 52,942 54,000 55,079 56,180 Institution - - - - - -
Gross Secured Value $ 1,784,138,692 1,640,375,244 $ 1,890,862,565 $ 2,037,593,291 $ 2,208,408,632 $ 2,324,998,004 $ Unsecured 81,014,692 $ 87,592,650 $ 84,553,479 $ 82,368,182 $ 87,689,106 $ 83,230,002 $ Exemptions 35,591,649 36,416,220 38,086,325 38,436,037 42,869,663 44,893,026 Net Taxable Value $ 1,835,315,122 1,685,798,287 $ 1,937,329,719 $ 2,081,525,436 $ 2,253,228,075 $ 2,363,334,980 $ Source: County Assessor data, MuniServices, LLC / Avenue Insights & Analytics 2015-16 is the city's first ACFR publication, therefore prior year data availability is limited.

City of Patterson
Table 7
Taxable Property by Use Code, City-Wide
Last Six Fiscal Years
Fiscal Year
166

6.1.b
Packet Pg. 228 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Basic City and County Levy:

City of Patterson 0.188770 0.188770 0.188770 0.188770 0.188770 0.188770 0.188770 0.188770 0.188770 0.188770 All Others:

County General Fund 0.241442 0.241442 0.241442 0.241442 0.241442 0.241442 0.241442 0.241442 0.241442 0.241442 Co Supt of Schools 0.003947 0.003947 0.003947 0.003947 0.003947 0.003947 0.003947 0.003947 0.003947 0.003947 County Fire Service 0.005658 0.005658 0.005658 0.005658 0.005658 0.005658 0.005658 0.005658 0.005658 0.005658 Patterson Cemetery 0.007696 0.007696 0.007696 0.007696 0.007696 0.007696 0.007696 0.007696 0.007696 0.007696 Patterson Hospital District 0.034410 0.034410 0.034410 0.034410 0.034410 0.034410 0.034410 0.034410 0.034410 0.034410 Turlock Mosquito Abatement 0.011318 0.011318 0.011318 0.011318 0.011318 0.011318 0.011318 0.011318 0.011318 0.011318 Patterson Unified School District 0.386426 0.386426 0.386426 0.386426 0.386426 0.386426 0.386426 0.386426 0.386426 0.386426 Yosemite Community College 0.070620 0.070620 0.070620 0.070620 0.070620 0.070620 0.070620 0.070620 0.070620 0.070620 County School Service Fund 0.020908 0.020908 0.020908 0.020908 0.020908 0.020908 0.020908 0.020908 0.020908 0.020908 Schools-equalization aid 0.018355 0.018355 0.018355 0.018355 0.018355 0.018355 0.018355 0.018355 0.018355 0.018355 Schools-tuition 0.010450 0.010450 0.010450 0.010450 0.010450 0.010450 0.010450 0.010450 0.010450 0.010450 TOTAL 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 Override Assessments
Patterson U - 1996 0.017613 0.018016 0.016664 0.011640 0.010596 0.010415 0.009953 0.009910 0.008517 0.007773 Patterson U - 01A 0.070130 0.074108 0.069589 0.045680 0.043932 0.043952 0.042364 0.042913 0.037489 0.034404 Patterson U - 01B 0.012167 0.012052 0.011402 0.008691 0.007974 0.007850 0.000000 0.000000 0.009804 0.007718 Patterson U - 2008A 0.000000 0.000000 0.001938 0.004985 0.007691 0.010456 0.010179 0.011078 0.009759 0.009435 Patterson U - 2016 GO Ref 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.018261 0.016809 0.005718 0.006936 Patterson U - 2018A 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.046179 0.047588 YCCD 2005 A 0.005962 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 YCCD 2007 C 0.018004 0.020892 0.019024 0.015663 0.011618 0.009190 0.007585 0.009093 0.008839 0.008883 YCCD 2010 D 0.000666 0.000399 0.000390 0.000334 0.000467 0.000459 0.000359 0.000410 0.000405 0.000425 YCCD 2012 Ref 0.000000 0.007469 0.007567 0.005826 0.008285 0.008500 0.008753 0.007962 0.007286 0.006554 YCCD 2015 Ref 0.000000 0.000000 0.000000 0.000000 0.006550 0.004885 0.007371 0.008509 0.007250 0.006916 TOTAL 0.124542 0.132936 0.126574 0.092819 0.097113 0.095707 0.104825 0.106684 0.141246 0.136632 TOTAL TAX RATE 1.124542 1.132936 1.126574 1.092819 1.097113 1.095707 1.104825 1.106684 1.141246 1.136632 Source: County Assessor data, MuniServices, LLC / Avenu Insights & Analytics TRA 5-001 is represented for this report
*In 1978, California voters enacted Proposition 13 which held property taxes to 1% of the assessed value. Taxing entity's do not impose mileage rates but instead receive a share of the total 1% tax.

City of Patterson
Table 8
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
Fiscal Year
167

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168

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Packet Pg. 230 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Taxpayer Taxable Value ($)
Percent of Total City
Taxable Value (%)
Taxable Value ($)
Percent of Total City
Taxable Value (%)
WR Griffin Patterson LLC 106,331,038 4.50%
W W Grainger Inc 94,102,013 3.98% 34,494,804 3.01%
Bit Holdings Seventy-Seven Inc 80,099,975 3.39%
Longs Drug Stores California I 65,090,988 2.75% 55,363,030 4.82% Westcore Alpha Patterson LLC 58,138,000 2.46%
Kohl's Department Stores Inc 40,224,220 1.70% 44,441,000 3.87% LBA RV-Company XVII LP 37,020,603 1.57%
Amazoncom Services Inc 36,310,360 1.54%
Wal Mart Real Estate Business 25,577,192 1.08% 7,299,000 0.64% Restoration Hardware 15,626,090 0.66%
Sierra Pacific Refrig Serv Ltd 14,035,932 0.59% 11,178,500 0.97% Ramos John J & Brenda J 13,513,776 0.57% 9,569,633 0.83% Pilot Travel Centers LLC 12,316,224 0.52%
Buzz Oates LLC 10,429,227 0.44%
Vop 21 LLC 9,346,056 0.40%
Gill Hospitality LLC 8,921,725 0.38%
Krishna Hospitality LLC 8,747,942 0.37%
KB Home Sacramento Inc 8,316,000 0.35%
Westside Property Management 8,220,170 0.35% 3,454,639 0.30% Patterson Marketplace LLC 7,647,632 0.32% 6,373,547 0.56% Traina Pacific LLC 7,499,451 0.32%
Three D Patterson LLC 6,888,357 0.29% 5,880,079 0.51%
Boersma Properties LLC 5,947,031 0.25% 5,076,542 0.44%
Save Mart Supermarkets 5,589,567 0.24% 4,987,739 0.43%
Eagle Valley Investments 4,851,635 0.21%
Patterson Industrial Center LLC 29,551,078 2.57%
Patterson Vegetable Company LLC 17,154,054 1.49%
Gea Mechanical Equipment Us In 5,459,560 0.48%
Ormond Peter M 0.36% 4,115,759
Snider Paul H 0.33% 3,819,540
Patterson Plaza Associates LLC 0.31% 3,555,000
Hensley Investment Co LLC 0.31% 3,554,480
Proto LLC 0.30% 3,490,000
Keystone Flex II Associates LLC 3,103,337 0.27%
Teg Investments 0.21% 2,393,376
Johnson Patricia A 0.20% 2,280,487
Patterson Hotel Associates 0.20% 2,266,544
525 Baldwin LLC 0.19% 2,168,500
Federal Home Loan Mortgage Cor 2,088,610 0.18%
Total Top 25 Taxpayers 690,791,204 29.23% 273,118,838 23.79% Total Taxable Value 2,363,334,980 100.00% 1,147,845,555 100.00% Source: County Assessor data, MuniServices, LLC / Avenue Insights & Analytics 2011-12
City of Patterson
Table 9
Principal Property Tax Payers
Last Fiscal Year and Nine Years Ago
2020-21
169

6.1.b
Packet Pg. 231 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Taxpayer Business Type
76 Service Stations Service Stations
76 Service Stations Service Stations
Acar Leasing Auto Lease
Amazon Com Services Fulfillment Centers
Amazon MFA Fulfillment Centers
Arco AM PM Service Stations
Chevron Service Stations Service Stations
Chevron Patterson Service Stations
Del Don Fertilizer Company Garden/Agricultural Supplies Flying J Travel Plaza Service Stations
G's Food Mart Service Stations
Idaho Pacific Lumber Building Materials
JM Equipment Warehse/Farm/Const. Equip.

Lowry Cardlock Fuel Petroleum Prod/Equipment
McAuley Ford New Motor Vehicle Dealers
McDonalds Quick-Service Restaurants
Patterson Lumber Company Building Materials
Premier Packaging Light Industrial/Printers
San Joaquin Equipment Warehse/Farm/Const. Equip.

Save Mart Supermarket Grocery Stores
Thompson Chevrolet Buick New Motor Vehicle Dealers
WW Grainger Electrical Equipment
Walgreens Drug Stores
Walmart Supercenter Discount Dept Stores
Source: HdL Companies
2020-21
City of Patterson
Table 10
Principal Sales Tax Producers
Last Fiscal Year and Nine Years Ago
170

6.1.b
Packet Pg. 232 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Taxpayer Business Type
76 Service Stations Service Stations
76 Service Stations Service Stations
AutoZone Automotive Supply Stores
Carls Jr Quick-Service Restaurants
Chevron Patterson Service Stations
CVS Pharmacy Drug Stores
Del Don Chemical Garden/Agricultural Supplies
Denny's Casual Dining
Dollar Tree Variety Stores
G's Food Mart Service Stations
Jack in the Box Quick-Service Restaurants
Jesses Used Cars Used Automotive Dealers
JM Equipment Warehse/Farm/Const. Equip.

Kwik Serv Gas Service Stations
Lowry Cardlock Fuel Petroleum Prod/Equipment
McAuley Ford New Motor Vehicle Dealers
McDonalds Quick-Service Restaurants
Patterson Exxon Liquor & Food Service Stations
San Joaquin Equipment Warehse/Farm/Const. Equip.

Save Mart Supermarket Grocery Stores
Storeroom Solutions Light Industrial/Printers
Taco Bell Quick-Service Restaurants
True Value Hardware Building Materials
Walgreens Drug Stores
Source: HdL Companies
2011-2012
City of Patterson
Table 10
Principal Sales Tax Producers (Continued)
Last Fiscal Year and Nine Years Ago
171

6.1.b
Packet Pg. 233 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) CATEGORY NAME 2012 Q1 2013 Q1 2014 Q1 2015 Q1 2016 Q1
All Other Outlets 16,502 $ 254,533 $ 339,350 $ 389,253 $ 592,368 $ Apparel Stores 301 357 233 799 597
Auto Dealers & Auto 63,804 71,100 89,599 107,648 104,804 Bldg. Matrl. & Farm 56,007 60,320 59,860 102,671 62,643 Drug Stores 13,143 10,176 9,079 9,002 8,922
Eating & Drinking Pl 41,980 44,396 51,559 53,868 58,015 Food Stores 19,509 15,938 14,677 18,922 16,884
Home Furnishings & A 2,624 3,255 4,366 5,519 9,228
General Merchandise 3,517 77,738 91,259 72,612 79,659
Other Retail Stores 898 1,392 1,655 3,149 3,345
Packaged Liquor Stor 550 467 1,209 689 997
Service Station 84,261 79,145 80,038 73,795 63,428
TOTAL 303,096 $ 618,817 $ 742,884 $ 837,927 $ 1,000,890 $ Source: HdL Companies
* HdL combined business type Packaged Liquor Stores with Convenience Stores in 4Q16 thus causing a spike in 1Q17 and forward.

City of Patterson
Table 11
Historical Sales Tax Amounts by Benchmark Year
Last Ten Fiscal Years
172

6.1.b
Packet Pg. 234 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) CATEGORY NAME 2017 Q1 2018 Q1 2019 Q1 2020 Q1 2021 Q1
All Other Outlets 597,886 $ 567,498 $ 536,620 $ 934,427 $ 1,802,510 $ Apparel Stores 774 526 1,116 894 30
Auto Dealers & Auto 123,336 123,204 111,997 113,273 171,906 Bldg. Matrl. & Farm 60,911 32,749 69,889 94,280 145,119 Drug Stores 9,318 4,655 23,628 17,646 35,512
Eating & Drinking Pl 56,766 56,023 74,473 51,621 84,011 Food Stores 14,235 13,203 13,447 11,203 18,345
Home Furnishings & A 12,564 10,601 9,814 12,462 11,105
General Merchandise 80,118 83,482 84,760 86,678 98,236
Other Retail Stores 3,495 5,543 4,237 -2,373 5,287
Packaged Liquor Store 8,353 * 4,945 2,877 6,607 7,165
Service Station 142,584 174,114 202,665 188,080 292,674 TOTAL 1,110,340 $ 1,076,543 $ 1,135,523 $ 1,514,798 $ 2,671,900 $ Source: HdL Companies
* HdL combined business type Packaged Liquor Stores with Convenience Stores in 4Q16 thus causing a spike in 1Q17 and forward.

City of Patterson
Table 11
Historical Sales Tax Amounts by Benchmark Year (Continued) Last Ten Fiscal Years
173

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174

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Packet Pg. 236 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Fiscal Year Population (1)
Personal
Income (2)
Per Capita
Personal Income
(2) Median Age (4)
**Public School
Enrollment
County
Unemployment
Rate (%) (3)
City
Unemployment
Rate (%) (3)
County
Population (1)
2011-12 20,634 381,048,078 $ 18,467 $ 29.7 5,834 - - 519,940 2012-13 20,846 390,591,502 $ 18,737 $ 30.1 5,888 11.7% 16.1% 524,124 2013-14 20,922 398,375,802 $ 19,041 $ 30.4 6,023 13.0% 17.8% 526,042 2014-15 21,094 402,136,016 $ 19,064 $ 30.5 6,024 9.8% 9.3% 532,297 2015-16 22,590 436,077,360 $ 19,304 $ 30.5 6,031 9.5% 9.0% 540,214 2016-17 22,730 459,580,598 $ 20,219 $ 30.5 6,083 8.5% 8.1% 548,057 2017-18 23,414 503,526,733 $ 21,505 $ 30.6 6,103 7.1% 7.2% 555,624 2018-19 23,764 539,051,882 $ 22,684 $ 30.8 6,077 5.6% 5.5% 558,972 2019-20 23,074 544,361,808 $ 23,592 $ 31.3 6,179 16.1% 14.9% 557,709 2020-21 23,304 593,436,826 $ 25,465 $ 31.1 6,012 10.7% 10.0% 555,968 Source: MuniServices, LLC / Avenu Insights & Analytics, U.S. Census Bureau, 2015 American Community Survey. (-) indicates data not available
The California Department of Finance demographics estimates now incorporate 2010 Census counts as the benchmark.

1.) Population Projections are provided by the California Department of Finance Projections.

2.) Income Data is provided by the U.S. Census Bureau, 2015 American Community Survey.

3.) Unemployment Data is provided by the EDD's Bureau of Labor Statistics Department.

4.) Median Age reflects the U.S. Census data estimation table. **Student Enrollment reflects the total number of students enrolled in Patterson Joint Unified.

City of Patterson
Table 12
Demographic and Economic Statistics
Last Ten Fiscal Years
175

6.1.b
Packet Pg. 237 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Business Name
Number of
Employees
Percent of Total
Employment (%)
Number of
Employees
Percent of Total
Employment (%)
Amazon Fulfillment Center* 945 9.84% 1,000 10.99%
Patterson Joint Unified School District 750 7.81% 617 6.78% CVS Caremark Distribution Center 510 5.31% 346 3.80%
Grainger Distribution Center 445 4.64% 466 5.12%
Walmart Supercenter 300 3.13% 241 2.65%
City of Patterson* 221 2.30% 225 2.47%
Restoration Hardware 186 1.94% 122 1.34%
King's Roofing 167 1.74%
Save Mart 139 1.45% 100 1.10%
Mc Donald's 75 0.78% 73 0.80%
Brake Parts Inc (BPI) Distribution Center 56 0.62%
Total Top 10 Employers 3,738 38.94% 3,246 35.67%
Total City Labor Force (1) 9,600 9,100
Source: MuniServices, LLC / Avenu Insights & Analytics
2015-16 is the city's first ACFR publication, therefore prior year data availability is limited.

Results based on direct correspondence with city’s local businesses. (1) Total City Labor Force provided by EDD Labor Force Data. *Includes full and part time
2015-16
City of Patterson
Table 13
Principal Employers
2020-21
Last Fiscal Year and Five Years Ago
176

6.1.b
Packet Pg. 238 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) 2020-21 Assessed Valuation: $2,381,474,780
Total Debt City’s Share of Debt
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2021 % Applicable (1) 6/30/21 Yosemite Community College District 258,715,060 $ 3.192% 8,258,185 $ Patterson Joint Unified School District 56,187,045 70.658 39,700,642 City of Patterson Community Facilities District No. 2005-1 9,265,000 100.000 9,265,000 City of Patterson Community Facilities District No. 2015-1 4,685,000 100.000 4,685,000 City of Patterson Settlement Liability 364,000 100.000 364,000 City of Patterson PFA Revenue Bonds (Less Bond Discount) 64,286,264 100.000 64,286,264 TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT 126,559,091 $ DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Stanislaus County Certificates of Participation 19,250,000 $ 4.329% $832,563 Stanislaus County Office of Education Certificates of Participation 1,510,000 4.325 $65,308 Patterson Joint Unified School District General Fund Obligations 10,995,000 70.658 $7,768,847 City of Patterson Lease Revenue Bonds 2,037,982 100.000 $2,037,982 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $10,704,700 TOTAL DIRECT DEBT $ 66,688,246
TOTAL OVERLAPPING DEBT $ 70,575,545
COMBINED TOTAL DEBT $ (2) 137,263,791
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.

Ratios to 2020-21 Assessed Valuation:

Direct Debt ($64,650,264) 2.71%
Total Direct and Overlapping Tax and Assessment Debt 5.31% Total Direct Debt ($66,688,246) 2.80%
Combined Total Debt 5.76%
Source: Avenu Insights & Analytics
City of Patterson
Table 14
Direct and Overlapping Governmental Activities Debt
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. 177

6.1.b
Packet Pg. 239 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Number Number Number Number Number
Authorized Authorized Authorized Authorized Authorized
16-17 17-18 18-19 19-20 20-21
Administration
City Manager 1 1 1 1 1
Human Resources Director 1 1 1 1 1
City Clerk 1 1 1 1 1
HR Analyst 1 1 1 1 1
Executive Administrative Assistant Confidential 0 1 1 1 1 Secretary - Confidential 1 0 0 0 0
Deputy City Clerk 0 0 0 1 1
Administrative Assistant 1 1 1 0 0
IT Manager 0 0 0 1 1
IT Technician II 0 0 0 1 1
6 6 688
Finance
Finance Director 1 1 1 1 1
Supervising Accountant 1 1 1 1 1
Revenue & Utility Billing Manager 1 1 1 1 1
Accountant 0 0 1 1 2
Accounting Technician 1 1 1 1 1
Account Clerk, Senior 3 3 3 3 3
Account Clerk 2 2 3 3 2
9 9 11 11 11
Recreation & Community Services
Recreation & Community Services Director 1 1 1 1 1
Recreation & Community Services Manager 1 1 1 1 1
Recreation & Community Services Supervisor 0 0 1 4 4
Recreation Coordinator II 1 1 3 0 0
Recreation Coordinator I 3 3 1 0 0
Account Clerk 1 2 2 2 2
Facilities & Maintenance Supervisor 1 1 1 1 1
Maintenance Worker III 1 1 1 1 1
Maintenance Worker II 0 0 0 0 1
Maintenance Worker I 0 1 1 1 0
9 11 12 11 11
Fire
Chief 1 1 1 1 1
Division Chief 2 2 2 2 2
Fire Captain - Paramedic 2 2 2 2 2
Fire Captain 3 3 4 4 4
Fire Engineer - Paramedic 1 1 1 1 1
Fire Engineer 4 4 5 5 5
Fire Fighters - Paramedic 3 6 6 6 6
Fire Fighters 0 0 0 0 0
Fire Marshall 1 1 0 0 0
Fire Prevention Specialist 0 0 1 1 1
Administrative Manager 1 1 1 1 1
Secretary II 1 1 1 1 1
19 22 24 24 24
Last Five Fiscal Years
By Function/Program/Department
Full-Time Equivalent City Government Employees
Table 15
City of Patterson
178

6.1.b
Packet Pg. 240 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Number Number Number Number Number
Authorized Authorized Authorized Authorized Authorized
16-17 17-18 18-19 19-20 20-21
Community Development
Community Development Director 0 1 111
Code Enforcement Officer II 1 1 111
Code Enforcement Officer I 1 1 111
2 3 333
Planning
Planner 1 1 1 1 1
Associate Planner 1 1 1 1 1
Planning Technician II 2 2 2 2 2
4 4 444
Engineering, Building & Capital Projects
Director of Engineering 1 1 1 1 1
Associate Engineer 0 0 1 1 1
Assistant Engineer 2 2 1 1 1
Secretary I 1 1 1 1 1
4 4 444
Capital Projects
Capital Project Manager 1 1 111
Building & Permits
Permit Technician II 1 1 1 1 1
Permit Technician I 0 0 0 0 2
1 1 113
Public Works
Director of Public Works 1 1 1 1 1
Deputy Director of Public Works Ops & Maint 1 1 1 1 1
Sr. Administrative Manager 1 1 1 1 1
Public Works Inspector III 1 1 1 1 1
Public Works Inspector II 0 0 0 1 1
Public Works Inspector I 1 1 1 0 0
Management Analyst 3 3 3 3 3
Secretary II 2 2 2 2 2
Maintenance Worker I 0 0 1 1 1
10 10 11 11 11
Equipment Mechanic
Mechanic - Crew Leader 1 1 1 1 1
Mechanic II 1 1 1 1 1
2 2 222
Building Maintenance
Maintenance Worker II 2 2 1 1 0
Maintenance Worker I 0 0 1 1 2
2 2 222
Parks
Parks Supervisor 1 1 1 1 1
Maintenance Worker III 6 6 4 5 4
Maintenance Worker II 1 1 3 3 3
Maintenance Worker I 1 2 3 1 2
9 10 11 10 10
Streets
Public Works Supervisor - Streets 0.5 0.5 0.5 0.5 0.5
Maintenance Worker II 1 1 1 2 2
Maintenance Worker I 1 1 1 0 1

2.5 2.5 2.5 2.5 3.5
City of Patterson
Table 15
Full-Time Equivalent City Government Employees (Continued) By Function/Program/Department
Last Five Fiscal Years
179

6.1.b
Packet Pg. 241 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) Number Number Number Number Number
Authorized Authorized Authorized Authorized Authorized
16-17 17-18 18-19 19-20 20-21
Urban Forestry
Public Works Supervisor - Tree 1 1 1 1 1
Maintenance Worker III 1 1 1 1 0
Maintenance Worker II 1 1 1 1 1
Maintenance Worker I 2 2 2 2 3
5 5 555
Water
Public Works Supervisor - Water 1 1 1 1 1
Water Operator III 3 3 4 4 4
Water Operator II 0 0 0 1 1
Water Operator I 1 1 1 0 0
Electrical & Instrumentation Manager 0 0.5 0.5 0.5 0.5
Electrician - Crew Leader 0.5 0 0 0 0
Electrician Technician II 0 0.5 0.5 0.5 0.5

5.5 6 7 7 7
Sewer
Wastewater Manager 1 1 1 1 1
Chief Waste Water Operator 1 1 1 1 1
Wastewater Operator III 1 1 2 1 2
Wastewater Operator II 2 2 1 2 1
Wastewater Operator I 1 1 1 1 1
Electrical & Instrumentation Manager 0 0.5 0.5 0 0.5
Electrician - Crew Leader 0.5 0 0 0.5 0
Electrician Technician II 0 0.5 0.5 0 0.5

6.5 7 7 7 7
Collection
Public Works Supervisor - Collections 0.5 0.5 0.5 0.5 0.5 Maintenance Worker III 1 1 3 1 3
Maintenance Worker II 2 2 0 2 0
Maintenance Worker I 0 0 0 1 1

3.5 3.5 3.5 4.5 4.5
Total Allocated Positions 101 109 117 118 121
Incentives Available: Specified by MOU
Certificate Pay - 1% to 4% Educational Incentives up to 3% Pay for Performance - Not Available
Source: City of Patterson Finance Department
By Function/Program/Department
Last Five Fiscal Years
City of Patterson
Table 15
Full-Time Equivalent City Government Employees (Continued) 180

6.1.b
Packet Pg. 242 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21)

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND

OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS

PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Independent Auditors’ Report
To the Honorable Mayor and Members of the City Council
of the City of Patterson
Patterson, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Patterson, California (the “City”), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 29, 2021.

Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (“internal control”) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 2121 North California Blvd., Suite 290,Walnut Creek, California 94596 Tel: 925-974-3394 • Fax: 949-777-8850
www.pungroup.cpa

6.1.b
Packet Pg. 243 Attachment: 2021_Patterson_ACFR_FINAL (Accept City's Audit Reports FY 2020-21) To the Honorable Mayor and Members of the City Council
of the City of Patterson
Patterson, California

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Patterson City CouncilFebruary 1, 2022

Patterson City Council
February 1, 2022