City of Patterson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents
Page
INTRODUCTORY SECTION (Unaudited)
Letter of Transmittal ...................................................................................................................................................... i Principal Officials .......................................................................................................................................................... v Organizational Chart ...................................................................................................................................................... vi GFOA Certificate of Achievement ................................................................................................................................. vii
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 City of Patterson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents (Continued)
Page
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule:
General Fund ................................................................................................................................................... 99 Public Safety Special Revenue Fund ............................................................................................................... 100 Notes to the Budgetary Comparison Schedule ..................................................................................................... 101 Defined Benefits Pension Plans – CalPERS:
Schedule of Proportionate Share of the Net Pension Liability ........................................................................ 102 Schedule of Plan Contributions ....................................................................................................................... 104 Schedule of Changes in Net OPEB Liability and Related Ratios:
Other Postemployment Benefits .................................................................................................................... 106 Supplementary Information:
Nonmajor Special Revenue Funds:
Combining Balance Sheet ............................................................................................................................. 110 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ..................................... 118 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:
Debt Service Fund:
Patterson Public Financing Authority ..................................................................................................... 126 Special Revenue Funds:
Landscape Maintenance District ............................................................................................................. 127 Benefit Assessment Districts .................................................................................................................. 128 CSA #15 Assessment District ................................................................................................................. 129 CFD 2001-01 Patterson Gardens Fire Suppression Assessment ............................................................. 130 Beautification Committee ....................................................................................................................... 131 State HCD Rehab Program ..................................................................................................................... 132 Federal CDBG Grant .............................................................................................................................. 133 First Time Home Buyers ......................................................................................................................... 134 Federal HOME ........................................................................................................................................ 135 Neighborhood Stabilization Program ...................................................................................................... 136 Gas Tax ................................................................................................................................................... 137 Local Transportation ............................................................................................................................... 138 Local Transportation Non-Motorized ..................................................................................................... 139 Street Project ........................................................................................................................................... 140 Measure L ............................................................................................................................................... 141 Developer Housing In-Lieu Fee .............................................................................................................. 142 Police Asset Forfeiture ............................................................................................................................ 143 Westside Drainage Study ........................................................................................................................ 144 CFD 2013-1 ............................................................................................................................................ 145 CFD 2015-2 ............................................................................................................................................ 146 CFD 2018-2 VOP Maintenance .............................................................................................................. 147 Community Facility Impact Fee ............................................................................................................. 148 City of Patterson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents (Continued)
Page
FINANCIAL SECTION (Continued)
Supplementary Information (Continued)
Custodial Funds:
Combining Statement of Fiduciary Net Position – Custodial Funds ............................................................... 151 Combining Statement of Changes in Fiduciary Net Position – Custodial Funds ............................................ 152 STATISTICAL SECTION (Unaudited)
Description of Statistical Section Contents .................................................................................................................. 155 Financial Trends:
Net Position by Classification – Last Ten Fiscal Years ......................................................................................... 156 Changes in Net Position – Last Ten Fiscal Years .................................................................................................. 158 Fund Balance, Governmental Funds – Last Ten Fiscal Years ............................................................................... 162 Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years ......................................................... 164 Revenue Capacity:
Tax Revenues by Source – Last Ten Fiscal Years ................................................................................................. 166 Water Sold by Customer Type – Last Five Fiscal Years ....................................................................................... 168 Water and Wastewater Utility Rates – Last Ten Fiscal Years ............................................................................... 169 City-Wide Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ............... 170 Taxable Property by Use Code, City-Wide – Last Six Fiscal Years ...................................................................... 172 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years ................................................................... 173 Principal Property Taxpayers – Last Fiscal Year and Nine Years Ago ................................................................. 175 Principal Sales Tax Producers – Last Fiscal Year and Nine Years Ago ................................................................ 176 Historical Sales Tax Amounts by Benchmark Year – Last Ten Fiscal Years ........................................................ 178 Demographic and Economic Information:
Demographic and Economic Statistics - Last Ten Fiscal Years ............................................................................ 181 Principal Employers Last Fiscal Year and Five Years Ago ................................................................................... 182 Operating Information:
Direct and Overlapping Governmental Activities Debt ......................................................................................... 183 Full-Time Equivalent City Government Employees
By Function/Program/Department – Last Five Fiscal Years ........................................................................... 184 Ratios of Outstanding Debt by Type ...................................................................................................................... 187 This page intentionally left blank.
City of Patterson
1 Plaza
P.O. Box 667
Patterson, California 95363
Phone (209) 895-8000
May 3, 2023
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, 2022. 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’s financial activities for the fiscal year is discussed in the Management’s Discussion and Analysis (“MD&A”) section of the ACFR.
CITY PROFILE
The City was incorporated 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, Code Enforcement, 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, and Planning.
Engineering includes Building, Capital Projects, and Engineering. 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 continues to see strong economic growth over the last several years. As the economy resumes after 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 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 Loves Travel Center, Valero Gas Station, Grocery Outlet, Popeyes Chicken, and other interested business.
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 one new industrial Warehouse (1,000,000 sf), a 120,000 sf furniture manufacturing company, Dutch Bros Coffee, Old Water Office Restaurant, just to name a few. A new Javi’s restaurant was also approved for a location in the Historic downtown core and is currently remodeling their location. A new truck maintenance facility was recently added to the Loves Travel Center located in the business park. The 700,000 sf building in the Keystone Business Park is completed and awaiting new tenants. Self-Help Enterprise is planning to start build out of the remainder of the Self Help homes. The Villages of Patterson Project have installed streets and underground facilities and have built numerous homes. To date approximately 400 homes have been sold.
Patterson Ranch has built approximately 250 affordable homes that fit into the middle-income affordable category.
The City received ARPA Funding in the amount of $5.3 million total in FY 2022 to help City fund some of the operation and maintenance costs related to COVID-19 prevention and public safety related costs. It is also being used for various community incentives, such as, the RAD Card Program, which provides for 1:1 matching of funds up to $100. Other uses included employee premium pay, Homeless Shelter assistance, IT upgrades, cyber security, and aid to non-profit organizations.
The American Rescue Plan Act will be contributing to our General Fund. The City expects to see $5.3 million over a two-year period that will 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 addition of two new positions, including a Program Manager, and an additional Code Enforcement Officer.
The City is fortunate to see our sales tax remains strong in FY 2022. the major contributing factor for our strong revenues is due to ongoing on-line sales, agricultural products sales, and a diverse business portfolio. The City is looking forward to lifting previous cost cutting measures and hiring freeze to run operations as normal.
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 control should 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 basis substantially 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 2021-2022 budget process:
x Continued progression of our Strategic Plan.
x Increase in project revenues through grants, Measure L, and SB1 for street maintenance, and infrastructure projects.
x Leverage technology to improve efficiency and service delivery. x Continued application processes for grant opportunities to fund our Public Safety Center, the Sperry/I-5 Interchange expansion project, and the Centennial Park Community Center. x Continue review and analysis of development and redevelopment activities including production of our Downtown revitalization Committee and Master plan and final design of our Wayfinding strategies.
Some of the specific projects underway in Fiscal Year 2021-2022 included the following:
x I-5 Interchange PS&E design and construction
x Patterson Public Safety Center
x Salado Creek Bike Trail Project
iv
x Sperry Avenue Overlay
x Kinshire Street Rehabilitation - Design & construction Phase II x WQCF Administration Building
x WWTP Phase-3A Expansion
x Rogers Road Bridge Replacement
x New Potable Well #14
New Commercial Development includes:
x Loves Travel Center
x Chipotle Restaurant
x Grocery Outlet
x Old Water Office Restaurant
x Dutch Bros. Coffee
x Oshi Teri Restaurant
x Popeye’s Restaurant
New Residential Development included:
x Villages of Patterson will provide approximately 600 to 800 new homes over the next 5 years x Baldwin Ranch is well underway and plans to provide 300 homes over the next 5 years. x The Zacharias Annexation is in its final stages of approvals and will provide another 320 acres of industrial/Business Park Land and approximately another 5000 homes for the future growth of Patterson.
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
V
CITY OF PATTERSON
Annual Comprehensive Financial Report
FISCAL YEAR
2021 - 2022
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
Aracely Alegre, City Clerk
Joshua Clayton, Chief of Police
Jeffery Gregory, Chief of Fire
Marie R, Guillory-Jones , 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 Joel Andrews, Interim Community Development Director
Nubia Goldstein, City Attorney
Douglas L. White, Deputy City Attorney
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
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2121 North California Blvd., Suite 290
Walnut Creek, California 94596
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members
of the City Council of the City of Patterson
Patterson, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Patterson, California (the “City”), as of and for the year ended June 30, 2022, 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.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audits 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. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Emphasis of Matter
Implementation of New GASB Pronouncements
As discussed in Note 1 to the basic financial statements, the City implemented Governmental Accounting Standards Board (“GASB”) Statement No. 87, Leases during the year. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
2 To the Honorable Mayor and Members
of the City Council of the City of Patterson
Patterson, California
Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
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 listed 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. 3 To the Honorable Mayor and Members
of the City Council of the City of Patterson
Patterson, California
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The Combining and Individual Fund Financial Statements and Budgetary Comparison Schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements.
Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information 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 Fund Financial Statements and Budgetary Comparison Schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the Introductory and Statistical Sections but does not include the basic financial statements and our auditors' report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in ourreport.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated May 3, 2023, on our consideration of 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 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 City’s internal control over financial reporting and compliance.
Walnut Creek, California
May 3, 2023
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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).
City of Patterson
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.
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. 2022 2021 2022 2021 2022 2020
Current and other assets $ 106,931,680 $ 99,614,197 $ 27,450,754 $ 26,550,394 $ 134,382,434 $ 126,164,591 Capital assets 63,212,428 61,545,512 47,016,567 47,488,895 110,228,995 109,034,407 Total assets 170,144,108 161,159,709 74,467,321 74,039,289 244,611,429 235,198,998 Deferred outflows of resources 4,046,216 2,968,951 2,285,454 2,162,688 6,331,670 5,131,639 Long-term liabilities 74,890,236 78,861,283 27,544,850 30,407,404 102,435,086 109,268,687 Other liabilities 12,598,511 8,674,105 2,315,097 1,851,325 14,913,608 10,525,430 Total liabilities 87,488,747 87,535,388 29,859,947 32,258,729 117,348,694 119,794,117 Deferred inflows of resources 4,029,847 1,695,155 1,968,829 887,475 5,998,676 2,582,630 Net Position:
Net investment in capital assets 61,241,920 59,507,530 36,458,905 36,978,338 97,700,825 96,485,868 Restricted 13,063,056 14,976,923 3,133,590 3,133,810 16,196,646 18,110,733 Unrestricted 8,560,071 413,664 5,374,917 2,943,625 13,934,988 3,357,289 Total net position $ 82,865,047 $ 74,898,117 $ 44,967,412 $ 43,055,773 $ 127,832,459 $ 117,953,890 Net Position
Governmental Activities Business-type Activities Total
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.
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.
City of Patterson
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2021
9 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.
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:
City of Patterson
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2021
10 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.
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.
City of Patterson
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2021
11 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
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
City of Patterson
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. 14 This page intentionally left blank.
BASIC FINANCIAL STATEMENTS
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16 GOVERNMENT-WIDE FINANCIAL STATEMENTS
17 Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:
Cash and investments 35,518,133 $ 13,855,284 $ 49,373,417 $ Restricted cash and investments 2,198,867 406,225 2,605,092 Accounts receivable 1,910,516 2,033,326 3,943,842
Intergovernmental receivable 3,906,802 9,300 3,916,102
Interest receivable 12,801 6,361 19,162
Lease receivable - current 19,628 23,966 43,594
Due from Fiduciary Funds 68,656 - 68,656
Prepaid items 142,258 13,853 156,111
Total current assets 16,348,315 43,777,661 60,125,976
Noncurrent assets:
Cash and investments with fiscal agents 1,112,191 11,102,439 12,214,630 Investments held in trust 60,552,790 - 60,552,790
Lease receivable - noncurrent 193,317 43,413 236,730
Notes and loans receivable 1,677,319 - 1,677,319
Capital assets:
Non-depreciable 14,368,338 12,821,664 27,190,002
Depreciable and amortizable, net 48,844,090 34,194,903 83,038,993 Capital assets, net 63,212,428 47,016,567 110,228,995
Total noncurrent assets 58,162,419 126,748,045 184,910,464 Total assets 74,510,734 170,525,706 245,036,440
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding - 318,293 318,293
OPEB-related deferred outflows of resources 1,903,780 962,821 2,866,601 Pension-related deferred outflows of resources 2,142,436 1,004,340 3,146,776 Total deferred outflows of resources 4,046,216 2,285,454 6,331,670 Primary Government
City of Patterson
Statement of Net Position
June 30, 2022
See accompanying Notes to the Basic Financial Statements. 18 Governmental Business-Type
Activities Activities Total
LIABILITIES
Current liabilities:
Accounts payable 2,119,038 1,052,056 3,171,094
Accrued liabilities 137,424 9,769 147,193
Accrued interest payable 1,156,042 69,238 1,225,280
Unearned revenue 3,371,203 27,162 3,398,365
Deposits payable 2,311,479 106,271 2,417,750
Compensated absences - due within one year 597,244 282,830 880,074 Long-term debt - due within one year 2,917,177 767,771 3,684,948 Total current liabilities 2,315,097 12,609,607 14,924,704 Noncurrent liabilities:
Long-term debt - due in more than one year 61,273,411 21,549,581 82,822,992 Net OPEB liability 10,237,730 4,664,893 14,902,623
Aggregate net pension liability 3,202,999 1,330,376 4,533,375 Total noncurrent liabilities 27,544,850 74,714,140 102,258,990 Total liabilities 29,859,947 87,323,747 117,183,694
DEFERRED INFLOWS OF RESOURCES
Lease-related deferred inflows of resources 212,944 67,379 280,323 OPEB-related deferred inflows of resources 1,443,433 740,102 2,183,535 Pension-related deferred inflows of resources 2,373,470 1,161,348 3,534,818 Total deferred inflows of resources 1,968,829 4,029,847 5,998,676
NET POSITION
Net investment in capital assets 61,241,920 36,458,905 97,700,825 Restricted for:
Special programs 13,416,337 - 13,416,337
Capital projects 2,620,013 - 2,620,013
Debt service 513,577 - 513,577
Total restricted 13,416,337 3,133,590 16,549,927
Unrestricted 8,560,071 5,374,917 13,934,988
Total net position $ 44,967,412 83,218,328 $ 128,185,740 $ Primary Government
City of Patterson
Statement of Net Position (Continued)
June 30, 2022
See accompanying Notes to the Basic Financial Statements. 19 Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Governmental activities:
General government 4,069,331 $ 278,552 $ 998,645 $ - $
Police 5,530,819 153,959 176,583 -
Fire 5,548,522 2,058,970 645,727 -
Community development and planning 1,912,358 730,653 - - Public works 5,942,981 1,399,503 1,202,742 3,630,236
Parks and recreation 2,951,483 2,330,698 - 10,091
Interest and fiscal charges 4,090,033 - - -
Total governmental activities 6,952,335 30,045,527 3,023,697 3,640,327 Business-type Activities:
Water 4,518,276 6,755,521 - 81,253
Sewer 4,859,832 4,716,644 - -
Garbage 3,137,202 3,878,211 7,449 -
Total business-type activities 15,350,376 12,515,310 7,449 81,253 Total primary government $ 22,302,711 42,560,837 $ 3,031,146 $ 3,721,580 $ Program Revenues
City of Patterson
Statement of Activities
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements. 20 Governmental Business-Type
Functions/Programs Activities Activities Total
Governmental Activities:
General government (2,792,134) $ - $ (2,792,134) $
Police - (5,200,277) (5,200,277)
Fire - (2,843,825) (2,843,825)
Community development and planning (1,181,705) - (1,181,705) Public Works 289,500 - 289,500
Parks and recreation (610,694) - (610,694)
Interest and fiscal charges (4,090,033) - (4,090,033)
Total governmental activities - (16,429,168) (16,429,168) Business-type Activities:
Water 2,318,498 - 2,318,498
Sewer (143,188) - (143,188)
Garbage 748,458 - 748,458
Total business-type activities 2,923,768 - 2,923,768
Total primary government 2,923,768 (16,429,168) (13,505,400) General revenues and transfers:
General revenues:
Taxes:
Property taxes 6,466,881 - 6,466,881
Sales taxes 12,317,056 - 12,317,056
Franchise taxes 193,226 - 193,226
Other taxes 277,779 - 277,779
Total taxes 19,254,942 - 19,254,942
Investment earnings 3,338,840 37,233 3,376,073
Revenue from Fiduciary Fund 518,052 - 518,052
Miscellaneous 559,771 28,412 588,183
Transfers 1,077,774 (1,077,774) -
Total general revenues and transfers 24,749,379 (1,012,129) 23,737,250 Changes in net position 8,320,211 1,911,639 10,231,850
Net Position:
Beginning of year 74,898,117 43,055,773 117,953,890
End of year $ 83,218,328 $ 44,967,412 $ 128,185,740
Changes in Net Position
Net (Expense) Revenue and
City of Patterson
Statement of Activities (Continued)
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements. 21 This page intentionally left blank.
22 FUND FINANCIAL STATEMENTS
23 This page intentionally left blank.
24 GOVERNMENTAL FUND FINANCIAL STATEMENTS
25 CFD 2003-1 Patterson
Public Safety/ Public
General Fire Protection Financing
Fund Services Fund Authority
ASSETS
Cash and investments 12,292,862 $ - $ 317,283 $
Restricted cash and investments 2,198,867 - -
Cash and investments with fiscal agents - - 1,112,191
Investments held in trust - - 60,552,790
Receivables:
Accounts - 1,910,516 -
Intergovernmental 2,728,640 70,166 -
Interest - 1,894 220
Notes and loans 16,632 - -
Lease - 201,976 -
Due from other funds 5,137,886 - -
Due from Fiduciary Funds 68,656 - -
Prepaid items 3,672 138,586 -
Total assets $ 73,838 24,696,515 $ 61,982,484 $
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES
LIABILITIES:
Accounts payable 1,606,987 $ 39,756 $ - $
Accrued liabilities 118,766 18,658 -
Due to other funds 3,607,440 - 1,320,163
Unearned revenue 2,088,690 - -
Deposit and other liabilities 2,237,629 - -
Total liabilities 3,665,854 6,052,072 1,320,163
DEFERRED INFLOWS OF RESOURCES:
Lease-related deferred inflows of resources 201,976 - - Unavailable revenue 16,632 - -
Total deferred inflows of resources 218,608 - -
FUND BALANCES:
Nonspendable 138,586 - -
Restricted 487,546 60,662,321 -
Committed 8,116,966 - -
Assigned 5,098,499 - -
Unassigned (deficit) 4,584,238 (3,592,016) -
Total fund balances (deficit) 18,425,835 (3,592,016) 60,662,321 Total liabilities, deferred inflows
of resource, and fund balances $ 24,696,515 $ 73,838 $ 61,982,484 Major Funds
June 30, 2022
City of Patterson
Balance Sheet
Governmental Funds
See accompanying Notes to the Basic Financial Statements. 26 Other Total
Governmental Governmental
Funds Funds
ASSETS
Cash and investments $ 22,907,988 $ 35,518,133
Restricted cash and investments 2,198,867 -
Cash and investments with fiscal agents 1,112,191 -
Investments held in trust 60,552,790 -
Receivables:
Accounts 1,910,516 -
Intergovernmental 1,107,996 3,906,802
Interest 10,687 12,801
Notes and loans 1,660,687 1,677,319
Lease 10,969 212,945
Due from other funds 5,137,886 -
Due from Fiduciary Funds - 68,656
Prepaid items - 142,258
Total assets $ 25,698,327 $ 112,451,164
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES
LIABILITIES:
Accounts payable $ 472,295 $ 2,119,038
Accrued liabilities - 137,424
Due to other funds 210,283 5,137,886
Unearned revenue 1,282,513 3,371,203
Deposit and other liabilities 73,850 2,311,479
Total liabilities 2,038,941 13,077,030
DEFERRED INFLOWS OF RESOURCES:
Lease-related deferred inflows of resources 10,968 212,944 Unavailable revenue 1,803,385 1,820,017
Total deferred inflows of resources 1,814,353 2,032,961 FUND BALANCES:
Nonspendable - 138,586
Restricted 12,899,828 74,049,695
Committed 9,280,241 17,397,207
Assigned 39,560 5,138,059
Unassigned (deficit) (374,596) 617,626
Total fund balances (deficit) 21,845,033 97,341,173
Total liabilities, deferred inflows
of resource, and fund balances $ 25,698,327 $ 112,451,164 City of Patterson
Balance Sheet (Continued)
Governmental Funds
June 30, 2022
See accompanying Notes to the Basic Financial Statements. 27 This page intentionally left blank.
28 Total fund balances of governmental funds $ 97,341,173 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. 63,212,428
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 2,142,436 Pension-related deferred inflows of resources (2,373,470) 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 1,903,780
OPEB-related deferred inflows of resources (1,443,433)
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. (1,156,042) 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. 1,820,017 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 (64,190,588)
Compensated absences (597,244)
Net OPEB liability (10,237,730)
Aggregated net pension liability (3,202,999)
Net position of governmental activities $ 83,218,328
City of Patterson
Reconciliation of the Governmental Funds
Balance Sheet to the Government-Wide Statement of Net Position June 30, 2022
See accompanying Notes to the Basic Financial Statements. 29 CFD 2003-1 Patterson
Public Safety/ Public
General Fire Protection Financing
Fund Services Fund Authority
REVENUES:
Taxes:
Property $ - 6,466,296 $ - $
Sales - 12,317,056 -
Franchise - 193,226 -
Other - 277,779 -
Licenses, permits, and fees 1,603,135 - -
Charges for services 480,220 1,306,377 -
Intergovernmental:
Federal grant and subsidies 774,110 - -
Other governmental 745,053 - -
Fines, forfeitures and penalties 158,125 - -
Investment income (loss) (478,098) - 3,771,959
Revenue from Fiduciary Fund - - 518,052
Miscellaneous 59,726 533,721 -
Total revenues 1,366,103 23,070,623 4,290,011
EXPENDITURES:
Current:
General government 3,529,790 - -
Police - 5,909,652 -
Fire 2,355,923 2,899,328 -
Community development and planning 1,935,975 - -
Public works 3,447,137 - -
Park and recreation 2,293,417 - -
Capital outlay 37,010 959,887 -
Debt service:
Principal 151,018 - 2,458,630
Interest and fiscal charges 70,458 4,025,984 -
Total expenditures 21,196,662 2,392,933 6,484,614
REVENUES OVER (UNDER)
EXPENDITURES 1,873,961 (1,026,830) (2,194,603)
OTHER FINANCING SOURCES (USES):
Inception of lease payable 59,040 - -
Transfers in 2,934,782 598,200 -
Transfers out (157,210) - (192,350)
Total financing sources (uses) 2,836,612 598,200 (192,350) Net change in fund balances 4,710,573 (428,630) (2,386,953) FUND BALANCES (DEFICIT):
Beginning of year 13,715,262 (3,163,386) 63,049,274
End of year $ 18,425,835 $ (3,592,016) $ 60,662,321
Major Funds
For the Year Ended June 30, 2022
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances City of Patterson
See accompanying Notes to the Basic Financial Statements. 30 Other Total
Governmental Governmental
Funds Funds
REVENUES:
Taxes:
Property $ 6,466,296 - $
Sales 12,317,056 -
Franchise - 193,226
Other - 277,779
Licenses, permits, and fees 2,157,473 3,760,608
Charges for services 3,382,555 5,169,152
Intergovernmental:
Federal grant and subsidies 39,810 813,920
Other governmental 3,144,126 3,889,179
Fines, forfeitures and penalties - 158,125
Investment income (loss) 44,984 3,338,845
Revenue from Fiduciary Fund - 518,052
Miscellaneous 77,462 670,909
Total revenues 8,846,410 37,573,147
EXPENDITURES:
Current:
General government 42,454 3,572,244
Police 5,909,652 -
Fire 6,514 5,261,765
Community development and planning 3,095 1,939,070
Public works 780,581 4,227,718
Park and recreation 2,293,417 -
Capital outlay 3,747,528 4,744,425
Debt service:
Principal 2,609,648 -
Interest and fiscal charges 4,096,442 -
Total expenditures 4,580,172 34,654,381
REVENUES OVER (UNDER)
EXPENDITURES 4,266,238 2,918,766
OTHER FINANCING SOURCES (USES):
Inception of lease payable - 59,040
Transfers in 873,246 4,406,228
Transfers out (2,978,894) (3,328,454)
Total financing sources (uses) (2,105,648) 1,136,814
Net change in fund balances 2,160,590 4,055,580
FUND BALANCES (DEFICIT):
Beginning of year 19,684,443 93,285,593
End of year $ 21,845,033 $ 97,341,173
City of Patterson
Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Governmental Funds
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements. 31 Net change in fund balances - total governmental funds $ 4,055,580 Amounts reported for governmental activities in the Statement of Activities are different because:
4,513,191
(2,870,779)
(59,040)
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 and amortization expense. This was the amount of capital assets recorded in the current period. ($231,234 of the governmental fund capital outlay balance were for repairs and maintenance expenditures).
Depreciation and amortization 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 and amortization expense was not reported as expenditures in the Governmental Funds.
Issuance of long-term liabilities provides current financial resources to governmental funds, but the issuance increased longterm liabilities in the Government-Wide Statement of Net Position.
Lease payable
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 2,609,648
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. 34,855 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. (84,638) 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. (285,183) 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 280,253 Changes in net pension liabilities 2,738,416
Changes in pension related deferred inflows of resources (2,330,784) 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 797,012 Changes in net OPEB liabilities (1,258,910)
Changes in OPEB related deferred inflows of resources 209,036 Change in net position of governmental activities $ 8,320,211 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, 2022
See accompanying Notes to the Basic Financial Statements. 32 PROPRIETARY FUND FINANCIAL STATEMENTS
33 Water Sewer Garbage Total
ASSETS
Current assets:
Cash and investments $ 8,798,128 $ 3,087,300 $ 1,969,856 $ 13,855,284 Restricted cash and investments - 406,225 - 406,225
Accounts receivable 656,081 863,108 514,137 2,033,326
Intergovernmental receivable - 829 8,471 9,300
Interest receivable 4,320 1,121 920 6,361
Lease receivable - current 23,966 - - 23,966
Prepaid items 5,591 6,458 1,804 13,853
Total current assets 9,671,976 4,181,151 2,495,188 16,348,315 Noncurrent assets:
Cash and investments with fiscal agents 11,035,172 67,267 11,102,439 - Lease receivable - noncurrent 43,413 - - 43,413
Capital assets:
Non-depreciable 8,523,094 4,298,570 - 12,821,664
Depreciable, net 15,666,761 18,508,062 20,080 34,194,903 Capital assets, net 24,189,855 22,806,632 20,080 47,016,567 Total noncurrent assets 35,225,027 22,917,312 20,080 58,162,419 Total assets 44,897,003 27,098,463 2,515,268 74,510,734
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding 151,109 167,184 - 318,293
OPEB-related deferred outflows of resources 397,138 449,676 116,007 962,821 Pension-related deferred outflows of resources 396,742 335,677 271,921 1,004,340 Total deferred outflows of resources 944,989 952,537 387,928 2,285,454
LIABILITIES
Current liabilities:
Accounts payable 508,983 368,009 175,064 1,052,056
Accrued liabilities 2,781 4,301 2,687 9,769
Deposits payable 106,271 - - 106,271
Unearned revenue 739 - 26,423 27,162
Accrued interest 22,376 46,862 - 69,238
Compensated absences - due within one year 132,335 120,271 30,224 282,830 Long-term liabilities - due within one year 437,771 330,000 - 767,771 Total current liabilities 1,115,168 965,531 234,398 2,315,097 Noncurrent liabilities:
Long-term liabilities - due in more than one year 16,223,271 5,326,310 21,549,581 - Net OPEB liability 2,076,297 2,136,706 451,890 4,664,893 Aggregate net pension liability 525,535 444,647 360,194 1,330,376 Total noncurrent liabilities 18,825,103 7,907,663 812,084 27,544,850 Total liabilities 19,940,271 8,873,194 1,046,482 29,859,947
DEFERRED INFLOWS OF RESOURCES
Lease-related deferred inflows of resources 67,379 - - 67,379 OPEB-related deferred inflows of resources 349,619 309,621 80,862 740,102 Pension-related deferred inflows of resources 388,153 458,765 314,430 1,161,348 Total deferred inflows of resources 805,151 768,386 395,292 1,968,829
NET POSITION
Net investment in capital assets 18,822,865 17,615,960 20,080 36,458,905 Restricted:
Capital projects 2,620,013 - - 2,620,013
Debt service 446,310 67,267 - 513,577
Total restricted 3,066,323 67,267 - 3,133,590
Unrestricted 3,244,147 689,428 1,441,342 5,374,917
Total net position $ 25,133,335 $ 18,372,655 $ 1,461,422 $ 44,967,412 City of Patterson
Statement of Net Position
Proprietary Funds
June 30, 2022
Major Funds
See accompanying Notes to the Basic Financial Statements. 34 Water Sewer Garbage Total
OPERATING REVENUES:
Charges for services $ 6,705,927 $ 4,670,038 $ 3,819,669 $ 15,195,634 Fees, fines, and penalties 49,594 46,606 58,542 154,742 Miscellaneous 5,544 22,868 - 28,412
Total operating revenues 6,761,065 4,739,512 3,878,211 15,378,788 OPERATING EXPENSES:
Salaries and benefits 1,770,337 1,659,717 696,365 4,126,419 Contractual and professional services 184,665 394,491 2,153,798 2,732,954 Supplies and operating costs 1,056,552 739,939 274,260 2,070,751 Depreciation 976,020 1,877,479 12,779 2,866,278
Total operating expenses 3,987,574 4,671,626 3,137,202 11,796,402 OPERATING INCOME (LOSS) 2,773,491 67,886 741,009 3,582,386 NONOPERATING REVENUES (EXPENSES):
Intergovernmental :
Federal grants and subsidies 81,253 - 7,449 88,702
Investment income 27,068 6,603 3,562 37,233
Interest expense (530,702) (188,206) (718,908) -
Total nonoperating revenues (expenses) (422,381) (181,603) 11,011 (592,973) INCOME (LOSS) BEFORE TRANSFERS 2,351,110 (113,717) 752,020 2,989,413
TRANSFERS
Transfers in - 233,298 - 233,298
Transfers out (508,829) (188,663) (613,580) (1,311,072) Total Transfers (508,829) 44,635 (613,580) (1,077,774)
CHANGES IN NET POSITION 1,842,281 (69,082) 138,440 1,911,639 NET POSITION:
Beginning of year 23,291,054 18,441,737 1,322,982 43,055,773 End of year $ 25,133,335 $ 18,372,655 $ 1,461,422 $ 44,967,412 City of Patterson
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2022
Major Funds
See accompanying Notes to the Basic Financial Statements. 35 Water Sewer Garbage Total
Cash Flows from Operating Activities:
Cash received from customers $ 6,749,827 $ 4,673,891 $ 3,861,843 $ 15,285,561 Cash paid to suppliers (1,106,606) (905,498) (2,321,688) (4,333,792) Cash paid to employees (2,237,066) (2,371,311) (669,272) (5,277,649) Other 5,544 22,868 - 28,412
Net cash provided by operating activities 3,411,699 1,419,950 870,883 5,702,532 Cash Flows from Noncapital Financing Activities:
Transfers in - 233,298 - 233,298
Transfers out (508,829) (188,663) (613,580) (1,311,072) Net cash provided by (used in) noncapital financing
activities (508,829) 44,635 (613,580) (1,077,774)
Cash Flows from Capital and Related Financing Activities:
Capital grants 81,253 - 7,449 88,702
Acquisition and construction of capital assets (1,833,910) (560,040) - (2,393,950) Principal paid on revenue bonds and loan (315,000) (514,687) - (829,687) Interest paid on capital debt (574,294) (170,930) - (745,224) Net cash provided by (used in) capital and related
financing activities (1,245,657) (2,641,951) 7,449 (3,880,159) Cash Flows from Investing Activities:
Interest 24,526 5,392 3,037 32,955
Net cash provided by investing activities 5,392 24,526 3,037 32,955 Net increase (decrease) in cash and cash equivalents 224,320 285,445 267,789 777,554 Cash and Cash Equivalents:
Beginning of year 19,547,855 3,336,472 1,702,067 24,586,394 End of year 19,833,300 $ 3,560,792 $ 1,969,856 $ 25,363,948 $ Reconciliation of Cash and Cash Equivalents to the
Statement of Net Position:
Cash and investment 8,798,128 $ 3,087,300 $ 1,969,856 $ 13,855,284 $ Restricted cash and investments - 406,225 - 406,225
Cash and investments with fiscal agent 11,035,172 67,267 - 11,102,439 Total cash and investment $ 3,560,792 19,833,300 $ 1,969,856 $ 25,363,948 $ City of Patterson
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2022
Major Funds
See accompanying Notes to the Basic Financial Statements. 36 Water Sewer Garbage Total
Reconciliation of Operating Income (Loss) to
Net Cash Provided by Operating Activities
Operating income (loss) $ 2,773,491 $ 67,886 $ 741,009 $ 3,582,386 Adjustments to reconcile operating income (loss) to
net cash provided by operating activities:
Depreciation expense 976,020 1,877,479 12,779 2,866,278 Change in assets and liabilities:
Accounts receivable (6,836) (43,493) (34,320) (84,649)
Intergovernmental receivable (829) - (8,471) (9,300)
Lease receivable - 13,996 - 13,996
Prepaid items 115 (904) (564) (1,353)
OPEB-related deferred outflows of resources (167,150) (191,592) (50,194) (408,936) Pension-related deferred outflows of resources 107,403 254,814 (92,261) 269,956 Accounts payable 134,496 229,836 106,934 471,266
Accrued liabilities (1,175) 2,595 627 2,047
Deposits payable 1,971 - - 1,971
Unearned revenue - 739 26,423 27,162
Compensated absences (2,791) 20,228 1,032 18,469
Net OPEB liability 264,020 302,628 79,284 645,932
Aggregate net pension liability (1,066,089) (1,419,579) (207,005) (2,692,673) Lease-related deferred inflows of resources - (13,995) - (13,995) OPEB-related deferred inflows of resources (43,840) (50,250) 220,404 126,314 Pension-related deferred inflows of resources 442,893 369,562 75,206 887,661 Total adjustments 638,208 1,352,064 129,874 2,120,146
Net cash provided by (used in) operating activities $ 1,419,950 3,411,699 $ 870,883 $ 5,702,532 $ Major Funds
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2022
City of Patterson
See accompanying Notes to the Basic Financial Statements. 37 This page intentionally left blank.
38 FIDUCIARY FUNDS FINANCIAL STATEMENTS
39 This page intentionally left blank.
40 Custodial
Funds
ASSETS
Cash and investments $ 10,475,111
Restricted cash and investments 288,125
Cash and investments with fiscal agents 16,379,880
Accounts receivable 70,038
Intergovernmental receivable 190,311
Interest receivable 4,603
Notes receivable 993,418
Total assets 28,401,486
LIABILITIES
Due to City 68,656
Total liabilities 68,656
NET POSITION
Restricted for:
Individuals, organizations, and other governments 28,332,830 Total net position $ 28,332,830
City of Patterson
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2022
See accompanying Notes to the Basic Financial Statements. 41 Custodial
Funds
ADDITIONS:
Special assessments for other governments $ 8,381,837
Investment income 79,213
Proceeds from issuance of bonds 12,431,810
Total additions 20,892,860
DEDUCTIONS:
Administration 170,238
Payments on conduit bonds - principal 1,919,880
Payments on conduit bonds - interest 4,946,198
Projects payments 190,000
Contributions to City 518,052
Total deductions 7,744,368
Change in net position 13,148,492
NET POSITION:
Beginning of year 15,184,338
End of period $ 28,332,830
City of Patterson
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements. 42 43
NOTES TO THE BASIC FINANCIAL STATEMENTS
44 This page intentionally left blank.
City of Patterson
Index to the Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
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. Leases .......................................................................................................................................................... 53 G. Capital Assets .............................................................................................................................................. 54 H. Long-Term Debt .......................................................................................................................................... 55 I. Compensated Absences ............................................................................................................................... 55 J. Pensions ....................................................................................................................................................... 56 K. Other Postemployment Benefits (“OPEB”) ................................................................................................ 56 L. Property Taxes ............................................................................................................................................. 57 M. Net Position ................................................................................................................................................. 57 N. Fund Balances ............................................................................................................................................. 58 O. Use of Estimates .......................................................................................................................................... 58 P. Implementation of New GASB Pronouncements for the Year Ended June 30, 2022 ................................. 59 Q. Upcoming Government Accounting Standards Implementations ............................................................... 60 Note 2 – Cash and Investments .................................................................................................................................... 61 A. Cash Deposits .............................................................................................................................................. 62 B. Investments .................................................................................................................................................. 63 C. Investment in Local Agency Investment Fund ............................................................................................ 64 D. Investment in Central San Joaquin Valley Risk Management Authority Investment Pool ......................... 64 E. Risk Disclosures .......................................................................................................................................... 64 F. Fair Value Measurement ............................................................................................................................. 65 Note 3 – Leases Receivable ........................................................................................................................................... 66 A. Governmental Activities .............................................................................................................................. 66 B. Business-Type Activities ............................................................................................................................. 67 Note 4 – Loan and Notes Receivable ........................................................................................................................... 67 A. Governmental Activities .............................................................................................................................. 67 B. Fiduciary Fund ............................................................................................................................................. 68 Note 5 – Interfund Transactions .................................................................................................................................. 69 A. Due From and To Other Funds .................................................................................................................... 69 B. Transfers In and Out .................................................................................................................................... 69 Note 6 – Due from Fiduciary Funds ............................................................................................................................ 70 Note 7 – Capital Assets ................................................................................................................................................. 71 A. Governmental Activities .............................................................................................................................. 71 B. Business-Type Activities ............................................................................................................................. 72 Note 8 – Long-Term Obligations ................................................................................................................................. 72 A. Governmental Activities .............................................................................................................................. 72 B. Business-Type Activities ............................................................................................................................. 76 City of Patterson
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2022
46 Note 9 – Compensated Absences .................................................................................................................................. 80 A. Governmental Activities .............................................................................................................................. 80 B. Business-Type Activities ............................................................................................................................. 80 Note 10 – Conduit Debt ................................................................................................................................................ 81 Note 11 – Fund Balances .............................................................................................................................................. 82 Note 12 – Risk Management ......................................................................................................................................... 82 A. Coverage ...................................................................................................................................................... 83 Note 13 – Pension Plans ................................................................................................................................................ 84 A. Summary ..................................................................................................................................................... 84 B. General Information about Pension Plans ................................................................................................... 85 C. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions ...................................................................................................... 86 D. Payable to the Pension Plan ......................................................................................................................... 90 Note 14 – Other Postemployment Benefits ................................................................................................................. 90 A. Summary ..................................................................................................................................................... 90 B. General Information about OPEB ............................................................................................................... 91 C. Net OPEB Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB .......................................................................................................... 91 Note 15 – Deferred Compensation Plan ...................................................................................................................... 94 Note 16 – Other Required Disclosures ........................................................................................................................ 94 A. (Deficit) Net Position/Fund Balances .......................................................................................................... 94 B. Expenditures Exceeding Appropriations ..................................................................................................... 95 Note 17 – Settlement with Eli Development Corporation ......................................................................................... 95 Note 18 – Net Position ................................................................................................................................................... 95 A. Net Investment in Capital Assets................................................................................................................. 95 B. Restricted Net Position ................................................................................................................................ 96 Note 19 – Commitments and Contingencies ............................................................................................................... 96 A. Litigation ..................................................................................................................................................... 96 B. Grants .......................................................................................................................................................... 96 City of Patterson
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
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 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 and the former Redevelopment Agency of the City. PPFA 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 PPFA. The financial activities of the PPFA are reported in the debt service fund.
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
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 and the former Redevelopment Agency of the. 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 and the Balance Sheet of Governmental Funds 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 assets) 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 assets) that apply to future periods and that, therefore, are not recognized as revenue until that time.
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
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.
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
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.
Major 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 - PPFA 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.
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.
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
51 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Proprietary Fund Financial Statements (Continued)
Major 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.
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
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.
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
53 Note 1 – Summary of Significant Accounting Policies (Continued) F. Leases
Lessee
The City has a policy to recognize a lease liability and a right‐to‐use lease asset (lease asset) in the government‐wide financial statements. The City recognizes lease liabilities with an initial, individual value of $15,000 or more.
At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made.
Lease assets are recorded at the amount of the initial measurement of the lease liabilities and modified by any lease payments made to the lessor at or before the commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term along with any initial direct costs that are ancillary charges necessary to place the lease assets into service. Lease assets are amortized using the straightline method over the shorter of the lease term or the useful life of the underlying asset, unless the lease contains a purchase option that the City has determined is reasonably certain of being exercised. In this case, the lease asset is amortized over the useful life of the underlying asset.
Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments. The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.
The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure any lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.
Lease assets are reported as right to use along with other capital assets and lease liabilities are reported with longterm debt on the Statement of net position.
Lessor
The City is a lessor for leases of special purpose facilities, office and commercial space, and land. The City recognizes leases receivable and deferred inflows of resources in the financial Statements.
At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflows of resources are initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date.
Subsequently, the deferred inflows of resources are recognized as revenue over the life of the lease term in a systematic and rational method.
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
54 Note 1 – Summary of Significant Accounting Policies (Continued) F. Leases (Continued)
Lessor (Continued)
Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts. The City uses its estimated incremental borrowing rate as the discount rate for leases. The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.
G. Capital Assets
Capital assets, which include property, plant, equipment, infrastructure assets, and the right to use leased equipment and buildings, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Such assets are recorded at historical cost (except for intangible right‐to‐use lease assets) or estimated historical cost if purchased or constructed.. 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.
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
55 Note 1 – Summary of Significant Accounting Policies (Continued) H. 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.
I. 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.
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
56 Note 1 – Summary of Significant Accounting Policies (Continued) J. 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 13). 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, 2020
Measurement Date June 30, 2021
Measurement Period July 1, 2020 to June 30, 2021
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.
K. 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 14). 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, 2021
Measurement Period July 1, 2020 to June 30, 2021
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.
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
57 Note 1 – Summary of Significant Accounting Policies (Continued) L. 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.
M. 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.
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
58 Note 1 – Summary of Significant Accounting Policies (Continued) N. 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.
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.
O. 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.
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
59 Note 1 – Summary of Significant Accounting Policies (Continued) P. Implementation of New GASB Pronouncements for the Year Ended June 30, 2022 GASB Statement No. 87
In June 2017, GASB issued Statement No. 87, Leases (GASB Statement No. 87), to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments.
This statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It also establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Implementation of this Statement had a significant effect on the City’s financial statements for the year ended 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 did not have a material effect on the City’s financial statements for the fiscal year ending June 30, 2022.
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 did not have a material effect on the City’s financial statements for the fiscal year ending June 30, 2022.
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 did not have a material effect on the City’s financial statements for the fiscal year ending June 30, 2022.
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
60 Note 1 – Summary of Significant Accounting Policies (Continued) P. Implementation of New GASB Pronouncements for the Year Ended June 30, 2022 (Continued) 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 did not have a material effect on the City’s financial statements for the fiscal year ending June 30, 2022.
Q. Upcoming Government Accounting Standards Implementations The City is currently analyzing its accounting practices to determine the potential impact on the financial statements for the following GASB statements:
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. 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.
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
61 Note 1 – Summary of Significant Accounting Policies (Continued) Q. Upcoming Government Accounting Standards Implementations (Continued) 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. 99
In April 2022, GASB issued Statement No. 99, Omnibus 2022. The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. Application of this statement is effective for the Authority’s fiscal year ending June 30, 2023.
GASB Statement No. 100
In June 2022, GASB issued Statement No. 100, Accounting Changes and Error Corrections – an Amendment of GASB Statement No. 62. The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. Application of this statement is effective for the Authority’s fiscal year ending June 30, 2024.
GASB Statement No. 101
In June 2022, GASB issued Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. Application of this statement is effective for the Authority’s fiscal year ending June 30, 2025.
Note 2 – Cash and Investments
The following is a summary of pooled cash and investments and restricted cash and investments at June 30, 2022:
Governmental Business-type Fiduciary
Activities Activities Funds Total
Cash and investments 35,518,133 $ 13,855,284 $ 10,475,111 $ 59,848,528 $ Restricted cash and investments 2,198,867 406,225 288,125 2,893,217 Cash and investments with fiscal agents 1,112,191 11,102,439 16,379,880 28,594,510 Investments held in trust 60,552,790 - - 60,552,790
Total cash and investments $ 25,363,948 99,381,981 $ 27,143,116 $ 151,889,045 $ Primary Government
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
62 Note 2 – Cash and Investments (Continued)
Cash, cash equivalents, and investments, consisted of the following at June 30, 2022:
Cash and cash equivalents:
Cash on hand 1,245 $
Deposits with financial institutions 42,884,332
Total cash and cash equivalents 42,885,577
Investments:
Local obligation bonds 60,552,790
Money market mutual funds 30,607,079
Central San Joaquin Valley Risk Authority (CSJVRMA) 3,818,970 Local Agency Investment Fund (LAIF) 14,024,629
Total investments 109,003,468
Total cash and investments $ 151,889,045
A. Cash Deposits
The carrying amounts of the City’s demand deposits were $42,884,332 at June 30, 2022. Bank balances were $43,857,159 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.
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
63 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
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
64 Note 2 – Cash and Investments (Continued)
C. Investment in Local Agency Investment Fund
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, 2022 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, 2022, the City had $14,024,629 invested in LAIF, which had invested 1.88% 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 fair value is not readily available. The City valued its investments in LAIF as of June 30, 2022, 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 fair value of the City’s position in the pool is the same as the value of the pool shares. The credit quality rating of LAIF is unrated as of June 30, 2022.
D. Investment in Central San Joaquin Valley Risk Management Authority Investment Pool The City invested in an investment pool account with the Central San Joaquin Valley Risk Management Authority (“CSJVRMA”). At June 30, 2022, this account was valued at $3,818,970. The City received an average yield of 0.21% for the fiscal year ended June 30, 2022 on this investment. The City’s investment in CSJVRMA is reported at amortized cost.
E. 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, 2022:
12 Months
Fair Value or Less 1-5 Years 6-10 Years Thereafter
Investments:
Local obligation bonds 60,552,790 $ 423,164 $ 1,321,847 $ - $ 58,807,779 $ Money market mutual funds 30,607,079 30,607,079 - - -
Central San Joaquin Valley Risk Authority (CSJVRMA) 3,818,970 3,818,970 - - - Local Agency Investment Fund (LAIF) 14,024,629 14,024,629 - - - Total investments $ 48,873,842 109,003,468 $ 1,321,847 $ - $ 58,807,779 $ Maturity
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
65 Note 2 – Cash and Investments (Continued)
E. 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 60,552,790 $ N/A Not rated Not rated Money market mutual funds 30,607,079 N/A AAAm Aaa-mf
Central San Joaquin Valley Risk Authority (CSJVRMA) 3,818,970 N/A Not rated Not rated Local Agency Investment Fund (LAIF) 14,024,629 N/A Not rated Not rated Total investments $ 109,003,468
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, 2022:
Issuer Investment Type Amount
West Patterson Financing Authority Local obligation bonds 60,552,790 $ 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.
F. Fair Value Measurement
The City’s investments at June 30, 2022, categorized within the fair value hierarchy as described in Notre 1C 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) - 3,818,970 3,818,970 - Total investments by fair value level - 3,818,970 $ 3,818,970 $ - $ Investments not subject to the fair value hierarchy:
Local obligation bonds 60,552,790 $
Local Agency Investment Funds (LAIF) 14,024,629
Money market mutual funds 30,607,079
Total investments not subject to the fair value hierarchy 105,184,498 Total investments $ 109,003,468
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
66 Note 2 – Cash and Investments (Continued)
F. 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 – Lease Receivable
A. Governmental Activities
A portion of the City’s property is leased to others. Such property includes special purpose facilities, office and commercial space, and land. Lease receivable consists of agreements with other for the right-to-use of the underlying assets at various locations owned by the City. The terms of the arrangements range from 4 to 12 years.
The calculated interest rates used vary depending on the length of the lease. For the fiscal year ended June 30, 2022, the City recognized $17,825 in lease revenue and $4,176 in interest revenue.
A summary of changes in lease receivable for the fiscal year ended June 30, 2022 is as follows:
Balance
July 1, 2021, Balance Due within Due in More
as restated Additions Deletions June 30, 2022 One Year Than One Year Leases receivable 230,770 $ - $ (17,825) $ 212,945 $ 19,628 $ 193,317 $ Total $ - 230,770 $ (17,825) $ 212,945 $ 19,628 $ 193,317 $ Classification
As of June 30, 2022, the required payments for these leases, including interest, are:
Year Ending
June 30, Principal Interest Total
2023 19,628 $ 3,825 $ 23,453 $
2024 19,999 3,453 23,452
2025 18,756 3,079 21,835
2026 16,407 2,757 19,164
2027 17,037 2,447 19,484
2028-2032 121,118 6,806 127,924
Total $ 22,367 212,945 $ 235,312 $
As of June 30, 2022, the amounts reported as deferred inflows of resources will be recognized as lease revenue as follows:
Year Ending Amortization
June 30, Schedule
2023 19,628 $
2024 19,999
2025 18,756
2026 16,407
2027 17,037
2028-2032 121,117
Total $ 212,944
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
67 Note 3 – Lease Receivable (Continued)
B. Business-Type Activities
The portion of the City’s property is leased to others. Such property includes special purpose facilities, office and commercial space, and land. Lease receivable consists of agreements with other for the right-to-use of the underlying assets at various locations owned by the City. The terms of the arrangements range from 4 to 6 years.
The calculated interest rates used vary depending on the length of the lease. For the fiscal year ended June 30, 2022, the City recognized $22,869 in lease revenue and $1,417 in interest revenue.
A summary of changes in lease receivable for the fiscal year ended June 30, 2022 is as follows:
Balance
July 1, 2021, Balance Due within Due in More
as restated Additions Deletions June 30, 2022 One Year Than One Year Leases receivable 81,375 $ 8,873 $ (22,869) $ 67,379 $ 23,966 $ 43,413 $ Total $ 8,873 81,375 $ (22,869) $ 67,379 $ 23,966 $ 43,413 $ Classification
As of June 30, 2022, the required payments for these leases, including interest, are:
Year Ending
June 30, Principal Interest Total
2023 23,966 $ 1,058 $ 25,024 $
2024 24,420 605 25,025
2025 16,091 162 16,253
2026 1,735 40 1,775
2027 1,167 7 1,174
Total $ 1,872 67,379 $ 69,251 $
As of June 30, 2022, the amounts reported as deferred inflows of resources will be recognized as lease revenue as follows:
Year Ending Amortization
June 30, Schedule
2023 23,966 $
2024 24,420
2025 16,091
2026 1,735
2027 1,167
Total $ 67,379
Note 4 – 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 2022.
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
68 Note 4 – Loan and Notes Receivable (Continued)
A. Governmental Activities (Continued)
Summary of changes in loans and notes receivable for the year ended June 30, 2022 is as follows:
Loans and Notes Loans and Notes Unavailable
Receivable Receivable Revenue
Balance Balance Balance
July 1, 2021 Additions Deletions June 30, 2022 June 30, 2022 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 553,313 - (65,994) 487,319 487,319 Total loans and notes receivable $ - 1,743,313 $ (65,994) $ 1,677,319 $ 1,677,319 $ 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 related deferred inflows of resources. 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.
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, 2022 was $487,319. The balance of these loans have been offset by deferred inflows of resources in the amount of $487,319 in the financial statements.
B. Fiduciary Fund
Notes receivable as of June 30, 2022, was as follows:
Balance Balance
July 1, 2021 Additions Deletions June 30, 2022
Darron Silva Promissory Note 1,010,595 $ - $ (17,177) $ 993,418 $ Total notes receivable $ - 1,010,595 $ (17,177) $ 993,418 $ City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
69 Note 4 – Loan and Notes Receivable (Continued)
B. Fiduciary Fund (Continued)
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, 2022 was $993,418.
Note 5 – Interfund Transactions
A. Due From and To Other Funds
Due from and to other funds as of June 30, 2022, was as follows:
Receivable Fund Payable Fund Amount Purpose
General Fund CFD 2003-1 Public Safety/Fire 3,607,440 $ Overdrawn Cash Protection Services Special Revenue Fund
General Fund Patterson Public Financing Authority Debt Service Fund 1,320,163 Overdrawn Cash General Fund Federal CDBG Grant Special Revenue Fund 210,283 Overdrawn Cash Total $ 5,137,886
B. Transfers In and Out
Transfers in and out for the year ended June 30, 2022, was as follows:
Transfers In Transfers Out Amount Purpose
General Fund CFD 2013-1 Special Revenue Fund 32,173 $ Indirect overhead General Fund CFD 2015-2 Special Revenue Fund 40,217 Indirect overhead General Fund Gas Tax Special Revenue Fund 300,000 Capital projects General Fund Landscape Maintenance District Special Revenue Fund 1,064,989 Indirect overhead General Fund Benefit Assessment District Special Revenue Fund 20,792 Indirect overhead General Fund Patterson Public Financing Authority Debt Service Fund 192,350 Capital projects General Fund Water Enterprise Fund 555,512 Indirect overhead General Fund Sewer Enterprise Fund 194,972 Indirect overhead General Fund Garbage Enterprise Fund 533,777 Indirect overhead Subtotal 2,934,782
CFD 2003-1 Public Safety/Fire
Protection Services Fund General Fund 13,200 Assessments CFD 2003-1 Public Safety/Fire
Protection Services Fund CFD 2015-2 Special Revenue Fund 85,000 Assessments CFD 2003-1 Public Safety/Fire Patterson Garden Fire Suppression Protection Services Fund Assessment Special Revenue Fund 500,000 Assessments Subtotal 598,200
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
70 Note 5 – Interfund Transactions (Continued)
B. Transfers In and Out (Continued)
Transfers In Transfers Out Amount Purpose
Street Project Capital Projects Fund General Fund 40,855 Capital projects Street Project Capital Projects Fund Garbage Enterprise Fund 79,803 Capital projects Street Project Capital Projects Fund Benefit Assessment District Special Revenue Fund 12,246 Capital projects Street Project Capital Projects Fund Gas Tax Special Revenue Fund 694,938 Capital projects Street Project Capital Projects Fund Street Improvement Impact Fee 77 Capital projects Subtotal 827,919
Sewer Enterprise Fund General Fund 57,828 Debt service
Sewer Enterprise Fund Benefit Assessment District Special Revenue Fund 121,848 Debt service Sewer Enterprise Fund Water Enterprise Fund 53,622 Indirect overhead Subtotal 233,298
Parkland In-Lieu Fee Capital Projects Fund General Fund 45,327 Capital projects Total $ 4,639,526
Note 6 – Due from Fiduciary Funds
Due from fiduciary funds as of June 30, 2022, was as follows:
Receivable Fund Payable Fund Amount Purpose
General Fund CFD 2015-1 Arambel-KDN Custodial Fund 68,656 $ Overdrawn Cash Total $ 68,656
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
71 Note 7 – Capital Assets
A. Governmental Activities
Summary of changes in capital assets for governmental activities for the year ended June 30, 2022 is as follows:
Balance
July 1, 2021, Adjustments/ Balance
as restated Additions Deletions Transfers June 30, 2022 Capital assets, not being depreciated
Land 5,271,125 $ - $ - $ - $ 5,271,125 $
Construction in progress 7,932,533 3,835,016 - (2,670,336) 9,097,213 Total capital assets, not being depreciated 3,835,016 13,203,658 - (2,670,336) 14,368,338 Capital assets, being depreciated
Building 23,972,872 - - - 23,972,872
Improvements 16,057,655 393,275 - 9,867 16,460,797
Infrastructure 32,188,249 - - 2,652,881 34,841,130
Equipment 6,760,902 225,860 (41,446) 7,588 6,952,904
Subtotal 78,979,678 619,135 (41,446) 2,670,336 82,227,703 Less: accumulated depreciation
Building (7,304,119) (599,707) - - (7,903,826)
Improvements (9,023,963) (772,705) - - (9,796,668)
Infrastructure (8,444,504) (1,205,362) - - (9,649,866)
Equipment (5,865,238) (276,637) 41,446 - (6,100,429)
Subtotal (30,637,824) (2,854,411) 41,446 - (33,450,789) Total capital assets, being depreciated, net (2,235,276) 48,341,854 - 2,670,336 48,776,914 Leased assets, being amortized
Building 24,504 59,040 - - 83,544
Subtotal 24,504 59,040 - - 83,544
Less: accumulated amortization
Building - (16,368) - - (16,368)
Subtotal - (16,368) - - (16,368)
Total leased assets, being amortized, net 42,672 24,504 - - 67,176 Total capital assets, net $ 1,642,412 61,570,016 $ - $ - $ 63,212,428 $ Governmental activities depreciation and amortization expenses for capital assets for the year ended June 30, 2022 are as follows:
General government $ 465,565
Fire 275,928
Public works 1,453,986
Park and recreation 675,300
Total depreciation/amortization 2,870,779 $
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
72 Note 7 – Capital Assets (Continued)
B. Business-Type Activities
Summary of changes in capital assets for business-type activities for the year ended June 30, 2022 is as follows:
Balance Adjustments/ Balance
July 1, 2021 Additions Deletions Transfers June 30, 2022 Capital assets, not being depreciated
Land 6,196,329 $ - $ - $ - $ 6,196,329 $
Construction in progress 4,743,625 2,028,290 - (146,580) 6,625,335 Total capital assets, not being depreciated 2,028,290 10,939,954 - (146,580) 12,821,664 Capital assets, being depreciated
Infrastructure 67,149,267 6,714 - 146,580 67,302,561
Equipment 5,769,701 358,946 - - 6,128,647
Subtotal 72,918,968 365,660 - 146,580 73,431,208
Less: accumulated depreciation
Infrastructure (32,065,842) (2,435,982) - - (34,501,824) Equipment (4,304,185) (430,296) - - (4,734,481)
Subtotal (36,370,027) (2,866,278) - - (39,236,305)
Total capital assets, being depreciated, net (2,500,618) 36,548,941 - 146,580 34,194,903 Total capital assets, net $ (472,328) 47,488,895 $ - $ - $ 47,016,567 $ Business-type activities depreciation expenses for capital assets for the year ended June 30, 2022 are as follows:
Water 976,020 $
Sewer 1,877,479
Garbage 12,779
Total depreciation 2,866,278 $
Note 8 – Long-Term Debt
A. Governmental Activities
Summary of changes in long-term liabilities for the governmental activities for the year ended June 30, 2022 is as follows:
Balance
Original July 1, 2021, Balance Due Within Due In More
Issuance as restated Additions Deletions June 30, 2022 One Year Than One Year Private Placement:
PPFA 2013 Heartland Ranch Revenue Bonds 4,963,568 $ 2,292,005 $ - $ (443,630) $ 1,848,375 $ 462,628 $ 1,385,747 $ PPFA 2013 Series A Revenue Bonds 67,190,000 57,045,000 - (1,850,000) 55,195,000 1,765,000 53,430,000 Less: Bond Discount (853,389) (625,741) - 28,446 (597,295) - (597,295) PPFA 2013 Series B Revenue Bonds 6,465,000 5,575,000 - (165,000) 5,410,000 165,000 5,245,000 2018 Lease Revenue Bonds 2,429,000 2,037,982 - (139,568) 1,898,414 144,453 1,753,961 Lease payable 83,544 24,504 59,040 (11,450) 72,094 16,096 55,998 Settlement payable 1,300,000 364,000 - - 364,000 364,000 - Total long-term debt $ 66,712,750 81,577,723 $ 59,040 $ (2,581,202) $ 64,190,588 $ 2,917,177 $ 61,273,411 $ City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
73 Note 8 – Long-Term Debt (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, 2022, the outstanding balance of the 2013 Heartland Ranch Revenue bonds was $1,848,375.
The annual debt service requirements are as follows:
Year Ending
June 30, Principal Interest Total
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 174,771 10,036 184,807
2028 181,685 3,388 185,073
Total 1,848,375 $ 164,264 $ 2,012,639 $
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, 2022, the outstanding balance of the 2013 PPFA Series A bonds was $55,345,000.
The annual debt service requirements are as follows:
Year Ending
June 30, Principal Interest Total
2023 1,765,000 $ 3,020,750 $ 4,785,750 $
2024 1,860,000 2,927,800 4,787,800
2025 2,025,000 2,825,819 4,850,819
2026 2,195,000 2,715,044 4,910,044
2027 2,345,000 2,595,869 4,940,869
2028-2032 13,750,000 10,935,100 24,685,100
2033-2037 17,310,000 6,603,013 23,913,013
2038-2040 13,945,000 1,245,019 15,190,019
Total 55,195,000 $ 32,868,414 $ 88,063,414 $
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
74 Note 8 – Long-Term Debt (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, 2022, the outstanding balance of the 2013 PPFA Series B bonds was $5,425,000.
The annual debt service requirements are as follows:
Year Ending
June 30, Principal Interest Total
2023 165,000 $ 312,991 $ 477,991 $
2024 175,000 303,003 478,003
2025 190,000 292,281 482,281
2026 210,000 280,531 490,531
2027 225,000 267,753 492,753
2028-2032 1,340,000 1,117,425 2,457,425
2033-2037 1,720,000 670,338 2,390,338
2038-2040 1,385,000 125,872 1,510,872
Total 5,410,000 $ 3,370,194 $ 8,780,194 $
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, 2022, the outstanding balance of the 2018 Lease Revenue Bonds was $1,898,414.
The annual debt service requirements are as follows:
Year Ending
June 30, Principal Interest Total
2022 144,453 $ 209,086 $ 353,539 $
2023 149,510 209,087 358,597
2024 154,743 209,087 363,830
2025 160,158 209,085 369,243
2026 165,764 209,086 374,850
2027-2031 920,018 125,411 1,045,429
2032-2034 203,768 5,318 209,086
Total 1,898,414 $ 1,176,160 $ 3,074,574 $
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
75 Note 8 – Long-Term Debt (Continued)
A. Governmental Activities (Continued)
Lease Payable
The City has entered into leases for building space. The terms of the agreements range from 2 to 6 years. The interest rate on the lease payable was 1.85%.
The annual debt service requirements are as follows:
Year Ending
June 30, Principal Interest Total
2023 16,096 $ 1,214 $ 17,310 $
2024 25,356 829 26,185
2025 11,331 477 11,808
2026 11,545 263 11,808
2027 7,766 45 7,811
Total 72,094 $ 2,828 $ 74,922 $
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, 2022, the remaining balance of the settlement payable was $364,000.
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
76 Note 8 – Long-Term Debt (Continued)
B. Business-Type Activities
Summary of changes in long-term liabilities for the business-type activities for the year ended June 30, 2022 is as follows:
Original Balance Balance Due Within Due In More
Issuance July 1, 2021 Additions Deletions June 30, 2022 One Year Than One Year Water Fund:
Public Offering:
2019A Water Revenue Bonds 9,215,000 $ 9,100,000 $ - $ (65,000) $ 9,035,000 $ 70,000 $ 8,965,000 $ Add: Bond Premium - 556,513 - (19,525) 536,988 - 536,988 2019B Water Revenue Refunding Bonds 7,015,000 6,440,000 - (250,000) 6,190,000 260,000 5,930,000 Add: Bond Premium - 819,799 - (28,516) 791,283 - 791,283 Total water fund 16,916,312 16,230,000 - (363,041) 16,553,271 330,000 16,223,271 Sewer Fund:
Public Offering:
2009 Sewer Revenue Bonds 3,195,000 260,000 - (85,000) 175,000 85,000 90,000 Private Placement:
2017 Sewer Refunding Revenue Bonds 2,712,200 2,572,900 - (30,400) 2,542,500 31,500 2,511,000 Direct Borrowing:
State Revolving Fund loan 774,790 449,629 - (44,985) 404,644 46,155 358,489 Banc of America loan 951,540 1,350,053 - (55,538) 1,294,515 73,458 1,221,057 CEC loan 2,876,172 1,646,186 - (298,764) 1,347,422 201,658 1,145,764 Total sewer fund 6,278,768 10,509,702 - (514,687) 5,764,081 437,771 5,326,310 Total business-type activities $ 23,195,080 26,739,702 $ - $ (877,728) $ 22,317,352 $ 767,771 $ 21,549,581 $ 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, 2022, the outstanding balance of the 2019A Water Revenue Bonds was $9,035,000.
The annual debt service requirements are as follows:
Year Ending
June 30 Principal Interest Total
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 75,000 304,744 379,744
2028-2032 425,000 1,475,519 1,900,519
2033-2037 525,000 1,383,319 1,908,319
2038-2042 2,195,000 1,228,025 3,423,025
2043-2047 3,825,000 629,700 4,454,700
2048-2050 1,705,000 77,100 1,782,100
Total 9,035,000 $ 6,343,883 $ 15,378,883 $
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
77 Note 8 – Long-Term Debt (Continued)
B. Business-Type Activities (Continued)
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, 2022, the outstanding balance of the 2019B Sewer Refunding Revenue Bonds was $6,190,000.
The annual debt service requirements are as follows:
Year Ending
June 30 Principal Interest Total
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 305,000 197,300 502,300
2028-2032 1,725,000 789,500 2,514,500
2033-2037 2,090,000 408,600 2,498,600
2038-2041 965,000 38,900 1,003,900
Total 6,190,000 $ 2,360,700 $ 8,550,700 $
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 2024.
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, 2022, the outstanding balance of the 2009 Sewer Revenue Bonds was $175,000.
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
78 Note 8 – Long-Term Debt (Continued)
B. Business-Type Activities (Continued)
2009 Sewer Revenue Bonds (Continued)
The annual debt service requirements are as follows:
Year Ending
June 30 Principal Interest Total
2023 85,000 $ 8,313 $ 93,313 $
2024 90,000 4,275 94,275
Total 175,000 $ 12,588 $ 187,588 $
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 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, 2022, the outstanding balance of the 2017 Sewer Refunding Revenue Bonds was $2,542,500.
The annual debt service requirements are as follows:
Year Ending
June 30 Principal Interest Total
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 136,800 75,375 212,175
2028-2032 768,200 302,875 1,071,075
2033-2037 905,000 163,608 1,068,608
2038-2039 406,900 20,944 427,844
Total 2,542,500 $ 898,777 $ 3,441,277 $ .
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
79 Note 8 – Long-Term Debt (Continued)
B. Business-Type Activities (Continued)
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, 2022, the outstanding balance of the State Revolving Fund Loan was $404,644.
The annual debt service requirements are as follows:
Year Ending
June 30 Principal Interest Total
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
2026 51,145 5,530 56,675
2028-2030 161,554 8,473 170,027
Total 404,644 $ 48,760 $ 453,404 $
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 of each year through April 25, 2029. Principal payments are due semiannually 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, 2022, the outstanding balance of the Banc of America Public Capital Loan was $1,294,515.
The annual debt service requirements are as follows:
Year Ending
June 30 Principal Interest Total
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 160,803 29,020 189,823
2028-2029 717,803 29,357 747,160
Total 1,294,515 $ 215,992 $ 1,510,507 $
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
80 Note 8 – Long-Term Debt (Continued)
B. Business-Type Activities (Continued)
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 of each year through December 22, 2028. 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, 2022, the outstanding balance of the CEC loan was $1,347,422.
The annual debt service requirements are as follows:
Year Ending
June 30 Principal Interest Total
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 209,866 4,764 214,630
2028-2029 318,743 3,202 321,945
Total 1,347,422 $ 47,676 $ 1,395,098 $
Note 9 – Compensated Absences
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, 2022 is as follows:
Balance Balance Due Within Due In More
July 1, 2021 Additions Deletions June 30, 2022 One Year Than One Year Governmental Activities $ 470,607 512,606 $ (385,969) $ 597,244 $ 597,244 $ - $ Classification
B. Business-Type Activities
Summary of changes in compensated absences for the year ended June 30, 2022 is as follows:
Balance Balance Due Within Due In More
July 1, 2021 Additions Deletions June 30, 2022 One Year Than One Year Business-Type Activities:
Water Fund 123,062 $ 104,752 $ (107,544) $ 120,270 $ 120,270 $ - $ Sewer Fund 112,107 111,030 (90,801) 132,336 132,336 -
Garbage Fund 29,192 29,541 (28,509) 30,224 30,224 -
Total business-type activities $ 245,323 264,361 $ (226,854) $ 282,830 $ 282,830 $ - $ Classification
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
81 Note 10 – 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, 2022 was as follows:
Heartland Ranch Authority Bonds 1,745,012 $
Community Facilities District No. 2013-A1 Special Tax Bonds 30,434,898 Community Facilities District No. 2013-A2 Special Tax Bonds 24,776,208 Community Facilities District No. 2013-B Special Tax Bonds 3,596,672 Community Facilities District No. 2005-1 Business Park Special Tax Bonds 9,165,000 Community Facilities District No. 2015-1 Special Tax Bonds 4,650,000 Community Facilities District No. 2018-1 Special Tax Bonds, Series 2021 9,265,000 Community Facilities District No. 2005-1 Special Tax Bonds, Series 2021 4,685,000 Total $ 88,317,790
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
82 Note 11 – Fund Balances
At June 30, 2022, 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 138,586 $ - $ - $ - $ 138,586 $
Total nonspendable - 138,586 - - 138,586
Restricted:
Debt service 390,809 - 60,662,321 - 61,053,130
Assessment Districts - - - 3,546,681 3,546,681
Grants 96,737 - - 603,911 700,648
Streets and roads - - - 3,343,962 3,343,962
Measure L - - - 3,462,267 3,462,267
Developer housing in-lieu - - - 1,055,582 1,055,582
Community Facilities Districts - - - 585,693 585,693
Impact fee - - - 301,732 301,732
Total restricted - 487,546 60,662,321 12,899,828 74,049,695 Committed:
Contingencies 8,116,966 - - - 8,116,966
Capital projects - - - 9,280,241 9,280,241
Total committed - 8,116,966 - 9,280,241 17,397,207
Assigned:
General government operations 999,214 - - 39,560 1,038,774 Fund deficits 3,592,016 - - - 3,592,016
Encumbrances 86,995 - - - 86,995
OPEB 71,713 - - - 71,713
Capital projects 348,561 - - - 348,561
Total assigned - 5,098,499 - 39,560 5,138,059
Unassigned (deficit) (3,592,016) 4,584,238 - (374,596) 617,626 Total $ (3,592,016) 18,425,835 $ 60,662,321 $ 21,845,033 $ 97,341,173 $ Note 12 – Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; 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.
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
83 Note 12 – Risk Management (Continued)
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”), a joint powers authority established in accordance with the California government code. The relationship between the City and CS is such that the CSJVRMA is not a component unit of the City for financial reporting purposes. Financial statements for the CSJVRMA may be obtained from the CSJVRMA's management.
The CSJVRMA 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 CSJVRMA only by giving six-month notice. Cities applying for membership in the CSJVRMA may do so on approval of a two-thirds vote of the board of the CSJVRMA.
The latest financial information of the CSJVRMA for fiscal year ended June 30, 2022, is as follows:
Total Assets 150,837,823 $
Total Liabilities 118,663,929 $
Net Position 32,173,894 $
Operating Revenues 66,885,024 $
Operating Expenses 47,584,363 $
Nonoperating Revenues (Expenses) (7,973,544) $
Change in Net Position 11,327,117 $
A. Coverage
The City participates in the Central San Joaquin Valley Risk Management Authority (CSJVRMA), a public entity risk pool currently operating as a common risk management and insurance program for 54 cities. The purpose of CSJVRMA is to spread the adverse effect of losses among the members and to purchase excess insurance as a group, thereby reducing its expense. The CSJVRMA is governed by a Board of Directors elected by the member agencies; it is not a component unit of the City. Audited financial statements are available from the Central San Joaquin Risk Management Authority at 1750 Creekside Oaks Drive, Suite 200, Sacramento, CA 95833.
The City participates in the following pooled coverages through CSJVRMA:
Type of Coverage (Deductible) Coverage Limits
Liability ($100,000) 54,000,000 $
Property ($5,000 to $10,000) 1,000,000,000
Worker's Compensation ($200,000) Statutory Limit
Boiler and Machinery ($1,000 to $10,000) 100,000,000
Automobile - for vehicles with values more than $25,000 ($500) 1,000,000,000 The CSJVRMA maintains separate records for each member for each year of participation. The records track cash paid to the CSJVRMA through deposit premium assessments, the City’s self-insured retention portion of claims paid, and the City’s allocation of shared risks. Three years after the close of the workers’ compensation coverage year and five years after the close of the general liability coverage year, the CSJVRMA assesses the status of all members for the year, then either makes a refund to a member if it has positive balance (i.e., payout and reserve experience is less than premiums paid) or collects any deficit.
During the fiscal year ended June 30, 2022, the City contributed $1,604,661 for current year coverage. Settled claims have not exceeded insurance coverage in any of the past three fiscal years.
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
84 Note 13 – Pension Plans
A. Summary
Governmental Business-Type
Activities Activities Total
Deferred outflows of resources:
Pension contribution after measurement date:
Miscellaneous 740,419 $ 686,246 $ 1,426,665 $
Safety 571,316 - 571,316
Difference between expected and actual experience:
Miscellaneous 160,965 149,187 310,152
Safety 301,993 - 301,993
Adjustments due to differences in proportions
Miscellaneous 152,413 141,261 293,674
Safety 185,501 - 185,501
Differences between City's contributions and
proportionate share of contributions
Miscellaneous 29,829 27,646 57,475
Total deferred outflows of resources $ 1,004,340 2,142,436 $ 3,146,776 $ Net pension liabilities:
Miscellaneous 1,435,397 $ 1,330,376 $ 2,765,773 $
Safety 1,767,602 - 1,767,602
Total net pension liabilities $ 1,330,376 3,202,999 $ 4,533,375 $ Deferred inflows of Resources:
Difference in projected and actual earnings on
pension investments:
Miscellaneous 1,253,026 $ 1,161,348 $ 2,414,374 $
Safety 1,052,063 - 1,052,063
Differences between City's contributions and
proportionate share of contributions
Safety 68,381 - 68,381
Total deferred inflows of resources $ 1,161,348 2,373,470 $ 3,534,818 $ Pension expenses:
Miscellaneous (40,256) $ (61,297) $ (101,553) $
Safety 110,160 - 110,160
Total pension expenses $ (61,297) 69,904 $ 8,607 $
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
85 Note 13 – 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, 2021, measurement date, the following employees were covered by the benefit terms:
Miscellaneous Safety
Miscellaneous PEPRA Safety PEPRA
Active employees 45 58 14 6
Transferred and terminated employees 50 26 6 3
Retired employees and beneficiaries 46 - 37 -
Total 141 84 57 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 13.350% 7.590% 22.480% 13.130% City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
86 Note 13 – Pension Plans (Continued)
B. General Information about Pension Plans (Continued)
Contributions
For the year ended June 30, 2022, the contributions recognized as part of pension expense for each Plan are as follows:
Miscellaneous Safety Total
Contributions - employer 1,426,665 $ 571,316 $ 1,997,981 $ 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: 6/30/20 (Valuation date) 31,156,284 $ 24,491,193 $ 6,665,091 $ Balance at: 6/30/21 (Measurement date) 34,550,727 31,784,954 2,765,773 Net changes during 2020-2021 3,394,443 7,293,761 (3,899,318) Safety
Balance at: 6/30/20 (Valuation date) 13,000,896 $ 9,701,523 $ 3,299,373 $ Balance at: 6/30/21 (Measurement date) 14,082,820 12,315,218 1,767,602 Net changes during 2020-2021 1,081,924 2,613,695 (1,531,771) 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, 2021, 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, 2020 rolled forward to June 30, 2021 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, 2021 and 2020 were as follows:
Miscellaneous Safety Total
Proportion - June 30, 2020 0.15801% 0.04952% 0.20754%
Proportion - June 30, 2021 0.14566% 0.05037% 0.19603%
Change - Increase/(Decrease) -0.01235% 0.00084% -0.01151% City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
87 Note 13 – 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, 2022, the City recognized pension expense/credit of $(101,553) and $110,160, for the Miscellaneous and Safety plans, respectively. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred outflows Deferred inflows
of resources of resources
Contribution made after the measurement date 1,426,665 $ - $ Difference between expected and actual
experience 310,152 -
Net difference between projected and actual
earnings on pension plan investments - 2,414,374
Employer contributions in excess/(under)
proportionate share of contributions 57,475 -
Adjustments due to difference in proportions 293,674 -
Total 2,087,966 $ 2,414,374 $
Miscellaneous Plan
Deferred outflows Deferred inflows
of resources of resources
Contribution made after the measurement date 571,316 $ - $ Difference between expected and actual
experience 301,993 -
Net difference between projected and actual
earnings on pension plan investments - 1,052,063
Employer contributions in excess/(under)
proportionate share of contributions - 68,381
Adjustments due to difference in proportions 185,501 -
Total 1,058,810 $ 1,120,444 $
Safety Plan
Deferred outflows Deferred inflows
of resources of resources
Contribution made after the measurement date 1,997,981 $ - $ Difference between expected and actual
experience 612,145 -
Net difference between projected and actual
earnings on pension plan investments - 3,466,437
Employer contributions in excess/(under)
proportionate share of contributions 57,475 68,381
Adjustments due to difference in proportions 479,175 -
Total 3,146,776 $ 3,534,818 $
Aggregate Total
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
88 Note 13 – 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, $1,426,665 and $571,316, 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, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Year Ended
June 30 Miscellaneous Plan Safety Plan Total
2023 (258,414) $ (41,776) $ (300,190) $
2024 (349,419) (105,492) (454,911)
2025 (478,032) (196,169) (674,201)
2026 (667,208) (289,513) (956,721)
2027 - - -
Thereafter - - -
Total (1,753,073) $ (632,950) $ (2,386,023) $
Deferred Outflows/(Inflows) of Resources
Actuarial Assumptions
The total pension liabilities in the June 30, 2020 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
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.
Entry Age Normal
7.15%
2.50%
Varies by Entry Age and Service
7.65%
All other actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period from 1997 to 2015, including updates to salary increase, mortality and retirement rates. The Experience Study report can be obtained at CalPERS’ website under Forms and Publications.
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
89 Note 13 – Pension Plans (Continued)
C. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Discount Rate
The discount rate used to measure the total pension liability was 7.15%. 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. The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained at CalPERS’ website under the GASB 68 section.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, staff 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.
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
90 Note 13 – 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 7,327,537 $ 2,765,773 $ (1,005,372) $
Safety 3,663,271 1,767,602 210,544
Total 10,990,808 $ 4,533,375 $ (794,828) $
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, 2022, the City had no outstanding amounts owed to the pension plan for contributions for the year ended June 30, 2022.
Note 14 – Other Postemployment Benefits
A. Summary
Governmental Business-Type
Activities Activities Total
Deferred outflows of resources:
Employer contributions made
subsequent to the measurement date 634,305 $ 320,795 $ 955,100 $ Changes in assumptions 1,269,475 642,026 1,911,501
Total deferred outflows of resources $ 962,821 1,903,780 $ 2,866,601 $ Net OPEB liability:
Net OPEB liability 10,237,730 $ 4,664,893 $ 14,902,623 $ Total OPEB liability $ 4,664,893 10,237,730 $ 14,902,623 $ Deferred inflows of Resources:
Difference between expected and actual experience 1,070,599 $ 548,936 $ 1,619,535 $ Change in assumption 372,834 191,166 564,000
Total deferred inflows of resources $ 740,102 1,443,433 $ 2,183,535 $ Net OPEB Expense $ 453,410 884,294 $ 1,337,704 $
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
91 Note 14 – Other Postemployment Benefits (Continued)
B. General Information about OPEB
Plan Description
The City’s administers a defined benefit OPEB plan (Plan), which provides medical insurance benefits to eligible retirees and their spouses in accordance with applicable Memoranda of Understanding and the California Government Code to all employees who retire from the City. The Plan is an agent single-employer defined benefit OPEB plan administered by the City and is governed by the City Council. No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75.
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 valuation 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 valuation date, the City’s average contribution rate was
2.12% of covered-employee 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, 2021. 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, 2022 was $14,902,623.
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
92 Note 14 – 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
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.
Modified projected fully generational with Scale MP-2019
2.17%
2.75%
3.00%
n/a
CalPERS 1997-2015 Experience Study
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 2.17% 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, 2020 (Valuation Date) 12,997,781 $
Changes Recognized for the Measurement Period:
Service Cost 1,088,576
Interest on the total OPEB liability 341,695
Difference between expected and actual experience -
Changes of assumptions 639,497
Benefit payments (164,926)
Net Changes during July 1, 2020 to June 30, 2021 1,904,842 Balance at June 30, 2021 (Measurement Date) 14,902,623 $ City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
93 Note 14 – 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 (1.17 percent) or 1-percentage- point higher (3.17 percent) than the current discount rate:
Discount Rate - 1% Current Discount Discount Rate + 1%
(1.17%) Rate (2.17%) (3.17%)
$ 14,902,623 17,682,764 $ 12,726,015 $
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%
$ 14,902,623 12,677,028 $ 18,129,563 $
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, 2022, the City recognized OPEB expense of $1,337,704. At June 30, 2022, 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 - $ 1,619,535 $ Changes of assumptions 1,911,501 564,000
Employer contributions made
subsequent to the measurement date 955,100 -
Total 2,866,601 $ 2,183,535 $
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.
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
94 Note 14 – 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)
For the OPEB Plan, $955,100 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 OPEB liability in the year ended June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
Year Ended Deferred Outflows/
June 30 (Inflows) of Resources
2023 (94,208) $
2024 (94,208)
2025 (94,208)
2026 (94,208)
2027 (93,208)
Thereafter 198,006
$ (272,034)
Note 15 – 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 16 – Other Required Disclosures
A. (Deficit) Net Position/Fund Balances
At June 30, 2022, the following funds had a fund balances (deficit) or unrestricted net position (deficit):
Fund Fund Type Deficit
CFD 2003-1 Public Safety/Fire Special Revenue 3,592,016 $ Protection Services Fund
Federal CDBG Grant Fund Special Revenue 260,921
Local Transportation Fund Special Revenue 112,553
Heartland Ranch Infrastructure Fund Capital Projects 1,122 The City plans to eliminate the deficits through the reduction in future expenditures and/or the use of new funding sources.
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
95 Note 16 – Other Required Disclosures (Continued)
B. Expenditures Exceeding Appropriations
For the year ended June 30, 2022, expenditures exceeded appropriations in the following funds/functions:
Fund Function Excess Expenditures
General Fund Debt service: Principal 11,450
General Fund Debt service: Interest and fiscal charges 940 CFD 2001-01 Patterson Gardens
Public Safety Special Revenue Fund Fire 44
Local Transportation Special Revenue Fund Public works 114 Gas Tax Special Revenue Fund Public works 11,245
CFD 2018-2 VOP Maintenance Special Revenue Fund General government 4,647 CFD 2018-2 VOP Maintenance Special Revenue Fund General government 2,930 Note 17 – 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 18 – Net Position
A. 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 14,368,338 $ 12,821,664 $ Capital assets, depreciable/amortizable, net 48,844,090 34,194,903 Unspent bond proceeds - Restricted cash and investment - 406,225 Unspent bond proceeds - Cash with fiscal agent - 11,035,172 Deferred amount on refunding - 318,293
Long-term debt:
Leases Payable (72,094) -
2018 Lease Revenue Bonds (1,898,414) -
2019A Water Revenue Bonds - (9,571,988)
2019B Water Revenue Refunding Bonds - (6,981,283)
2009 Sewer Revenue Bonds - (175,000)
2017 Sewer Refunding Revenue Bonds - (2,542,500)
State Revolving Fund loan - (404,644)
Banc of America loan - (1,294,515)
CEC loan - (1,347,422)
Total net investment in capital assets 61,241,920 $ 36,458,905 $ City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
96 Note 18 – Net Position (Continued)
B. Restricted Net Position
Restricted Net Position at June 30 consisted of the following:
Governmental Business-Type
Activities Activities
Restricted net position:
Restricted amount on fund statements 74,049,695 $ 3,133,590 $ Unavailable revenue 1,820,017 3,133,590
Long-term debt offset by investments held by trust:
PPFA 2013 Heartland Ranch Revenue Bonds (1,848,375) -
PPFA 2013 Series A Revenue Bonds (55,195,000) -
PPFA 2013 Series B Revenue Bonds (5,410,000) -
Total restricted net position 13,416,337 $ 6,267,180 $
Note 19 – 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. 97 REQUIRED SUPPLEMENTARY INFORMATION
98 This page intentionally left blank.
City of Patterson
Budgetary Comparison Schedule
General Fund
For the Year Ended June 30, 2022
99 Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:
Taxes:
Property 2,859,783 $ 2,859,783 $ 6,466,296 $ 3,606,513 $ Sales 7,185,136 14,074,209 12,317,056 (1,757,153)
Franchise 233,159 233,159 193,226 (39,933)
Other 176,768 176,768 277,779 101,011
Licenses, permits, and fees 2,387,621 1,447,826 1,603,135 155,309 Charges for services 323,732 424,061 480,220 56,159
Intergovernmental:
Federal grant and subsidies 2,065,096 2,760,851 774,110 (1,986,741) Other governmental 2,906,434 1,449,937 745,053 (704,884) Fines, forfeitures and penalties 132,000 151,210 158,125 6,915 Interest 28,277 36,775 (478,098) (514,873)
Miscellaneous 272,524 412,186 533,721 121,535
Total revenues 24,026,765 18,570,530 23,070,623 (956,142) EXPENDITURES:
Current:
General government 4,562,173 4,752,504 3,529,790 1,222,714 Police 6,226,529 6,231,528 5,909,652 321,876
Fire 2,942,736 3,464,951 2,899,328 565,623
Community development and planning 1,762,875 2,120,971 1,935,975 184,996 Public works 3,529,011 3,910,298 3,447,137 463,161
Park and recreation 2,553,854 2,835,555 2,293,417 542,138 Capital outlay 1,528,980 1,755,773 959,887 795,886
Debt service:
Principal 139,568 139,568 151,018 (11,450)
Interest and fiscal charges 69,518 69,518 70,458 (940)
Total expenditures 25,280,666 23,315,244 21,196,662 4,084,004
REVENUES OVER (UNDER)
EXPENDITURES (1,253,901) (4,744,714) 1,873,961 3,127,862 OTHER FINANCING SOURCES (USES):
Inception of lease payable - - 59,040 59,040
Transfers in 4,415,184 3,805,537 2,934,782 (870,755)
Transfers out (2,277,840) (431,959) (157,210) 274,749
Total other financing sources (uses) 3,373,578 2,137,344 2,836,612 (536,966) Net change in fund balances $ 2,119,677 (2,607,370) $ 4,710,573 2,590,896 $ FUND BALANCE:
Beginning of year 13,715,262
End of year $ 18,425,835
Budgeted Amounts
City of Patterson
Budgetary Comparison Schedule
CFD 2003-1 Public Safety/Fire Protection Special Revenue Fund For the Year Ended June 30, 2022
100
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:
Charges for services 1,125,370 $ 1,125,370 $ 1,306,377 $ 181,007 $ Miscellaneous 30,000 59,726 59,726 -
Total revenues 1,185,096 1,155,370 1,366,103 181,007
EXPENDITURES:
Current:
Fire 2,497,047 2,818,753 2,355,923 462,830
Capital outlay 33,300 86,500 37,010 49,490
Total expenditures 2,905,253 2,530,347 2,392,933 512,320
REVENUES OVER (UNDER)
EXPENDITURES (1,720,157) (1,374,977) (1,026,830) 693,327 OTHER FINANCING SOURCES (USES):
Transfers in 585,000 598,200 598,200 -
Transfers out (449,469) - - -
Total other financing sources (uses) 598,200 135,531 598,200 - Net change in fund balances $ (1,121,957) (1,239,446) $ (428,630) 693,327 $ FUND BALANCE (DEFICIT):
Beginning of year (3,163,386)
End of year $ (3,592,016)
Budgeted Amounts
City of Patterson
Notes to the Budgetary Comparison Schedule
Budgetary Information
For the Year Ended June 30, 2022
101
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, 2022 are disclosed in the notes to the financial statements. Appropriations for fiscal year 2022 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 funds: CDBG HA Loan Special Revenue Fund and Police Asset Forfeiture Special Revenue Fund.
City of Patterson
Schedule of Proportionate Share of the Net Pension Liability Last Ten Years
For the Year Ended June 30, 2022
102
Measurement period, year ended 6/30/2021 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 0.1456588% 0.1580126% 0.1530113% 0.1496090% 0.1499839% 0.1499839% 0.1557567% 0.1455000% Plan's proportionate share of
the net pension liability 2,765,773 $ 6,665,091 $ 6,127,339 $ 5,638,335 $ 5,912,437 $ 5,141,345 $ 4,273,133 $ 3,638,246 $ Plan's covered-employee payroll 4,605,966 $ 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-employee payroll 60.05% 144.71% 137.02% 129.87% 140.27% 125.63% 107.55% 94.32% Plan's fiduciary net position 31,784,954 $ 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 92.00% 78.61% 78.62% 77.94% 73.18% 72.70% 74.81% 77.16% Plan's proportionate share of aggregate
employer contributions 1,291,216 $ 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
City of Patterson
Schedule of Proportionate Share of the Net Pension Liability (Continued) Last Ten Years
For the Year Ended June 30, 2022
103
Measurement period, year ended 6/30/2021 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 0.050366% 0.049523% 0.047853% 0.046974% 0.045984% 0.046120% 0.046242% 0.026700% Plan's proportionate share of
the net pension liability 1,767,602 $ 3,299,373 $ 2,987,220 $ 2,756,215 $ 2,747,657 $ 2,388,655 $ 1,905,383 $ 1,661,368 $ Plan's covered-employee payroll 1,369,049 $ 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-employee payroll 129.11% 241.00% 224.74% 213.58% 219.99% 196.37% 161.75% 151.85% Plan's fiduciary net position 12,315,218 $ 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 87.45% 74.62% 75.36% 75.28% 73.23% 73.58% 77.45% 79.20% Plan's proportionate share of aggregate
employer contributions 552,488 $ 494,902 $ 457,665 $ 393,732 $ 337,685 $ 312,567 $ 364,763 $ 312,579 $ 1 Information only presented from the implementation year Safety Plan
City of Patterson
Schedule of Plan Contributions
Last Ten Years
For the Year Ended June 30, 2022
104
Fiscal Year: 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-141 Contractually determined
contribution (actuarially determined) 1,426,665 $ 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 (1,426,665) (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 $ 4,744,145 $ 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 30.07% 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:
Actuarial cost method
Amortization method/period
Asset valuation method
Inflation
Salary increases
Payroll growth 2.750%
Investment rate of return
Retirement age
Mortality
1 Information only presented from the implementation year Miscellaneous Plan
The actuarial methods and assumption used to set the actuarially determined contributions for Fiscal Year 2022 were derived from the June 30, 2019 funding valuation report.
7.00% net of pension plan investment and administrative expenses.
The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.
Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP2016 published by the Society of Actuaries.
The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period from 1997 and 2015.
Entry Age Normal
For details, see June 30, 2019 Funding Valuation Report Actuarial Value of Assets. For details, see June 30, 2019 Funding Valuation Report.
2.50%
Varies by entry age and service
City of Patterson
Schedule of Plan Contributions (Continued)
Last Ten Years
For the Year Ended June 30, 2022
105
Fiscal Year: 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-141 Contractually determined
contribution (actuarially determined) 571,316 $ 552,488 $ 494,902 $ 457,665 $ 393,732 $ 337,685 $ 312,567 $ 364,763 $ 312,579 $ Contributions in relation to the
actuarially determined contributions (571,316) (552,488) (494,902) (457,665) (393,732) (337,685) (312,567) (364,763) (312,579) Contribution deficiency (excess) $ - - $ - $ - $ - $ - $ - $ - $ - $ Covered payroll 1,410,121 $ 1,410,121 $ 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 40.52% 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 2.750%
Investment rate of return
Retirement age
Mortality
1 Information only presented from the implementation year Safety Plan
Varies by entry age and service
7.00% net of pension plan investment and administrative expenses.
The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period from 1997 and 2015.
The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.
Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP2016 published by the Society of Actuaries.
The actuarial methods and assumption used to set the actuarially determined contributions for Fiscal Year 2022 were derived from the June 30, 2019 funding valuation report.
Entry Age Normal
For details, see June 30, 2019 Funding Valuation Report Actuarial Value of Assets. For details, see June 30, 2019 Funding Valuation Report.
2.50%
City of Patterson
Schedule of Changes in Net OPEB Liability and Related Ratios Last Ten Years
For the Year Ended June 30, 2022
106
Measurement period, year ending: 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 1 Total OPEB liability
Service cost 1,088,576 $ 930,865 $ 868,965 $ 951,252 $ 1,055,000 $ Interest 341,695 413,592 393,931 394,277 327,000
Changes of benefit terms - - - (891,666) -
Differences between expected and actual experience - (1,584,352) - (552,203) - Changes of assumptions 639,497 1,127,249 490,438 102,481 (1,129,000) Benefit payments, including
refunds of member contributions (164,926) (177,238) (163,179) (179,631) (175,000) Change in total OPEB liability 710,116 1,904,842 1,590,155 (175,490) 78,000 Total OPEB liability - beginning 12,287,665 12,997,781 10,697,510 10,873,000 10,795,000 Total OPEB liability - ending (a) $ 12,997,781 14,902,623 $ 12,287,665 $ 10,697,510 $ 10,873,000 $ OPEB fiduciary net position
Contributions - employer 164,926 $ 177,238 $ 163,179 $ 179,631 $ 175,000 $ Net investment income - - - - -
Benefit payments, including
refunds of member contributions (164,926) (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) $ 12,997,781 14,902,623 $ 12,287,665 $ 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% 0.00% Covered-employee payroll $ 8,559,266 8,917,985 $ 8,196,189 $ 7,352,843 $ 6,620,000 $ Plan net OPEB liability as a
percentage of covered-employee payroll 167.11% 151.86% 149.92% 145.49% 164.24% Notes to Schedule
No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75. 1 Information only presented from the implementation year
SUPPLEMENTARY INFORMATION
107
This page intentionally left blank.
108
NON-MAJOR GOVERNMENTAL FUNDS
109
CFD 2001-01
Landscape Benefit CSA #15 Patterson
Maintenance Assessment Assessment Gardens Beautification District Districts District Public Safety Committee
ASSETS
Cash and investments 885,786 $ 2,449,007 $ 238 $ 246,983 $ 39,543 $ Receivables:
Intergovernmental 28,587 8,062 307 4,906 -
Interest 855 1,138 - 163 17
Notes and loans - - - - -
Lease - - - - -
Total assets $ 2,458,207 915,228 $ 545 $ 252,052 $ 39,560 $
LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES
LIABILITIES:
Accounts payable 68,131 $ 10,959 $ 261 $ - $ - $
Due to other funds - - - - -
Unearned revenue - - - - -
Deposits and other liabilities - - - - -
Total liabilities 68,131 10,959 261 - -
DEFERRED INFLOWS OF RESOURCES:
Lease-related deferred inflows of resources - - - - -
Unavailable revenue - - - - -
Total deferred inflows of resources - - - - -
FUND BALANCES (DEFICIT):
Restricted 847,097 2,447,248 284 252,052 -
Committed - - - - -
Assigned - - - - 39,560
Unassigned (deficit) - - - - -
Total fund balances 847,097 2,447,248 284 252,052 39,560 Total liabilities, deferred inflows
of resources and fund balances $ 2,458,207 915,228 $ 545 $ 252,052 $ 39,560 $ (Continued)
City of Patterson
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2022
Special Revenue Funds
110
CDBG State Federal First Time Federal
HA Loan HCD Rehab CDBG Home HOME
Fund Program Grant Buyers Funds
ASSETS
Cash and investments $ 222,949 - $ $ 193,784 - $ $ 192,080 Receivables:
Intergovernmental - - - - 2,500
Interest - 98 - 85 84
Notes and loans 293,489 8,776 - 81,620 207,345
Lease - - - - -
Total assets $ 293,489 $ 231,823 $ 275,489 - $ $ 402,009
LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES
LIABILITIES:
Accounts payable $ - $ - $ - $ - $ -
Due to other funds - 210,283 - - -
Unearned revenue - - 50,638 - 14,125
Deposits and other liabilities - - - - -
Total liabilities - 260,921 - - 14,125
DEFERRED INFLOWS OF RESOURCES:
Lease-related deferred inflows of resources - - - - -
Unavailable revenue 293,489 8,776 - 81,620 207,345
Total deferred inflows of resources 293,489 8,776 - 81,620 207,345 FUND BALANCES (DEFICIT):
Restricted 223,047 - 193,869 - 180,539
Committed - - - - -
Assigned - - - - -
Unassigned (deficit) - (260,921) - - -
Total fund balances 223,047 - (260,921) 193,869 180,539 Total liabilities, deferred inflows
of resources and fund balances $ 231,823 293,489 $ - $ 275,489 $ 402,009 $ (Continued)
Special Revenue Funds
June 30, 2022
City of Patterson
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
111
Local
Neighborhood Local Transportation
Stabilization Transportation Fund Street Project
Program Gas Tax Fund Non Motorized Fund
ASSETS
Cash and investments 6,453 $ 255,121 $ 184,039 $ 125,711 $ 2,719,406 $ Receivables:
Intergovernmental - 138,736 585 - 301,377
Interest 3 150 79 55 1,189
Notes and loans 27,957 - - - -
Lease - - - - -
Total assets $ 34,413 $ 394,007 $ 184,703 $ 125,766 $ 3,021,972
LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES
LIABILITIES:
Accounts payable $ - $ - $ 114 $ - $ 42,757
Due to other funds - - - - -
Unearned revenue - 297,142 - 12,328 -
Deposits and other liabilities - - - - -
Total liabilities - 297,256 - 12,328 42,757
DEFERRED INFLOWS OF RESOURCES:
Lease-related deferred inflows of resources - - - - -
Unavailable revenue 27,957 11,245 - 131,453 -
Total deferred inflows of resources 27,957 11,245 - 131,453 - FUND BALANCES (DEFICIT):
Restricted 6,456 382,762 - 113,438 2,847,762
Committed - - - - -
Assigned - - - - -
Unassigned (deficit) - (112,553) - - -
Total fund balances 6,456 382,762 (112,553) 113,438 2,847,762 Total liabilities, deferred inflows
of resources and fund balances $ 394,007 34,413 $ 184,703 $ 125,766 $ 3,021,972 $ (Continued)
Special Revenue Funds
City of Patterson
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
June 30, 2022
112
Developer
Housing Police Westside
Measure L In-Lieu Asset Drainage
Fund Fee Forfeiture Study CFD 2013-1
ASSETS
Cash and investments 4,390,765 $ 1,055,120 $ 4,304 $ 65,696 $ 582,135 $ Receivables:
Intergovernmental 323,396 - - - -
Interest 1,911 462 2 29 269
Notes and loans - 1,041,500 - - -
Lease - - - - -
Total assets $ 2,097,082 4,716,072 $ 4,306 $ 65,725 $ 582,404 $
LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES
LIABILITIES:
Accounts payable 345,525 $ - $ - $ - $ 1,017 $
Due to other funds - - - - -
Unearned revenue 908,280 - - - -
Deposits and other liabilities - - - - -
Total liabilities - 1,253,805 - - 1,017
DEFERRED INFLOWS OF RESOURCES:
Lease-related deferred inflows of resources - - - - -
Unavailable revenue - 1,041,500 - - -
Total deferred inflows of resources 1,041,500 - - - -
FUND BALANCES (DEFICIT):
Restricted 3,462,267 1,055,582 4,306 581,387 -
Committed - - - 65,725 -
Assigned - - - - -
Unassigned (deficit) - - - - -
Total fund balances 3,462,267 1,055,582 4,306 65,725 581,387 Total liabilities, deferred inflows
of resources and fund balances $ 2,097,082 4,716,072 $ 4,306 $ 65,725 $ 582,404 $ (Continued)
City of Patterson
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
June 30, 2022
Special Revenue Funds
113
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 54,693 $ 237,433 $ 973,370 $ 430,961 $ 617,086 $ Receivables:
Intergovernmental - 37,640 - - -
Interest 33 122 426 189 270
Notes and loans - - - - -
Lease - - - - -
Total assets $ 54,726 $ 275,195 $ 973,796 $ 431,150 $ 617,356
LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES
LIABILITIES:
Accounts payable $ - $ 1,515 $ - $ - $ -
Due to other funds - - - - -
Unearned revenue - - - - -
Deposits and other liabilities - 26,674 - - -
Total liabilities - 28,189 - - -
DEFERRED INFLOWS OF RESOURCES:
Lease-related deferred inflows of resources - - - - -
Unavailable revenue - - - - -
Total deferred inflows of resources - - - - -
FUND BALANCES (DEFICIT):
Restricted 54,726 247,006 - - -
Committed - 973,796 - 431,150 617,356
Assigned - - - - -
Unassigned (deficit) - - - - -
Total fund balances 54,726 247,006 973,796 431,150 617,356 Total liabilities, deferred inflows
of resources and fund balances $ 275,195 54,726 $ 973,796 $ 431,150 $ 617,356 $ (Continued)
City of Patterson
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
June 30, 2022
Special Revenue Funds Capital Projects Funds
114
Parkland Street
In-Lieu Improvement Water Storm Drain Sewer
Fee Impact Fee Impact Fee Impact Fee Impact Fee
ASSETS
Cash and investments 59,931 $ 789,113 $ 3,951,491 $ 1,263,695 $ 15,494 $ Receivables:
Intergovernmental - - 190,014 - 70,814
Interest 22 346 1,736 554 8
Notes and loans - - - - -
Lease - - - - -
Total assets $ 59,953 $ 789,459 $ 4,143,241 $ 1,264,249 $ 86,316
LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES
LIABILITIES:
Accounts payable $ 2,016 $ - $ - $ - $ -
Due to other funds - - - - -
Unearned revenue - - - - -
Deposits and other liabilities - - - - -
Total liabilities 2,016 - - - -
DEFERRED INFLOWS OF RESOURCES:
Lease-related deferred inflows of resources - - - - -
Unavailable revenue - - - - -
Total deferred inflows of resources - - - - -
FUND BALANCES (DEFICIT):
Restricted - - - - -
Committed 57,937 789,459 4,143,241 1,264,249 86,316
Assigned - - - - -
Unassigned (deficit) - - - - -
Total fund balances 57,937 789,459 4,143,241 1,264,249 86,316 Total liabilities, deferred inflows
of resources and fund balances $ 789,459 59,953 $ 4,143,241 $ 1,264,249 $ 86,316 $ (Continued)
City of Patterson
Combining Balance Sheet (Continued)
Capital Projects Funds
Non-Major Governmental Funds
June 30, 2022
115
Delta Aquatic Heartland Downtown
Mendota Center Future Water Ranch Assistance
Storm Gate Construction Acquisition Infrastructure Fee
ASSETS
Cash and investments $ 174,285 $ 370,286 $ 142,845 $ 46,034 $ 162,151 Receivables:
Intergovernmental - - 1,072 - -
Interest 76 162 63 20 71
Notes and loans - - - - -
Lease - - 10,969 - -
Total assets $ 174,361 $ 370,448 $ 154,949 $ 46,054 $ 162,222
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:
Lease-related deferred inflows of resources - - 10,968 - - Unavailable revenue - - - - -
Total deferred inflows of resources - - 10,968 - -
FUND BALANCES (DEFICIT):
Restricted - - - - -
Committed 174,361 370,448 143,981 162,222 -
Assigned - - - - -
Unassigned (deficit) - - - (1,122) -
Total fund balances 174,361 370,448 143,981 (1,122) 162,222 Total liabilities, deferred inflows
of resources and fund balances $ 370,448 174,361 $ 154,949 $ 46,054 $ 162,222 $ (Continued)
City of Patterson
Combining Balance Sheet (Continued)
Capital Projects Funds
Non-Major Governmental Funds
June 30, 2022
116
Total
Non-major
Governmental
Funds
ASSETS
Cash and investments $ 22,907,988
Receivables:
Intergovernmental 1,107,996
Interest 10,687
Notes and loans 1,660,687
Lease 10,969
Total assets $ 25,698,327
LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES
LIABILITIES:
Accounts payable $ 472,295
Due to other funds 210,283
Unearned revenue 1,282,513
Deposits and other liabilities 73,850
Total liabilities 2,038,941
DEFERRED INFLOWS OF RESOURCES:
Lease-related deferred inflows of resources 10,968
Unavailable revenue 1,803,385
Total deferred inflows of resources 1,814,353
FUND BALANCES (DEFICIT):
Restricted 12,899,828
Committed 9,280,241
Assigned 39,560
Unassigned (deficit) (374,596)
Total fund balances 21,845,033
Total liabilities, deferred inflows
of resources and fund balances $ 25,698,327
(Concluded)
City of Patterson
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
June 30, 2022
117
CFD 2001-01
Landscape Benefit CSA #15 Patterson
Maintenance Assessment Assessment Gardens Beautification District Districts District Public Safety Committee
REVENUES:
Licenses, permits, and fees - $ - $ - $ - $ - $
Charges for services 1,747,091 499,419 8,499 536,341 -
Intergovernmental:
Federal grant and subsidies - - - - -
Other governmental - - - - -
Investment income(loss) 2,247 4,346 - 372 75
Miscellaneous - - - - 620
Total revenues 1,749,338 503,765 8,499 536,713 695
EXPENDITURES:
Current:
General government - - - - -
Fire - - - 6,514 -
Community development and planning - - 3,095 - -
Public works 588,726 134,145 - - -
Capital outlay - - - - -
Total expenditures 588,726 134,145 3,095 6,514 -
REVENUES OVER (UNDER)
EXPENDITURES 1,160,612 369,620 5,404 530,199 695
OTHER FINANCING SOURCES (USES):
Transfers in - - - - -
Transfers out (1,064,989) (154,886) (500,000) - -
Total financing sources (uses) (1,064,989) (154,886) (500,000) - - Net change in fund balances 95,623 214,734 5,404 30,199 695 FUND BALANCES (DEFICIT):
Beginning of year 751,474 2,232,514 (5,120) 221,853 38,865 End of year $ 847,097 $ 2,447,248 $ 284 $ 252,052 $ 39,560 (Continued)
Non-Major Governmental Funds
For the Year Ended June 30, 2022
City of Patterson
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Special Revenue
118
CDBG State Federal First Time Federal
HA Loan HCD Rehab CDBG Home HOME
Fund Program Grant Buyers Funds
REVENUES:
Licenses, permits, and fees $ - $ - $ - $ - $ -
Charges for services - - - - -
Intergovernmental:
Federal grant and subsidies - - 20,885 - -
Other governmental - - - - -
Investment income(loss) - 457 - 850 2,075
Miscellaneous - 65,397 - 768 4,374
Total revenues - 65,854 20,885 1,618 6,449
EXPENDITURES:
Current:
General government - - 221 - 14,177
Fire - - - - -
Community development and planning - - - - -
Public works - - - - -
Capital outlay - - - - -
Total expenditures - - 221 - 14,177
REVENUES OVER (UNDER)
EXPENDITURES - 65,854 20,664 1,618 (7,728)
OTHER FINANCING SOURCES (USES):
Transfers in - - - - -
Transfers out - - - - -
Total financing sources (uses) - - - - -
Net change in fund balances - 65,854 20,664 1,618 (7,728) FUND BALANCES (DEFICIT):
Beginning of year 157,193 - (281,585) 192,251 188,267
End of year $ 223,047 - $ $ (260,921) $ 193,869 $ 180,539 (Continued)
Non-Major Governmental Funds
For the Year Ended June 30, 2022
City of Patterson
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Special Revenue Funds
119
Local
Neighborhood Local Transportation
Stabilization Transportation Fund Street Project
Program Gas Tax Fund Non Motorized Fund
REVENUES:
Licenses, permits, and fees - $ - $ - $ - $ - $
Charges for services - - - - -
Intergovernmental:
Federal grant and subsidies - - - - 18,925
Other governmental - 965,329 - 40,365 295,016
Investment income(loss) 509 781 319 222 5,913
Miscellaneous 603 - 585 - -
Total revenues 966,110 1,112 904 40,587 319,854
EXPENDITURES:
Current:
General government - - - - -
Fire - - - - -
Community development and planning - - - - -
Public works - 11,245 114 - 41,251
Capital outlay - - - - 1,232,936
Total expenditures 11,245 - 114 - 1,274,187
REVENUES OVER (UNDER)
EXPENDITURES 954,865 1,112 790 40,587 (954,333)
OTHER FINANCING SOURCES (USES):
Transfers in - - - - 827,919
Transfers out (994,938) - - - -
Total financing sources (uses) (994,938) - - 827,919 -
Net change in fund balances 1,112 (40,073) 790 40,587 (126,414) FUND BALANCES (DEFICIT):
Beginning of year 5,344 422,835 (113,343) 72,851 2,974,176 End of year $ 6,456 $ 382,762 $ (112,553) $ 113,438 $ 2,847,762 (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, 2022
120
Developer
Housing Police Westside
Measure L In-Lieu Asset Drainage
Fund Fee Forfeiture Study CFD 2013-1
REVENUES:
Licenses, permits, and fees - $ - $ - $ - $ - $
Charges for services - - - - 208,890
Intergovernmental:
Federal grant and subsidies - - - - -
Other governmental 1,822,391 - - - -
Investment income(loss) 7,040 2,015 8 126 944
Miscellaneous - - - - -
Total revenues 2,015 1,829,431 8 126 209,834
EXPENDITURES:
Current:
General government - - - - 17,584
Fire - - - - -
Community development and planning - - - - -
Public works - - - - -
Capital outlay 2,410,579 - - - -
Total expenditures - 2,410,579 - - 17,584
REVENUES OVER (UNDER)
EXPENDITURES 2,015 (581,148) 8 126 192,250
OTHER FINANCING SOURCES (USES):
Transfers in - - - - -
Transfers out - - - - (32,173)
Total financing sources (uses) - - - - (32,173)
Net change in fund balances (581,148) 2,015 8 126 160,077 FUND BALANCES (DEFICIT):
Beginning of year 4,043,415 1,053,567 4,298 65,599 421,310 End of year $ 3,462,267 $ 1,055,582 $ 4,306 $ 65,725 $ 581,387 (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, 2022
121
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:
Licenses, permits, and fees - $ - $ 406,026 $ 67,492 $ 23,484 $ Charges for services 93,901 216,318 - - -
Intergovernmental:
Federal grant and subsidies - - - - -
Other governmental - - - - 21,025
Investment income(loss) 194 344 1,608 826 1,166
Miscellaneous - - - - -
Total revenues 216,662 94,095 407,634 68,318 45,675
EXPENDITURES:
Current:
General government 25 10,447 - - -
Fire - - - - -
Community development and planning - - - - -
Public works - 5,100 - - -
Capital outlay - - - 55,362 -
Total expenditures 15,547 25 - 55,362 -
REVENUES OVER (UNDER)
EXPENDITURES 201,115 94,070 407,634 12,956 45,675
OTHER FINANCING SOURCES (USES):
Transfers in - - - - -
Transfers out (85,000) (40,217) - - -
Total financing sources (uses) (85,000) (40,217) - - -
Net change in fund balances 9,070 160,898 407,634 12,956 45,675 FUND BALANCES (DEFICIT):
Beginning of year 45,656 86,108 566,162 418,194 571,681 End of year $ 54,726 $ 247,006 $ 973,796 $ 431,150 $ 617,356 (Continued)
For the Year Ended June 30, 2022
Capital Projects Funds
City of Patterson
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
122
Parkland Street
In-Lieu Improvement Water Storm Drain Sewer
Fee Impact Fee Impact Fee Impact Fee Impact Fee
REVENUES:
Licenses, permits, and fees 479 $ 9,428 $ 1,363,188 $ 35,095 $ 92,516 $ Charges for services - 72,096 - - -
Intergovernmental:
Federal grant and subsidies - - - - -
Other governmental - - - - -
Investment income(loss) 118 1,228 6,924 2,399 20
Miscellaneous - - - - -
Total revenues 82,752 597 1,370,112 37,494 92,536
EXPENDITURES:
Current:
General government - - - - -
Fire - - - - -
Community development and planning - - - - -
Public works - - - - -
Capital outlay 45,327 - 284 3,040 -
Total expenditures - 45,327 284 3,040 -
REVENUES OVER (UNDER)
EXPENDITURES 82,752 (44,730) 1,369,828 34,454 92,536
OTHER FINANCING SOURCES (USES):
Transfers in 45,327 - - - -
Transfers out - (77) (100,305) - (6,309)
Total financing sources (uses) 45,327 (77) (100,305) - (6,309) Net change in fund balances 597 82,675 1,269,523 34,454 86,227 FUND BALANCES (DEFICIT):
Beginning of year 57,340 706,784 2,873,718 1,229,795 89 End of year $ 57,937 $ 789,459 $ 4,143,241 $ 1,264,249 $ 86,316 (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, 2022
123
Delta Aquatic Heartland Downtown
Mendota Center Future Water Ranch Assistance
Storm Gate Construction Acquisition Infrastructure Fee
REVENUES:
Licenses, permits, and fees $ 105,165 - $ $ - $ - $ 54,600 Charges for services - - - - -
Intergovernmental:
Federal grant and subsidies - - - - -
Other governmental - - - - -
Investment income(loss) 334 643 517 88 276
Miscellaneous - - 5,115 - -
Total revenues 334 105,808 5,632 88 54,876
EXPENDITURES:
Current:
General government - - - - -
Fire - - - - -
Community development and planning - - - - -
Public works - - - - -
Capital outlay - - - - -
Total expenditures - - - - -
REVENUES OVER (UNDER)
EXPENDITURES 334 105,808 5,632 88 54,876
OTHER FINANCING SOURCES (USES):
Transfers in - - - - -
Transfers out - - - - -
Total financing sources (uses) - - - - -
Net change in fund balances 334 105,808 5,632 88 54,876 FUND BALANCES (DEFICIT):
Beginning of year 174,027 264,640 138,349 (1,210) 107,346 End of year $ 174,361 $ 370,448 $ 143,981 $ (1,122) $ 162,222 (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, 2022
124
Total
Non-major
Governmental
Funds
REVENUES:
Licenses, permits, and fees $ 2,157,473
Charges for services 3,382,555
Intergovernmental:
Federal grant and subsidies 39,810
Other governmental 3,144,126
Investment income(loss) 44,984
Miscellaneous 77,462
Total revenues 8,846,410
EXPENDITURES:
Current:
General government 42,454
Fire 6,514
Community development and planning 3,095
Public works 780,581
Capital outlay 3,747,528
Total expenditures 4,580,172
REVENUES OVER (UNDER)
EXPENDITURES 4,266,238
OTHER FINANCING SOURCES (USES):
Transfers in 873,246
Transfers out (2,978,894)
Total financing sources (uses) (2,105,648)
Net change in fund balances 2,160,590
FUND BALANCES (DEFICIT):
Beginning of year 19,684,443
End of year $ 21,845,033
(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, 2022
125
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:
Investment income (loss) 3,662,675 $ 4,127,179 $ 3,771,959 $ (355,220) $ Revenue from Fiduciary Fund 520,848 520,848 518,052 (2,796) Total revenues 4,648,027 4,183,523 4,290,011 (358,016)
EXPENDITURES:
Debt service:
Principal 2,642,270 3,090,910 2,458,630 632,280
Interest and fiscal charges 4,128,742 4,128,742 4,025,984 102,758 Total expenditures 7,219,652 6,771,012 6,484,614 735,038
REVENUES OVER (UNDER)
EXPENDITURES (2,571,625) (2,587,489) (2,194,603) 377,022 OTHER FINANCING SOURCES (USES):
Transfers in - - (192,350) (192,350)
Total other financing sources (uses) - - (192,350) (192,350) Net change in fund balances $ (2,571,625) (2,587,489) $ (2,386,953) 184,672 $ FUND BALANCE:
Beginning of year 63,049,274
End of year $ 60,662,321
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, 2022
126
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:
Charges for services 1,799,971 $ 1,799,971 $ 1,747,091 $ (52,880) $ Investment income (loss) 12,247 12,247 2,247 (10,000)
Total revenues 1,812,218 1,812,218 1,749,338 (62,880)
EXPENDITURES:
Current:
Public works 1,853,040 1,870,579 588,726 1,281,853
Total expenditures 1,870,579 1,853,040 588,726 1,281,853
REVENUES OVER (UNDER)
EXPENDITURES (58,361) (40,822) 1,160,612 1,218,973
OTHER FINANCING SOURCES (USES):
Transfers out (98,202) (47,854) (1,064,989) (1,017,135) Total other financing sources (uses) (47,854) (98,202) (1,064,989) (1,017,135) Net change in fund balances $ (106,215) (139,024) $ 95,623 201,838 $ FUND BALANCE:
Beginning of year 751,474
End of year $ 847,097
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, 2022
127
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:
Charges for services 495,541 $ 495,541 $ 499,419 $ 3,878 $ Investment income (loss) 26,191 26,191 4,346 (21,845)
Total revenues 521,732 521,732 503,765 (17,967)
EXPENDITURES:
Current:
Public works 541,210 541,210 134,145 407,065
Total expenditures 541,210 541,210 134,145 407,065
REVENUES OVER (UNDER)
EXPENDITURES (19,478) (19,478) 369,620 389,098
OTHER FINANCING SOURCES (USES):
Transfers out (931,972) (153,640) (154,886) (1,246)
Total other financing sources (uses) (153,640) (931,972) (154,886) (1,246) Net change in fund balances $ (173,118) (951,450) $ 214,734 387,852 $ FUND BALANCE:
Beginning of year 2,232,514
End of year $ 2,447,248
-
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, 2022
128
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:
Charges for services 8,758 $ 8,758 $ 8,499 $ (259) $
Investment income (loss) 210 210 - (210)
Total revenues 8,968 8,968 8,499 (469)
EXPENDITURES:
Current:
Community development and planning 13,636 13,636 3,095 10,541 Total expenditures 13,636 13,636 3,095 10,541
Net change in fund balances $ (4,668) (4,668) $ 5,404 10,072 $ FUND BALANCE (DEFICIT):
Beginning of year (5,120)
End of year $ 284
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, 2022
129
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:
Charges for services 526,383 $ 526,383 $ 536,341 $ 9,958 $ Investment income (loss) 2,506 2,506 372 (2,134)
Total revenues 528,889 528,889 536,713 7,824
EXPENDITURES:
Current:
Fire 6,470 6,470 6,514 (44)
Total expenditures 6,470 6,470 6,514 (44)
REVENUES OVER (UNDER)
EXPENDITURES 522,419 522,419 530,199 7,780
OTHER FINANCING SOURCES (USES):
Transfers out (500,000) (500,000) (500,000) -
Total other financing sources (uses) (500,000) (500,000) (500,000) - Net change in fund balances $ 22,419 22,419 $ 30,199 7,780 $ FUND BALANCE:
Beginning of year 221,853
End of year $ 252,052
-
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual CFD 2001-01 Patterson Gardens Public Safety Special Revenue Fund For the Year Ended June 30, 2022
130
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:
Taxes:
Investment income (loss) 470 $ 470 $ 75 $ (395) $
Miscellaneous - - 620 620
Total revenues 470 470 695 225
EXPENDITURES:
Current:
Public works 300 300 - 300
Total expenditures 300 300 - 300
Net change in fund balances $ 170 170 $ 695 525 $
FUND BALANCE:
Beginning of year 38,865
End of year $ 39,560
-
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, 2022
131
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:
Investment income (loss) 2,616 $ 2,616 $ 457 $ (2,159) $ Miscellaneous 688 688 65,397 64,709
Total revenues $ 3,304 $ 3,304 65,854 $ 62,550
FUND BALANCE:
Beginning of year 157,193
End of year $ 223,047
-
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, 2022
132
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:
Intergovernmental:
Federal grant and subsidies 327,389 $ 177,389 $ 20,885 $ (156,504) $ Total revenues 177,389 327,389 20,885 (156,504)
EXPENDITURES:
Current:
General government 14,389 14,389 221 14,168
Capital outlay 313,000 163,000 - 163,000
Total expenditures 327,389 177,389 221 177,168
Net change in fund balances $ - - $ 20,664 20,664 $
FUND BALANCE (DEFICIT):
Beginning of year (281,585)
End of year $ (260,921)
-
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, 2022
133
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:
Investment income (loss) 3,064 $ 3,064 $ 850 $ (2,214) $ Miscellaneous 3,656 3,656 768 (2,888)
Total revenues $ 6,720 $ 6,720 1,618 $ (5,102)
FUND BALANCE:
Beginning of year 192,251
End of year $ 193,869
-
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, 2022
134
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:
Intergovernmental:
Federal grant and subsidies - $ - $ - $ - $
Investment income (loss) 3,198 3,198 2,075 (1,123)
Miscellaneous 1,772 1,772 4,374 2,602
Total revenues 4,970 4,970 6,449 1,479
EXPENDITURES:
Current:
General government - - 14,177 (14,177)
Total expenditures - - 14,177 (14,177)
Net change in fund balances $ 4,970 4,970 $ (7,728) (12,698) $ FUND BALANCE:
Beginning of year 188,267
End of year $ 180,539
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, 2022
135
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:
Investment income (loss) 498 $ 498 $ 509 $ 11 $
Miscellaneous 501 501 603 102
Total revenues $ 999 $ 999 1,112 $ 113
FUND BALANCE:
Beginning of year 5,344
End of year $ 6,456
-
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, 2022
136
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:
Intergovernmental:
Other governmental 1,073,704 $ 1,073,704 $ 965,329 $ (108,375) $ Investment income (loss) 1,949 1,949 781 (1,168)
Total revenues 1,075,653 1,075,653 966,110 (109,543)
EXPENDITURES:
Current:
Public works - - 11,245 (11,245)
Total expenditures - - 11,245 (11,245)
REVENUES OVER (UNDER)
EXPENDITURES 1,075,653 1,075,653 954,865 (120,788)
OTHER FINANCING SOURCES (USES):
Transfers out (1,535,567) (1,343,567) (994,938) 348,629 Total other financing sources (uses) (1,343,567) (1,535,567) (994,938) 348,629 Net change in fund balances $ (267,914) (459,914) $ (40,073) 227,841 $ FUND BALANCE:
Beginning of year 422,835
End of year $ 382,762
-
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, 2022
137
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:
Intergovernmental:
Other governmental 55,072 $ 55,072 $ - $ (55,072) $
Investment income (loss) 3,459 3,459 319 (3,140)
Miscellaneous - - 585 585
Total revenues 58,531 58,531 904 (57,627)
EXPENDITURES:
Current:
Public works - - 114 (114)
Total expenditures - - 114 (114)
REVENUES OVER (UNDER)
EXPENDITURES 58,531 58,531 790 (57,741)
OTHER FINANCING SOURCES (USES):
Transfers out (55,072) - - -
Total other financing sources (uses) - (55,072) - -
Net change in fund balances $ 58,531 3,459 $ 790 (57,741) $ FUND BALANCE (DEFICIT):
Beginning of year (113,343)
End of year $ (112,553)
-
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, 2022
138
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:
Intergovernmental:
Other governmental - $ 40,365 $ 40,365 $ - $
Investment income (loss) 716 716 222 (494)
Total revenues 41,081 716 40,587 (494)
EXPENDITURES:
Capital outlay - 10,000 - 10,000
Total expenditures - 10,000 - 10,000
Net change in fund balances $ 31,081 716 $ 40,587 9,506 $ FUND BALANCE:
Beginning of year 72,851
End of year $ 113,438
-
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, 2022
139
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:
Intergovernmental:
Federal grant and subsidies 150,627 $ 150,627 $ 18,925 $ (131,702) $ Other governmental 341,543 394,033 295,016 (99,017)
Investment income (loss) 4,366 4,366 5,913 1,547
Total revenues 549,026 496,536 319,854 (229,172)
EXPENDITURES:
Current:
Public works 63,000 63,000 41,251 21,749
Capital outlay 5,945,800 2,286,572 1,232,936 1,053,636
Total expenditures 6,008,800 2,349,572 1,274,187 1,075,385
REVENUES OVER (UNDER)
EXPENDITURES (5,512,264) (1,800,546) (954,333) 846,213
OTHER FINANCING SOURCES (USES):
Transfers in 5,397,344 1,773,394 827,919 (945,475)
Total other financing sources (uses) 5,397,344 1,773,394 827,919 (945,475) Net change in fund balances $ (27,152) (114,920) $ (126,414) (99,262) $ FUND BALANCE:
Beginning of year 2,974,176
End of year $ 2,847,762
-
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, 2022
140
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:
Intergovernmental:
Other governmental 1,124,762 $ 2,033,042 $ 1,822,391 $ (210,651) $ Investment income (loss) 39,440 39,440 7,040 (32,400)
Total revenues 2,072,482 1,164,202 1,829,431 (243,051)
EXPENDITURES:
Capital outlay 1,729,759 2,655,845 2,410,579 245,266
Total expenditures 1,729,759 2,655,845 2,410,579 245,266
REVENUES OVER (UNDER)
EXPENDITURES (565,557) (583,363) (581,148) 2,215
OTHER FINANCING SOURCES (USES):
Transfers out (257,333) (145,665) - 145,665
Total other financing sources (uses) (257,333) (145,665) - 145,665 Net change in fund balances $ (729,028) (822,890) $ (581,148) 147,880 $ FUND BALANCE:
Beginning of year 4,043,415
End of year $ 3,462,267
-
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, 2022
141
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:
Licenses, permits, and fees 2,256,614 $ - $ - $ - $
Investment income (loss) 12,114 12,114 2,015 (10,099)
Total revenues $ 2,268,728 $ 12,114 2,015 $ (10,099)
FUND BALANCE:
Beginning of year 1,053,567
End of year $ 1,055,582
-
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, 2022
142
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:
Investment income (loss) 1,718 $ 1,718 $ 8 $ (1,710) $
Total revenues $ 1,718 1,718 $ 8 (1,710) $
FUND BALANCE:
Beginning of year 4,298
End of year $ 4,306
-
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Police Asset Forfeiture Special Revenue Fund
For the Year Ended June 30, 2022
143
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:
Investment income (loss) 757 $ 757 $ 126 $ (631) $
Total revenues $ 757 757 $ 126 (631) $
FUND BALANCE:
Beginning of year 65,599
End of year $ 65,725
-
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, 2022
144
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:
Charges for services 199,875 $ 199,875 $ 208,890 $ 9,015 $ Investment income (loss) 4,175 4,175 944 (3,231)
Total revenues 204,050 204,050 209,834 5,784
EXPENDITURES:
Current:
General government 37,386 45,024 17,584 27,440
Total expenditures 45,024 37,386 17,584 27,440
REVENUES OVER (UNDER)
EXPENDITURES 159,026 166,664 192,250 33,224
OTHER FINANCING SOURCES (USES):
Transfers out (161,486) (128,673) (32,173) 96,500
Total other financing sources (uses) (128,673) (161,486) (32,173) 96,500 Net change in fund balances $ 30,353 5,178 $ 160,077 129,724 $ FUND BALANCE:
Beginning of year 421,310
End of year $ 581,387
-
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, 2022
145
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:
Charges for services 93,200 $ 93,200 $ 93,901 $ 701 $
Investment income (loss) 638 638 194 (444)
Total revenues 93,838 93,838 94,095 257
EXPENDITURES:
Current:
General government 25 25 25 -
Total expenditures 25 25 25 -
REVENUES OVER (UNDER)
EXPENDITURES 93,813 93,813 94,070 257
OTHER FINANCING SOURCES (USES):
Transfers out (85,000) (85,000) (85,000) -
Total other financing sources (uses) (85,000) (85,000) (85,000) - Net change in fund balances $ 8,813 8,813 $ 9,070 257 $ FUND BALANCE:
Beginning of year 45,656
End of year $ 54,726
-
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, 2022
146
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:
Charges for services 28,217 $ 87,697 $ 216,318 $ 128,621 $ Investment income (loss) 292 292 344 52
Total revenues 87,989 28,509 216,662 128,673
EXPENDITURES:
Current:
General government - 5,800 10,447 (4,647)
Public works 2,170 2,170 5,100 (2,930)
Total expenditures 7,970 2,170 15,547 (7,577)
REVENUES OVER (UNDER)
EXPENDITURES 80,019 26,339 201,115 121,096
OTHER FINANCING SOURCES (USES):
Transfers out (134,310) (58,717) (40,217) 18,500
Total other financing sources (uses) (58,717) (134,310) (40,217) 18,500 Net change in fund balances $ 21,302 (107,971) $ 160,898 139,596 $ FUND BALANCE:
Beginning of year 86,108
End of year $ 247,006
-
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, 2022
147
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:
Licenses, permits, and fees 2,612,475 $ 1,114,935 $ 406,026 $ (708,909) $ Investment income (loss) 599 599 1,608 1,009
Total revenues $ 2,613,074 $ 1,115,534 407,634 $ (707,900) FUND BALANCE:
Beginning of year 566,162
End of year $ 973,796
-
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Community Facilitiy Impact Fee Special Revenue Fund
For the Year Ended June 30, 2022
148
CUSTODIAL FUNDS
149
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150
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 5,614,968 $ 3,310,498 $ - $ 444,717 $ 1,104,928 $ 10,475,111 $ Restricted cash and investments - 288,075 50 - - 288,125 Cash and investments with fiscal agents 3,160,342 7,909,126 429,721 230,691 4,650,000 16,379,880 Accounts receivable - - - 70,038 - 70,038
Intergovernmental receivable 51,962 107,452 6,960 - 23,937 190,311 Interest receivable 2,429 1,495 - 195 484 4,603
Notes receivable 993,418 - - - 993,418 -
Total assets 9,823,119 11,616,646 429,771 682,563 5,849,387 28,401,486
LIABILITIES
Due to City - 68,656 - - 68,656 -
Total liabilities - 68,656 - - 68,656 -
NET POSITION
Restricted for:
Individuals, organizations, and other
governments, as restated 9,823,119 11,616,646 361,115 682,563 5,849,387 28,332,830 Total Net Position $ 9,823,119 $ 11,616,646 $ 361,115 $ 682,563 $ 5,849,387 $ 28,332,830 Fiduciary Funds - Custodial Funds
June 30, 2022
City of Patterson
Combining Statement of Fiduciary Net Position
151
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 5,623,105 $ 788,166 $ 283,659 $ 627,966$ $ 1,058,941 $ 8,381,837 Investment income 63,853 10,260 385 450 4,265 79,213
Proceeds from issuance of bonds 7,480,312 - - - 4,951,498 12,431,810 Total additions 5,686,958 8,278,738 284,044 628,416 6,014,704 20,892,860 DEDUCTIONS:
Administration 569 70,953 6,126 34,721 57,869 170,238
Payments on conduit bonds - principal 1,784,880 100,000 35,000 - 1,919,880 - Payments on conduit bonds - interest 3,650,749 726,964 244,463 - 324,022 4,946,198 Projects payments - - - - 190,000 190,000
Contributions to City - - 518,052 - 518,052 -
Total deductions 5,436,198 897,917 285,589 552,773 571,891 7,744,368 Changes in net position 250,760 7,380,821 (1,545) 75,643 5,442,813 13,148,492 NET POSITION:
Beginning of year 9,572,359 4,235,825 362,660 606,920 406,574 15,184,338 End of year $ 9,823,119 $ 11,616,646 $ 361,115 682,563$ $ 5,849,387 $ 28,332,830 City of Patterson
Combining Statement of Changes in Fiduciary Net Position Fiduciary Funds - Custodial Funds
For the Year Ended June 30, 2022
152
STATISTICAL SECTION
153
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154
Contents Page
156
Helps readers understand how the City's financial position and well-being have changed over time. 166
181
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.
183
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……………………………………………………………… 155
2022 2021 2020 2019 2018
Governmental activities:
Investment in capital assets 61,241,920 $ 59,507,530 $ 61,274,713 $ 60,390,350 $ 60,721,785 $ Restricted 13,416,337 14,976,923 10,752,749 11,572,138 8,385,204 Unrestricted net position (deficit) 8,560,071 413,664 (5,182,490) (7,892,944) (4,612,193) Total Net Position 83,218,328 $ 74,898,117 $ 66,844,972 $ 64,069,544 $ 64,494,796 $ Business-type activities:
Investment in capital assets 36,458,905 $ 36,978,338 $ 37,930,411 $ 37,746,179 $ 37,346,159 $ Restricted 3,133,590 3,133,810 983,202 469,817 469,905
Unrestricted net position (deficit) 5,374,917 2,943,625 4,536,071 2,567,625 (77,313) Total Net Position 44,967,412 $ 43,055,773 $ 43,449,684 $ 40,783,621 $ 37,738,751 $ Primary Government:
Investment in capital assets 97,700,825 $ 96,485,868 $ 99,205,124 $ 98,136,529 $ 98,067,944 $ Restricted 16,549,927 18,110,733 11,735,951 12,041,955 8,855,109 Unrestricted net position (deficit) 13,934,988 3,357,289 (646,419) (5,325,319) (4,689,506) Total Net Position 128,185,740 $ 117,953,890 $ 110,294,656 $ 104,853,165 $ 102,233,547 $ 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
156
2017 2016 2015 2014 2013
Governmental activities:
Investment in capital assets 55,621,936 $ 55,756,984 $ 50,237,700 $ 47,460,440 $ 46,822,970 $ Restricted 6,391,176 5,270,127 4,867,200 4,866,877 4,983,481 Unrestricted net position (deficit) 1,816,668 1,909,873 987,000 7,418,444 11,140,880 Total Net Position 63,829,780 $ 62,936,984 $ 56,091,900 $ 59,745,761 $ 62,947,331 $ Business-type activities:
Investment in capital assets 38,857,716 $ 35,232,028 $ 34,725,800 $ 34,941,039 $ 36,814,164 $ Restricted - 4,102,582 5,303,228 5,437,345 5,772,477
Unrestricted net position (deficit) 517,319 1,250,675 1,737,680 4,704,599 3,395,687 Total Net Position 39,375,035 $ 40,585,285 $ 41,766,708 $ 45,082,983 $ 45,982,328 $ Primary Government:
Investment in capital assets 94,479,652 $ 90,989,012 $ 84,963,500 $ 82,401,479 $ 83,637,134 $ Restricted 6,391,176 9,372,709 10,170,428 10,304,222 10,755,958 Unrestricted net position (deficit) 2,333,987 3,160,548 2,724,680 12,123,043 14,536,567 Total Net Position 103,204,815 $ 103,522,269 $ 97,858,608 $ 104,828,744 $ 108,929,659 $ 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
157
Fiscal Year
2022 2021 2020 2019 2018
Expenses
Governmental activities:
General government 4,069,331 $ 4,196,700 $ 4,514,103 $ 3,167,076 $ 3,328,847 $ Police 5,530,819 5,859,954 5,838,153 6,711,694 6,880,924 Fire 5,548,522 5,592,559 5,367,429 4,937,738 2,699,018
Community development and planning 1,912,358 1,829,511 2,084,354 2,523,052 1,724,146 Public works 5,942,981 5,414,262 4,687,210 4,455,175 4,790,738 Parks and recreation 2,951,483 2,747,819 4,536,510 4,618,872 4,473,167 Interest and fiscal charges 4,090,033 3,818,561 3,942,429 4,360,669 3,847,304 Total governmental activities 30,045,527 $ 29,459,366 $ 30,970,188 $ 30,774,276 $ 27,744,144 $ Business-type activities:
Water 4,518,276 $ 5,056,402 $ 5,404,924 $ 4,561,024 $ 4,917,985 $ Sewer 4,859,832 5,532,181 5,533,806 5,287,098 5,297,929 Garbage 3,137,202 2,774,714 2,912,990 2,545,016 2,397,523 Total business-type activities 12,515,310 $ 13,363,297 $ 13,851,720 $ 12,393,138 $ 12,613,437 $ Total expenses 42,560,837 $ 42,822,663 $ 44,821,908 $ 43,167,414 $ 40,357,581 $ Program Revenues
Governmental activities:
Charges for services:
General government 278,552 $ 553,126 $ 374,895 $ 653,327 $ 4,797 $ Police 153,959 177,795 86,776 198,638 300,973
Fire 2,058,970 1,965,540 1,741,172 1,620,028 720,761
Community development and planning 730,653 796,707 810,870 530,975 65,114 Public works 1,399,503 961,761 968,384 920,656 2,362,593 Parks and recreation 2,330,698 2,463,997 1,890,773 1,763,473 1,690,041 Operating grants and contributions 3,023,697 3,564,498 2,040,401 2,064,434 2,767,848 Capital grants and contributions 3,640,327 4,333,162 3,609,391 2,262,266 1,877,817 Total governmental activities 13,616,359 $ 14,816,586 $ 11,522,662 $ 10,013,797 $ 9,789,944 $ Business-type activities:
Water 6,755,521 $ 6,336,607 $ 5,660,058 $ 4,764,097 $ 4,197,555 $ Sewer 4,716,644 4,440,546 4,610,985 4,665,525 4,344,858 Garbage 3,878,211 3,577,780 3,378,155 3,228,053 3,079,843 Operating grants and contributions 7,449 - - 34,318 68,852 Capital grants and contributions 81,253 - 8,493 - -
Total business-type Activities 15,439,078 $ 14,354,933 $ 13,657,691 $ 12,691,993 $ 11,691,108 $ Total program revenues $ 29,171,519 29,055,437 $ 25,180,353 $ 22,705,790 $ 21,481,052 $ Net (Expense) Program Revenues
Governmental activities (16,429,168) $ (14,642,780) $ (19,447,526) $ (20,760,479) $ (17,954,200) $ Business-type activities 2,923,768 991,636 (194,029) 298,855 (922,329) Total Primary Government (13,505,400) $ (13,651,144) $ (19,641,555) $ (20,461,624) $ (18,876,529) $ City of Patterson
Table 2
Changes in Net Position
Last Ten Fiscal Years
158
Fiscal Year
2017 2016 2015 2014 2013
Expenses
Governmental activities:
General government 2,259,261 $ 2,003,932 $ 2,650,997 $ 3,945,285 $ 2,807,815 $ Police 4,458,567 4,156,842 3,298,276 3,987,323 3,821,033 Fire 3,532,864 3,594,435 3,381,961 3,339,030 2,809,442
Community development and planning 3,024,928 1,258,725 1,213,617 1,460,591 1,136,097 Public works 2,631,811 4,652,522 4,043,774 4,412,453 3,835,002 Parks and recreation 3,277,134 2,696,555 2,558,315 2,463,941 2,223,206 Interest and fiscal charges 3,955,958 3,935,590 4,118,232 80,122 60,882 Total governmental activities 23,140,523 $ 22,298,601 $ 21,265,172 $ 19,688,745 $ 16,693,477 $ Business-type activities:
Water 4,481,750 $ 3,567,751 $ 3,734,709 $ 3,474,567 $ 3,363,991 $ Sewer 4,893,962 4,221,112 4,091,034 3,867,142 3,406,173 Garbage 2,310,200 2,080,840 2,069,439 1,971,695 2,003,563 Total business-type activities 11,685,912 $ 9,869,703 $ 9,895,182 $ 9,313,404 $ 8,773,727 $ Total expenses 34,826,435 $ 32,168,304 $ 31,160,354 $ 29,002,149 $ 25,467,204 $ Program Revenues
Governmental activities:
Charges for services:
General government 678,608 $ 108,119 $ 166,427 $ 38,738 $ 92,657 $ Police 218,337 268,929 392,009 217,030 244,926
Fire 587,593 413,973 681,690 376,520 505,790
Community development and planning 645,985 390,721 885,242 385,554 676,548 Public works 2,161,045 2,000,190 2,296,599 1,802,849 1,716,066 Parks and recreation 1,481,692 1,804,685 1,780,112 1,628,009 1,557,024 Operating grants and contributions 1,590,404 998,122 1,318,671 1,236,474 1,173,683 Capital grants and contributions 1,112,733 342,867 556,120 861,536 2,061,872 Total governmental activities 8,476,397 $ 6,327,606 $ 8,076,870 $ 6,546,710 $ 8,028,566 $ Business-type activities:
Water 3,680,373 $ 3,389,473 $ 3,972,456 $ 4,156,756 $ 4,039,314 $ Sewer 4,011,227 3,855,492 3,406,079 3,275,496 3,004,341 Garbage 2,921,089 2,800,845 2,667,681 2,475,705 2,274,016 Operating grants and contributions 701,283 - - - -
Capital grants and contributions - (1,582) - - -
Total business-type Activates 11,313,972 $ 10,044,228 $ 10,046,216 $ 9,907,957 $ 9,317,671 $ Total program revenues $ 16,371,834 19,790,369 $ 18,123,086 $ 16,454,667 $ 17,346,237 $ Net (Expense) Program Revenues
Governmental activities (14,664,126) $ (15,970,995) $ (13,188,302) $ (13,142,035) $ (8,664,911) $ Business-type activities (371,940) 174,525 151,034 594,553 543,944 Total Primary Government (15,036,066) $ (15,796,470) $ (13,037,268) $ (12,547,482) $ (8,120,967) $ City of Patterson
Table 2
Changes in Net Position (Continued)
Last Ten Fiscal Years
159
2022 2021 2020 2019 2018
General Revenues:
Governmental activities:
Taxes:
Property tax 6,466,881 $ 6,196,152 $ 3,621,765 $ 3,386,596 $ 3,417,541 $ Sales tax 12,317,056 10,029,499 6,840,520 5,837,364 5,027,535 Franchise tax 193,226 222,803 211,963 205,047 206,354
Motor vehicle in lieu - - 2,267,086 2,089,248 1,947,375 Other taxes 277,779 248,158 162,436 136,047 717,288
Use of money and property - - - 473,114 -
Revenue from Fiduciary Fund 518,052 527,556 2,387,683 1,745,012 1,681,843 Investment earnings 3,338,840 3,442,805 4,145,959 4,179,507 4,515,819 Other revenue 559,771 379,911 896,921 1,038,772 203,070 Transfers 1,077,774 1,649,041 1,642,806 1,290,335 1,271,753 Special / Extraordinary item - - - - -
Total governmental activities 24,749,379 $ 22,695,925 $ 22,177,139 $ 20,381,042 $ 18,988,578 $ Business-type activities:
Investment earnings 37233 43,762 $ 205,023 $ 171,436 $ 74,144 $ Revenue from Fiduciary Fund - 155,744 1,648,115 3,850,536 500,786 Other revenue 28,412 63,988 2,649,760 14,378 64,483
Transfers (1,077,774) (1,649,041) (1,642,806) (1,290,335) (1,271,753) Total business-type activities (1,012,129) $ (1,385,547) $ 2,860,092 $ 2,746,015 $ (632,340) $ Total general revenues $ 21,310,378 23,737,250 $ 25,037,231 $ 23,127,057 $ 18,356,238 $ Change in Net Position
Governmental activities 8,320,211 $ 8,053,145 $ 2,729,613 $ (379,437) $ 1,034,378 $ Business-type activities: 1,911,639 (393,911) 2,666,063 3,044,870 (1,554,669) Total 10,231,850 $ 7,659,234 $ 5,395,676 $ 2,665,433 $ (520,291) $ City of Patterson
Table 2
Changes in Net Position (Continued)
Last Ten Fiscal Years
Fiscal Year
160
2017 2016 2015 2014 2013
General Revenues:
Governmental activities:
Taxes:
Property tax 3,414,365 $ 3,172,489 $ 2,657,306 $ 2,068,125 $ 2,103,703 $ Sales tax 5,502,627 5,045,260 3,732,177 3,394,908 2,358,667 Franchise tax 274,792 188,834 179,313 174,558 161,946
Motor vehicle in lieu 1,844,519 1,693,793 1,596,755 1,288,025 1,238,447 Other taxes 137,847 549,654 719,718 769,476 595,982
Use of money and property - 4,530,279 4,491,782 117,176 205,181 Revenue from Fiduciary Fund - - - - -
Investment earnings 4,312,058 6,075,652 - 809,908 -
Other revenue 633,427 188,402 159,416 - -
Transfers 895,861 1,371,990 2,117,754 201,549 307,230
Special / Extraordinary item - - - 1,083,500 2,253,123
Total governmental activities 17,015,496 $ 22,816,353 $ 15,654,221 $ 9,907,225 $ 9,224,279 $ Business-type activities:
Use of money and property 31,002 $ 14,451 $ 13,985 $ 34,679 $ 34,301 $ Revenue from Fiduciary Fund - - - - -
Other revenue 26,549 - - - -
Transfers (895,861) (1,371,990) (2,117,754) (1,083,500) (2,253,123) Total business-type activities (838,310) $ (1,357,539) $ (2,103,769) $ (1,048,821) $ (2,218,822) $ Total general revenues $ 21,458,814 16,177,186 $ 13,550,452 $ 8,858,404 $ 7,005,457 $ Change in Net Position
Governmental activities 2,351,370 $ 6,845,358 $ 2,465,919 $ (3,234,810) $ 559,368 $ Business-type activities: (1,210,250) (1,183,014) (1,952,735) (454,268) (1,674,878) Total 1,141,120 $ 5,662,344 $ 513,184 $ (3,689,078) $ (1,115,510) $ City of Patterson
Table 2
Changes in Net Position (Continued)
Last Ten Fiscal Years
Fiscal Year
161
2022 2021 2020 2019 2018
FUND BALANCES:
General Fund
Nonspendable 138,586 $ 106,172 $ 104,997 $ 84,466 $ 73,526 $ Restricted 487,546 360,498 344,809 290,150 146,789
Committed 8,116,966 3,762,470 3,751,813 3,725,949 3,658,050 Assigned 5,098,499 2,896,296 2,889,800 2,879,593 2,883,371 Unassigned 4,584,238 6,589,826 1,984,909 1,192,981 873,038 Total General Fund 18,425,835 $ 13,715,262 $ 9,076,328 $ 8,173,139 $ 7,634,774 All Other Governmental Funds
Nonspendable - $ 3,338 $ - $ - $ 2,865 $
Restricted 73,562,149 75,922,386 75,515,298 74,293,766 75,770,466 Committed 9,280,241 7,173,724 4,986,655 4,905,500 4,905,500 Assigned 39,560 38,865 - 40,109 -
Unassigned (deficit) (3,966,612) (3,567,982) (2,935,948) (2,777,683) (1,283,973) Total All Other Governmental Funds $ 79,570,331 78,915,338 $ 77,566,005 $ 76,461,692 $ 79,394,858 $ Total Fund Balance 97,341,173 $ 93,285,593 $ 86,642,333 $ 84,634,831 $ 87,029,632 $ City of Patterson
Table 3
Fund Balance, Governmental Funds
Last Ten Fiscal Years
Fiscal Year
162
2017 2016 2015 2014 2013
FUND BALANCES:
General Fund
Nonspendable 68,630 $ 78,491 $ - $ 850 $ 850 $
Restricted 144,229 51,773 40,508 81,663 209,823
Committed 3,642,337 3,626,143 3,605,039 3,605,039 3,594,200 Assigned 2,879,809 1,879,546 2,051,675 2,246,696 3,555,248 Unassigned 1,502,483 1,564,376 568,385 283,289 -
Total General Fund 8,237,488 7,200,329 $ 6,265,607 $ 6,217,537 $ 7,360,121 $ All Other Governmental Funds
Nonspendable 574 $ - $ - $ - $ - $
Restricted 76,995,568 78,162,371 78,664,140 2,935,022 3,445,665 Committed 6,016,084 5,734,508 6,335,270 5,833,844 6,516,526 Assigned - 38,985 105 - -
Unassigned (deficit) (729,053) (283,235) (135,283) (152,677) (25,708) Total All Other Governmental Funds $ 83,652,629 82,283,173 $ 84,864,232 $ 8,616,189 $ 9,936,483 $ Total Fund Balance 90,520,661 $ 90,852,958 $ 91,129,839 $ 14,833,726 $ 17,296,604 $ City of Patterson
Table 3
Fund Balance, Governmental Funds (Continued)
Last Ten Fiscal Years
Fiscal Year
163
2022 2021 2020 2019 2018
Revenues:
Taxes:
Property 6,466,296 $ 6,196,152 $ 3,621,765 $ 3,386,596 $ 3,417,541 $ Sales 12,317,056 10,029,499 6,840,520 5,837,364 5,027,535 Franchise 193,226 222,803 211,963 205,047 206,354
Motor vehicle in lieu - - 2,267,086 2,089,248 1,947,375 Other 277,779 248,158 162,436 136,047 131,701
License, permits, and fees 3,760,608 3,872,859 2,135,391 1,360,937 2,055,853 Charges for current services 5,169,152 4,651,557 4,446,008 4,369,186 5,519,738 Intergovernmental 4,703,099 5,943,756 6,225,231 3,483,936 2,028,281 Fines, forfeitures and penalties 158,125 339,080 66,683 181,044 146,100 Investment earnings 3,338,845 3,528,985 4,152,528 4,198,697 4,535,040 Revenue from Fiduciary Fund 518,052 527,556 2,387,683 1,745,012 1,681,843 Miscellaneous revenues 670,909 393,511 981,021 1,189,088 355,285 Total Revenues 37,573,147 $ 35,953,916 $ 33,498,315 $ 28,182,202 $ 27,052,646 Expenditures:
Current:
General government 3,572,244 $ 3,539,563 $ 3,803,016 $ 2,899,263 $ 2,656,904 $ Police 5,909,652 5,410,959 5,373,752 5,374,098 6,377,259 Fire 5,261,765 5,289,020 5,057,265 4,696,647 2,437,226
Community development and planning 1,939,070 1,728,594 2,021,174 2,545,955 1,654,039 Public Works 4,227,718 3,899,114 3,323,065 3,267,381 3,707,312 Parks and recreation 2,293,417 1,878,060 3,713,674 4,014,566 3,719,906 Capital outlay 4,744,425 2,964,721 3,417,460 2,776,974 7,237,219 Debt service:
Principal 2,609,648 2,427,337 2,476,386 2,225,040 2,250,465 Interest and fiscal charges 4,096,442 3,822,329 3,947,827 4,067,414 4,204,098 Total Expenditures $ 30,959,697 34,654,381 $ 33,133,619 $ 31,867,338 $ 34,244,428 $ Excess (deficiency) of revenue over $ 4,994,219 2,918,766 $ 364,696 $ (3,685,136) $ (7,191,782) $ (under) expenditures
Other financing sources (uses)
Proceeds from capital leases - $ - $ - $ - $ - $
Proceeds from loan repayments - - - - -
Inception of lease payable 59,040 - - - 2,429,000
Transfers in - 6,985,786 3,339,258 3,818,998 4,107,492
Transfers out 4,406,228 (5,336,745) (1,696,452) (2,528,663) (2,835,739) (, , ) Total Other Financing Sources $ 1,649,041 1,136,814 $ 1,642,806 $ 1,290,335 $ 3,700,753 $ Net Change in Fund Balance $ 6,643,260 4,055,580 $ 2,007,502 $ (2,394,801) $ (3,491,029) $ Debt Service as a Percentage of Noncapital Expenditure 22.60% 22.32% 21.62% 21.63% 23.90% Source: City of Patterson Finance Department
City of Patterson
Table 4
Changes in Fund Balance of Governmental Funds
Last Ten Fiscal Years
Fiscal Year
164
2017 2016 2015 2014 2013
Revenues:
Taxes:
Property 3,414,365 $ 3,172,489 $ 2,657,306 $ 2,068,125 $ 2,103,703 $ Sales 5,502,627 5,045,260 3,732,177 3,394,908 2,358,667 Franchise 274,792 188,834 179,313 174,558 161,946
Motor vehicle in lieu 1,844,519 1,693,793 1,596,755 1,288,025 1,238,447 Other 137,847 549,654 719,718 769,476 595,982
License, permits, and fees 1,791,391 983,115 2,016,921 557,204 1,165,199 Charges for current services 3,849,087 3,763,566 4,021,749 3,680,478 3,497,197 Intergovernmental 1,989,969 1,340,990 1,844,850 2,138,010 1,437,603 Fines, forfeitures and penalties 157,307 239,936 193,350 211,018 130,614 Investment earnings 4,312,058 4,530,279 4,577,761 117,176 205,181 Revenue from Fiduciary Fund - - - - -
Miscellaneous revenues 612,457 188,402 1,565,122 416,362 307,229 Total Revenues 23,886,419 21,696,318 $ 23,105,022 $ 14,815,340 $ 13,201,768 $ Expenditures:
Current:
General government 2,507,830 $ 2,704,512 $ 2,744,062 $ 2,602,651 $ 2,260,009 $ Police 4,218,306 4,290,965 4,039,064 3,916,598 3,800,959 Fire 3,574,689 3,274,834 3,069,601 2,822,442 2,500,294
Community development and planning 1,485,366 1,374,632 1,240,042 1,254,394 973,757 Public Works 2,874,435 2,691,886 2,746,358 3,114,271 2,736,664 Parks and recreation 2,466,882 1,940,339 1,841,033 1,741,109 1,555,750 Capital outlay 2,080,160 1,432,210 1,873,381 3,344,428 2,464,827 Debt service:
Principal 2,060,273 1,765,836 3,105,901 286,833 282,583 Interest and fiscal charges 3,954,933 4,016,686 4,123,116 80,122 60,882 Total Expenditures $ 23,357,310 25,222,874 $ 24,917,148 $ 19,162,848 $ 16,635,725 $ Excess (deficiency) of revenue over $ (1,660,992) (1,336,455) $ (1,812,126) $ (4,347,508) $ (3,433,957) $ (under) expenditures
Other financing sources (uses)
Proceeds from capital leases 161,990 $ - $ - $ - $ - $
Proceeds from loan repayments - 12,116 760 717,421 208,962 Proceeds from issuance of bonds - - - - -
Transfers in 3,012,930 4,711,665 4,655,106 3,295,570 2,435,589 Transfers out (2,117,069) (3,339,675) (3,223,826) (2,212,070) (1,779,196) Total Other Financing Sources $ 1,384,106 1,057,851 $ 1,432,040 $ 1,800,921 $ 865,355 $ Net Change in Fund Balance $ (276,886) (278,604) $ (380,086) $ (2,546,587) $ (2,185,827) $ Debt Service as a Percentage of Noncapital Expenditure 25.99% 26.37% 31.37% 2.32% 2.42% 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
165
2022 2021 2020 2019 2018
Revenues:
Taxes:
Property 6,466,296 $ 6,196,152 $ 3,621,765 $ 3,386,596 $ 3,417,541 $ Sales 12,317,056 10,029,499 6,840,520 5,837,364 5,027,535 Franchise 193,226 222,803 211,963 205,047 206,534
Motor vehicle in lieu - - 2,267,086 2,089,248 1,947,375 Other 277,779 248,158 162,436 136,047 131,701
Total Revenues $ 16,696,612 19,254,357 $ 13,103,770 $ 11,654,302 $ 10,730,686 $ Source: City of Patterson Finance Department
Fiscal Year
City of Patterson
Table 5
Tax Revenues by Source
Last Ten Fiscal Years
166
2017 2016 2015 2014 2013
Revenues:
Taxes:
Property 2,931,682 $ 3,172,489 $ 2,657,306 $ 2,068,125 $ 2,103,703 $ Sales 5,502,627 5,045,260 3,732,177 3,394,908 2,358,667 Franchise 274,792 188,834 179,313 174,558 161,946
Motor vehicle in lieu 1,844,519 1,693,793 1,596,755 1,288,025 1,238,447 Other 137,847 549,654 719,718 769,476 595,982
Total Revenues $ 10,650,030 10,691,467 $ 8,885,269 $ 7,695,092 $ 6,458,745 $ Source: City of Patterson Finance Department
Fiscal Year
City of Patterson
Table 5
Tax Revenues by Source (Continued)
Last Ten Fiscal Years
167
2022 2021 2020 2019 2018
Type of Customer
Residential 1,065,086 cf 1,146,893 cf 1,095,305 cf 1,018,052 cf 1,049,166 cf Commercial/Industrial 135,263 132,374 165,164 151,297 123,676 Irrigation 411,831 450,848 444,466 334,844 287,977
Total 1,612,180 cf 1,730,115 cf 1,704,935 cf 1,504,193 cf 1,460,819 cf Source: City of Patterson Finance Department
Fiscal Year
City of Patterson
Table 6a
Water Sold by Customer Type
Last Five Fiscal Years
168
Wastewater
Fiscal Year
Monthly
Base Rate
Additional
Per 100cf**
Monthly Base
Rate
2022 $ 16.79 $ 3.86 $ 52.94
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 $
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
169
2012-13 2013-14 2014-15 2015-16* 2016-17
Residential Property $ - - $ - $ 1,067,738,189 $ 1,125,435,937 $ Commercial Property - - - 106,365,150 134,692,261
Industrial Property - - - 278,228,208 461,416,004
Other Property 1,243,040,268 1,174,200,272 1,490,319,496 187,566,714 62,594,490 Unsecured Property 22,211,957 22,827,604 69,354,774 81,491,675 87,592,650 Less: Tax-Exempt Property 18,900,554 19,583,220 18,375,785 35,591,679 36,416,220 Taxable Assessed Value $ 1,246,351,671 1,177,444,656 $ 1,541,298,485 $ 1,685,798,257 $ 1,835,315,122 $ Total Direct Tax Rate (1) 1.132936 1.126574 1.092819 1.097113 1.095707 Estimated Actual Taxable Value (2) $ 1,246,351,671 1,177,444,656 $ 1,541,298,485 $ 2,474,212,386 $ 2,515,245,600 $ Factor of Taxable Assessed Value (2) 1.000000 1.000000 1.000000 1.467680 1.370471 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
170
2017-18 2018-19 2019-20 2020-21 2021-22
Residential Property $ 1,336,735,402 1,221,805,158 $ 1,420,672,172 $ 1,472,464,677 $ 1,572,562,406 $ Commercial Property 162,332,795 141,903,335 175,943,468 201,385,521 213,310,784 Industrial Property 464,865,277 460,796,304 470,160,844 537,164,362 535,210,557 Other Property 73,659,817 66,537,768 141,632,148 113,983,444 126,040,766 Unsecured Property 82,368,182 84,553,479 87,689,106 83,230,002 82,516,633 Less: Tax-Exempt Property 38,436,037 38,086,325 42,869,663 44,893,026 57,029,494 Taxable Assessed Value $ 2,081,525,436 1,937,329,719 $ 2,253,228,075 $ 2,363,334,980 $ 2,472,611,652 $ Total Direct Tax Rate (1) 1.104825 1.106684 1.141246 1.136632 1.131314 Estimated Actual Taxable Value (2) $ 3,191,213,893 2,880,528,379 $ 3,457,556,850 $ 2,968,433,744 $ 4,764,749,852 $ Factor of Taxable Assessed Value (2) 1.486855 1.533113 1.534490 1.256036 1.927011 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
171
Category 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 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 $ 1,572,562,406 $ Industrial 278,228,208 461,416,004 460,796,304 464,865,277 470,160,844 537,164,362 535,210,557 Commercial 106,365,150 134,692,261 141,903,335 162,332,795 175,943,468 201,385,521 213,310,784 Vacant 34,897,566 41,941,904 49,709,923 59,900,775 111,593,169 79,088,199 91,050,322 Agriculture 13,022,637 14,009,788 14,548,636 11,793,401 14,729,866 14,082,823 13,859,051 Unknown 138,855,433 5,164,703 1,245,101 1,096,217 9,299,298 18,838,976 19,138,532 Rural 739,952 1,337,947 712,923 727,181 5,866,493 1,818,114 1,836,948 Unitary 476,983 88,243 88,243 88,243 88,243 99,152 99,152 Miscellaneous 51,126 51,905 52,942 54,000 55,079 56,180 56,761 Institution - - - - - - -
Gross Secured Value 1,640,375,244 $ 1,784,138,692 $ 1,890,862,565 $ 2,037,593,291 $ 2,208,408,632 $ 2,324,998,004 $ 2,447,124,513 $ Unsecured 81,014,692 $ 87,592,650 $ 84,553,479 $ 82,368,182 $ 87,689,106 $ 83,230,002 $ 82,516,633 $ Exemptions 35,591,649 36,416,220 38,086,325 38,436,037 42,869,663 44,893,026 57,029,494 Net Taxable Value 1,685,798,287 $ 1,835,315,122 $ 1,937,329,719 $ 2,081,525,436 $ 2,253,228,075 $ 2,363,334,980 $ 2,472,611,652 $ 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 Seven Fiscal Years
Fiscal Year
172
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 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 Distric 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 0.018016 0.016664 0.011640 0.010596 0.010415 0.009953 0.009910 0.008517 0.007773 0.000000 Patterson U - 01A 0.074108 0.069589 0.045680 0.043932 0.043952 0.042364 0.042913 0.037489 0.034404 0.033223 Patterson U - 01B 0.012052 0.011402 0.008691 0.007974 0.007850 0.000000 0.000000 0.009804 0.007718 0.008268 Patterson U - 2008A 0.000000 0.001938 0.004985 0.007691 0.010456 0.010179 0.011078 0.009759 0.009435 0.010281 Patterson U - 2016 GO Ref 0.000000 0.000000 0.000000 0.000000 0.000000 0.018261 0.016809 0.005718 0.006936 0.006980 Patterson U - 2018A 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.046179 0.047588 0.048556 YCCD 2005 A 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 YCCD 2007 C 0.020892 0.019024 0.015663 0.011618 0.009190 0.007585 0.009093 0.008839 0.008883 0.009653 YCCD 2010 D 0.000399 0.000390 0.000334 0.000467 0.000459 0.000359 0.000410 0.000405 0.000425 0.000000 YCCD 2012 Ref 0.007469 0.007567 0.005826 0.008285 0.008500 0.008753 0.007962 0.007286 0.006554 0.003172 YCCD 2015 Ref 0.000000 0.000000 0.000000 0.006550 0.004885 0.007371 0.008509 0.007250 0.006916 0.006985 Yosemite 2020 GOB Series A 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000860 Yosemite 2020 GOB Series B 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.003336 TOTAL 0.132936 0.126574 0.092819 0.097113 0.095707 0.104825 0.106684 0.141246 0.136632 0.131314 TOTAL TAX RATE 1.132936 1.126574 1.092819 1.097113 1.095707 1.104825 1.106684 1.141246 1.136632 1.131314 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
173
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174
Taxpayer Taxable Value ($)
Percent of Total City
Taxable Value (%)
Taxable Value ($)
Percent of Total City
Taxable Value (%)
WR Griffin Patterson LLC 107,432,626 4.34%
W W Grainger Inc 88,678,850 3.59% 97,371,169 8.27%
Bit Holdings Seventy-Seven Inc 80,929,809 3.27% 0.00%
Longs Drug Stores California Inc 64,913,379 2.63% 51,364,230 4.36% Westcore Alpha Patterson LLC 58,740,309 2.38% 0.00%
Kohls Department Stores Inc 40,418,680 1.63% 43,840,640 3.73% LBA RV-Company XVII LP 37,404,134 1.51% 0.00%
Amazoncom Services Inc 31,259,450 1.26% 0.00%
Wal Mart Real Estate Business Trust 25,402,181 1.03% 7,444,980 0.63% Sierra Pacific Refrig Serv LTD 14,286,720 0.58% 11,352,538 0.96% Advantax 14,187,120 0.57% 0.00%
Ramos John J & Brenda J 13,617,385 0.55% 7,578,243 0.64% Pilot Travel Centers LLC 12,116,917 0.49% 0.00%
Buzz Oates LLC 10,537,272 0.43% 2,499,000 0.21%
Gill Hospitality LLC 8,879,985 0.36% 0.00%
Sai Shiva LLC 8,771,491 0.35% 0.00%
KB Home Sacramento Inc 8,563,377 0.35% 0.00%
Vop 21 LLC 7,931,810 0.32% 0.00%
Patterson Marketplace LLC 7,726,860 0.31% 6,574,965 0.56% Save Mart Portfolio Owner Fund V Ca LLC 7,538,900 0.30% 0.00% Traina Pacific LLC 7,341,055 0.30% 0.00%
Three D Patterson LLC 6,959,720 0.28% 5,040,000 0.43%
Eagle Valley Investments 6,416,883 0.26% 0.00%
Boersma Properties LLC 6,008,641 0.24% 5,178,072 0.44%
Patterson Ranch Development LLC 5,969,513 0.24% 0.00%
Patterson Industrial Center LLC 32,124,978 2.73%
Patterson Vegetable Company LLC 17,393,081 1.48%
Gea Mechanical Equipment Us In 5,940,900 0.50%
Save Mart Supermarkets 0.42% 4,996,834
Ormond Peter M 0.36% 4,217,454
Snider Paul H 0.33% 3,895,930
Proto LLC 0.31% 3,668,000
Karen Judd 0.29% 3,463,760
Westside Property Management 0.29% 3,425,224
Patterson Plaza Associates LLC 0.28% 3,280,097
Keystone Flex II Associates LLC 3,116,063 0.26%
Hensley Investment Co LLC 0.21% 2,496,670
Teg Investments 0.21% 2,423,372
Patterson Hotel Associates 0.19% 2,287,790
Johnson Patricia A 0.19% 2,185,962
Total Top 25 Taxpayers 682,033,067 27.58% 333,159,952 28.31% Total Taxable Value 2,472,611,652 100.00% 1,176,794,780 100.00% Source: County Assessor data, MuniServices, LLC / Avenue Insights & Analytics 2012-13
City of Patterson
Table 9
Principal Property Tax Payers
Last Fiscal Year and Nine Years Ago
2021-22
175
Taxpayer Business Type
76 Service Stations Service Stations
76 Service Stations Service Stations
Amazon Com Services Fulfillment Centers
Amazon MFA Fulfillment Centers
Arco AM PM Service Stations
Cali Kosher Cannabis Related
Chevron Service Stations
Del Don Fertilizer Company Garden/Agricultural Supplies Flying J Travel Plaza Service Stations
Grab N Go Patterson Service Stations
G's Food Mart Service Stations
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 Lumber Company Building Materials
Patterson Mobil Service Stations
Peoples Remedy Patterson Cannabis Related
Phillin Station Service Stations
San Joaquin Equipment Warehse/Farm/Const. Equip.
Save Mart Supermarket Grocery Stores
Thompson Chevrolet Buick New Motor Vehicle Dealers
WW Grainger Electrical Equipment
Walmart Supercenter Discount Dept Stores
Source: HdL Companies
Last Fiscal Year and Nine Years Ago
2021-22
City of Patterson
Table 10
Principal Sales Tax Producers
176
Taxpayer Business Type
76 Service Stations Service Stations
76 Service Stations Service Stations
AutoZone Automotive Supply Stores
Chevron Patterson Service Stations
CVS Pharmacy Drug Stores
Del Don Chemical Garden/Agricultural Supplies
Denny's Casual Dining
Designed Mobile Systems Trailers/RVs
G's Food Mart Service Stations
Jack in the Box Quick-Service Restaurants
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
Quick & Save Service Stations
San Joaquin Equipment Warehse/Farm/Const. Equip.
Save Mart Supermarket Grocery Stores
Taco Bell Quick-Service Restaurants
Thompson Chevrolet Buick New Motor Vehicel Dealers
True Value Hardware Building Materials
Vulcraft Divison Heavy Industrial
W W Grainger Electrical Equipment
Walgreens Drug Stores
Walmart Supercenter Discount Dept Stores
Source: HdL Companies
Last Fiscal Year and Nine Years Ago
2012-13
City of Patterson
Table 10
Principal Sales Tax Producers (Continued)
177
CATEGORY NAME 2013 Q1 2014 Q1 2015 Q1 2016 Q1 2017 Q1
All Other Outlets 254,533 $ 339,350 $ 389,253 $ 592,368 $ 597,886 $ Apparel Stores 357 233 799 597 774
Auto Dealers & Auto 71,100 89,599 107,648 104,804 123,336 Bldg. Matrl. & Farm 60,320 59,860 102,671 62,643 60,911 Drug Stores 10,176 9,079 9,002 8,922 9,318
Eating & Drinking Pl 44,396 51,559 53,868 58,015 56,766 Food Stores 15,938 14,677 18,922 16,884 14,235
Home Furnishings & A 3,255 4,366 5,519 9,228 12,564
General Merchandise 77,738 91,259 72,612 79,659 80,118
Other Retail Stores 1,392 1,655 3,149 3,345 3,495
Packaged Liquor Stor 467 1,209 689 997 8,353
Service Station 79,145 80,038 73,795 63,428 142,584
TOTAL 618,817 $ 742,884 $ 837,927 $ 1,000,890 $ 1,110,340 $ 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
178
CATEGORY NAME 2018 Q1 2019 Q1 2020 Q1 2021 Q1 2022 Q1
All Other Outlets 567,498 $ 536,620 $ 934,427 $ 1,802,510 $ 1,556,150 $ Apparel Stores 526 1,116 894 30 222
Auto Dealers & Auto 123,204 111,997 113,273 171,906 153,886 Bldg. Matrl. & Farm 32,749 69,889 94,280 145,119 112,958 Drug Stores 4,655 23,628 17,646 35,512 33,705
Eating & Drinking Pl 56,023 74,473 51,621 84,011 89,794 Food Stores 13,203 13,447 11,203 18,345 19,660
Home Furnishings & A 10,601 9,814 12,462 11,105 11,550
General Merchandise 83,482 84,760 86,678 98,236 93,077
Other Retail Stores 5,543 4,237 -2,373 5,287 5,704
Packaged Liquor Store 4,945 * 2,877 6,607 7,165 6,372
Service Station 174,114 202,665 188,080 292,674 345,035 TOTAL 1,076,543 $ 1,135,523 $ 1,514,798 $ 2,671,900 $ 2,428,113 $ 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
179
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180
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)
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 2021-22 24,370 660,385,084 $ 27,098 $ 31.5 6,214 4.5% 4.6% 549,466 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
181
Business Name
Number of
Employees
Percent of Total
Employment (%)
Number of
Employees
Percent of Total
Employment (%)
Patterson Joint Unified School District 759 7.44% 617 6.78% Amazon Fulfillment Center 702 6.88% 1,000 10.99%
CVS Caremark Distribution Center 521 5.11% 466 5.12%
Grainger Distribution Center 433 4.25% 346 3.80%
Walmart Supercenter 296 2.90% 241 2.65%
City of Patterson* 248 2.43% 225 2.47%
Traina Foods 201 1.97%
King's Roofing 139 1.36% 100 1.10%
Restoration Hardware Distribution Center 137 1.34% 122 1.34% Advanced Linen Service 85 0.83% 0.00%
Save Mart 73 0.80%
Brake Parts Inc (BPI) Distribution Center 56 0.62%
Total Top 10 Employers 3,521 34.52% 3,246 35.67%
Total City Labor Force (1) 10,200 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
2021-22
Last Fiscal Year and Six Years Ago
182
2021-22 Assessed Valuation: $2,490,736,043
Total Debt City’s Share of Debt
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2022 % Applicable (1) 6/30/22 Yosemite Community College District 263,621,373 $ 3.192% 8,414,794 $ Patterson Joint Unified School District 54,697,155 70.400 38,506,797 City of Patterson Community Facilities District No. 2005-1 15,965,000 100.000 15,965,000 City of Patterson Community Facilities District No. 2015-1 4,650,000 100.000 4,650,000 City of Patterson PFA Revenue Bonds (Less Bond Discount) 62,042,634 100.000 62,042,634 TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT 129,579,225 $ DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Stanislaus County Certificates of Participation 16,225,000 $ 4.316% $700,271 Stanislaus County Office of Education Certificates of Participation 1,155,000 4.316 $49,850 Patterson Joint Unified School District General Fund Obligations 10,665,000 70.400 $7,508,160 City of Patterson Lease Revenue Bonds 1,898,414 100.000 $1,898,414 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $10,156,695 TOTAL DIRECT DEBT $ 63,941,048
TOTAL OVERLAPPING DEBT $ 75,794,872
COMBINED TOTAL DEBT $ (2) 139,735,920
(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 ($62,042,634) 2.49%
Total Direct and Overlapping Tax and Assessment Debt 5.20% Total Direct Debt ($63,941,048) 2.57%
Combined Total Debt 5.61%
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. 183
Number Number Number Number Number
Authorized Authorized Authorized Authorized Authorized
17-18 18-19 19-20 20-21 21-22
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 1 1 1 1 1 Secretary - Confidential 0 0 0 0 0
Deputy City Clerk 0 0 1 1 1
Administrative Assistant 1 1 0 0 0
IT Manager 0 0 1 1 1
IT Technician II 0 0 1 1 1
66 8 8 8
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 1 1 2 2
Accounting Technician 1 1 1 1 1
Account Clerk, Senior 3 3 3 3 4
Account Clerk 2 3 3 2 1
9 11 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 1 4 4 4
Recreation Coordinator II 1 3 0 0 0
Recreation Coordinator I 3 1 0 0 0
Account Clerk 2 2 2 2 2
Administrative Assistant II 1
Facilities & Maintenance Supervisor 1 1 1 1 0
Facilities Superintendent 1
Maintenance Worker III 1 1 1 1 1
Maintenance Worker II 0 0 0 1 1
Maintenance Worker I 1 1 1 0 0
11 12 11 11 12
Fire
Chief 1 1 1 1 1
Division Chief 2 2 2 2 3
Fire Captain - Paramedic 2 2 2 2 2
Fire Captain 3 4 4 4 4
Fire Engineer - Paramedic 1 1 1 1 1
Fire Engineer 4 5 5 5 5
Fire Fighters - Paramedic 6 6 6 6 6
Fire Fighters 0 0 0 0 0
Fire Marshall 1 0 0 0 0
Fire Prevention Specialist 0 1 1 1 1
Administrative Manager 1 1 1 1 1
Secretary II 1 1 1 1 1
22 24 24 24 25
Last Five Fiscal Years
By Function/Program/Department
Full-Time Equivalent City Government Employees
Table 15
City of Patterson
184
Number Number Number Number Number
Authorized Authorized Authorized Authorized Authorized
17-18 18-19 19-20 20-21 21-22
Community Development
Community Development Director 11 1 1 1
Code Enforcement Officer II 11 1 1 1
Code Enforcement Officer I 11 1 1 1
33 3 3 3
Planning
Planner 1 1 1 1 1
Associate Planner 1 1 1 1 1
Planning Technician II 2 2 2 2 2
44 4 4 4
Engineering, Building & Capital Projects
Director of Engineering 1 1 1 1 1
Associate Engineer 01 1 1 1
Assistant Engineer 21 1 1 1
Secretary I 11 1 1 1
44 4 4 4
Capital Projects
Capital Project Manager 11 1 1 1
Building & Permits
Permit Technician II 1 1 1 1 1
Permit Technician I 0 0 0 2 2
11 1 3 3
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 1 1 1
Public Works Inspector I 1 1 0 0 0
Management Analyst 33 3 3 3
Secretary II 22 2 2 2
Environmental Compliance Specialist 1
Maintenance Worker I 0 1 1 1 1
10 11 11 11 12
Equipment Mechanic
Mechanic - Crew Leader 11 1 1 1
Mechanic II 1 1 1 1 1
Mechanic I 0 0 0 0 0
22 2 2 2
Building Maintenance
Maintenance Worker II 2 1 1 0 1
Maintenance Worker I 0 1 1 2 2
22 2 2 3
Parks
Parks Supervisor 1 1 1 1 1
Maintenance Worker III 6 4 5 4 4
Maintenance Worker II 1 3 3 3 4
Maintenance Worker I 2 3 1 2 1
10 11 10 10 10
Streets
Public Works Supervisor - Streets 0.5 0.5 0.5 0.5 0.5
Maintenance Worker III 1
Maintenance Worker II 1 1 2 2 1
Maintenance Worker I 1 1 0 1 1
2.5 2.5 2.5 3.5 3.5
City of Patterson
Table 15
Full-Time Equivalent City Government Employees (Continued) By Function/Program/Department
Last Five Fiscal Years
185
Number Number Number Number Number
Authorized Authorized Authorized Authorized Authorized
17-18 18-19 19-20 20-21 21-22
Urban Forestry
Public Works Supervisor - Tree 1 1 1 1 1
Maintenance Worker III 1 1 1 0 0
Maintenance Worker II 1 1 1 1 4
Maintenance Worker I 2 2 2 3 0
55 5 5 5
Water
Public Works Supervisor - Water 1 1 1 1 1
Water Operator III 3 4 4 4 3
Water Operator II 0 0 1 1 0
Water Operator I 1 1 0 0 0
Maintenance Worker III 1
Maintenance Worker II 1
Electrical & Instrumentation Manager 0.5 0.5 0.5 0.5 0.5 Electrician - Crew Leader 0 0 0 0 0
Electrician Technician II 0.5 0.5 0.5 0.5 1
6 7 7 7 7.5
Sewer
Wastewater Manager 1 1 1 1 1
Chief Waste Water Operator 1 1 1 1 1
Wastewater Operator III 1 2 1 2 1
Wastewater Operator II 2 1 2 1 1
Wastewater Operator I 1 1 0 1 0
Wasterwater Operator in Training 2
Electrical & Instrumentation Manager 0.5 0.5 0 0.5 0.5
Electrician - Crew Leader 0 0 0 0 0
Electrician Technician II 0.5 0.5 0 0.5 1
Maintenance Worker I 0 0 1 0 1
7 7 6 7 8.5
Collection
Public Works Supervisor - Collections 0.5 0.5 0.5 0.5 0.5 Maintenance Worker III 1 3 2 3 4
Maintenance Worker II 2 0 1 0 0
Maintenance Worker I 0 0 1 1 0
3.5 3.5 4.5 4.5 4.5
Total Allocated Positions 109 117 117 121 127
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) 186
Fiscal Year Loans Payable
Lease Revenue
Bonds Revenue Bonds
Settlement
Payable
Finance Purchase
Obligations and
Leases Total
2013 $ - 1,794,453 $ - $ - $ 90,673 $ 1,885,126 $
2014 2,291,826 - - 1,300,000 23,888 3,615,714
2015 - - 76,200,410 988,000 - 77,188,410
2016 - - 75,999,122 676,000 - 76,675,122
2017 - - 74,197,073 364,000 128,967 74,690,040
2018 - 2,429,000 70,840,652 364,000 97,979 73,731,631
2019 - 2,303,118 68,801,769 364,000 66,170 71,535,057
2020 - 2172830 66,516,789 364,000 33,518 69,087,137
2021 - 2,037,982 59,286,264 364,000 - 61,688,246
2022 - 1,898,414 56,596,080 364,000 72,094 58,930,588
Fiscal Year Loans Payable
Public Offering
Revenue Bonds
Private
Placement
Revenue Bonds
Finance
Purchase
Obligations
and Leases Total
Total Primary
Government
Percentage of
Personal
Income
Per
Capita
2013 $ 12,480,000 1,270,807 $ - $ 70,134 $ 13,820,941 $ 15,706,067 $ 4.22% $ 764 2014 4,939,647 12,205,000 - 35,452 17,180,099 20,795,813 5.32% 998 2015 5,297,539 11,860,000 - - 17,157,539 94,345,949 23.46% 4,473 2016 4,926,020 11,585,000 - - 16,511,020 93,186,142 21.37% 4,125 2017 4,538,540 11,300,000 - - 15,838,540 90,528,580 19.70% 3,983 2018 4,134,079 9,865,000 2,658,300 - 16,657,379 90,389,010 17.95% 3,860 2019 3,889,225 8,565,000 2,630,800 - 15,085,025 86,620,082 16.07% 3,645 2020 3,627,227 17,609,352 2,602,300 - 23,838,879 92,926,016 17.07% 4,027 2021 3,040,868 17,176,312 2,572,900 - 22,790,080 84,478,326 14.24% 3,625 2022 3,046,581 16,728,271 2,542,500 - 22,317,352 81,247,940 12.30% 3,334 See Demographic and Economic Statistics for personal income and population data.
Additional information can be found in Note 8 to the basic financial statements.
Business-Type Activities
Governmental Activities
City of Patterson
Table 16
Ratio of Outstanding Debt By Type
Last Ten Fiscal Years
187
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188