2023_Patterson, City of_ACFR FINAL Report_ — Patterson City Council, May 7, 2024

Department

CITY OF PATTERSON
FOR THE FISCAL YEAR ENDED JUNE 30, 2023

CITY OF PATTERSON, CALIFORNIA

City of Patterson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
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, 2023
Table of Contents (Continued)
Page
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule:

General Fund ................................................................................................................................................... 103 Public Safety Special Revenue Fund ............................................................................................................... 104 Notes to the Budgetary Comparison Schedule ..................................................................................................... 105 Defined Benefits Pension Plans – CalPERS:

Schedule of Proportionate Share of the Net Pension Liability ........................................................................ 106 Schedules of Plan Contributions – Pension ..................................................................................................... 108 Defined Benefits Other Postemployment Benefit Plan:

Schedule of Changes in Net OPEB Liability and Related Ratios .................................................................... 110 Schedule of Plan Contributions – OPEB ......................................................................................................... 111 Supplementary Information:

Nonmajor Special Revenue Funds:

Combining Balance Sheet ............................................................................................................................. 116 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ..................................... 124 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:

Debt Service Fund:

Patterson Public Financing Authority ..................................................................................................... 132 Special Revenue Funds:

Landscape Maintenance District ............................................................................................................. 133 Benefit Assessment Districts .................................................................................................................. 134 CSA #15 Assessment District ................................................................................................................. 135 CFD 2001-01 Patterson Gardens Fire Suppression Assessment ............................................................. 136 Beautification Committee ....................................................................................................................... 137 State HCD Rehab Program ..................................................................................................................... 138 Federal CDBG Grant .............................................................................................................................. 139 First Time Home Buyers ......................................................................................................................... 140 Federal HOME ........................................................................................................................................ 141 Neighborhood Stabilization Program ...................................................................................................... 142 Gas Tax ................................................................................................................................................... 143 Local Transportation ............................................................................................................................... 144 Local Transportation Non-Motorized ..................................................................................................... 145 Street Project ........................................................................................................................................... 146 Measure L ............................................................................................................................................... 147 Developer Housing In-Lieu Fee .............................................................................................................. 148 Public Asset Forfeiture ............................................................................................................................ 149 Westside Drainage Study ........................................................................................................................ 150 CFD 2013-1 ............................................................................................................................................ 151 CFD 2015-2 ............................................................................................................................................ 152 CFD 2018-2 VOP Maintenance .............................................................................................................. 153 Community Facility Impact Fee ............................................................................................................. 154 City of Patterson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
Table of Contents (Continued)
Page
FINANCIAL SECTION (Continued)
Supplementary Information (Continued)
Custodial Funds:

Combining Statement of Fiduciary Net Position – Custodial Funds ............................................................... 157 Combining Statement of Changes in Fiduciary Net Position – Custodial Funds ............................................ 158 STATISTICAL SECTION (Unaudited)
Description of Statistical Section Contents .................................................................................................................. 161 Financial Trends:

Net Position by Classification – Last Ten Fiscal Years ......................................................................................... 162 Changes in Net Position – Last Ten Fiscal Years .................................................................................................. 164 Fund Balance, Governmental Funds – Last Ten Fiscal Years ............................................................................... 168 Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years ......................................................... 170 Revenue Capacity:

Tax Revenues by Source – Last Ten Fiscal Years ................................................................................................. 172 Water Sold by Customer Type – Last Five Fiscal Years ....................................................................................... 174 Water and Wastewater Utility Rates – Last Ten Fiscal Years ............................................................................... 175 City-Wide Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ............... 176 Taxable Property by Use Code, City-Wide – Last Six Fiscal Years ...................................................................... 178 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years ................................................................... 179 Principal Property Taxpayers – Last Fiscal Year and Nine Years Ago ................................................................. 180 Principal Sales Tax Producers – Last Fiscal Year and Nine Years Ago ................................................................ 181 Historical Sales Tax Amounts by Benchmark Year – Last Ten Fiscal Years ........................................................ 182 Demographic and Economic Information:

Demographic and Economic Statistics - Last Ten Fiscal Years ............................................................................ 185 Principal Employers Last Fiscal Year and Five Years Ago ................................................................................... 186 Operating Information:

Direct and Overlapping Governmental Activities Debt ......................................................................................... 187 Full-Time Equivalent City Government Employees
By Function/Program/Department – Last Five Fiscal Years ........................................................................... 188 Ratios of Outstanding Debt by Type ...................................................................................................................... 191 This page intentionally left blank.

City of Patterson
1 Plaza
P.O. Box 667
Patterson, California 95363
Phone (209) 895-8000
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March 28, 2024
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, 2023. 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 156 City employees and serves approximately 24,370 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 seat 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 (Administration) 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, and other facility 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 new business opportunities and residential growth, including amenities for our residents. 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 businesses.

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 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 recently opened in the Historic downtown core and is currently open for business. 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 has welcomed 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 700 new 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, aid to non-profit organizations, and aid to local small businesses mostly centered in our historic downtown.

The American Rescue Plan Act will be contributing to our General Fund. The city received $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.

Staff will continue providing services at current staffing levels, and will be adding several new positions, including an Assistant City Manager, Public Information Officer, and a Deputy Director of Engineering.

The city is fortunate that sales tax remains strong in FY 2023. The major contributing factor for our strong revenues is due to ongoing on-line sales, agricultural products sales, and a diverse business portfolio. 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 2022-2023 budget process:
 Continued progression of our Strategic Plan.
 Increase in project revenues through grants, Measure L, and SB1 for street maintenance, and infrastructure projects.
 Leverage technology to improve efficiency and service delivery.  Continued application processes for grant opportunities to fund our Public Safety Center, the Sperry/I-5 Interchange expansion project, and the Centennial Park Community Center.  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.
iv
Some of the specific projects underway in Fiscal Year 2022-2023 included the following:
x I-5 Interchange PS&E design and construction
x Patterson Public Safety Center
x Salado Creek Bike Trail Project
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

CITY OF PATTERSON
Annual Comprehensive Financial Report

FISCAL YEAR
2022 – 2023
City Council
MAYOR
Michael Clauzel

COUNCIL MEMBERS
Shivaugn Alves, District A
Jessica Romero, District B
Dominic Farinha, District C
Carlos Roque, 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 Jennifer Riedeman, Director of Finance
Juliene Flanders, Recreation & Community Services Director Bryan Stice, Community Development Director
Nubia Goldstein, City Attorney
Douglas L. White, Deputy City Attorney
v
Citizens
City Council
City Manager City Attorney
Fire
Boards and
Commissions
Administration Public Works & Parks Engineering & Capital Projects Community Development Recreation Police
Human
Resources
Finance
Information
Systems
Organizational Chart
City Clerk
vi
vii
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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, 2023, 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, 2023, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our 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. 96, Subscription-Based Information Technology Arrangements. Our opinion is not modified with respect to this matter.

Correction of Error
As discussed in Note 15, the City has restated its beginning net position/fund balance of the government-wide governmental activities, the governmental funds and the custodial funds, in order to correct an error in accounting for accounts receivable. Our opinions are not modified with respect to this matter.

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

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2 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.

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.

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

Page 3 ends

3 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 Schedules of Plan Contributions – Pension, and the Schedule of Changes in Net OPEB Liability and Related Ratios, and the Schedule of Plan Contributions – OPEB, 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.

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 our report.

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

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4 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 28, 2024, 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
March 28, 2024
City of Patterson
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
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, 2023. 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 follows this discussion.

Financial Highlights
 Changes in Net Position: The government’s total net position increased by 7.4% or $9,441,430 from the prior year. Governmental activities increased by $5,933,595 and business-type activities increased by $3,507,835 at the end of the fiscal year. The increase in total net position is primarily due to an increase in capital grants and contributions in the amount of $12,134,213.
 Governmental Activities: As of June 30, 2023, the City’s governmental activities reported an ending net position of $89,151,923, an increase of 7% primarily due to an increase in capital grants and contributions in the amount of $6,058,947 and $1,524,816 in taxes.
 Business-Type Activities: As of June 30, 2023, the City’s total ending net position of $48,475,247 primarily due to an increase in capital grants and contributions in the amount of $6,075,266 as well as annual rate increases of 2% for Water and 6% for Sewer that took effect in July of 2022 and January of 2023, respectively.

Garbage revenues increased by 6% as well.
 General Fund: As of June 30, 2023, committed, assigned and unassigned fund balances of the general fund were $17,464,253. Of these funds $16,074,914 is committed or assigned for specific purposes in accordance with City policies and budgetary guidelines. The remaining balance of $1,389,339 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 the previous year’s financial statements have been reclassified for comparative purposes to conform with the presentation in the current year’s 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 inflows of resources with the difference between the four reported as net positions. Over time, increases 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, 2023
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 government 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 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 located 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, 2023
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 basic financial statements can be found on pages 47 – 99 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 103 – 111 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 116 – 158 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 $137,627,170 at June 30, 2023.

By far, the largest portion of the City of Patterson’s net position is its net investment in capital assets (i.e., land, buildings, improvements other than buildings, machinery and equipment, infrastructure, and construction in progress) as it represents $117,669,764 or 85.50% of the total net position. 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.
2023 2022 2023 2022 2023 2022
Current and other assets $ 107,313,278 110,675,930 $ 18,898,741 $ 27,494,167 $ 129,574,671 $ 134,807,445 $ Capital assets, not being depreciated 63,212,428 69,922,501 60,319,398 47,016,567 130,241,899 110,228,995 Total Assets 170,525,706 180,598,431 79,218,139 74,510,734 259,816,570 245,036,440 Deferred Outflow of Resources 4,046,216 6,266,891 2,879,905 2,285,454 9,146,796 6,331,670 Long-term liabilities outstanding 74,714,140 73,433,842 27,575,758 27,544,850 101,009,600 102,258,990 Other liabilities 12,609,607 18,164,247 2,603,301 2,315,097 20,767,548 14,924,704 Total Liabilities 87,323,747 91,598,089 30,179,059 29,859,947 121,777,148 117,183,694 Deferred Inflow of Resources 4,029,847 6,115,310 3,443,738 1,968,829 9,559,048 5,998,676 Net Positions:

Net Investment in Capital Assets 61,241,920 67,681,454 48,865,099 36,458,905 116,546,553 97,700,825 Restricted 13,416,337 14,864,418 3,137,525 3,133,590 18,001,943 16,549,927 Unrestricted 8,560,071 6,606,051 (3,527,377) 5,374,917 3,078,674 13,934,988 Net Position $ 83,218,328 89,151,923 $ 48,475,247 $ 44,967,412 $ 137,627,170 $ 128,185,740 $ Total
Net Position
Governmental Activities Business‑Type Activities
City of Patterson
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
8 A portion of the City of Patterson’s net position totaling $18,001,943 or 13.08%, represents resources that are subject to external restrictions on how they may be used. The remaining balance of $3,078,674 is unrestricted and 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 governmental activities. The negative $3.5 Million in Unrestricted Net Position for the business-type activities is primarily the result of the use of cash for capital and related expenses.

Additional information on the change in net position can be found on page 18 – 19 of this report. 2023 2022 2023 2022 2023 2022

REVENUES
Program revenues
Charges for services $ 6,952,335 7,150,547 $ 16,829,284 $ 15,350,376 $ 23,979,831 $ 22,302,711 $ Operating grants and contributions 3,200,329 3,023,697 7,449 - 3,200,329 3,031,146 Capital grants and contributions 3,640,327 9,699,274 6,156,519 81,253 15,855,793 3,721,580 Total program revenues 13,616,359 20,050,150 22,985,803 15,439,078 43,035,953 29,055,437 General revenues
Taxes 19,254,942 20,779,758 - - 20,779,758 19,254,942
Investment earnings 3,338,840 4,004,069 462,486 37,233 4,466,555 3,376,073 Capital Contributions - - - - - -
Other and transfers 2,155,597 4,292,921 (1,417,295) (1,049,362) 2,875,626 1,106,235 Total general revenues
24,749,379 29,076,748 (954,809) (1,012,129) 28,121,939 23,737,250 TOTAL REVENUES 38,365,738 49,126,898 22,030,994 14,426,949 71,157,892 52,792,687

EXPENSES
General government 4,069,331 10,196,494 - - 10,196,494 4,069,331 Police 5,530,819 6,739,695 - - 6,739,695 5,530,819
Fire 5,548,522 6,294,195 - - 6,294,195 5,548,522
Community development and planning 1,912,358 2,329,664 - - 2,329,664 1,912,358 Public works 5,942,981 8,127,788 - - 8,127,788 5,942,981 Parks and recreation 2,951,483 3,959,583 - - 3,959,583 2,951,483 Interest and fiscal charges 4,090,033 3,962,077 - - 3,962,077 4,090,033 Water - - 7,594,552 4,518,276 7,594,552 4,518,276
Sewer - - 7,506,130 4,859,832 7,506,130 4,859,832
Garbage - - 3,422,477 3,137,202 3,422,477 3,137,202
TOTAL EXPENSES 30,045,527 41,609,496 18,523,159 12,515,310 60,132,655 42,560,837 Changes in net position $ 8,320,211 7,517,402 $ 3,507,835 $ 1,911,639 $ 11,025,237 $ 10,231,850 $ Total
Changes in Net Position
Governmental Activities Business‑type Activities
City of Patterson
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
9 Governmental activities. Overall, governmental revenues increased by $10,761,160 or 28% from the prior year. Key elements of the change are as follows:
 Total taxes increased by $1.5 million or 7.92% due to an increase in property taxes by $914,045, and sales tax by $525,809. The number of residential and commercial developments completed in FY2023 have increased and triggered the increase in property tax. Sales tax increased in the business and industry sector.  Charges for services increased incrementally by $198,212 due to an increase in participation in activities where fees are charged,
 Operating grants and contributions increased by $176,632 primarily due to a one-time funding received during the year.
 Capital grants and contributions increased by $6 million primarily due to capital contributions related to donated infrastructure.
 Other and transfer revenues increased by $2.1 million primarily due to transfers to capital projects partially funded by enterprise funds.

Overall, expenses in the governmental activities increased by $11,507,057 or 38% compared to the prior year.

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

Business-type activities. Overall, business-type revenues increased by $7,604,045 or 53% from the prior year. Key elements of the change are as follows:

Water operating revenue increased by $520,915, and expenses increased by $1,892,772 in fiscal year 2023, resulting in operating income of $1.4 million. Revenue increased primarily due to the implementation of the new water rates in January 2023.

Sewer operating revenue increased by $728,940 and expenses increased by $2,786,925 in fiscal year 2023. The increase in operating revenue is primarily related to the 6% sewer rate increase in July 2022.

Garbage operating revenue increased by $249,778 in fiscal year 2023. The increase was due to an increase in garbage rates of 4.9% as well as an increase in the number of customers. Garbage expenses increased by $319,440 primarily due to increase in customers and the public outreach related to Senate Bill 1383, which requires every jurisdiction to provide organic waste collection services to all residents and businesses.

City of Patterson
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
10 Financial Analysis of the Government’s Funds
As noted earlier, the City of Patterson uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental funds. The focus of the City of Patterson’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Patterson’s financing requirements. Spendable fund balance may serve as a useful measure of a government’s net resources at the end of the fiscal year.

As of the end of the current fiscal year, the City of Patterson’s governmental funds reported combined ending fund balances of $96,375,412, a decrease of $965,761 in comparison with the prior year. The city’s governmental funds ending fund balances of $23,359,972 or 24.25% 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 the fund balance of $73,015,440 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.

The Unrestricted net position of the Enterprise Funds at the end of the year ended at a deficit of $3,527,377, a decrease of $10,856,314 from the prior year. This change is primarily the result of the acquisition and construction of capital assets. 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, the committed, assigned and unassigned fund balance of the general fund was $17,464,253, while total fund balance was $18,163,163. The general fund’s ending fund balance increased by $1.3 million compared to 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 65.29% of the total general fund expenditures for the year, most of which is committed or assigned to meet future long-term obligations. The key factors in the increase of General Fund’s fund balance as follows:
 Overall, General Fund revenues (including transfers in) increased from last year by $2.3million or 9% and expenditures (including transfers out) increased by $6.1 million or 29% over the prior year. Tax related revenue increased by $914,045 due to increases in property tax as City residential and commercial real estate construction completed in FY 2023. In addition, sales tax revenue increased by $525,809. Intergovernmental grants experienced an overall decrease of $53,371 due to one-time funding received in FY 2022. In addition, License permit and fees decreased by $364,168 in fiscal year 2023.  The overall increase in expenditures in the amount of $5.5 million or 26% was attributed to increased capital outlay expenditures.

City of Patterson
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
11 General Fund Budgetary Highlights
For the fiscal year ended June 30, 2023, the General Fund’s revenue final amended budget increased over the original budget by $563,176 and actual revenue decreased by $5,461,816 from the final amended budget of $30,462,607. The final amended expenditure budget increased by $2 million over the original budget and the actual expenditures were $3.2 million lower than the final amended budget. The related activities are summarized as follows:
 The actual revenue was lower than the final budget due to less actual grant revenues received.  The expenditure final budget was higher than the original budget by $2 million due to Council approved budget increases primarily for capital outlay and a public safety analysis.  General fund actual expenditure is lower than the final budget by $3.2 million primarily due to unspent ARPA funds at the end of FY 2023 in the amount of $3.8 million. Also, the Capital Outlay expenditures in the amount of $1.1 million were not completed during the fiscal year.

Capital Asset and Long-Term Liabilities Administration
Capital assets. The City of Patterson’s total assets for its governmental and business-type activities as of June 30, 2023, amounts to $130,241,899 an increase of $20 million or 18% of total capital assets over the prior year. This investment in capital assets includes land, buildings, improvements, machinery and equipment, park facilities, and streets.

2023 2022 2023 2022 2023 2022 2
Land 5,459,235 $ 5,271,125 $ 7,455,922 $ 6,196,328 $ 12,915,157 $ 11,467,453 $ Construction in progress 9,739,792 9,097,213 12,211,807 6,625,335 21,951,599 15,722,548 Depreciable capital assets, net 54,723,474 48,776,914 40,651,669 34,194,903 95,375,143 82,971,817 Total assets 69,922,501 63,145,252 60,319,398 47,016,566 130,241,899 110,161,818 Capital Assets (Net of depreciation)
Governmental Activities Business-type Activities Total
Additional information on the City of Patterson’s capital assets can be found in Note 6 to the basic financial statements.

City of Patterson
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
12 Long-Term Liabilities. At the end of the current fiscal year, the City of Patterson’s total long-term debt and compensated absences outstanding increased by $66,270 an increase attributable to the repayment under normal scheduled debt service and changes in compensated absences throughout the course of the year.

Additional information on the City of Patterson’s long-term debt can be found in Note 8 and Note 9 to the basic financial statements.
2023 2022
Governmental Activities:

PPFA 2013 Heartland Ranch Revenue Bonds 1,385,747 $ 1,848,375 $ PPFA 2013 Series A Revenue Bonds 53,265,000 55,195,000
Less: Bond Discount (568,849) (597,295)
PPFA 2013 Series B Revenue Bonds 5,235,000 5,410,000
2019 Lease Revenue Bonds 1,753,961 1,898,414
Lease liability 420,639 72,094
Subscription liability 57,903 110,020
Keystone Corporation Settlement 364,000 364,000
Settlement payable 1,333,355 -
Compensated Absences 667,297 597,244
Total governmental activities $ 64,897,852 63,914,053 $ Business-type Activities:

Water Fund:
2021 State Revolving Fund Loan 41,000 $ - $
2019A Water Revenue Bonds 8,965,000 9,035,000
Add: Bond Premium 517,461 536,988
2019B Water Revenue Refunding Bonds 5,930,000 6,190,000 Add: Bond Premium 762,768 791,283
Compensated Absences 137,690 120,270
Total water fund 16,673,541 16,353,919
Sewer Fund:
2009 Sewer Revenue Bonds 90,000 175,000
2017 Sewer Refunding Revenue Bonds 2,511,000 2,542,500
2008 State Revolving Fund loan 358,490 404,644
2021 State Revolving Fund loan 621,907 -
Banc of America loan 1,221,057 1,294,515
CEC loan 1,145,765 1,347,422
Patterson Ranch Development Settlement 1,123,211 -
Compensated Absences 177,944 132,336
Total sewer fund 5,896,417 7,249,374
Garbage Fund:

Compensated Absences 46,958 30,224
Total garbage fund 30,224 46,958
Total business-type activities $ 22,600,182 23,650,251 $ City of Patterson
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
13 Economic Condition, Outlook, and Activity
The City has continued 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 new businesses interested in the City of Patterson 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. Patterson benefits from a more diverse revenue structure including Measure L, the ½ cents transaction and use tax over 25 years, SB1 revenue and new businesses such as the Loves Travel Center, Valero Gas Station, Grocery Outlet, 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.

Next Year’s Budget
The following factors were taken into consideration during the preparation of the City’s budget for the fiscal year 2023- 2024.
 The third year of the pandemic has shown signs of recovery in the economy, as of March 2023, Stanislaus County and San Joaquin County reported an 7% unemployment rate, which is up from March 2022’s rate of

5.7%.
 The annual inflation rate as measured by the consumer price index (CPI), increased 4.9 percent for the 12 months ending April 2023; this was the smallest 12-month increase since the period ending April 2021. The all items less food and energy index rose 5.5 percent over the last 12 months. The energy index decreased 5.1 percent for the 12 months ending April, and the food index increased 7.7 percent over the last year.  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 remaining American Rescue Plan Act 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 increased to $15.50 per hour by 2023 point to further increases in weekly wages. If signed into law, the minimum wage would increase to $16 per hour in 2024 and up to $17 per hour in 2025.
 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 Water rate study, the city incorporated the 5-year long range capital improvement plan. The city will begin WM-6B replacement of water mains and service lines on the southside of the old town, WM-19B Water Meter replacement project changing out 6,500 meters and 1,000 meter boxes and WM-6A replacement of water mains and service lines in the downtown commercial area projects to enhance and improve the quality of our community’s sewer infrastructure.

City of Patterson
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
14 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.

BASIC FINANCIAL STATEMENTS
15 This page intentionally left blank.
16 GOVERNMENT-WIDE FINANCIAL STATEMENTS
17 Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:

Cash and investments 42,961,028 $ 5,076,787 $ 48,037,815 $ Restricted cash and investments 2,807,533 405,582 3,213,115 Accounts receivable 161,206 2,133,805 2,295,011
Intergovernmental receivable 3,814,541 9,554 3,824,095
Interest receivable 74,570 21,776 96,346
Lease receivable - current 19,999 24,420 44,419
Internal balances - - -
Due from Fiduciary Funds 52,587 - 52,587
Prepaid items 144,745 17,427 162,172
Total current assets 7,689,351 50,036,209 57,725,560
Noncurrent assets:

Cash and investments with fiscal agents 587,522 11,190,397 11,777,919 Investments held in trust 58,223,997 - 58,223,997
Lease receivable - noncurrent 173,318 18,993 192,311
Notes and loans receivable 1,654,884 - 1,654,884
Capital assets:

Non-depreciable 15,199,027 19,667,729 34,866,756
Depreciable and amortizable, net 54,723,474 40,651,669 95,375,143 Capital assets, net 69,922,501 60,319,398 130,241,899
Total noncurrent assets 71,528,788 130,562,222 202,091,010 Total assets 79,218,139 180,598,431 259,816,570

DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding - 308,583 308,583
OPEB-related deferred outflows of resources 1,479,152 698,266 2,177,418 Pension-related deferred outflows of resources 4,787,739 1,873,056 6,660,795 Total deferred outflows of resources 2,879,905 6,266,891 9,146,796 Primary Government
City of Patterson
Statement of Net Position
June 30, 2023
See accompanying Notes to the Basic Financial Statements. 18 Governmental Business-Type
Activities Activities Total

LIABILITIES
Current liabilities:

Accounts payable 3,403,559 1,161,515 4,565,074
Accrued liabilities 443,979 5,363 449,342
Accrued interest payable 1,113,966 66,547 1,180,513
Unearned revenue 5,289,965 739 5,290,704
Deposits payable 3,090,229 122,871 3,213,100
Compensated absences - due within one year 667,297 362,592 1,029,889 Long-term debt - due within one year 4,155,252 883,674 5,038,926 Total current liabilities 2,603,301 18,164,247 20,767,548 Noncurrent liabilities:

Long-term debt - due in more than one year 59,091,504 22,403,985 81,495,489 Net OPEB liability 5,747,349 1,867,265 7,614,614
Aggregate net pension liability 8,594,989 3,304,508 11,899,497 Total noncurrent liabilities 27,575,758 73,433,842 101,009,600 Total liabilities 30,179,059 91,598,089 121,777,148

DEFERRED INFLOWS OF RESOURCES
Lease-related deferred inflows of resources 193,316 43,413 236,729 OPEB-related deferred inflows of resources 5,629,680 3,348,246 8,977,926 Pension-related deferred inflows of resources 292,314 52,079 344,393 Total deferred inflows of resources 3,443,738 6,115,310 9,559,048

NET POSITION
Net investment in capital assets 67,681,454 48,865,099 116,546,553 Restricted for:

Special programs 14,864,418 - 14,864,418
Capital projects 2,620,013 - 2,620,013
Debt service 517,512 - 517,512
Total restricted 14,864,418 3,137,525 18,001,943
Unrestricted (3,527,377) 6,606,051 3,078,674
Total net position $ 48,475,247 89,151,923 $ 137,627,170 $ Primary Government
City of Patterson
Statement of Net Position (Continued)
June 30, 2023
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 10,196,494 $ 338,534 $ 976,866 $ - $ Police 6,739,695 87,704 165,271 -
Fire 6,294,195 2,216,509 484,334 -
Community development and planning 2,329,664 780,969 42,642 - Public works 8,127,788 1,323,138 1,531,216 9,676,088
Parks and recreation 3,959,583 2,403,693 - 23,186
Interest and fiscal charges 3,962,077 - - -
Total governmental activities 7,150,547 41,609,496 3,200,329 9,699,274 Business-type Activities:

Water 7,594,552 7,012,724 - 2,824,339
Sewer 7,506,130 5,575,813 - 3,305,757
Garbage 3,422,477 4,240,747 - 26,423
Total business-type activities 16,829,284 18,523,159 - 6,156,519 Total primary government $ 23,979,831 60,132,655 $ 3,200,329 $ 15,855,793 $ Program Revenues
City of Patterson
Statement of Activities
For the Year Ended June 30, 2023
See accompanying Notes to the Basic Financial Statements. 20 Governmental Business-Type
Functions/Programs Activities Activities Total
Governmental Activities:

General government (8,881,094) $ - $ (8,881,094) $
Police - (6,486,720) (6,486,720)
Fire - (3,593,352) (3,593,352)
Community development and planning (1,506,053) - (1,506,053) Public Works 4,402,654 - 4,402,654
Parks and recreation (1,532,704) - (1,532,704)
Interest and fiscal charges (3,962,077) - (3,962,077)
Total governmental activities - (21,559,346) (21,559,346) Business-type Activities:

Water 2,242,511 - 2,242,511
Sewer 1,375,440 - 1,375,440
Garbage 844,693 - 844,693
Total business-type activities 4,462,644 - 4,462,644
Total primary government 4,462,644 (21,559,346) (17,096,702) General revenues and transfers:

General revenues:

Taxes:

Property taxes 7,381,341 - 7,381,341
Sales taxes 12,842,865 - 12,842,865
Franchise taxes 247,538 - 247,538
Other taxes 308,014 - 308,014
Total taxes 20,779,758 - 20,779,758
Investment earnings 4,004,069 462,486 4,466,555
Revenue from Fiduciary Fund 735,910 1,472,643 2,208,553 Miscellaneous 617,936 49,137 667,073
Transfers (2,939,075) 2,939,075 -
Total general revenues and transfers (954,809) 29,076,748 28,121,939 Changes in net position 3,507,835 7,517,402 11,025,237
Net Position:

Beginning of year, as restated (Note 19) 44,967,412 81,634,521 126,601,933 End of year $ 48,475,247 89,151,923 $ 137,627,170 $
Changes in Net Position
Net (Expense) Revenue and
City of Patterson
Statement of Activities (Continued)
For the Year Ended June 30, 2023
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 16,789,573 $ - $ - $
Restricted cash and investments 2,807,533 - -
Cash and investments with fiscal agents - - 587,522
Investments held in trust - - 58,223,997
Receivables:

Accounts 1,500 159,256 -
Intergovernmental 2,990,189 8,870 -
Interest - 25,531 864
Notes and loans 16,632 - -
Lease - 186,466 -
Due from other funds 4,716,942 - -
Due from Fiduciary Funds 52,587 - -
Prepaid items 6,596 138,149 -
Total assets $ 16,966 27,882,858 $ 58,812,383 $

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND FUND BALANCES
LIABILITIES:

Accounts payable 1,996,616 $ 44,645 $ - $
Accrued liabilities 437,478 6,501 -
Due to other funds 4,082,494 - 441,007
Unearned revenue 4,020,298 - -
Deposit and other liabilities 3,016,379 - -
Total liabilities 4,133,640 9,470,771 441,007
DEFERRED INFLOWS OF RESOURCES:

Lease-related deferred inflows of resources 186,466 - - Unavailable revenue 62,458 1,500 -
Total deferred inflows of resources 1,500 248,924 -
FUND BALANCES:

Nonspendable 138,149 6,596 -
Restricted - 560,761 58,371,376
Committed 9,838,576 - -
Assigned - 6,236,338 -
Unassigned (deficit) 1,389,339 (4,124,770) -
Total fund balances (deficit) (4,118,174) 18,163,163 58,371,376 Total liabilities, deferred inflows
of resource, and fund balances $ 16,966 27,882,858 $ 58,812,383 $ Major Funds
June 30, 2023
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 $ 42,961,028 26,171,455 $
Restricted cash and investments 2,807,533 -
Cash and investments with fiscal agents 587,522 -
Investments held in trust 58,223,997 -
Receivables:

Accounts 161,206 450
Intergovernmental 3,814,541 815,482
Interest 74,570 48,175
Notes and loans 1,654,884 1,638,252
Lease 193,317 6,851
Due from other funds 4,716,942 -
Due from Fiduciary Funds 52,587 -
Prepaid items 144,745 -
Total assets $ 115,392,872 28,680,665 $

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND FUND BALANCES
LIABILITIES:

Accounts payable $ 3,403,559 1,362,298 $
Accrued liabilities 443,979 -
Due to other funds 4,716,942 193,441
Unearned revenue 5,289,965 1,269,667
Deposit and other liabilities 3,090,229 73,850
Total liabilities 16,944,674 2,899,256
DEFERRED INFLOWS OF RESOURCES:

Lease-related deferred inflows of resources 6,850 193,316 Unavailable revenue 1,879,470 1,815,512
Total deferred inflows of resources 2,072,786 1,822,362 FUND BALANCES:

Nonspendable 144,745 -
Restricted 72,870,695 13,938,558
Committed 20,203,372 10,364,796
Assigned 6,236,338 -
Unassigned (deficit) (3,079,738) (344,307)
Total fund balances (deficit) 96,375,412 23,959,047
Total liabilities, deferred inflows
of resource, and fund balances $ 115,392,872 28,680,665 $ City of Patterson
Balance Sheet (Continued)
Governmental Funds
June 30, 2023
See accompanying Notes to the Basic Financial Statements. 27 This page intentionally left blank.
28 Total fund balances of governmental funds $ 96,375,412 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. 69,922,501
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 4,787,739 Pension-related deferred inflows of resources (292,314) 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 1,479,152
OPEB-related deferred inflows of resources (5,629,680)
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. (1,113,966) 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. 1,879,470 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 (63,246,756)
Compensated absences (667,297)
Net OPEB liability (5,747,349)
Aggregated net pension liability (8,594,989)
Net position of governmental activities $ 89,151,923
City of Patterson
Reconciliation of the Governmental Funds
Balance Sheet to the Government-Wide Statement of Net Position June 30, 2023
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 $ - 7,380,341 $ - $
Sales - 12,842,865 -
Franchise - 247,538 -
Other - 308,014 -
Licenses, permits, and fees 1,238,967 - -
Charges for services 532,914 1,448,114 -
Intergovernmental:

Federal grant and subsidies 863,911 - -
Other governmental 601,881 - -
Fines, forfeitures and penalties 112,090 - -
Investment income (loss) 174,896 - 3,667,112
Revenue from Fiduciary Fund - - 517,184
Miscellaneous 3,000 697,374 -
Total revenues 1,451,114 25,000,791 4,184,296
EXPENDITURES:

Current:

General government 4,356,913 18,506 -
Police - 6,542,712 -
Fire 2,434,324 3,596,359 -
Community development and planning 2,208,715 - -
Public works 4,088,701 - -
Park and recreation 3,045,751 - -
Capital outlay 2,529,001 769,442 -
Debt service:

Principal - 312,230 2,567,628
Interest and fiscal charges 68,094 - 3,907,613
Total expenditures 3,222,272 26,748,476 6,475,241

REVENUES OVER (UNDER)
EXPENDITURES (1,771,158) (1,747,685) (2,290,945)
OTHER FINANCING SOURCES (USES):

Inception of lease liability 464,205 - -
Transfers in 3,340,378 1,245,000 -
Transfers out (732,309) - -
Total financing sources (uses) 1,245,000 3,072,274 -
Net change in fund balances (526,158) 1,324,589 (2,290,945) FUND BALANCES (DEFICIT):

Beginning of year, as restated (Note 19) (3,592,016) 16,838,574 60,662,321 End of year 18,163,163 $ (4,118,174) $ 58,371,376 $
Major Funds
For the Year Ended June 30, 2023
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 $ 7,380,341 - $
Sales 12,842,865 -
Franchise 247,538 -
Other 308,014 -
Licenses, permits, and fees 2,564,469 1,325,502
Charges for services 5,780,377 3,799,349
Intergovernmental:

Federal grant and subsidies 1,039,288 175,377
Other governmental 3,829,555 3,227,674
Fines, forfeitures and penalties 112,090 -
Investment income (loss) 4,001,071 159,063
Revenue from Fiduciary Fund 735,910 218,726
Miscellaneous 714,667 14,293
Total revenues 39,556,185 8,919,984
EXPENDITURES:

Current:

General government 4,416,045 40,626
Police 6,542,712 -
Fire 6,037,410 6,727
Community development and planning 4,620 2,213,335
Public works 4,920,769 832,068
Park and recreation 3,046,238 487
Capital outlay 8,309,343 5,010,900
Debt service:

Principal 2,879,858 -
Interest and fiscal charges 3,975,707 -
Total expenditures 42,341,417 5,895,428

REVENUES OVER (UNDER)
EXPENDITURES (2,785,232) 3,024,556
OTHER FINANCING SOURCES (USES):

Inception of lease liability 464,205 -
Transfers in 7,693,815 3,108,437
Transfers out (4,754,740) (4,022,431)
Total financing sources (uses) 3,403,280 (913,994)
Net change in fund balances 618,048 2,110,562
FUND BALANCES (DEFICIT):

Beginning of year, as restated (Note 19) 95,757,364 21,848,485 End of year $ 96,375,412 23,959,047 $
City of Patterson
Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Governmental Funds
For the Year Ended June 30, 2023
See accompanying Notes to the Basic Financial Statements. 31 Net change in fund balances - total governmental funds $ 618,048 Amounts reported for governmental activities in the Statement of Activities are different because:

Governmental funds reported capital outlay as expenditures. However, in the Government-Wide Statement of Activities and Changes in Net Position, the cost of those assets was allocated over their estimated useful lives as depreciation and amortization expense. This was the amount of capital assets recorded in the current period. ($718,216 of the governmental fund capital outlay balance were for repairs and maintenance expenditures). 8,055,332 In the Government-Wide Statement of Activities, donated assets are reported as a capital contribution. 6,572,185 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. (3,603,983) The net effect of various miscellaneous transactions involving capital assets (i.e. sales, trade-ins, and donations) decreased net position. (4,423,483)
Inception of a settlement liability does not provide current financial resources to governmental funds, but the issuance increased long-term liabilities in the Government-Wide Statement of Net Position. (1,797,560) Inception of a lease liability does not provide current financial resources to governmental funds, but the issuance increased long-term liabilities in the Government-Wide Statement of Net Position. - 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 2,879,858
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. 42,076 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. (70,053) 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. 59,453
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 2,645,303 Changes in net pension liabilities (5,391,990)
Changes in pension related deferred inflows of resources 2,081,156 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 (424,628) Changes in net OPEB liabilities 4,490,381
Changes in OPEB related deferred inflows of resources (4,186,247) Change in net position of governmental activities $ 7,517,402 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, 2023
See accompanying Notes to the Basic Financial Statements. 32 PROPRIETARY FUND FINANCIAL STATEMENTS
33 Water Sewer Garbage Total
ASSETS
Current assets:

Cash and investments 2,415,708 $ 824,263 $ 1,836,816 $ 5,076,787 $ Restricted cash and investments - 405,582 - 405,582
Accounts receivable 821,265 837,462 475,078 2,133,805
Intergovernmental receivable - 156 9,398 9,554
Interest receivable 4,598 14,169 3,009 21,776
Lease receivable - current 24,420 - - 24,420
Prepaid items 9,418 6,399 1,610 17,427
Total current assets 2,086,527 3,276,913 2,325,911 7,689,351 Noncurrent assets:

Cash and investments with fiscal agents 11,119,195 71,202 - 11,190,397 Lease receivable - noncurrent 18,993 - - 18,993
Advances from other funds 1,600,000 - - 1,600,000
Capital assets:

Non-depreciable 10,827,700 8,840,029 - 19,667,729
Depreciable/amortizable, net 21,933,391 18,554,855 163,423 40,651,669 Capital assets, net 29,382,555 30,773,420 163,423 60,319,398 Total noncurrent assets 30,863,615 42,101,750 163,423 73,128,788 Total assets 32,950,142 45,378,663 2,489,334 80,818,139

DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding 151,109 157,474 - 308,583
OPEB-related deferred outflows of resources 290,683 323,909 83,674 698,266 Pension-related deferred outflows of resources 782,404 803,726 286,926 1,873,056 Total deferred outflows of resources 1,285,109 1,224,196 370,600 2,879,905

LIABILITIES
Current liabilities:

Accounts payable 707,792 250,476 203,247 1,161,515
Accrued liabilities 3,197 1,048 1,118 5,363
Deposits payable 122,871 - - 122,871
Unearned revenue 739 - - 739
Accrued interest 20,726 45,821 - 66,547
Compensated absences - due within one year 177,944 137,690 46,958 362,592 Long-term liabilities - due within one year 493,824 389,850 - 883,674 Total current liabilities 944,757 1,407,221 251,323 2,603,301 Noncurrent liabilities:

Advances to other funds - 1,600,000 - 1,600,000
Long-term liabilities - due in more than one year 15,826,379 6,577,606 - 22,403,985 Net OPEB liability 950,558 806,730 109,977 1,867,265
Aggregate net pension liability 1,380,344 1,417,960 506,204 3,304,508 Total noncurrent liabilities 10,402,296 18,157,281 616,181 29,175,758 Total liabilities 11,347,053 19,564,502 867,504 31,779,059

DEFERRED INFLOWS OF RESOURCES
Lease-related deferred inflows of resources 43,413 - - 43,413 OPEB-related deferred inflows of resources 1,589,515 1,359,115 399,616 3,348,246 Pension-related deferred inflows of resources 22,347 21,754 7,978 52,079 Total deferred inflows of resources 1,655,275 1,380,869 407,594 3,443,738

NET POSITION
Net investment in capital assets 24,436,630 24,265,046 163,423 48,865,099 Restricted:

Capital projects 2,620,013 - - 2,620,013
Debt service 446,310 71,202 - 517,512
Total restricted 3,066,323 71,202 - 3,137,525
Unrestricted (1,845,465) (3,103,325) 1,421,413 (3,527,377) Total net position $ 21,232,923 25,657,488 $ 1,584,836 $ 48,475,247 $ City of Patterson
Statement of Net Position
Proprietary Funds
June 30, 2023
Major Funds
See accompanying Notes to the Basic Financial Statements. 34 Water Sewer Garbage Total
OPERATING REVENUES:

Charges for services 6,741,904 $ 5,427,783 $ 4,081,799 $ 16,251,486 $ Fees, fines, and penalties 270,820 148,030 158,948 577,798 Miscellaneous 12,168 36,969 - 49,137
Total operating revenues 5,612,782 7,024,892 4,240,747 16,878,421 OPERATING EXPENSES:

Salaries and benefits 2,730,909 3,111,561 900,437 6,742,907 Contractual and professional services 78,998 546,864 2,201,490 2,827,352 Supplies and operating costs 1,265,864 942,473 299,390 2,507,727 Depreciation 1,692,089 2,724,759 21,160 4,438,008
Total operating expenses 7,325,657 5,767,860 3,422,477 16,515,994 OPERATING INCOME (LOSS) (1,712,875) 1,257,032 818,270 362,427 NONOPERATING REVENUES (EXPENSES):

Intergovernmental :

Federal grants and subsidies - - - -
Gain (loss) on sale of assets (1,313,431) (10,000) - (1,323,431) Investment income 436,953 14,367 11,166 462,486
Interest expense (513,261) (170,473) - (683,734)
Total nonoperating revenues (expenses) (166,106) (1,389,739) 11,166 (1,544,679) INCOME (LOSS) BEFORE TRANSFERS (1,878,981) (132,707) 829,436 (1,182,252)

TRANSFERS
Revenue from Fiduciary Fund - 1,472,643 - 1,472,643
Capital grants and contributions 2,824,339 3,305,757 26,423 6,156,519 Transfers in 126 209,466 - 209,592
Transfers out (2,167,605) (248,617) (732,445) (3,148,667) Total Transfers 4,739,249 656,860 (706,022) 4,690,087
CHANGES IN NET POSITION 2,860,268 524,153 123,414 3,507,835 NET POSITION:

Beginning of year 25,133,335 18,372,655 1,461,422 44,967,412 End of year 25,657,488 $ 21,232,923 $ 1,584,836 $ 48,475,247 $ City of Patterson
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2023
Major Funds
See accompanying Notes to the Basic Financial Statements. 35 Water Sewer Garbage Total
Cash Flows from Operating Activities:

Cash received from customers 7,055,643 $ 5,410,629 $ 4,252,456 $ 16,718,728 $ Cash paid to suppliers (1,149,880) (1,606,811) (2,472,503) (5,229,194) Cash paid to employees (2,650,728) (2,894,060) (1,051,545) (6,596,333) Other 12,168 36,969 - 49,137
Net cash provided by operating activities 946,727 3,267,203 728,408 4,942,338 Cash Flows from Noncapital Financing Activities:

Advances between funds - 1,600,000 - 1,600,000
Transfers in 126 209,466 - 209,592
Transfers out (2,167,605) (248,617) (732,445) (3,148,667) Net cash provided by (used in) noncapital financing
activities (2,167,479) 1,560,849 (732,445) (1,339,075)
Cash Flows from Capital and Related Financing Activities:

Capital grants - - 26,423 26,423
Capital contributions from developers and others 2,824,339 3,305,757 - 6,130,096 Acquisition and construction of capital assets (8,198,220) (10,701,547) (164,503) (19,064,270) Revenue from Fiduciary Fund - 1,472,643 - 1,472,643
Proceeds from issuance of debt 41,000 1,745,118 - 1,786,118 Principal paid on revenue bonds and loan (378,042) (437,769) - (815,811) Interest paid on capital debt (514,302) (162,413) - (676,715) Net cash provided by (used in) capital and related
financing activities (4,778,211) (6,225,225) (138,080) (11,141,516) Cash Flows from Investing Activities:

Interest 427,104 10,890 9,077 447,071
Net cash provided by investing activities 10,890 427,104 9,077 447,071 Net increase (decrease) in cash and cash equivalents (2,259,745) (4,698,397) (133,040) (7,091,182) Cash and Cash Equivalents:

Beginning of year 19,833,300 3,560,792 1,969,856 25,363,948 End of year 15,134,903 $ 1,301,047 $ 1,836,816 $ 18,272,766 $ Reconciliation of Cash and Cash Equivalents to the
Statement of Net Position:

Cash and investment 2,415,708 $ 824,263 $ 1,836,816 $ 5,076,787 $ Restricted cash and investments - 405,582 - 405,582
Cash and investments with fiscal agent 11,119,195 71,202 - 11,190,397 Total cash and investment $ 1,301,047 13,534,903 $ 1,836,816 $ 16,672,766 $ City of Patterson
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2023
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) 1,257,032 $ (1,712,875) $ 818,270 $ 362,427 $ Adjustments to reconcile operating income (loss) to
net cash provided by operating activities:

Depreciation expense 1,692,089 2,724,759 21,160 4,438,008 Change in assets and liabilities:

Accounts receivable 25,646 (165,184) 39,059 (100,479)
Intergovernmental receivable 673 - (927) (254)
Lease receivable - 23,966 - 23,966
Prepaid items (3,827) 59 194 (3,574)
OPEB-related deferred outflows of resources 106,455 125,767 32,333 264,555 Pension-related deferred outflows of resources (385,662) (468,049) (15,005) (868,716) Accounts payable 198,809 (117,533) 28,183 109,459
Accrued liabilities 416 (3,253) (1,569) (4,406)
Deposits payable 16,600 - - 16,600
Unearned revenue - - (26,423) (26,423)
Compensated absences 17,419 45,609 16,734 79,762
Net OPEB liability (1,125,739) (1,329,976) (341,913) (2,797,628) Aggregate net pension liability 854,809 973,313 146,010 1,974,132 Lease-related deferred inflows of resources - (23,966) - (23,966) OPEB-related deferred inflows of resources 1,049,494 1,239,896 (72,884) 2,216,506 Pension-related deferred inflows of resources (437,011) (365,806) 85,186 (717,631) Total adjustments 2,659,602 2,010,171 (89,862) 4,579,911 Net cash provided by (used in) operating activities $ 946,727 3,267,203 $ 728,408 $ 4,942,338 $ Major Funds
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2023
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 $ 10,492,345
Restricted cash and investments 186,322
Cash and investments with fiscal agents 14,272,229
Accounts receivable 280
Intergovernmental receivable 63,333
Interest receivable 21,998
Notes receivable 975,361
Total assets 26,011,868

LIABILITIES
Accounts payable 37,198
Due to City 52,587
Total liabilities 89,785

NET POSITION
Restricted for:

Individuals, organizations, and other governments 25,922,083 Total net position $ 25,922,083
City of Patterson
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2023
See accompanying Notes to the Basic Financial Statements. 41 Custodial
Funds
ADDITIONS:

Special assessments for other governments $ 7,819,916
Investment income 609,671
Total additions 8,429,587
DEDUCTIONS:

Administration 74,787
Payments on conduit bonds - principal 2,135,629
Payments on conduit bonds - interest 4,613,428
Projects payments 1,738,754
Contributions to City 2,208,553
Total deductions 10,771,151
Change in net position (2,341,564)
NET POSITION:

Beginning of year, as restated (Note 19) 28,263,647
End of period $ 25,922,083
City of Patterson
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2023
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, 2023
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. Subscription-Based Information Technology (SBITAs) ............................................................................. 54 H. Capital Assets .............................................................................................................................................. 55 I. Long-Term Debt .......................................................................................................................................... 55 J. Compensated Absences ............................................................................................................................... 56 K. Pensions ....................................................................................................................................................... 57 L. Other Postemployment Benefits (“OPEB”) ................................................................................................ 57 M. Property Taxes ............................................................................................................................................. 57 N. Net Position ................................................................................................................................................. 58 O. Fund Balances ............................................................................................................................................. 58 P. Use of Estimates .......................................................................................................................................... 59 Q. Implementation of New GASB Pronouncements for the Year Ended June 30, 2022 ................................. 59 R. Upcoming Government Accounting Standards Implementations ............................................................... 60 Note 2 – Cash and Investments .................................................................................................................................... 60 A. Cash Deposits .............................................................................................................................................. 61 B. Investments .................................................................................................................................................. 61 C. Investment in Local Agency Investment Fund ............................................................................................ 62 D. Investment in Central San Joaquin Valley Risk Management Authority Investment Pool ......................... 62 E. Risk Disclosures .......................................................................................................................................... 63 F. Fair Value Measurement ............................................................................................................................. 64 Note 3 – Leases Receivable ........................................................................................................................................... 64 A. Governmental Activities .............................................................................................................................. 64 B. Business-Type Activities ............................................................................................................................. 65 Note 4 – Loan and Notes Receivable ........................................................................................................................... 66 A. Governmental Activities .............................................................................................................................. 66 B. Fiduciary Fund............................................................................................................................................. 67 Note 5 – Interfund Transactions .................................................................................................................................. 68 A. Due From and To Other Funds .................................................................................................................... 68 B. Advances To and From Other Funds ........................................................................................................... 68 C. Transfers In and Out .................................................................................................................................... 69 Note 6 – Due from Fiduciary Funds ............................................................................................................................ 69 Note 7 – Capital Assets ................................................................................................................................................. 70 A. Governmental Activities .............................................................................................................................. 70 B. Business-Type Activities ............................................................................................................................. 71 Note 8 – Long-Term Obligations ................................................................................................................................. 71 A. Governmental Activities .............................................................................................................................. 71 B. Business-Type Activities ............................................................................................................................. 75 City of Patterson
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023
46 Note 9 – Compensated Absences .................................................................................................................................. 80 A. Governmental Activities .............................................................................................................................. 81 B. Business-Type Activities ............................................................................................................................. 81 Note 10 – Conduit Debt ................................................................................................................................................ 82 Note 11 – Fund Balances .............................................................................................................................................. 83 Note 12 – Risk Management......................................................................................................................................... 83 A. Coverage ...................................................................................................................................................... 84 Note 13 – Pension Plans ................................................................................................................................................ 85 A. Summary...................................................................................................................................................... 85 B. General Information about Pension Plans ................................................................................................... 86 C. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions ...................................................................................................... 87 D. Payable to the Pension Plan ......................................................................................................................... 91 Note 14 – Other Postemployment Benefits ................................................................................................................. 91 A. Summary...................................................................................................................................................... 91 B. General Information about OPEB ............................................................................................................... 92 C. Net OPEB Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB .......................................................................................................... 93 Note 15 – Deferred Compensation Plan ...................................................................................................................... 95 Note 16 – Other Required Disclosures ........................................................................................................................ 95 A. (Deficit) Net Position/Fund Balances .......................................................................................................... 95 B. Expenditures Exceeding Appropriations ..................................................................................................... 96 Note 17 – Settlement with Eli Development Corporation ......................................................................................... 96 Note 18 – Net Position ................................................................................................................................................... 96 A. Net Investment in Capital Assets ................................................................................................................. 96 B. Restricted Net Position ................................................................................................................................ 97 Note 19 – Prior Period Adjustments ............................................................................................................................ 97 A. Government-Wide Financial Statements ..................................................................................................... 97 B. Governmental Fund Financial Statements ................................................................................................... 97 C. Custodial Fund Financial Statements .......................................................................................................... 98 Note 20 – Commitments and Contingencies ............................................................................................................... 98 A. Litigation ..................................................................................................................................................... 98 B. Grants .......................................................................................................................................................... 98 Note 21 – Subsequent Events ....................................................................................................................................... 98 City of Patterson
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
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, 2023
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, 2023
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
 Advances to and from 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.

City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
50 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Governmental Fund Financial Statements (Continued)
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.

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) - 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, 2023
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, 2023
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, 2023
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, 2023
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. Subscription-Based Information Technology Arrangements (SBITAs) The City has a policy to recognize a SBITA liability and a right‐to‐use subscription asset (SBITA asset) in the financial statements with an initial, individual value of $25,000 or more with a subscription term greater than one year.

At the commencement of a subscription, when the subscription asset is placed into service, the SBITA liability is measured at the present value of payments expected to be made during the subscription term. Future subscription payments are discounted using the City's incremental borrowing rate and the City recognizes amortization of the discount on the subscription liability as interest expense in subsequent financial reporting periods.

SBITA assets are measured as the sum of the initial subscription liability, payments made to the SBITA vendor before the commencement of the lease term, and capitalizable implementation costs less any incentives received from the SBITA vendor at or before the commencement of the subscription term. Subscription assets are amortized using the straight-line method over the subscription term.

Key estimates and judgments related to SBITAs include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments.
 The City uses the interest rate charged by the SBITA vendor as the discount rate. When the interest rate charged by the SBITA vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for SBITAs.
 The subscription term includes the period during which the City has a noncancelable right to use the underlying IT asset. The subscription term also includes periods covered by an option to extend if it is reasonably certain to be exercised.
 Subscription payments included in the measurement of the subscription liability are composed of fixed payments and purchase option years that the City is reasonably certain to exercise. The City monitors changes in circumstances that would require a remeasurement of a subscription and will remeasure any subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the subscription liability.

City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
55 Note 1 – Summary of Significant Accounting Policies (Continued) G. Subscription-Based Information Technology Arrangements (SBITAs) (Continued) Right-to-use subscription assets are reported along with other capital assets and subscription liabilities are reported as long-term debt on the statement of net position.

H. 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.

I. 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.

City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
56 Note 1 – Summary of Significant Accounting Policies (Continued) J. 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.

K. 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, 2021
Measurement Date June 30, 2022
Measurement Period July 1, 2021 to June 30, 2022
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.

City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
57 Note 1 – Summary of Significant Accounting Policies (Continued) L. 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, 2021
Measurement Date June 30, 2022
Measurement Period July 1, 2021 to June 30, 2022
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.

M. 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.

City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
58 Note 1 – Summary of Significant Accounting Policies (Continued) N. 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 and amortization, 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.

O. 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.

City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
59 Note 1 – Summary of Significant Accounting Policies (Continued) P. 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.

Q. Implementation of New GASB Pronouncements for the Year Ended June 30, 2023 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. Implementation of this Statement did not have a significant effect on the City's financial statements for the fiscal year ended 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. Implementation of this statement did not have a significant effect on the City's financial statements for the fiscal year ended June 30, 2023.

GASB Statement No. 96
In May 2020, GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements. This Statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. Implementation of this Statement had a moderate effect on the City's financial statements for the fiscal year ended 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. Implementation of this Statement did not have a significant effect on the City's financial statements for the fiscal year ended June 30, 2023.

City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
60 Note 1 – Summary of Significant Accounting Policies (Continued) R. 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. 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 City’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 City’s fiscal year ending June 30, 2025.

GASB Statement No. 102
In December 2023, GASB issued Statement No. 102, Certain Risk Disclosures. The objective of this Statement is to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints. That objective is achieved by requiring governments to assess whether a concentration or constraint makes the primary government reporting unit or other reporting units that report a liability for revenue debt vulnerable to the risk of a substantial impact. The statement also requires a government to assess whether an event or events associated with a concentration or constraint that could cause the substantial impact have occurred, have begun to occur, or are more likely than not to begin to occur within 12 months of the date the financial statements are issued. Application of this statement is effective for the City’s fiscal year ending June 30, 2025. Earlier application is encouraged.

Note 2 – Cash and Investments
The following is a summary of pooled cash and investments and restricted cash and investments at June 30, 2023:

Governmental Business-type Fiduciary
Activities Activities Funds Total
Cash and investments 42,961,028 $ 5,076,787 $ $ 10,492,345 $ 58,530,160 Restricted cash and investments 2,807,533 405,582 186,322 3,399,437 Cash and investments with fiscal agents 587,522 11,190,397 14,272,229 26,050,148 Investments held in trust 58,223,997 - 58,223,997 -
Total cash and investments $ 104,580,080 $ 16,672,766 $ 24,950,896 $ 146,203,742 Primary Government
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
61 Note 2 – Cash and Investments (Continued)
Cash, cash equivalents, and investments, consisted of the following at June 30, 2023:

Cash and cash equivalents:

Cash on hand 1,245 $
Deposits with financial institutions 41,168,612
Total cash and cash equivalents 41,169,857
Investments:

Local obligation bonds 58,223,997
Money market mutual funds 28,755,827
Central San Joaquin Valley Risk Authority (CSJVRMA) 3,819,394 Local Agency Investment Fund (LAIF) 14,234,667
Total investments 105,033,885
Total cash and investments $ 146,203,742
A. Cash Deposits
The carrying amounts of the City’s demand deposits were $41,168,612 at June 30, 2023. Bank balances were $41,484,254 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.

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.

City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
62 Note 2 – Cash and Investments (Continued)
B. Investments (Continued)
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
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, 2023 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, 2023, the City had $14,234,667 invested in LAIF, which had invested 1.46% 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, 2023, 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, 2023.

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, 2023, this account was valued at $3,819,394. The City received an average yield of 0.01% for the fiscal year ended June 30, 2023 on this investment. The City’s investment in CSJVRMA is reported at amortized cost.

City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
63 Note 2 – Cash and Investments (Continued)
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, 2023:
12 Months
Fair Value or Less 1-5 Years 6-10 Years Thereafter
Investments:

Local obligation bonds 58,223,997 $ 442,508 $ 879,339 $ - $ 56,902,150 $ Money market mutual funds 28,755,827 28,755,827 - - -
Central San Joaquin Valley Risk Authority (CSJVRMA) 3,819,394 3,819,394 - - - Local Agency Investment Fund (LAIF) 14,234,667 14,234,667 - - - Total investments $ 47,252,396 105,033,885 $ 879,339 $ - $ 56,902,150 $ Maturity
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 58,223,997 $ N/A Not rated Not rated Money market mutual funds 28,755,827 N/A AAAm Aaa-mf
Central San Joaquin Valley Risk Authority (CSJVRMA) 3,819,394 N/A Not rated Not rated Local Agency Investment Fund (LAIF) 14,234,667 N/A Not rated Not rated Total investments $ 105,033,885
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, 2023:

Issuer Investment Type Amount
West Patterson Financing Authority Local obligation bonds 58,223,997 $ City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
64 Note 2 – Cash and Investments (Continued)
E. Risk Disclosures (Continued)
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, 2023, categorized within the fair value hierarchy as described in Notre 1C are as follows:

Investments measured by fair value level: June 30, 2023 Level 1 Level 2 Level 3 Central San Joaquin Valley Risk Authority (CSJVRMA) 3,819,394 - 3,819,394 - Total investments by fair value level - 3,819,394 $ 3,819,394 $ - $ Investments not subject to the fair value hierarchy:

Local obligation bonds 58,223,997 $
Local Agency Investment Funds (LAIF) 14,234,667
Money market mutual funds 28,755,827
Total investments not subject to the fair value hierarchy 101,214,491 Total investments $ 105,033,885
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, 2023, the City recognized $19,628 in lease revenue and $3,825 in interest revenue.

A summary of changes in lease receivable for the fiscal year ended June 30, 2023 is as follows:

Balance Balance Due within Due in More
July 1, 2022 Additions Deletions June 30, 2023 One Year Than One Year Leases receivable $ 212,945 $ (19,628) - $ $ 193,317 $ 19,999 $ 173,318 Total $ 212,945 $ (19,628) - $ $ 193,317 $ 19,999 $ 173,318 Classification
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
65 Note 3 – Lease Receivable (Continued)
A. Governmental Activities (Continued)
As of June 30, 2023, the required payments for these leases, including interest, are:

Year Ending
June 30, Principal Interest Total
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 18,976 2,108 21,084
2029-2032 102,142 4,698 106,840
Total $ 18,542 193,317 $ 211,859 $
As of June 30, 2023, the amounts reported as deferred inflows of resources will be recognized as lease revenue as follows:

Year Ending Amortization
June 30, Schedule
2024 19,999 $
2025 18,756
2026 16,407
2027 17,037
2028 18,976
2029-2032 102,142
Total $ 193,317
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, 2023, the City recognized $23,966 in lease revenue and $1,058 in interest revenue.

A summary of changes in lease receivable for the fiscal year ended June 30, 2023 is as follows:

Balance Balance Due within Due in More
July 1, 2022 Additions Deletions June 30, 2023 One Year Than One Year Leases receivable $ 67,379 $ (23,966) - $ $ 43,413 $ 24,420 $ 18,993 Total $ 67,379 $ (23,966) - $ $ 43,413 $ 24,420 $ 18,993 Classification
As of June 30, 2023, the required payments for these leases, including interest, are:

Year Ending
June 30, Principal Interest Total
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 $ 814 43,413 $ 44,227 $
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
66 Note 3 – Lease Receivable (Continued)
B. Business-Type Activities (Continued)
As of June 30, 2023, the amounts reported as deferred inflows of resources will be recognized as lease revenue as follows:

Year Ending Amortization
June 30, Schedule
2024 24,420 $
2025 16,091
2026 1,735
2027 1,167
Total $ 43,413
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 2023.

Summary of changes in loans and notes receivable for the year ended June 30, 2023 is as follows:

Loans and Notes Loans and Notes Unavailable
Receivable Receivable Revenue
Balance Balance Balance
July 1, 2022 Additions Deletions June 30, 2023 June 30, 2023 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 487,319 (22,435) - 464,884 464,884 Total loans and notes receivable $ 1,677,319 $ (22,435) - $ $ 1,654,884 $ 1,654,884 Housing Authority of the County of Stanislaus
On December 1, 1997, the City entered into a 30-year loan agreement with the Housing Authority of the County of Stanislaus in the amount of $170,000. The note does not bear interest and principal payments are deferred for 30 years with a final maturity date of December 1, 2027. The balance of this note has been offset by deferred inflows of resources in the amount of $170,000 in the fund financial statements.

On November 19, 1998, the City entered into a 30-year loan agreement with the Housing Authority of the County of Stanislaus in the amount of $120,000. The note does not bear interest and principal payments are deferred for 30 years with a final maturity date of November 19, 2028. The balance of this note has been offset by deferred inflows of resources in the amount of $120,000 in the fund financial statements.

City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
67 Note 4 – Loan and Notes Receivable (Continued)
A. Governmental Activities (Continued)
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, 2023 was $464,884. The balance of these loans have been offset by deferred inflows of resources in the amount of $464,884 in the financial statements.

B. Fiduciary Fund
Notes receivable as of June 30, 2023, was as follows:

Balance Balance
July 1, 2022 Additions Deletions June 30, 2023
Darron Silva Promissory Note $ 993,418 $ (18,057) - $ $ 975,361 Total notes receivable $ 993,418 $ (18,057) - $ $ 975,361 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, 2023 was $975,361.

City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
68 Note 5 – Interfund Transactions
A. Due From and To Other Funds
Due from and to other funds as of June 30, 2023, was as follows:

Receivable Fund Payable Fund Amount Purpose
General Fund CFD 2003-1 Public Safety/Fire $ 4,082,494 Overdrawn Cash Protection Services Special Revenue Fund
General Fund Patterson Public Financing Authority Debt Service Fund 441,007 Overdrawn Cash General Fund Federal CDBG Grant Special Revenue Fund 193,441 Overdrawn Cash Total $ 4,716,942
B. Advances To and From Other Funds
Water Fund Advance to the Sewer Fund
On March 14, 2023, the Sewer Fund entered into loan agreement with the Water Fund in the amount of $1,600,000. The loan is to be repaid over 10 years at 2.425% interest rate per year. This loan is for funding the settlement with Patterson Ranch Development for oversized storm drain infrastructure. At June 30, 2023, the outstanding balance of the agreement was $1,600,000.

The annual requirements to amortize the loan are as follows:

Year Ending
June 30, Principal Interest Total
2024 143,128 $ 37,216 $ 180,344 $
2025 146,638 33,706 180,344
2026 150,233 30,111 180,344
2027 153,917 26,427 180,344
2028 157,692 22,653 180,345
2029-2033 848,392 53,329 901,721
Total $ 203,442 1,600,000 $ 1,803,442 $
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
69 Note 5 – Interfund Transactions (Continued)
C. Transfers In and Out
Transfers in and out for the year ended June 30, 2023, was as follows:

Transfers In Transfers Out Amount Purpose
General Fund Gas Tax Special Revenue Fund $ 300,000 Capital projects General Fund Landscape Maintenance District Special Revenue Fund 1,437,082 Indirect overhead General Fund Benefit Assessment District Special Revenue Fund 29,503 Indirect overhead General Fund Water Enterprise Fund 690,053 Indirect overhead General Fund Sewer Enterprise Fund 251,295 Indirect overhead General Fund Garbage Enterprise Fund 632,445 Indirect overhead Subtotal 3,340,378
CFD 2003-1 Public Safety/Fire
Protection Services Fund General Fund 660,000 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 1,245,000
Street Project Capital Projects Fund General Fund 5,508 Capital projects Street Project Capital Projects Fund Garbage Enterprise Fund 100,000 Capital projects Street Project Capital Projects Fund Measure L Special Revenue Fund 802,176 Capital projects Local Transportation Fund Non Motorized
Street Project Capital Projects Fund Special Revenue Fund 35,379 Capital projects Street Project Capital Projects Fund Gas Tax Special Revenue Fund 471,558 Capital projects Street Project Capital Projects Fund Street Improvement Impact Fee 218,726 Capital projects Subtotal 1,633,347
Sewer Enterprise Fund General Fund 66,801 Debt service
Sewer Enterprise Fund Benefit Assessment District Special Revenue Fund 140,203 Debt service Sewer Enterprise Fund Water Enterprise Fund Indirect overhead 2,462 Subtotal 209,466
Measure L Special Revenue Fund Water Enterprise Fund 1,475,090 Capital projects Water Fund Measure L Special Revenue Fund Indirect overhead 126 Total $ 7,903,407
Note 6 – Due from Fiduciary Funds
Due from fiduciary funds as of June 30, 2023, was as follows:

Receivable Fund Payable Fund Amount Purpose
General Fund CFD 2015-1 Arambel-KDN Custodial Fund $ 52,587 Overdrawn Cash Total $ 52,587
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
70 Note 7 – Capital Assets
A. Governmental Activities
Summary of changes in capital assets for governmental activities for the year ended June 30, 2023 is as follows:

Balance
July 1, 2022, Adjustments/ Balance
as restated Additions Deletions Transfers June 30, 2023 Capital assets, not being depreciated
Land $ 5,271,125 $ 188,110 $ - $ 5,459,235 - $
Construction in progress 9,097,213 7,619,397 (2,693,075) (4,283,743) 9,739,792 Total capital assets, not being depreciated 14,368,338 7,807,507 (2,693,075) (4,283,743) 15,199,027 Capital assets, being depreciated
Building 23,972,872 565,312 - 24,538,184 -
Improvements 16,460,797 530,220 - 16,991,017 -
Infrastructure 34,841,130 4,829,081 (1,774,777) 4,283,743 42,179,177 Equipment 6,952,904 428,188 - 7,381,092 -
Subtotal 82,227,703 6,352,801 (1,774,777) 4,283,743 91,089,470 Less: accumulated depreciation
Building (7,903,826) (604,418) - (8,508,244) -
Improvements (9,796,668) (801,925) - (10,598,593) -
Infrastructure (9,649,866) (1,854,460) 44,369 (11,459,957) - Equipment (6,100,429) (267,318) - (6,367,747) -
Subtotal (33,450,789) (3,528,121) 44,369 (36,934,541) - Total capital assets, being depreciated, net 48,776,914 2,824,680 (1,730,408) 4,283,743 54,154,929 Lease assets, being amortized
Building 83,544 467,209 - 550,753 -
Subtotal 83,544 467,209 - 550,753 -
Less: accumulated amortization
Building (16,368) (23,052) - (39,420) -
Subtotal (16,368) (23,052) - (39,420) -
Total lease assets, being amortized, net 67,176 444,157 - 511,333 - Subscription assets, being amortized 110,022 - - 110,022 - Less: accumulated amortization (52,810) - - (52,810) -
Total subscription assets, being amortized, net 110,022 (52,810) - 57,212 - Total capital assets, net $ 63,322,450 $ 11,023,534 $ (4,423,483) $ 69,922,501 - $ Governmental activities depreciation and amortization expenses for capital assets for the year ended June 30, 2023 are as follows:

General government $ 1,188,462
Fire 210,000
Public works 1,496,732
Park and recreation 708,789
Total depreciation/amortization 3,603,983 $
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
71 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, 2023 is as follows:

Balance Adjustments/ Balance
July 1, 2022 Additions Deletions Transfers June 30, 2023 Capital assets, not being depreciated
Land $ 6,196,329 $ 1,259,593 $ - $ 7,455,922 - $
Construction in progress 6,625,335 8,579,998 (1,313,431) (1,680,095) 12,211,807 Total capital assets, not being depreciated 12,821,664 9,839,591 (1,313,431) (1,680,095) 19,667,729 Capital assets, being depreciated
Infrastructure 67,302,561 7,688,138 1,606,077 - 76,596,776 Equipment 6,128,645 1,536,541 (10,000) 74,018 7,729,204 Subtotal 73,431,206 9,224,679 (10,000) 1,680,095 84,325,980 Less: accumulated depreciation
Infrastructure (34,501,823) (3,868,921) - (38,370,744) - Equipment (4,734,480) (569,087) - (5,303,567) -
Subtotal (39,236,303) (4,438,008) - (43,674,311) -
Total capital assets, being depreciated, net 34,194,903 4,786,671 (10,000) 1,680,095 40,651,669 Total capital assets, net $ 47,016,567 $ 14,626,262 $ (1,323,431) $ 60,319,398 - $ Business-type activities depreciation expenses for capital assets for the year ended June 30, 2023 are as follows:

Water $ 1,692,089
Sewer 2,724,759
Garbage 21,160
Total depreciation $ 4,438,008
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, 2023 is as follows:

Balance
Original July 1, 2022, Balance Due Within Due In More
Issuance as restated Additions Deletions June 30, 2023 One Year Than One Year Private Placement:

PPFA 2013 Heartland Ranch Revenue Bonds 4,963,568 $ $ 1,848,375 $ (462,628) - $ $ 1,385,747 $ 470,959 $ 914,788 PPFA 2013 Series A Revenue Bonds 67,190,000 55,195,000 (1,930,000) - 53,265,000 1,855,000 51,410,000 Less: Bond Discount (853,389) (597,295) - 28,446 (568,849) (568,849) - PPFA 2013 Series B Revenue Bonds 6,465,000 5,410,000 (175,000) - 5,235,000 175,000 5,060,000 2018 Lease Revenue Bonds 2,429,000 1,898,414 (144,453) - 1,753,961 149,510 1,604,451 Direct Borrowing:

Lease liability 536,299 72,094 464,205 (115,660) 420,639 118,044 302,595 Subscription liability 110,020 110,020 (52,117) - 57,903 53,384 4,519 Keystone Corporation Settlement 1,300,000 364,000 - 364,000 - 364,000 - Patterson Ranch Development Settlement 1,333,355 1,333,355 - 1,333,355 - 1,333,355 - Total long-term debt $ 83,473,853 $ 64,300,608 $ 1,797,560 $ (2,851,412) $ 63,246,756 $ 4,155,252 $ 59,091,504 City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
72 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, 2023, the outstanding balance of the 2013 Heartland Ranch Revenue bonds was $1,385,747.

The annual debt service requirements are as follows:

Year Ending
June 30, Principal Interest Total
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 $ 1,385,747 $ 103,948 $ 1,489,695
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, 2023, the outstanding balance of the 2013 PPFA Series A bonds was $53,265,000.

The annual debt service requirements are as follows:

Year Ending
June 30, Principal Interest Total
2024 $ 1,855,000 $ 2,927,800 $ 4,782,800
2025 2,020,000 2,825,819 4,845,819
2026 2,190,000 2,715,044 4,905,044
2027 2,340,000 2,595,869 4,935,869
2028 2,465,000 2,463,300 4,928,300
2029-2033 14,495,000 10,144,681 24,639,681
2034-2038 18,280,000 5,564,275 23,844,275
2039-2040 9,620,000 565,225 10,185,225
Total 53,265,000 $ $ 29,802,013 $ 83,067,013
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
73 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, 2023, the outstanding balance of the 2013 PPFA Series B bonds was $5,235,000.

The annual debt service requirements are as follows:

Year Ending
June 30, Principal Interest Total
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 240,000 253,800 493,800
2029-2033 1,420,000 1,036,056 2,456,056
2034-2038 1,825,000 566,203 2,391,203
2039-2040 950,000 57,134 1,007,134
Total $ 5,235,000 $ 3,056,761 $ 8,291,761
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, 2023, the outstanding balance of the 2018 Lease Revenue Bonds was $1,753,961.

The annual debt service requirements are as follows:

Year Ending
June 30, Principal Interest Total
2024 149,510 $ 59,577 $ 209,087 $
2025 154,743 54,344 209,087
2026 160,158 48,927 209,085
2027 165,764 43,322 209,086
2028 171,566 37,520 209,086
2029-2033 952,220 93,209 1,045,429
Total 1,753,961 $ 336,899 $ 2,090,860 $
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
74 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 1.875%. At June 30, 2023, the outstanding balance of the lease liability was $420,639.

The annual debt service requirements are as follows:

Year Ending
June 30, Principal Interest Total
2024 118,044 $ 5,409 $ 123,453 $
2025 117,630 3,712 121,342
2026 118,226 1,518 119,744
2027 62,686 240 62,926
2028 4,053 47 4,100
Total 420,639 $ 10,926 $ 431,565 $
Subscription Liability
The City’s Governmental Activities has entered into subscription-based information technology arrangements (SBITAs) for services related to cloud-based software applications, data storage and management services. Under the terms of these arrangements, the Town does not take possession of the software at any time and the vendor provides ongoing services for the software's operation. The subscription period is 25 months and the calculated interest rate used was 2.92%.

As of June 30, 2023, the capitalized right-to-use assets related to SBITAs were $110,020 and the total subscription liability was $57,903, of which $53,384 is reported as a current liability representing the amount due within the next fiscal year.

The annual debt service requirements on the subscription liability are as follows:

Year Ending
June 30, Principal Interest Total
2024 $ 53,384 $ 980 $ 54,364
2025 4,519 11 4,530
Total $ 57,903 $ 991 $ 58,894
Keystone Corporation Settlement
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.

City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
75 Note 8 – Long-Term Debt (Continued)
A. Governmental Activities (Continued)
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, 2023, the remaining balance of the settlement payable was $364,000.

Patterson Ranch Development Settlement
On November 3, 2022, Patterson Ranch Development LLC (PRD LLC) sent a letter to the City alleging that the City failed to comply with its Reimbursement Administration obligations under Section 5.9 of the Development Agreement in that it failed to condition the subdivision map approvals or reach a reimbursement agreement with the Stakeholders and PRD LLC to allow for the timely payment of the Reimbursement Obligation owed to PRD LLC for the Public Facilities Improvements. The City and PRD LLC had settlement discussions and PRD LLC has agreed to waive their claim as to the timing of the reimbursement obligation in exchange for a portion of the reimbursement obligation being paid immediately and the rest of the reimbursement obligation being covered after the issuance of bond proceeds from Community Facilities District 2018-1. Under the terms of the settlement agreement, the total amount the City will pay PRD LLC is $1,333,355. At June 30, 2023, the outstanding balance of the settlement liability was $1,333,355.

B. Business-Type Activities
Summary of changes in long-term liabilities for the business-type activities for the year ended June 30, 2023 is as follows:

Original Balance Balance Due Within Due In More
Issuance July 1, 2022 Additions Deletions June 30, 2023 One Year Than One Year Water Fund:

Public Offering:
2019A Water Revenue Bonds $ 9,215,000 $ 9,035,000 $ (70,000) - $ $ 8,965,000 $ 70,000 $ 8,895,000 Add: Bond Premium 536,988 - (19,527) - 517,461 19,527 497,934 2019B Water Revenue Refunding Bonds 7,015,000 6,190,000 (260,000) - 5,930,000 270,000 5,660,000 Add: Bond Premium 791,283 - (28,515) - 762,768 28,515 734,253 Direct Borrowing:
2021 State Revolving Fund Loan 4,000,000 41,000 - 41,000 - 1,808 39,192 Total water fund 20,230,000 16,553,271 41,000 (378,042) 16,216,229 389,850 15,826,379 Sewer Fund:

Public Offering:
2009 Sewer Revenue Bonds 3,195,000 175,000 (85,000) - 90,000 90,000 - Private Placement:
2017 Sewer Refunding Revenue Bonds 2,712,200 2,542,500 (31,500) - 2,511,000 32,600 2,478,400 Direct Borrowing:
2008 State Revolving Fund loan 774,790 404,644 (46,154) - 358,490 47,355 311,135 2021 State Revolving Fund Loan 2,084,000 621,907 - 621,907 - 27,428 594,479 Banc of America loan 951,540 1,294,515 (73,458) - 1,221,057 92,790 1,128,267 CEC loan 2,876,172 1,347,422 (201,657) - 1,145,765 203,651 942,114 Patterson Ranch Development Settlement 2,723,211 2,723,211 - (1,600,000) 1,123,211 1,123,211 - Total sewer fund 15,316,913 5,764,081 3,345,118 (2,037,769) 7,071,430 493,824 6,577,606 Total business-type activities $ 35,546,913 $ 22,317,352 $ 3,386,118 $ (2,415,811) $ 23,287,659 $ 883,674 $ 22,403,985 City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
76 Note 8 – Long-Term Debt (Continued)
B. Business-Type Activities (Continued)
2019A Water Revenue Bonds
On December 24, 2019, the Patterson Public Financing Authority issued $9,215,000 Water Revenue Bonds, Series 2019A (“Series 2019A”). The City entered into an Installment Sale Agreement dated December 1, 2019 with the Patterson Public Financing Authority to assist with the financing of certain water system improvements in the amount of $9,591,000. The Series 2019A bonds are scheduled to mature on each June 1 from 2021 to 2049 with serial bonds from 2021 to 2039 and principal amounts ranging from $50,000 to $120,000 and term bonds maturing in 2044 in the amount of $3,415,000 and 2049 in the amount of $4,080,000. Interest rates range from

2.75 percent to 4.00 percent. The Series 2019A bonds are secured by a pledge of Net Revenues of the water System and are on parity with the Water Revenue Bonds, Series 2010. The Series 2019A bonds were sold with a net original issue premium of $585,803 and costs of issuance of $209,803 (including the underwriter’s discount, the fee for bond insurance and a surety fee for the reserve fund). At June 30, 2023, the outstanding balance of the 2019A Water Revenue Bonds was $8,965,000.

The annual debt service requirements are as follows:

Year Ending
June 30 Principal Interest Total
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 80,000 301,744 381,744
2029-2033 445,000 1,458,519 1,903,519
2034-2038 535,000 1,363,900 1,898,900
2039-2043 2,795,000 1,143,100 3,938,100
2044-2048 3,955,000 500,450 4,455,450
2049-2050 865,000 25,950 890,950
Total 8,965,000 $ 6,029,139 $ 14,994,139 $
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).

City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
77 Note 8 – Long-Term Debt (Continued)
B. Business-Type Activities (Continued)
2019B Water Revenue Refunding Bonds (Continued)
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, 2023, the outstanding balance of the 2019B Sewer Refunding Revenue Bonds was $5,930,000.

The annual debt service requirements are as follows:

Year Ending
June 30 Principal Interest Total
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 315,000 184,900 499,900
2029-2033 1,795,000 719,100 2,514,100
2034-2038 2,180,000 323,200 2,503,200
2039 490,000 9,800 499,800
Total 5,930,000 $ 2,113,100 $ 8,043,100 $
2021 Water State Revolving Fund Loan
In 2021, the City entered into an agreement with the State Water Resource Board for a loan in the amount of $4,000,000. 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 bears interest in the amount of 1.2 percent. The loan matures in October 2029. At June 30, 2023, the outstanding balance of the State Revolving Fund Loan was $41,000.

The annual debt service requirements are as follows:

Year Ending
June 30 Principal Interest Total
2024 1,808 $ 533 $ 2,341 $
2025 1,832 509 2,341
2026 1,856 486 2,342
2027 1,880 462 2,342
2028 1,904 437 2,341
2029-2033 9,899 1,808 11,707
2034-2038 10,559 1,147 11,706
2039-2043 11,262 443 11,705
Total 41,000 $ 5,825 $ 46,825 $
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
78 Note 8 – Long-Term Debt (Continued)
B. Business-Type Activities (Continued)
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, 2023, the outstanding balance of the 2009 Sewer Revenue Bonds was $90,000.

The annual debt service requirements are as follows:

Year Ending
June 30 Principal Interest Total
2024 90,000 $ 4,275 $ 94,275 $
Total 90,000 $ 4,275 $ 187,925 $
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, 2023, the outstanding balance of the 2017 Sewer Refunding Revenue Bonds was $2,511,000.

The annual debt service requirements are as follows:

Year Ending
June 30 Principal Interest Total
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 145,700 70,723 216,423
2029-2033 789,700 276,757 1,066,457
2034-2038 935,600 132,838 1,068,438
2039 209,100 7,109 216,209
Total 2,511,000 $ $ 812,332 $ 3,323,332
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
79 Note 8 – Long-Term Debt (Continued)
B. Business-Type Activities (Continued)
2008 Sewer 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 fiscal year 2010. The loan amount is based on the amount of draws by the City for reimbursable costs. The loan bears interest at the amount of 1.3 percent.

The loan matures in October 2029. At June 30, 2023, the outstanding balance of the State Revolving Fund Loan was $358,490.

The annual debt service requirements are as follows:

Year Ending
June 30 Principal Interest Total
2024 47,355 $ 9,321 $ 56,676 $
2025 48,586 8,089 56,675
2026 49,849 6,826 56,675
2027 51,145 5,530 56,675
2028 52,475 4,200 56,675
2029-2030 109,080 4,272 113,352
Total 358,490 $ 38,238 $ 396,728 $
2021 Sewer State Revolving Fund Loan
In 2021, the City entered into an agreement with the State Water Resource Board for a loan in the amount of $2,084,000. 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 bears interest in the amount of 1.3 percent. The loan matures in October 2029. At June 30, 2023, the outstanding balance of the State Revolving Fund Loan was $621,907.

The annual debt service requirements are as follows:

Year Ending
June 30 Principal Interest Total
2024 27,428 $ 8,085 $ 35,513 $
2025 27,785 7,728 35,513
2026 28,146 7,367 35,513
2027 28,512 7,001 35,513
2028 28,883 6,630 35,513
2029-2033 150,145 27,422 177,567
2034-2038 160,161 17,405 177,566
2039-2043 170,847 6,720 177,567
Total 621,907 $ 88,358 $ 710,265 $
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
80 Note 8 – Long-Term Debt (Continued)
B. Business-Type Activities (Continued)
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, 2023, the outstanding balance of the Banc of America Public Capital Loan was $1,221,057.

Year Ending
June 30 Principal Interest Total
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 409,222 21,326 430,548
2029 308,581 8,030 316,611
Total 1,221,057 $ 171,831 $ 1,392,888 $
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, 2023, the outstanding balance of the CEC loan was $1,145,765.

The annual debt service requirements are as follows:

Year Ending
June 30 Principal Interest Total
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 211,964 2,666 214,630
2029 106,780 535 107,315
Total 1,145,765 $ 34,702 $ 1,180,467 $
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
81 Note 8 – Long-Term Debt (Continued)
B. Business-Type Activities (Continued)
Patterson Ranch Development Settlement
On November 3, 2022, Patterson Ranch Development LLC (PRD LLC) sent a letter to the City alleging that the City failed to comply with its Reimbursement Administration obligations under Section 5.9 of the Development Agreement in that it failed to condition the subdivision map approvals or reach a reimbursement agreement with the Stakeholders and PRD LLC to allow for the timely payment of the Reimbursement Obligation owed to PRD LLC for the Public Facilities Improvements. The City and PRD LLC had settlement discussions and PRD LLC has agreed to waive their claim as to the timing of the reimbursement obligation in exchange for a portion of the reimbursement obligation being paid immediately and the rest of the reimbursement obligation being covered after the issuance of bond proceeds from Community Facilities District 2018-1. Under the terms of the settlement agreement, the total amount the City will pay PRD LLC is $2,723,211. In Fiscla Year 2023, the Water Fund advanced the Sewer Fund $1,600,000 to pay for a portion of the settlement (see Note 5 B). At June 30, 2023, the outstanding balance of the settlement liability was $1,123,211.

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, 2023 is as follows:

Balance Balance Due Within Due In More
July 1, 2022 Additions Deletions June 30, 2023 One Year Than One Year Governmental Activities $ 597,244 $ 567,488 $ (497,435) $ 667,297 $ 667,297 $ - Classification
B. Business-Type Activities
Summary of changes in compensated absences for the year ended June 30, 2023 is as follows:

Balance Balance Due Within Due In More
July 1, 2022 Additions Deletions June 30, 2023 One Year Than One Year Business-Type Activities:

Water Fund $ 120,270 $ 140,516 $ (123,096) $ 137,690 $ 137,690 $ - Sewer Fund 132,336 180,777 (135,169) 177,944 177,944 -
Garbage Fund 30,224 51,932 (35,198) 46,958 46,958 -
Total business-type activities $ 282,830 $ 373,225 $ (293,463) $ 362,592 $ 362,592 $ - Classification
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
82 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, 2023 was as follows:

Heartland Ranch Authority Bonds $ 1,321,848
Community Facilities District No. 2013-A1 Special Tax Bonds 29,540,762 Community Facilities District No. 2013-A2 Special Tax Bonds 23,885,231 Community Facilities District No. 2013-B Special Tax Bonds 3,476,156 Community Facilities District No. 2005-1 Business Park Special Tax Bonds 9,050,000 Community Facilities District No. 2015-1 Special Tax Bonds 4,610,000 Community Facilities District No. 2018-1 Special Tax Bonds, Series 2021 4,415,000 Community Facilities District No. 2005-1 Special Tax Bonds, Series 2021 6,775,000 Total $ 83,073,997
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
83 Note 11 – Fund Balances
At June 30, 2023, 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 138,149 $ 6,596 $ - $ - $ 144,745 $
Total nonspendable 138,149 6,596 - 144,745 -
Restricted:

Debt service 442,831 58,371,376 - 58,814,207 -
Assessment Districts - - 3,766,577 - 3,766,577
Grants 117,930 - 654,885 - 772,815
Streets and roads - - 3,515,203 - 3,515,203
Measure L - - 3,507,494 - 3,507,494
Developer housing in-lieu - - 1,062,184 - 1,062,184
Community Facilities Districts - - 787,576 - 787,576
Impact fee - - 644,639 - 644,639
Total restricted 560,761 58,371,376 - 13,938,558 72,870,695 Committed:

Contingencies 9,838,576 - - 9,838,576 -
Capital projects - - 10,364,796 - 10,364,796
Total committed 9,838,576 - 10,364,796 - 20,203,372
Assigned:

General government operations 1,069,799 - - 1,069,799 - Fund deficits 4,118,174 - - 4,118,174 -
Encumbrances 628,091 - - 628,091 -
OPEB 71,713 - - - 71,713
Capital projects 348,561 - - 348,561 -
Total assigned 6,236,338 - - 6,236,338 -
Unassigned (deficit) 1,389,339 (4,124,770) (344,307) - (3,079,738) Total $ 18,163,163 $ (4,118,174) $ 58,371,376 $ 23,959,047 $ 96,375,412 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, 2023
84 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, 2023, is as follows:

Total Assets $ 153,984,502
Total Liabilities $ 120,022,096
Net Position $ 33,962,406
Operating Revenues $ 73,024,624
Operating Expenses $ 71,300,255
Nonoperating Revenues (Expenses) $ 64,143
Change in Net Position $ 1,788,512
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 $25,000) 1,000,000,000
Worker's Compensation ($500,000) Statutory Limit
Boiler and Machinery ($5,000 to $25,000) 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, 2023, the City contributed $1,836,055 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, 2023
85 Note 13 – Pension Plans
A. Summary
Governmental Business-Type
Activities Activities Total
Deferred outflows of resources:

Pension contribution after measurement date:

Miscellaneous 1,003,071 $ 703,854 $ 1,706,925 $
Safety 668,931 - 668,931
Change in assumptions:

Miscellaneous 482,565 338,616 821,181
Safety 391,796 - 391,796
Difference between expected and actual experience:

Miscellaneous 31,232 21,915 53,147
Safety 118,619 - 118,619
Adjustments due to differences in proportions
Miscellaneous 289,827 203,373 493,200
Safety 325,475 - 325,475
Differences between projected and actual investment
investment earnings
Miscellaneous 862,617 605,298 1,467,915
Safety 613,606 - 613,606
Total deferred outflows of resources $ 1,873,056 4,787,739 $ 6,660,795 $ Net pension liabilities:

Miscellaneous 4,709,289 $ 3,304,508 $ 8,013,797 $
Safety 3,885,700 - 3,885,700
Total net pension liabilities $ 3,304,508 8,594,989 $ 11,899,497 $ Deferred inflows of Resources:

Differences between City's contributions and
proportionate share of contributions
Miscellaneous 74,219 52,079 126,298
Safety 218,095 - 218,095
Total deferred inflows of resources $ 52,079 292,314 $ 344,393 $ Pension expenses:

Miscellaneous 1,300,154 $ 912,318 $ 2,212,472 $
Safety 825,062 - 825,062
Total pension expenses $ 912,318 2,125,216 $ 3,037,534 $ City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
86 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, 2022, measurement date, the following employees were covered by the benefit terms:

Miscellaneous Safety
Miscellaneous PEPRA Safety PEPRA
Active employees 48 57 14 6
Transferred and terminated employees 50 33 5 4
Retired employees and beneficiaries 48 2 39 -
Total 146 92 58 10
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 55625057
Monthly benefits, as a % of
eligible compensation 2.7% 2.0% 3.0% 2.7%
Required employee contribution rate 8.000% 7.750% 9.000% 13.750% 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, 2023
87 Note 13 – Pension Plans (Continued)
B. General Information about Pension Plans (Continued)
Contributions
For the year ended June 30, 2023, the contributions recognized as part of pension expense for each Plan are as follows:

Miscellaneous Safety Total
Contributions - employer $ 1,706,925 $ 668,931 $ 2,375,856 Change in Assumptions
The discount rate lowered from 7.15% in 2022 to 6.90% in 2023. The investment rate of return lowered from

7.15% in 2022 to 6.90% in 2023. In the prior year, the actuarial report did not have any changes in assumptions.

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: 6/30/21 (Valuation date) 34,550,727 $ 31,784,954 $ 2,765,773 $ Balance at: 6/30/22 (Measurement date) 39,403,463 31,389,666 8,013,797 Net changes during 2021-2022 4,852,736 (395,288) 5,248,024 Safety
Balance at: 6/30/21 (Valuation date) 14,082,820 $ 12,315,218 $ 1,767,602 $ Balance at: 6/30/22 (Measurement date) 15,902,290 12,016,589 3,885,701 Net changes during 2021-2022 1,819,470 (298,629) 2,118,099 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, 2022, 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, 2021 rolled forward to June 30, 2022 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, 2022 and 2021 were as follows:

Miscellaneous Safety Total
Proportion - June 30, 2021 0.14566% 0.05037% 0.19603%
Proportion - June 30, 2022 0.17126% 0.05655% 0.22781%
Change - Increase/(Decrease) 0.02560% 0.00618% 0.03178% City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
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 year ended June 30, 2023, the City recognized pension expense/credit of $2,212,472 and $825,062, for the Miscellaneous and Safety plans, respectively. At June 30, 2023, 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 1,706,925 $ - $ Difference between expected and actual
experience 53,147 -
Changes of assumptions 821,181 -
Net difference between projected and actual
earnings on pension plan investments 1,467,915 -
Employer contributions in excess/(under)
proportionate share of contributions - 126,298
Adjustments due to difference in proportions 493,200 -
Total 4,542,368 $ $ 126,298
Miscellaneous Plan
Deferred outflows Deferred inflows
of resources of resources
Contribution made after the measurement date 668,931 $ - $ Difference between expected and actual
experience 118,619 -
Changes of assumptions 391,796 -
Net difference between projected and actual
earnings on pension plan investments 613,606 -
Employer contributions in excess/(under)
proportionate share of contributions - 218,095
Adjustments due to difference in proportions 325,475 -
Total 2,118,427 $ $ 218,095
Safety Plan
Deferred outflows Deferred inflows
of resources of resources
Contribution made after the measurement date 2,375,856 $ - $ Difference between expected and actual
experience 171,766 -
Changes of assumptions 1,212,977 -
Net difference between projected and actual
earnings on pension plan investments 2,081,521 -
Employer contributions in excess/(under)
proportionate share of contributions - 344,393
Adjustments due to difference in proportions 818,675 -
Total 6,660,795 $ $ 344,393
Aggregate Total
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
89 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, $1,706,925 and $668,931, 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
2024 $ 801,520 $ 400,919 $ 1,202,439
2025 661,603 302,076 963,679
2026 348,195 154,098 502,293
2027 897,827 374,308 1,272,135
2028 - - -
Thereafter - - -
Total $ 2,709,145 $ 1,231,401 $ 3,940,546
Deferred Outflows/(Inflows) of Resources
Actuarial Assumptions
The total pension liabilities in the June 30, 2021 actuarial valuations were determined using the following actuarial assumptions:

Actuarial Cost Method
Actuarial Assumptions:

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

6.90%

2.50%
Varies by Entry Age and Service

6.90%
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 2.50% until Purchasing Power Protection Allowance Floor on Purchasing Power applies
All other actuarial assumptions used in the June 30, 2021 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, 2023
90 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 6.90%. 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 6.90% discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 6.90% 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.

Assumed Asset Real Return
Asset Class1 Allocation Years 1-102
Global Equity 30.00% 4.45%
Global Equity 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Liquidity -5.00% -0.59%
1 In the CalPERS' ACFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.
2 An expected inflation of 2.30% used for this period
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
91 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%
(5.90%) Rate (6.90%) (7.90%)
Miscellaneous 13,385,200 $ 8,013,797 $ 3,594,466 $
Safety 6,081,782 3,885,700 2,090,900
Total 19,466,982 $ 11,899,497 $ 5,685,366 $
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, 2023, the City had no outstanding amounts owed to the pension plan for contributions for the year ended June 30, 2023.

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 $ 315,363 $ 148,874 $ 464,237 Net difference between projected and
actual earnings on plan investments 16,142 7,620 23,762 Changes in assumptions 1,147,647 541,772 1,689,419
Total deferred outflows of resources $ 1,479,152 $ 698,266 $ 2,177,418 Net OPEB liability:

Net OPEB liability $ 5,747,349 $ 1,867,265 $ 7,614,614
Total OPEB liability $ 5,747,349 $ 1,867,265 $ 7,614,614 Deferred inflows of Resources:

Difference between expected and actual experience $ 1,821,503 $ 1,083,337 $ 2,904,840 Change in assumption 3,808,177 2,264,909 6,073,086
Total deferred inflows of resources $ 5,629,680 $ 3,348,246 $ 8,977,926 Net OPEB Expense $ 406,526 $ 253,276 $ 659,802
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
92 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 multiple-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, 2021, the valuation date:

Active employees 121
Transferred and terminated employees 13
Retired employees and beneficiaries 18
Total 152
Contributions
The obligation of the City to contribute to the Plan is established and may be amended by the City Council. For the 2021-22 fiscal year, measurement period, Payments made outside of the trust were $148,232. Employees are currently not required to contribute to the plan.

In fiscal year 2022, the City elected to begin prefunding its OPEB obligation through the use of an irrevocable trust established with the Public Agencies Retirement System (PARS) OPEB Trust Program. This trust fund is an agent multiple-employer plan. The trust is used to accumulate and invest funds necessary to pay for future retiree benefits and to reduce the Town’s future cash flow requirements. PARS is a tax qualified irrevocable trust, organized under Internal Revenue Code (IRC) Section 115, established to prefund retirement health benefits. At June 30, 2022, measurement date, the balance in this trust account was $728,233.

Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2022. The total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2021.

City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
93 Note 14 – Other Postemployment Benefits (Continued)
C. Net OPEB Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB Actuarial Assumptions
The net OPEB liability in the June 30, 2021 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:

Actuarial Assumptions:

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

5.50%

2.50%

2.75%
n/a
CalPERS 1997-2015 Experience Study
An annual healthcare cost trend rate of 6.50% initially reduced by decrements to an ultimate of 3.75% in 2076.

An annual healthcare cost trend rate of 5.65% initially reduced by decrements to an ultimate of 3.75% in 2076.

The actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial experience study for the period July 1, 2020 through June 30, 2021.

Discount Rate
The discount rate used to measure the net OPEB liability was 5.50% 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
Total OPEB Fiduciary Net Net OPEB
Liability Position Liability
Balance at June 30, 2021 (Valuation Date) $ 14,902,623 $ - $ 14,902,623 Changes Recognized for the Measurement Period:

Service Cost 1,156,354 - 1,156,354
Interest on the total OPEB liability 346,275 - 346,275
Difference between expected and actual experience (1,645,289) - (1,645,289) Changes of assumptions (6,213,884) - (6,213,884)
Contributions from the employer - 955,100 (955,100)
Net investment income - (21,455) 21,455
Administrative expenses - (2,180) 2,180
Benefit payments (203,232) (203,232) -
Net Changes during July 1, 2021 to June 30, 2022 (6,559,776) 728,233 (7,288,009) Balance at June 30, 2022 (Measurement Date) $ 8,342,847 $ 728,233 $ 7,614,614 City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
94 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 (4.50 percent) or 1-percentage- point higher (6.50 percent) than the current discount rate:

Discount Rate - 1% Current Discount Discount Rate + 1%
(4.50%) Rate (5.50%) (6.50%)
$ 8,651,477 $ 7,614,614 $ 6,737,498
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%
$ 7,614,614 6,795,035 $ 8,690,229 $
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, 2023, the City recognized OPEB expense of $659,802. At June 30, 2023, 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 - $ 2,904,840 $ Changes of assumptions 1,689,419 6,073,086
Net difference between projected and
actual earnings on plan investments 23,762 -
Employer contributions made
subsequent to the measurement date 464,237 -
Total 2,177,418 $ 8,977,926 $
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 10.5 years, which was determined as of June 30, 2021, 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, 2023
95 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, $464,237 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
2024 $ (836,759)
2025 (836,759)
2026 (836,759)
2027 (835,761)
2028 (729,702)
Thereafter (3,189,005)
$ (7,264,745)
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, 2023, 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 $ 4,118,174 Protection Services Fund
Federal CDBG Grant Fund Special Revenue 233,081
Local Transportation Fund Special Revenue 110,392
Heartland Ranch Infrastructure Fund Capital Projects 834 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, 2023
96 Note 16 – Other Required Disclosures (Continued)
B. Expenditures Exceeding Appropriations
For the year ended June 30, 2023, expenditures exceeded appropriations in the following funds/functions:

Fund Function Excess Expenditures
CFD 2001-01 Patterson Gardens
Public Safety Special Revenue Fund Fire $ 279
Benefits Assessments Districts Special Revenue Fund General government 444 Federal HOME Special Revenue Fund General government 3,701 CFD 2018-2 VOP Maintenance Special Revenue Fund General government 19,802 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, 2023 consisted of the following:

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

Capital assets, nondepreciable 15,199,027 $ 19,667,729 $ Capital assets, depreciable/amortizable, net 54,723,474 40,651,669 Unspent bond proceeds - Restricted cash and investment - 405,582 Unspent bond proceeds - Cash with fiscal agent - 11,119,195 Deferred amount on refunding - 308,583
Long-term debt:

Accounts payable (capital-related) (8,544) -
Lease liability (420,639) -
Subscription liability (57,903) -
2018 Lease Revenue Bonds (1,753,961) -
2019A Water Revenue Bonds - (9,482,461)
2019B Water Revenue Refunding Bonds - (6,692,768)
2009 Sewer Revenue Bonds - (90,000)
2017 Sewer Refunding Revenue Bonds - (2,511,000)
2008 State Revolving Fund loan - (358,490)
2021 State Revolving Fund Loan (662,907)
Banc of America loan - (1,221,057)
CEC loan - (1,145,765)
Patterson Ranch Development Settlement - (1,123,211)
Total net investment in capital assets 67,681,454 $ 48,865,099 $ City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
97 Note 18 – Net Position (Continued)
B. Restricted Net Position
Restricted Net Position at June 30, 2023 consisted of the following:

Governmental Business-Type
Activities Activities
Restricted net position:

Restricted amount on fund statements 72,870,695 $ 3,137,525 $ Unavailable revenue 1,879,470 -
Long-term debt offset by investments held by trust:

PPFA 2013 Heartland Ranch Revenue Bonds (1,385,747) -
PPFA 2013 Series A Revenue Bonds (53,265,000) -
PPFA 2013 Series B Revenue Bonds (5,235,000) -
Total restricted net position $ 14,864,418 $ 3,137,525
Note 19 – Prior Period Adjustments
The City’s beginning fund balance and net position have been restated to reflect the cumulative effect of prior year adjustments to correct the accounting treatment of reimbursable expenditures and their related accounts receivable.

Previously, the City posted costs deemed to be reimbursable directly to either an accounts receivable account or a deposit account depending on the nature of the cost. These reimbursable costs were only recognized as expenditures if it was unlikely that the City would receive reimbursement for them. In order to increase financial transparency, the City now recognizes these expenditures at the time the actual costs are incurred, and an offsetting receivable is recorded. A summary of the restatements as of June 30, 2023 are as follows:

A. Government-Wide Financial Statements
The beginning net position at July 1, 2022 of the Government-Wide Financial Statements was restated as follows:

Governmental
Activities
Net position, as previously reported, at July 1, 2022 83,218,328 $ To correct error in accounting for accounts receivable (1,583,809) Net position at July 1, 2022, as restated 81,634,519 $
B. Governmental Fund Financial Statements
The beginning fund balance at July 1, 2022 of the Governmental Fund Financial Statements was restated as follows:

Local
Federal Transportation
General HOME Fund
Fund Funds Non Motorized
Net position, as previously reported, at July 1, 2022 $ 18,425,835 $ 180,539 $ 113,438 To correct error in accounting for accounts receivable (1,587,261) 2,475 977 Net position at July 1, 2022, as restated $ 16,838,574 $ 183,014 $ 114,415 City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
98 Note 19 – Prior Period Adjustments (Continued)
C. Custodial Fund Financial Statements
The beginning net position at July 1, 2022 of the Custodial Fund Financial Statements was restated as follows:

CFD 2018-1
VOP
Infrastructure
Net position (deficit), as previously reported, at July 1, 2022 5,849,387 $ To correct error in accounting for accounts receivable (69,183) Net position (deficit) at July 1, 2022, as restated 5,780,204 $ Note 20 – 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.

Note 21 – Subsequent Events
A. Patterson Public Financing Authority Special Tax Revenue Refunding Bonds Series 2023 The Patterson Public Financing Authority (the “Authority”), 2023 Refunding Special Tax Revenue Bonds (the “2023 Bonds”) are being issued to refund two series of bonds issued in 2013, the Patterson Public Financing Authority, Revenue Bonds, Senior Series 2013A (the “2013 Senior Bonds”) issued in the amount of $67,190,000 and outstanding in the amount of $53,265,000, the Patterson Public Financing Authority, Revenue Bonds, Subordinate Series 2013B (the “2013 Subordinate Bonds”) issued in the amount of $6,465,000 and currently outstanding in the amount of $5,235,000 (collectively, with the 2013 Senior Bonds, the “2013 Bonds”) and to provide project funds in the amount of $5,000,000 to facilitate a portion of the financing for the City’s Emergency Operations Center.

Since 2001, the Local Agency issued two series of notes and seven series of bonds on behalf of CFD 2001-1 to finance infrastructure improvements for CFD 2001-1. Concurrent with the issuance of the 2013 Bonds, the Local Agency issued Special Tax Refunding Bonds, Series 2001-A-1 currently outstanding in the amount of $29,540,762, Special Tax Refunding Bonds, Series 2001-A-2 currently outstanding in the amount of $23,885,232 and Special Tax Bonds, Series 2013-B currently outstanding in the amount of $3,476,156 (collectively the “Local Obligations”). The Local Obligations refunded all the outstanding bonds issued by the Local Agency on behalf of CFD 2001-1. The Authority issued the 2013 Bonds to purchase the Local Obligations.

City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
99 Note 21 – Subsequent Events (Continued)
A. Patterson Public Financing Authority Special Tax Revenue Refunding Bonds Series 2023 (Continued) The 2023 Bonds are expected to be issued in the amount of $58,895,000 with interest rates at 5.00% with yields ranging from 3.26 to 3.85%. The “all-in” true interest cost of the Bonds is currently estimated to be 3.845% reflecting all the costs associated with issuing the 2023 Bonds. Currently it is estimated that the costs of issuance will be $400,000 and the underwriter will charge an underwriter’s discount in the amount of $294,475 or 0.50% of the estimated par amount of $58,895,000. The underwriter’s discount is based on the percentage of the amount issued and may vary higher or lower depending on the final size of the issuance. The 2013 Bonds have a final maturity of September 1, 2039 and the 2023 Bonds will have the same final maturity of September 1, 2039, so there is no extension of the term.

The property owners pay their property tax bills each year a portion of which are the CFD 2001-1 special taxes. The special taxes are collected by the County and used to pay debt service on the Local Obligations. The debt service from the Local Obligations is then used to provide cash flow to pay the debt service first to the 2013 Senior Bonds at approximately 1.10 times debt service coverage each year and secondly to the 2013 Subordinate Bonds at approximately 1.00 times debt service coverage each year. There are approximately $5,837,452 of total anticipated property owner savings over the life of the 2023 Bonds. The annual savings of approximately $364,341 per year can be credited back to property owners on subsequent years property tax bills resulting in average annual savings of approximately $156 per parcel per year, beginning in tax year 2024/25. 100
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101

REQUIRED SUPPLEMENTARY INFORMATION
102
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City of Patterson
Budgetary Comparison Schedule
General Fund
For the Year Ended June 30, 2023
103
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Taxes:

Property $ 6,925,702 $ 7,225,702 $ 7,380,341 $ 154,639
Sales 13,081,296 13,081,296 12,842,865 (238,431)
Franchise 233,943 233,943 247,538 13,595
Other 227,738 227,738 308,014 80,276
Licenses, permits, and fees 1,994,357 1,994,357 1,238,967 (755,390) Charges for services 530,038 530,038 532,914 2,876
Intergovernmental:

Federal grant and subsidies 3,933,903 4,197,072 863,911 (3,333,161) Other governmental 2,573,127 2,573,127 601,881 (1,971,246) Fines, forfeitures and penalties 105,000 105,000 112,090 7,090 Interest 15,988 15,988 174,896 158,908
Miscellaneous 278,339 278,346 697,374 419,028
Total revenues 29,899,431 30,462,607 25,000,791 (5,461,816) EXPENDITURES:

Current:

General government 4,943,431 5,192,314 4,356,913 835,401 Police 7,029,380 7,056,430 6,542,712 513,718
Fire 3,558,937 3,761,741 3,596,359 165,382
Community development and planning 2,343,251 2,433,740 2,208,715 225,025 Public works 4,025,480 4,248,103 4,088,701 159,402
Park and recreation 2,831,804 3,182,844 3,045,751 137,093 Capital outlay 3,001,045 3,708,204 2,529,001 1,179,203
Debt service:

Principal 144,453 312,230 312,230 -
Interest and fiscal charges 64,633 68,094 68,094 -
Total expenditures 27,942,414 29,963,700 26,748,476 3,215,224

REVENUES OVER (UNDER)
EXPENDITURES 1,957,017 498,907 (1,747,685) (2,246,592)
OTHER FINANCING SOURCES (USES):

Inception of lease payable - - 464,205 464,205
Proceeds from sale of property - - - -
Transfers in 5,125,196 5,285,196 3,340,378 (1,944,818)
Transfers out (3,189,541) (3,189,541) (732,309) 2,457,232 Total other financing sources (uses) 1,935,655 2,095,655 3,072,274 976,619 Net change in fund balances $ 3,892,672 $ 2,594,562 1,324,589 $ (1,269,973) FUND BALANCE:

Beginning of year 16,838,574
End of year $ 18,163,163
Budgeted Amounts
City of Patterson
Budgetary Comparison Schedule
CFD 2003-1 Public Safety/Fire Protection Special Revenue Fund For the Year Ended June 30, 2023
104
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Charges for services $ 1,346,155 $ 1,346,155 $ 1,448,114 $ 101,959 Miscellaneous 67,000 67,000 3,000 (64,000)
Total revenues 1,413,155 1,413,155 1,451,114 37,959
EXPENDITURES:

Current:

General government 20,000 20,000 18,506 1,494
Fire 2,677,388 2,755,504 2,434,324 321,180
Capital outlay 783,395 796,925 769,442 27,483
Total expenditures 3,480,783 3,572,429 3,222,272 350,157

REVENUES OVER (UNDER)
EXPENDITURES (2,067,628) (2,159,274) (1,771,158) 388,116 OTHER FINANCING SOURCES (USES):

Transfers in 1,245,000 1,245,000 1,245,000 -
Total other financing sources (uses) 1,245,000 1,245,000 1,245,000 - Net change in fund balances $ (822,628) $ (914,274) (526,158) $ 388,116 FUND BALANCE (DEFICIT):

Beginning of year (3,592,016)
End of year $ (4,118,174)
Budgeted Amounts
City of Patterson
Notes to the Budgetary Comparison Schedule
Budgetary Information
For the Year Ended June 30, 2023
105
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, 2023 are disclosed in the notes to the financial statements. Appropriations for fiscal year 2023 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 proposed budget by June 30 of each year to City Council. 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 and grant funds are based on a project time frame, rather than a fiscal year "operating" time frame appropriating unused appropriations from year to year until project completion.

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

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

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

9. The City did not adopt a budget for the following fund: CDBG HA Loan Special Revenue Fund.

City of Patterson
Schedule of Proportionate Share of the Net Pension Liability Last Ten Years
For the Year Ended June 30, 2023
106
Measurement period, year ended 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 Plan's proportion of the net pension liability 0.1712600% 0.1456588% 0.1580126% 0.1530113% 0.1496090% 0.1499839% 0.1499839% 0.1557567% Plan's proportionate share of
the net pension liability 8,013,797 $ 2,765,773 $ 6,665,091 $ 6,127,339 $ 5,638,335 $ 5,912,437 $ 5,141,345 $ 4,273,133 $ Plan's covered-employee payroll 4,605,966 $ 4,605,966 $ 4,605,966 $ 4,471,812 $ 4,341,565 $ 4,215,111 $ 4,092,341 $ 3,973,147 $ Plan's proportionate share of
the net pension liability as a percentage
of covered-employee payroll 173.99% 60.05% 144.71% 137.02% 129.87% 140.27% 125.63% 107.55% Plan's fiduciary net position 31,389,666 $ 31,784,954 $ 24,491,193 $ 22,526,868 $ 19,926,425 $ 16,132,739 $ 13,690,393 $ 12,687,998 $ Plan's fiduciary net position as a percentage
of the total pension liability 79.66% 92.00% 78.61% 78.62% 77.94% 73.18% 72.70% 74.81% Plan's proportionate share of aggregate
employer contributions 1,426,665 $ 1,291,216 $ 1,103,312 $ 1,043,720 $ 900,310 $ 821,442 $ 693,115 $ 748,691 $ 1 Information only presented from the implementation year of 2014 Miscellaneous Plan
City of Patterson
Schedule of Proportionate Share of the Net Pension Liability (Continued) Last Ten Years
For the Year Ended June 30, 2023
107
Measurement period, year ended 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 Plan's proportion of the net pension liability 0.056550% 0.050366% 0.049523% 0.047853% 0.046974% 0.045984% 0.046120% 0.046242% Plan's proportionate share of
the net pension liability 3, $ 1,767,602 885,701 $ 3,299,373 $ 2,987,220 $ 2,756,215 $ 2,747,657 $ 2,388,655 $ 1,905,383 $ Plan's covered-employee payroll 1,369,049 $ 1,369,049 $ 1,369,049 $ 1,329,174 $ 1,290,460 $ 1,252,874 $ 1,216,383 $ 1,177,974 $ Plan's proportionate share of
the net pension liability as a percentage
of covered-employee payroll 283.82% 129.11% 241.00% 224.74% 213.58% 219.99% 196.37% 161.75% Plan's fiduciary net position 12,016,589 $ 12,315,218 $ 9,701,523 $ 9,134,775 $ 8,394,137 $ 7,539,289 $ 6,653,977 $ 6,545,084 $ Plan's fiduciary net position as a percentage
of the total pension liability 75.57% 87.45% 74.62% 75.36% 75.28% 73.23% 73.58% 77.45% Plan's proportionate share of aggregate
employer contributions 552,488 $ 552,488 $ 494,902 $ 457,665 $ 393,732 $ 337,685 $ 312,567 $ 364,763 $ 1 Information only presented from the implementation year of 2014 Safety Plan
City of Patterson
Schedule of Plan Contributions – Pension
Last Ten Years
For the Year Ended June 30, 2023
108
Fiscal Year: 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 Contractually determined
contribution (actuarially determined) 1,706,925 $ 1,426,665$ 1,291,216$ 1,103,312$ 1,043,720 $ 900,310 $ 821,442$ 693,115$ $ 748,691 Contributions in relation to the
actuarially determined contributions (1,706,925) (1,426,665) (1,291,216) (1,103,312) (1,043,720) (900,310) (821,442) (693,115) (748,691) Contribution deficiency (excess) $ - -$ -$ -$ -$ -$ -$ -$ -$ Covered payroll $ 4,886,469$ 4,744,145$ 4,605,966$ 4,471,812$ 4,341,565$ 4,215,111$ 4,092,341$ 3,973,147 5,033,063 $ Contributions as a percentage of
covered payroll 33.91% 30.07% 27.22% 23.95% 23.34% 20.74% 19.49% 16.94% 18.84% 1 Information only presented from the implementation year of 2014 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
Miscellaneous Plan
The actuarial methods and assumption used to set the actuarially determined contributions for Fiscal Year 2023 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 MP-20 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 – Pension (Continued)
Last Ten Years
For the Year Ended June 30, 2023
109
Fiscal Year: 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 Contractually determined
contribution (actuarially determined) 668,931 $ 571,316$ 552,488$ $ 494,902 457,665$ $ 393,732 337,685$ 312,567$ $ 364,763 Contributions in relation to the
actuarially determined contributions (668,931) (571,316) (552,488) (494,902) (457,665) (393,732) (337,685) (312,567) (364,763) Contribution deficiency (excess) $ - -$ -$ -$ -$ -$ -$ -$ -$ Covered payroll $ 1,452,424$ 1,410,121$ 1,369,049$ 1,329,174 1,495,997 $ 1,290,460 $ 1,252,874$ 1,216,383$ 1,177,974 $ Contributions as a percentage of
covered payroll 44.71% 39.18% 39.18% 36.15% 34.43% 30.51% 26.95% 25.70% 30.97% 1 Information only presented from the implementation year of 2014 Notes to Schedule
Methods and assumptions used to determine contribution rates:

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 MPpublished by the Society of Actuaries.

The actuarial methods and assumption used to set the actuarially determined contributions for Fiscal Year 2023 were derived from the June 30, 2019 funding valuation rep 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, 2023
110
Measurement period, year ending: 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 Total OPEB liability
Service cost 1,156,354 $ 1,088,576 $ 930,865 $ 868,965 $ 951,252 $ Interest 346,275 341,695 413,592 393,931 394,277
Changes of benefit terms - - - - (891,666)
Differences between expected and actual experience (1,645,289) - (1,584,352) - (552,203) Changes of assumptions (6,213,884) 639,497 1,127,249 490,438 102,481 Benefit payments, including
refunds of member contributions (203,232) (164,926) (177,238) (163,179) (179,631) Change in total OPEB liability 1,904,842 (6,559,776) 710,116 1,590,155 (175,490) Total OPEB liability - beginning 14,902,623 12,997,781 12,287,665 10,697,510 10,873,000 Total OPEB liability - ending (a) $ 8,342,847 $ 14,902,623 $ 12,997,781 $ 12,287,665 $ 10,697,510 OPEB fiduciary net position
Contributions - employer $ 955,100 $ 164,926 $ 177,238 $ 163,179 $ 179,631 Net investment income (21,455) - - - -
Benefit payments, including
refunds of member contributions (164,926) - (177,238) (163,179) (179,631) Administrative expense (2,180) - - - -
Change in plan fiduciary net position 931,465 - - - -
Plan fiduciary net position - beginning - - - - -
Plan fiduciary net position - ending (b) 931,465 - - - - Plan net OPEB liability - ending (a) - (b) $ 7,411,382 $ 14,902,623 $ 12,997,781 $ 12,287,665 $ 10,697,510 Plan fiduciary net position as a
percentage of the total OPEB liability 11.16% 0.00% 0.00% 0.00% 0.00% Covered-employee payroll $ 9,551,738 $ 8,917,985 $ 8,559,266 $ 8,196,189 $ 7,352,843 Plan net OPEB liability as a
percentage of covered-employee payroll 87.34% 167.11% 151.86% 149.92% 145.49% 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 of 2018 City of Patterson
Schedule of Changes in Net OPEB Liability and Related Ratios Last Ten Years
For the Year Ended June 30, 2023
111
Fiscal Year: 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-171 Contractually determined
contribution (actuarially determined) 976,000 $ 955,100 $ 164,926 $ 177,238 $ 163,179 $ 179,631 $ 175,000 $ Contributions in relation to the
actuarially determined contributions (464,237) (955,100) (164,926) (177,238) (163,179) (179,631) (175,000) Contribution deficiency (excess) $ - 511,763 $ - $ - $ - $ - $ - $ Covered-employee payroll 11,827,606 $ 9,551,738 $ 8,917,985 $ 8,559,266 $ 8,196,189 $ 7,352,843 $ 6,620,000 $ Contributions as a percentage of
covered-employee payroll 3.93% 10.00% 1.85% 2.07% 1.99% 2.44% 2.64% 1 Information only presented from the implementation year of 2018 Notes to Schedule
Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal, Level % of pay
Amortization method/period Level % of pay / 20-year fixed period for 2022/23 Asset valuation method Investment gains and losses spread over 5-year rolling period Discount rate 5.50%
Inflation 2.50%
Salary increases Varies by entry age and service
Medical trend Non-Medicare - 6.50% for 2023, decreasing to an ultimate rate of 3.75% in 2076 Medicare (Non-Kaiser) - 5.65% for 2023, decreasing to an ultimate rate of 3.75% in 2076 Medicare (Kaiser) - 4.60% for 2023, decreasing to an ultimate rate of 3.75% in 2076 Mortality CalPERS 2000-2019 Experience Study
Mortality improvement Mortality projected fully generational with Scale MP-2021 The actuarial methods and assumption used to set the actuarially determined contributions for Fiscal Year 2023 are as follows:
112
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SUPPLEMENTARY INFORMATION
113
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114

NON-MAJOR GOVERNMENTAL FUNDS
115
CFD 2001-01
Landscape Benefit CSA #15 Patterson
Maintenance Assessment Assessment Gardens Beautification District Districts District Public Safety Committee
ASSETS
Cash and investments 882,246 $ 2,623,998 $ 1,700 $ 298,095 $ 40,280 $ Receivables:

Accounts 450 - - - -
Intergovernmental 17,583 4,442 102 8,872 -
Interest 3,963 4,710 3 509 69
Notes and loans - - - - -
Lease - - - - -
Total assets $ 2,633,150 904,242 $ 1,805 $ 307,476 $ 40,349 $

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
LIABILITIES:

Accounts payable 64,714 $ 15,090 $ 292 $ - $ - $
Due to other funds - - - - -
Unearned revenue - - - - -
Deposits and other liabilities - - - - -
Total liabilities 15,090 64,714 292 - -
DEFERRED INFLOWS OF RESOURCES:

Lease-related deferred inflows of resources - - - - -
Unavailable revenue - - - - -
Total deferred inflows of resources - - - - -
FUND BALANCES (DEFICIT):

Restricted 839,528 2,618,060 1,513 307,476 40,349
Committed - - - - -
Assigned - - - - -
Unassigned (deficit) - - - - -
Total fund balances 2,618,060 839,528 1,513 307,476 40,349 Total liabilities, deferred inflows
of resources and fund balances $ 2,633,150 904,242 $ 1,805 $ 307,476 $ 40,349 $ (Continued)
City of Patterson
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2023
Special Revenue Funds
116
CDBG State Federal First Time Federal
HA Loan HCD Rehab CDBG Home HOME
Fund Program Grant Buyers Funds
ASSETS
Cash and investments - $ 224,058 $ - $ 199,457 $ 196,966 $ Receivables:

Accounts - - - - -
Intergovernmental - - 16,403 - -
Interest - 403 - 341 336
Notes and loans 293,489 8,756 - 78,675 206,709
Lease - - - - -
Total assets $ 233,217 293,489 $ 16,403 $ 278,473 $ 404,011 $

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
LIABILITIES:

Accounts payable - $ - $ - $ - $ 1,851 $
Due to other funds - - 193,441 - -
Unearned revenue - - 56,043 - 11,651
Deposits and other liabilities - - - - -
Total liabilities - - 249,484 - 13,502
DEFERRED INFLOWS OF RESOURCES:

Lease-related deferred inflows of resources - - - - -
Unavailable revenue 293,489 8,776 - 78,675 206,708
Total deferred inflows of resources 8,776 293,489 - 78,675 206,708 FUND BALANCES (DEFICIT):

Restricted - 224,441 - 199,798 183,801
Committed - - - - -
Assigned - - - - -
Unassigned (deficit) - - (233,081) - -
Total fund balances 224,441 - (233,081) 199,798 183,801 Total liabilities, deferred inflows
of resources and fund balances $ 233,217 293,489 $ 16,403 $ 278,473 $ 404,011 $ (Continued)
City of Patterson
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
Special Revenue Funds
June 30, 2023
117
Local
Neighborhood Local Transportation
Stabilization Transportation Fund Street Project
Program Gas Tax Fund Non Motorized Fund
ASSETS
Cash and investments 6,485 $ 626,319 $ 186,431 $ 90,910 $ 3,759,421 $ Receivables:

Accounts - - - - -
Intergovernmental - 160,409 - - 165,227
Interest 780 1,070 319 155 6,424
Notes and loans 27,290 - - - -
Lease - - - - -
Total assets $ 787,798 34,555 $ 186,750 $ 91,065 $ 3,931,072 $

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
LIABILITIES:

Accounts payable - $ - $ - $ - $ 1,106,908 $
Due to other funds - - - - -
Unearned revenue - - 297,142 11,352 -
Deposits and other liabilities - - - - -
Total liabilities - - 297,142 11,352 1,106,908
DEFERRED INFLOWS OF RESOURCES:

Lease-related deferred inflows of resources - - - - -
Unavailable revenue 28,059 11,245 - - 165,227
Total deferred inflows of resources 11,245 28,059 - - 165,227 FUND BALANCES (DEFICIT):

Restricted 6,496 776,553 - 79,713 2,658,937
Committed - - - - -
Assigned - - - - -
Unassigned (deficit) - - (110,392) - -
Total fund balances 776,553 6,496 (110,392) 79,713 2,658,937 Total liabilities, deferred inflows
of resources and fund balances $ 787,798 34,555 $ 186,750 $ 91,065 $ 3,931,072 $ (Continued)
Special Revenue Funds
City of Patterson
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
June 30, 2023
118
Developer
Housing Police Westside
Measure L In-Lieu Asset Drainage
Fund Fee Forfeiture Study CFD 2013-1
ASSETS
Cash and investments 4,110,951 $ 1,060,372 $ 4,326 $ 66,023 $ 787,669 $ Receivables:

Accounts - - - - -
Intergovernmental 440,930 - - - 587
Interest 7,025 1,812 7 113 1,346
Notes and loans - 1,023,333 - - -
Lease - - - - -
Total assets $ 2,085,517 4,558,906 $ 4,333 $ 66,136 $ 789,602 $

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
LIABILITIES:

Accounts payable 157,933 $ - $ - $ - $ 6,359 $
Due to other funds - - - - -
Unearned revenue 893,479 - - - -
Deposits and other liabilities - - - - -
Total liabilities - 1,051,412 - - 6,359
DEFERRED INFLOWS OF RESOURCES:

Lease-related deferred inflows of resources - - - - -
Unavailable revenue - 1,023,333 - - -
Total deferred inflows of resources 1,023,333 - - - -
FUND BALANCES (DEFICIT):

Restricted 3,507,494 1,062,184 4,333 - 783,243
Committed - - - 66,136 -
Assigned - - - - -
Unassigned (deficit) - - - - -
Total fund balances 1,062,184 3,507,494 4,333 66,136 783,243 Total liabilities, deferred inflows
of resources and fund balances $ 2,085,517 4,558,906 $ 4,333 $ 66,136 $ 789,602 $ (Continued)
June 30, 2023
Special Revenue Funds
City of Patterson
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
119
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 73,117 $ 596,731 $ 1,210,109 $ 266,039 $ 640,821 $ Receivables:

Accounts - - - - -
Intergovernmental - 927 - - -
Interest 125 1,020 2,068 455 1,095
Notes and loans - - - - -
Lease - - - - -
Total assets $ 598,678 73,242 $ 1,212,177 $ 266,494 $ 641,916 $

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
LIABILITIES:

Accounts payable - $ 607 $ - $ - $ - $
Due to other funds - - - - -
Unearned revenue - - - - -
Deposits and other liabilities - 26,674 - - -
Total liabilities 27,281 - - - -
DEFERRED INFLOWS OF RESOURCES:

Lease-related deferred inflows of resources - - - - -
Unavailable revenue - - - - -
Total deferred inflows of resources - - - - -
FUND BALANCES (DEFICIT):

Restricted 73,242 571,397 - - -
Committed - - 1,212,177 266,494 641,916
Assigned - - - - -
Unassigned (deficit) - - - - -
Total fund balances 571,397 73,242 1,212,177 266,494 641,916 Total liabilities, deferred inflows
of resources and fund balances $ 598,678 73,242 $ 1,212,177 $ 266,494 $ 641,916 $ (Continued)
Non-Major Governmental Funds
June 30, 2023
Special Revenue Funds Capital Projects Funds
City of Patterson
Combining Balance Sheet (Continued)
120
Parkland Street
In-Lieu Improvement Water Storm Drain Sewer
Fee Impact Fee Impact Fee Impact Fee Impact Fee
ASSETS
Cash and investments 59,528 $ 787,448 $ 5,001,980 $ 1,275,442 $ 95,925 $ Receivables:

Accounts - - - - -
Intergovernmental - - - - -
Interest 102 1,346 8,536 2,178 159
Notes and loans - - - - -
Lease - - - - -
Total assets $ 788,794 59,630 $ 5,010,516 $ 1,277,620 $ 96,084 $

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
LIABILITIES:

Accounts payable - $ - $ - $ 8,544 $ - $
Due to other funds - - - - -
Unearned revenue - - - - -
Deposits and other liabilities - - - - -
Total liabilities - - - 8,544 -
DEFERRED INFLOWS OF RESOURCES:

Lease-related deferred inflows of resources - - - - -
Unavailable revenue - - - - -
Total deferred inflows of resources - - - - -
FUND BALANCES (DEFICIT):

Restricted - - - - -
Committed 59,630 788,794 5,010,516 1,269,076 96,084
Assigned - - - - -
Unassigned (deficit) - - - - -
Total fund balances 788,794 59,630 5,010,516 1,269,076 96,084 Total liabilities, deferred inflows
of resources and fund balances $ 788,794 59,630 $ 5,010,516 $ 1,277,620 $ 96,084 $ (Continued)
Capital Projects Funds
Non-Major Governmental Funds
June 30, 2023
City of Patterson
Combining Balance Sheet (Continued)
121
Delta Aquatic Heartland Downtown
Mendota Center Future Water Ranch Assistance
Storm Gate Construction Acquisition Infrastructure Fee
ASSETS
Cash and investments 175,152 $ 433,791 $ 147,856 $ 46,263 $ 195,546 $ Receivables:

Accounts - - - - -
Intergovernmental - - - - -
Interest 299 741 253 79 334
Notes and loans - - - - -
Lease - - 6,851 - -
Total assets $ 434,532 175,451 $ 154,960 $ 46,342 $ 195,880 $

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 - - 6,850 - - Unavailable revenue - - - - -
Total deferred inflows of resources - - 6,850 - -
FUND BALANCES (DEFICIT):

Restricted - - - - -
Committed 175,451 434,532 148,110 - 195,880
Assigned - - - - -
Unassigned (deficit) - - - (834) -
Total fund balances 434,532 175,451 148,110 (834) 195,880 Total liabilities, deferred inflows
of resources and fund balances $ 434,532 175,451 $ 154,960 $ 46,342 $ 195,880 $ (Continued)
Capital Projects Funds
Non-Major Governmental Funds
June 30, 2023
City of Patterson
Combining Balance Sheet (Continued)
122
Total
Non-major
Governmental
Funds
ASSETS
Cash and investments $ 26,171,455
Receivables:

Accounts 450
Intergovernmental 815,482
Interest 48,175
Notes and loans 1,638,252
Lease 6,851
Total assets $ 28,680,665

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
LIABILITIES:

Accounts payable $ 1,362,298
Due to other funds 193,441
Unearned revenue 1,269,667
Deposits and other liabilities 73,850
Total liabilities 2,899,256
DEFERRED INFLOWS OF RESOURCES:

Lease-related deferred inflows of resources 6,850
Unavailable revenue 1,815,512
Total deferred inflows of resources 1,822,362
FUND BALANCES (DEFICIT):

Restricted 13,938,558
Committed 10,364,796
Assigned -
Unassigned (deficit) (344,307)
Total fund balances 23,959,047
Total liabilities, deferred inflows
of resources and fund balances $ 28,680,665
(Concluded)
Non-Major Governmental Funds
June 30, 2023
City of Patterson
Combining Balance Sheet (Continued)
123
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 1,978,665 515,557 8,521 561,263 -
Intergovernmental:

Federal grant and subsidies - - - - -
Other governmental - - - - -
Investment income(loss) 8,236 15,928 6 888 249
Revenue from Fiduciary Fund - - - - -
Miscellaneous - - - - 540
Total revenues 531,485 1,986,901 8,527 562,151 789
EXPENDITURES:

Current:

General government - 444 - - -
Police - - - - -
Fire - - - 6,727 -
Community development and planning - - 4,620 - -
Public works 556,900 190,524 - - -
Park and recreation 487 - - - -
Capital outlay - - - - -
Total expenditures 190,968 557,387 4,620 6,727 -

REVENUES OVER (UNDER)
EXPENDITURES 340,517 1,429,514 3,907 555,424 789
OTHER FINANCING SOURCES (USES):

Transfers in - - - - -
Transfers out (1,437,083) (169,705) (2,678) (500,000) - Total financing sources (uses) (169,705) (1,437,083) (2,678) (500,000) - Net change in fund balances 170,812 (7,569) 1,229 55,424 789 FUND BALANCES (DEFICIT):

Beginning of year, as restated 2,447,248 847,097 284 252,052 39,560 End of year 839,528 $ 2,618,060 $ 1,513 $ 307,476 $ 40,349 $ (Continued)
Special Revenue
Non-Major Governmental Funds
For the Year Ended June 30, 2023
City of Patterson
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 124
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 - - 27,840 - -
Other governmental - - - - -
Investment income(loss) - 1,394 - 2,983 2,707
Revenue from Fiduciary Fund - - - - -
Miscellaneous - - - 2,946 1,781
Total revenues 1,394 - 27,840 5,929 4,488
EXPENDITURES:

Current:

General government - - - - 3,701
Police - - - - -
Fire - - - - -
Community development and planning - - - - -
Public works - - - - -
Park and recreation - - - - -
Capital outlay - - - - -
Total expenditures - - - - 3,701

REVENUES OVER (UNDER)
EXPENDITURES 1,394 - 27,840 5,929 787
OTHER FINANCING SOURCES (USES):

Transfers in - - - - -
Transfers out - - - - -
Total financing sources (uses) - - - - -
Net change in fund balances 1,394 - 27,840 5,929 787
FUND BALANCES (DEFICIT):

Beginning of year, as restated 223,047 - (260,921) 193,869 183,014 End of year - $ 224,441 $ (233,081) $ 199,798 $ 183,801 $ (Continued)
Special Revenue Funds
Non-Major Governmental Funds
For the Year Ended June 30, 2023
City of Patterson
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) 125
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 - - - - 147,537
Other governmental - 1,161,045 - - 158,213
Investment income(loss) 40 4,304 1,161 677 19,579
Revenue from Fiduciary Fund - - - - 218,726
Miscellaneous - - 1,000 - -
Total revenues 1,165,349 40 2,161 677 544,055
EXPENDITURES:

Current:

General government - - - - -
Police - - - - -
Fire - - - - -
Community development and planning - - - - -
Public works - - - - 62,253
Park and recreation - - - - -
Capital outlay - - - - 2,303,974
Total expenditures - - - - 2,366,227

REVENUES OVER (UNDER)
EXPENDITURES 1,165,349 40 2,161 677 (1,822,172)
OTHER FINANCING SOURCES (USES):

Transfers in - - - - 1,633,347
Transfers out - (771,558) - (35,379) -
Total financing sources (uses) (771,558) - - (35,379) 1,633,347 Net change in fund balances 393,791 40 2,161 (34,702) (188,825) FUND BALANCES (DEFICIT):

Beginning of year, as restated 382,762 6,456 (112,553) 114,415 2,847,762 End of year 6,496 $ 776,553 $ (110,392) $ 79,713 $ 2,658,937 $ (Continued)
Special Revenue Funds
For the Year Ended June 30, 2023
City of Patterson
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
126
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 - - - - 223,565
Intergovernmental:

Federal grant and subsidies - - - - -
Other governmental 1,792,171 - - - -
Investment income(loss) 23,444 6,602 27 411 4,104
Revenue from Fiduciary Fund - - - - -
Miscellaneous - - - - -
Total revenues 6,602 1,815,615 27 411 227,669
EXPENDITURES:

Current:

General government - - - - 25,813
Police - - - - -
Fire - - - - -
Community development and planning - - - - -
Public works - - - - -
Park and recreation - - - - -
Capital outlay 2,443,176 - - - -
Total expenditures - 2,443,176 - - 25,813

REVENUES OVER (UNDER)
EXPENDITURES 6,602 (627,561) 27 411 201,856
OTHER FINANCING SOURCES (USES):

Transfers in 1,475,090 - - - -
Transfers out (802,302) - - - -
Total financing sources (uses) - 672,788 - - -
Net change in fund balances 6,602 45,227 27 411 201,856 FUND BALANCES (DEFICIT):

Beginning of year, as restated 1,055,582 3,462,267 4,306 65,725 581,387 End of year 3,507,494 $ 1,062,184 $ 4,333 $ 66,136 $ 783,243 $ (Continued)
Special Revenue Funds
For the Year Ended June 30, 2023
City of Patterson
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
127
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 - $ - $ 231,300 $ 61,013 $ 41,612 $ Charges for services 98,092 354,819 - - -
Intergovernmental:

Federal grant and subsidies - - - - -
Other governmental - - - - (21,025)
Investment income(loss) 519 2,606 7,081 1,756 3,973
Revenue from Fiduciary Fund - - - - -
Miscellaneous 4,930 - - - -
Total revenues 357,425 103,541 238,381 62,769 24,560
EXPENDITURES:

Current:

General government 25 10,643 - - -
Police - - - - -
Fire - - - - -
Community development and planning - - - - -
Public works - 22,391 - - -
Park and recreation - - - - -
Capital outlay - - - 227,425 -
Total expenditures 33,034 25 - 227,425 -

REVENUES OVER (UNDER)
EXPENDITURES 324,391 103,516 238,381 (164,656) 24,560
OTHER FINANCING SOURCES (USES):

Transfers in - - - - -
Transfers out (85,000) - - - -
Total financing sources (uses) - (85,000) - - -
Net change in fund balances 324,391 18,516 238,381 (164,656) 24,560 FUND BALANCES (DEFICIT):

Beginning of year, as restated 247,006 54,726 973,796 431,150 617,356 End of year 73,242 $ 571,397 $ 1,212,177 $ 266,494 $ 641,916 $ (Continued)
City of Patterson
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
For the Year Ended June 30, 2023
Special Revenue Funds Capital Projects Funds
128
Parkland Street
In-Lieu Improvement Water Storm Drain Sewer
Fee Impact Fee Impact Fee Impact Fee Impact Fee
REVENUES:

Licenses, permits, and fees 3,689 $ 16,394 $ 837,521 $ 30,817 $ 9,156 $ Charges for services - 58,867 - - -
Intergovernmental:

Federal grant and subsidies - - - - -
Other governmental - 137,270 - - -
Investment income(loss) 359 5,530 29,754 7,980 612
Revenue from Fiduciary Fund - - - - -
Miscellaneous - - - - -
Total revenues 218,061 4,048 867,275 38,797 9,768
EXPENDITURES:

Current:

General government - - - - -
Police - - - - -
Fire - - - - -
Community development and planning - - - - -
Public works - - - - -
Park and recreation - - - - -
Capital outlay 2,355 - - 33,970 -
Total expenditures - 2,355 - 33,970 -

REVENUES OVER (UNDER)
EXPENDITURES 218,061 1,693 867,275 4,827 9,768
OTHER FINANCING SOURCES (USES):

Transfers in - - - - -
Transfers out - (218,726) - - -
Total financing sources (uses) (218,726) - - - -
Net change in fund balances (665) 1,693 867,275 4,827 9,768 FUND BALANCES (DEFICIT):

Beginning of year, as restated 789,459 57,937 4,143,241 1,264,249 86,316 End of year 59,630 $ 788,794 $ 5,010,516 $ 1,269,076 $ 96,084 $ (Continued)
For the Year Ended June 30, 2023
Capital Projects Funds
City of Patterson
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
129
Delta Aquatic Heartland Downtown
Mendota Center Future Water Ranch Assistance
Storm Gate Construction Acquisition Infrastructure Fee
REVENUES:

Licenses, permits, and fees - $ 61,500 $ - $ - $ 32,500 $ Charges for services - - - - -
Intergovernmental:

Federal grant and subsidies - - - - -
Other governmental - - - - -
Investment income(loss) 1,090 2,584 1,033 288 1,158
Revenue from Fiduciary Fund - - - - -
Miscellaneous - - 3,096 - -
Total revenues 64,084 1,090 4,129 288 33,658
EXPENDITURES:

Current:

General government - - - - -
Police - - - - -
Fire - - - - -
Community development and planning - - - - -
Public works - - - - -
Park and recreation - - - - -
Capital outlay - - - - -
Total expenditures - - - - -

REVENUES OVER (UNDER)
EXPENDITURES 64,084 1,090 4,129 288 33,658
OTHER FINANCING SOURCES (USES):

Transfers in - - - - -
Transfers out - - - - -
Total financing sources (uses) - - - - -
Net change in fund balances 64,084 1,090 4,129 288 33,658 FUND BALANCES (DEFICIT):

Beginning of year, as restated 370,448 174,361 143,981 (1,122) 162,222 End of year 175,451 $ 434,532 $ 148,110 $ (834) $ 195,880 $ (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, 2023
130
Total
Non-major
Governmental
Funds
REVENUES:

Licenses, permits, and fees $ 1,325,502
Charges for services 3,799,349
Intergovernmental:

Federal grant and subsidies 175,377
Other governmental 3,227,674
Investment income(loss) 159,063
Revenue from Fiduciary Fund 218,726
Miscellaneous 14,293
Total revenues 8,919,984
EXPENDITURES:

Current:

General government 40,626
Police -
Fire 6,727
Community development and planning 4,620
Public works 832,068
Park and recreation 487
Capital outlay 5,010,900
Total expenditures 5,895,428

REVENUES OVER (UNDER)
EXPENDITURES 3,024,556
OTHER FINANCING SOURCES (USES):

Transfers in 3,108,437
Transfers out (4,022,431)
Total financing sources (uses) (913,994)
Net change in fund balances 2,110,562
FUND BALANCES (DEFICIT):

Beginning of year, as restated 21,848,485
End of year $ 23,959,047
(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, 2023
131
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Investment income (loss) (3,534,684) $ (3,136,044) $ 3,667,112 $ 6,803,156 $ Revenue from Fiduciary Fund (522,944) (522,944) 517,184 1,040,128 Total revenues (3,658,988) (4,057,628) 4,184,296 7,843,284 EXPENDITURES:

Debt service:

Principal 2,815,792 3,214,432 2,567,628 646,804
Interest and fiscal charges 4,488,078 4,689,078 3,907,613 781,465 Total expenditures 7,903,510 7,303,870 6,475,241 1,428,269 Net change in fund balances $ (11,562,498) (11,361,498) $ (2,290,945) 9,271,553 $ FUND BALANCE:

Beginning of year 60,662,321
End of year $ 58,371,376
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, 2023
132
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Charges for services 1,856,849 $ 1,856,849 $ 1,978,665 $ 121,816 $ Investment income (loss) 2,448 2,448 8,236 5,788
Total revenues 1,859,297 1,859,297 1,986,901 127,604
EXPENDITURES:

Current:

Public works 1,926,835 1,926,835 556,900 1,369,935
Parks and recreation - - 487 (487)
Total expenditures 1,926,835 1,926,835 557,387 1,369,448

REVENUES OVER (UNDER)
EXPENDITURES (67,538) (67,538) 1,429,514 1,497,052
OTHER FINANCING SOURCES (USES):

Transfers out (27,000) (27,000) (1,437,083) (1,410,083) Total other financing sources (uses) (27,000) (27,000) (1,437,083) (1,410,083) Net change in fund balances $ (94,538) (94,538) $ (7,569) 86,969 $ FUND BALANCE:

Beginning of year 847,097
End of year $ 839,528
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, 2023
133
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Charges for services 511,202 $ 511,202 $ 515,557 $ 4,355 $ Investment income (loss) 8,786 8,786 15,928 7,142
Total revenues 519,988 519,988 531,485 11,497
EXPENDITURES:

Current:

General government - - 444 (444)
Public works 558,315 558,315 190,524 367,791
Total expenditures 558,315 558,315 190,968 367,347

REVENUES OVER (UNDER)
EXPENDITURES (38,327) (38,327) 340,517 378,844
OTHER FINANCING SOURCES (USES):

Transfers out (839,769) (839,769) (169,705) 670,064
Total other financing sources (uses) (839,769) (839,769) (169,705) 670,064 Net change in fund balances $ (878,096) (878,096) $ 170,812 1,048,908 $ FUND BALANCE:

Beginning of year 2,447,248
End of year $ 2,618,060
-
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, 2023
134
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Charges for services 9,034 $ 9,034 $ 8,521 $ (513) $
Investment income (loss) 27 27 6 (21)
Total revenues 9,061 9,061 8,527 (534)
EXPENDITURES:

Current:

Community development and planning 14,067 14,067 4,620 9,447 Total expenditures 14,067 14,067 4,620 9,447

REVENUES OVER (UNDER)
EXPENDITURES (5,006) (5,006) 3,907 8,913
OTHER FINANCING SOURCES (USES):

Transfers out (2,678) (2,678) (2,678) -
Total other financing sources (uses) (2,678) (2,678) (2,678) - Net change in fund balances $ (7,684) (7,684) $ 1,229 8,913 $ FUND BALANCE (DEFICIT):

Beginning of year 284
End of year $ 1,513
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, 2023
135
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Charges for services 553,166 $ 553,166 $ 561,263 $ 8,097 $ Investment income (loss) 294 294 888 594
Total revenues 553,460 553,460 562,151 8,691
EXPENDITURES:

Current:

Fire 6,448 6,448 6,727 (279)
Total expenditures 6,448 6,448 6,727 (279)

REVENUES OVER (UNDER)
EXPENDITURES 547,012 547,012 555,424 8,412
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 $ 47,012 47,012 $ 55,424 8,412 $ FUND BALANCE:

Beginning of year 252,052
End of year $ 307,476
-
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, 2023
136
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Taxes:

Investment income (loss) 146 $ 146 $ 249 $ 103 $
Miscellaneous - 620 540 (80)
Total revenues 766 146 789 23
EXPENDITURES:

Current:

Public works 300 920 - 920
Total expenditures 920 300 - 920
Net change in fund balances $ (154) (154) $ 789 943 $
FUND BALANCE:

Beginning of year 39,560
End of year $ 40,349
-
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, 2023
137
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Investment income (loss) 1,296 $ 1,296 $ 1,394 $ 98 $
Total revenues 1,296 1,296 1,394 98
Net change in fund balances $ 1,296 1,296 $ 1,394 98 $
FUND BALANCE:

Beginning of year 223,047
End of year $ 224,441
-
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, 2023
138
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Intergovernmental:

Federal grant and subsidies 150,000 $ 150,000 $ 27,840 $ (122,160) $ Total revenues 150,000 150,000 27,840 (122,160)
EXPENDITURES:

Capital outlay 150,000 150,000 - 150,000
Total expenditures 150,000 150,000 - 150,000
Net change in fund balances $ - - $ 27,840 27,840 $
FUND BALANCE (DEFICIT):

Beginning of year (260,921)
End of year $ (233,081)
-
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, 2023
139
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Investment income (loss) 2,176 $ 2,176 $ 2,983 $ 807 $
Miscellaneous 1,778 1,778 2,946 1,168
Total revenues 3,954 3,954 5,929 1,975
Net change in fund balances $ 3,954 3,954 $ 5,929 1,975 $ FUND BALANCE:

Beginning of year 193,869
End of year $ 199,798
-
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, 2023
140
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Investment income (loss) 3,174 $ 3,174 $ 2,707 $ (467) $ Miscellaneous 2,438 2,438 1,781 (657)
Total revenues 5,612 5,612 4,488 (1,124)
EXPENDITURES:

Current:

General government - - 3,701 (3,701)
Total expenditures - - 3,701 (3,701)
Net change in fund balances $ 5,612 5,612 $ 787 (4,825) $ FUND BALANCE:

Beginning of year 183,014
End of year $ 183,801
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, 2023
141
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Investment income (loss) 20 $ 20 $ 40 $ 20 $
Miscellaneous 501 501 - (501)
Total revenues 521 521 40 (481)
Net change in fund balances $ 521 521 $ 40 (481) $
FUND BALANCE:

Beginning of year 6,456
End of year $ 6,496
-
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, 2023
142
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Intergovernmental:

Other governmental 1,094,018 $ 1,094,018 $ 1,161,045 $ 67,027 $ Investment income (loss) 1,685 1,685 4,304 2,619
Total revenues 1,095,703 1,095,703 1,165,349 69,646
OTHER FINANCING SOURCES (USES):

Transfers out (922,638) (922,638) (771,558) 151,080
Total other financing sources (uses) (922,638) (922,638) (771,558) 151,080 Net change in fund balances $ 173,065 173,065 $ 393,791 220,726 $ FUND BALANCE:

Beginning of year 382,762
End of year $ 776,553
-
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, 2023
143
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Intergovernmental:

Other governmental 2,000 $ 2,000 $ - $ (2,000) $
Investment income (loss) 954 954 1,161 207
Miscellaneous - - 1,000 1,000
Total revenues 2,954 2,954 2,161 (793)
Net change in fund balances $ 2,954 2,954 $ 2,161 (793) $ FUND BALANCE (DEFICIT):

Beginning of year (112,553)
End of year $ (110,392)
-
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, 2023
144
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Investment income (loss) 281 $ 281 $ 677 $ 396 $
Total revenues 281 281 677 396
OTHER FINANCING SOURCES (USES):

Transfers out (72,851) (72,851) (35,379) 37,472
Total other financing sources (uses) (72,851) (72,851) (35,379) 37,472 Net change in fund balances $ (72,570) (72,570) $ (34,702) 37,868 $ FUND BALANCE:

Beginning of year 114,415
End of year $ 79,713
-
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, 2023
145
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Intergovernmental:

Federal grant and subsidies 379,909 $ 379,909 $ 147,537 $ (232,372) $ Other governmental 552,361 552,361 158,213 (394,148)
Investment income (loss) 6,626 6,626 19,579 12,953
Revenue from Fiduciary Fund - - 218,726 218,726
Miscellaneous - 1,000 - (1,000)
Total revenues 939,896 938,896 544,055 (395,841)
EXPENDITURES:

Current:

Public works 85,000 85,000 62,253 22,747
Capital outlay 6,031,272 6,216,272 2,303,974 3,912,298
Total expenditures 6,301,272 6,116,272 2,366,227 3,935,045

REVENUES OVER (UNDER)
EXPENDITURES (5,361,376) (5,177,376) (1,822,172) 3,539,204 OTHER FINANCING SOURCES (USES):

Transfers in 4,762,002 4,762,002 1,633,347 (3,128,655)
Total other financing sources (uses) 4,762,002 4,762,002 1,633,347 (3,128,655) Net change in fund balances $ (599,374) (415,374) $ (188,825) 410,549 $ FUND BALANCE:

Beginning of year 2,847,762
End of year $ 2,658,937
-
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, 2023
146
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Intergovernmental:

Other governmental 1,124,762 $ 1,124,762 $ 1,792,171 $ 667,409 $ Investment income (loss) 17,419 17,419 23,444 6,025
Total revenues 1,142,181 1,142,181 1,815,615 673,434
EXPENDITURES:

Capital outlay 4,351,191 4,359,763 2,443,176 1,916,587
Total expenditures 4,359,763 4,351,191 2,443,176 1,916,587

REVENUES OVER (UNDER)
EXPENDITURES (3,217,582) (3,209,010) (627,561) 2,590,021 OTHER FINANCING SOURCES (USES):

Transfers in (1,983,898) (1,983,898) 1,475,090 3,458,988 Transfers out (1,117,336) (1,117,336) (802,302) 315,034 Total other financing sources (uses) (3,101,234) (3,101,234) 672,788 3,774,022 Net change in fund balances $ (6,318,816) (6,310,244) $ 45,227 6,364,043 $ FUND BALANCE:

Beginning of year 3,462,267
End of year $ 3,507,494
-
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, 2023
147
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Licenses, permits, and fees 1,383,062 $ 1,383,062 $ - $ (1,383,062) $ Investment income (loss) 3,923 3,923 6,602 2,679
Total revenues 1,386,985 1,386,985 6,602 (1,380,383)
Net change in fund balances $ 1,386,985 1,386,985 $ 6,602 (1,380,383) $ FUND BALANCE:

Beginning of year 1,055,582
End of year $ 1,062,184
-
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, 2023
148
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Investment income (loss) 471 $ 471 $ 27 $ (444) $
Total revenues 471 471 27 (444)
Net change in fund balances $ 471 471 $ 27 (444) $
FUND BALANCE:

Beginning of year 4,306
End of year $ 4,333
-
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, 2023
149
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Investment income (loss) 245 $ 245 $ 411 $ 166 $
Total revenues 245 245 411 166
Net change in fund balances $ 245 245 $ 411 166 $
FUND BALANCE:

Beginning of year 65,725
End of year $ 66,136
-
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, 2023
150
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Charges for services 219,300 $ 219,300 $ 223,565 $ 4,265 $ Investment income (loss) 1,351 1,351 4,104 2,753
Total revenues 220,651 220,651 227,669 7,018
EXPENDITURES:

Current:

General government 32,805 32,805 25,813 6,992
Total expenditures 32,805 32,805 25,813 6,992
Net change in fund balances $ 187,846 187,846 $ 201,856 14,010 $ FUND BALANCE:

Beginning of year 581,387
End of year $ 783,243
-
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, 2023
151
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Charges for services 96,145 $ 96,145 $ 98,092 $ 1,947 $ Investment income (loss) 218 218 519 301
Miscellaneous - - 4,930 4,930
Total revenues 96,363 96,363 103,541 7,178
EXPENDITURES:

Current:

General government 25 25 25 -
Total expenditures 25 25 25 -

REVENUES OVER (UNDER)
EXPENDITURES 96,338 96,338 103,516 7,178
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 $ 11,338 11,338 $ 18,516 7,178 $ FUND BALANCE:

Beginning of year 54,726
End of year $ 73,242
-
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, 2023
152
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Charges for services 222,286 $ 222,286 $ 354,819 $ 132,533 $ Investment income (loss) 118 118 2,606 2,488
Total revenues 222,404 222,404 357,425 135,021
EXPENDITURES:

Current:

General government 11,683 11,683 10,643 1,040
Public works 2,589 2,589 22,391 (19,802)
Total expenditures 14,272 14,272 33,034 (18,762)
Net change in fund balances $ 208,132 208,132 $ 324,391 116,259 $ FUND BALANCE:

Beginning of year 247,006
End of year $ 571,397
-
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, 2023
153
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Licenses, permits, and fees 1,421,917 $ 1,421,917 $ 231,300 $ (1,190,617) $ Investment income (loss) 1,186 1,186 7,081 5,895
Total revenues 1,423,103 1,423,103 238,381 (1,184,722)
Net change in fund balances $ 943,103 1,103,103 $ 238,381 (704,722) $ FUND BALANCE:

Beginning of year 973,796
End of year $ 1,212,177
-
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Community Facility Impact Fee Special Revenue Fund
For the Year Ended June 30, 2023
154

CUSTODIAL FUNDS
155
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156
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 6,596,701 $ 2,271,547 $ - $ 530,444 $ 1,093,653 $ 10,492,345 $ Restricted cash and investments - 186,222 100 - - 186,322 Cash and investments with fiscal agents 670,340 8,157,754 429,721 230,691 4,783,723 14,272,229 Accounts receivable - 280 - - - 280
Intergovernmental receivable 2,879 54,024 - 5,495 935 63,333 Interest receivable 3,881 15,342 - 906 1,869 21,998
Notes receivable - 975,361 - - - 975,361
Total assets 10,622,283 8,312,048 429,821 767,536 5,880,180 26,011,868

LIABILITIES
Accounts payable 37,198 - - - - 37,198
Due to City - - 52,587 - - 52,587
Total liabilities - 37,198 52,587 - - 89,785

NET POSITION
Restricted for:

Individuals, organizations, and other
governments, as restated 10,622,283 8,274,850 377,234 767,536 5,880,180 25,922,083 Total Net Position $ 10,622,283 8,274,850 $ 377,234 $ 767,536 $ 5,880,180 $ 25,922,083 $ Fiduciary Funds - Custodial Funds
June 30, 2023
City of Patterson
Combining Statement of Fiduciary Net Position
157
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 5,440,668 $ 952,011 $ 304,319 $ 635,506 $ 487,412 $ 7,819,916 $ Investment income 188,994 265,721 1,173 1,314 152,469 609,671 Total additions 1,217,732 5,629,662 305,492 636,820 639,881 8,429,587 DEDUCTIONS:

Administration 568 11,055 6,785 34,663 21,716 74,787
Payments on conduit bonds - principal 1,905,629 140,000 40,000 - 50,000 2,135,629 Payments on conduit bonds - interest 3,532,980 662,010 242,588 - 175,850 4,613,428 Projects payments 1,738,754 - - - - 1,738,754
Contributions to City - 1,399,030 - 517,184 292,339 2,208,553 Total deductions 2,212,095 7,177,931 289,373 551,847 539,905 10,771,151 Changes in net position (994,363) (1,548,269) 16,119 84,973 99,976 (2,341,564) NET POSITION:

Beginning of year, as restated (Note 19) 9,823,119 11,616,646 361,115 682,563 5,780,204 28,263,647 End of year 8,274,850 $ 10,622,283 $ 377,234 $ 767,536 $ 5,880,180 $ 25,922,083 $ City of Patterson
Combining Statement of Changes in Fiduciary Net Position Fiduciary Funds - Custodial Funds
For the Year Ended June 30, 2023
158

STATISTICAL SECTION
159
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160
Contents Page
162
Helps readers understand how the City's financial position and well-being have changed over time. 172
185
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.
187
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………………………………………………………………. 161
2023 2022 2021 2020 2019
Governmental activities:

Investment in capital assets $ 67,681,454 $ 61,241,920 $ 59,507,530 $ 61,274,713 $ 60,390,350 Restricted 14,864,418 15,315,965 14,976,923 10,752,749 11,572,138 Unrestricted net position (deficit) 6,662,963 9,993,088 413,664 (5,182,490) (7,892,944) Total Net Position $ 89,208,835 $ 86,550,973 $ 74,898,117 $ 66,844,972 $ 64,069,544 Business-type activities:

Investment in capital assets $ 49,988,310 $ 36,458,905 $ 36,978,338 $ 37,930,411 $ 37,746,179 Restricted 3,137,525 3,133,590 3,133,810 983,202 469,817 Unrestricted net position (deficit) (4,650,588) 4,888,385 2,943,625 4,536,071 2,567,625 Total Net Position $ 48,475,247 $ 44,480,880 $ 43,055,773 $ 43,449,684 $ 40,783,621 Primary Government:

Investment in capital assets $ 117,669,764 $ 97,700,825 $ 96,485,868 $ 99,205,124 $ 98,136,529 Restricted 18,001,943 18,449,555 18,110,733 11,735,951 12,041,955 Unrestricted net position (deficit) 2,012,375 14,881,473 3,357,289 (646,419) (5,325,319) Total Net Position $ 137,684,082 $ 131,031,853 $ 117,953,890 $ 110,294,656 $ 104,853,165 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
162
2018 2017 2016 2015 2014
Governmental activities:

Investment in capital assets $ 60,721,785 $ 55,621,936 $ 55,756,984 $ 50,237,700 $ 47,460,440 Restricted 8,385,204 6,391,176 5,270,127 4,867,200 4,866,877 Unrestricted net position (deficit) (4,612,193) 1,816,668 1,909,873 987,000 7,418,444 Total Net Position $ 64,494,796 $ 63,829,780 $ 62,936,984 $ 56,091,900 $ 59,745,761 Business-type activities:

Investment in capital assets $ 37,346,159 $ 38,857,716 $ 35,232,028 $ 34,725,800 $ 34,941,039 Restricted 469,905 4,102,582 - 5,303,228 5,437,345
Unrestricted net position (deficit) (77,313) 517,319 1,250,675 1,737,680 4,704,599 Total Net Position $ 37,738,751 $ 39,375,035 $ 40,585,285 $ 41,766,708 $ 45,082,983 Primary Government:

Investment in capital assets $ 98,067,944 $ 94,479,652 $ 90,989,012 $ 84,963,500 $ 82,401,479 Restricted 8,855,109 6,391,176 9,372,709 10,170,428 10,304,222 Unrestricted net position (deficit) (4,689,506) 2,333,987 3,160,548 2,724,680 12,123,043 Total Net Position $ 102,233,547 $ 103,204,815 $ 103,522,269 $ 97,858,608 $ 104,828,744 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
163
Fiscal Year
2023 2022 2021 2020 2019
Expenses
Governmental activities:

General government $ 10,196,494 $ 3,280,417 $ 4,196,700 $ 4,514,103 $ 3,167,076 Police 6,739,695 5,909,652 5,859,954 5,838,153 6,711,694 Fire 6,294,195 5,402,965 5,592,559 5,367,429 4,937,738
Community development and planning 2,329,664 1,959,595 1,829,511 2,084,354 2,523,052 Public works 8,127,788 4,270,332 5,414,262 4,687,210 4,455,175 Parks and recreation 3,959,583 2,321,417 2,747,819 4,536,510 4,618,872 Interest and fiscal charges 3,905,165 6,142,450 3,818,561 3,942,429 4,360,669 Total governmental activities $ 41,552,584 $ 29,286,828 $ 29,459,366 $ 30,970,188 $ 30,774,276 Business-type activities:

Water $ 7,594,552 $ 4,019,102 $ 5,056,402 $ 5,404,924 $ 4,561,024 Sewer 7,506,130 4,709,466 5,532,181 5,533,806 5,287,098 Garbage 3,422,477 3,152,032 2,774,714 2,912,990 2,545,016 Total business-type activities $ 18,523,159 $ 11,880,600 $ 13,363,297 $ 13,851,720 $ 12,393,138 Total expenses $ 60,075,743 $ 41,167,428 $ 42,822,663 $ 44,821,908 $ 43,167,414 Program Revenues
Governmental activities:

Charges for services:

General government 338,534 $ 274,622 $ 553,126 $ 374,895 $ 653,327 $ Police 87,704 153,959 177,795 86,776 198,638
Fire 2,216,509 2,058,970 1,965,540 1,741,172 1,620,028
Community development and planning 780,969 984,408 796,707 810,870 530,975 Public works 1,323,138 1,399,256 961,761 968,384 920,656 Parks and recreation 2,403,693 2,330,698 2,463,997 1,890,773 1,763,473 Operating grants and contributions 3,200,329 5,918,650 3,564,498 2,040,401 2,064,434 Capital grants and contributions 9,699,274 3,494,698 4,333,162 3,609,391 2,262,266 Total governmental activities 20,050,150 $ 16,615,261 $ 14,816,586 $ 11,522,662 $ 10,013,797 $ Business-type activities:

Water 7,269,812 $ 6,755,521 $ 6,336,607 $ 5,660,058 $ 4,764,097 $ Sewer 5,431,483 4,716,644 4,440,546 4,610,985 4,665,525 Garbage 4,127,989 3,878,211 3,577,780 3,378,155 3,228,053 Operating grants and contributions - 33,872 - - 34,318
Capital grants and contributions 6,156,519 81,253 - 8,493 - Total business-type Activities 22,985,803 $ 15,465,501 $ 14,354,933 $ 13,657,691 $ 12,691,993 $ Total program revenues $ 32,080,762 43,035,953 $ 29,171,519 $ 25,180,353 $ 22,705,790 $ Net (Expense) Program Revenues
Governmental activities $ (21,502,434) $ (12,671,567) $ (14,642,780) $ (19,447,526) $ (20,760,479) Business-type activities 4,462,644 3,584,901 991,636 (194,029) 298,855 Total Primary Government $ (17,039,790) $ (9,086,666) $ (13,651,144) $ (19,641,555) $ (20,461,624) Last Ten Fiscal Years
City of Patterson
Table 2
Changes in Net Position
164
Fiscal Year
2018 2017 2016 2015 2014
Expenses
Governmental activities:

General government $ 3,328,847 $ 2,259,261 $ 2,003,932 $ 2,650,997 $ 3,945,285 Police 6,880,924 4,458,567 4,156,842 3,298,276 3,987,323 Fire 2,699,018 3,532,864 3,594,435 3,381,961 3,339,030
Community development and planning 1,724,146 3,024,928 1,258,725 1,213,617 1,460,591 Public works 4,790,738 2,631,811 4,652,522 4,043,774 4,412,453 Parks and recreation 4,473,167 3,277,134 2,696,555 2,558,315 2,463,941 Interest and fiscal charges 3,847,304 3,955,958 3,935,590 4,118,232 80,122 Total governmental activities $ 27,744,144 $ 23,140,523 $ 22,298,601 $ 21,265,172 $ 19,688,745 Business-type activities:

Water $ 4,917,985 $ 4,481,750 $ 3,567,751 $ 3,734,709 $ 3,474,567 Sewer 5,297,929 4,893,962 4,221,112 4,091,034 3,867,142 Garbage 2,397,523 2,310,200 2,080,840 2,069,439 1,971,695 Total business-type activities $ 12,613,437 $ 11,685,912 $ 9,869,703 $ 9,895,182 $ 9,313,404 Total expenses $ 40,357,581 $ 34,826,435 $ 32,168,304 $ 31,160,354 $ 29,002,149 Program Revenues
Governmental activities:

Charges for services:

General government 4,797 $ 678,608 $ 108,119 $ 166,427 $ 38,738 $ Police 300,973 218,337 268,929 392,009 217,030
Fire 720,761 587,593 413,973 681,690 376,520
Community development and planning 65,114 645,985 390,721 885,242 385,554 Public works 2,362,593 2,161,045 2,000,190 2,296,599 1,802,849 Parks and recreation 1,690,041 1,481,692 1,804,685 1,780,112 1,628,009 Operating grants and contributions 2,767,848 1,590,404 998,122 1,318,671 1,236,474 Capital grants and contributions 1,877,817 1,112,733 342,867 556,120 861,536 Total governmental activities 9,789,944 $ 8,476,397 $ 6,327,606 $ 8,076,870 $ 6,546,710 $ Business-type activities:

Water 4,197,555 $ 3,680,373 $ 3,389,473 $ 3,972,456 $ 4,156,756 $ Sewer 4,344,858 4,011,227 3,855,492 3,406,079 3,275,496 Garbage 3,079,843 2,921,089 2,800,845 2,667,681 2,475,705 Operating grants and contributions 68,852 701,283 - - - Capital grants and contributions - - (1,582) - -
Total business-type Activates 11,691,108 $ 11,313,972 $ 10,044,228 $ 10,046,216 $ 9,907,957 $ Total program revenues $ 19,790,369 21,481,052 $ 16,371,834 $ 18,123,086 $ 16,454,667 $ Net (Expense) Program Revenues
Governmental activities $ (17,954,200) $ (14,664,126) $ (15,970,995) $ (13,188,302) $ (13,142,035) Business-type activities (922,329) (371,940) 174,525 151,034 594,553 Total Primary Government $ (18,876,529) $ (15,036,066) $ (15,796,470) $ (13,037,268) $ (12,547,482) Last Ten Fiscal Years
City of Patterson
Table 2
Changes in Net Position (Continued)
165
2023 2022 2021 2020 2019
General Revenues:

Governmental activities:

Taxes:

Property tax $ 7,381,341 $ 6,466,296 $ 6,196,152 $ 3,621,765 $ 3,386,596 Sales tax 12,842,865 12,317,056 10,029,499 6,840,520 5,837,364 Franchise tax 247,538 193,226 222,803 211,963 205,047
Motor vehicle in lieu - - 2,267,086 - 2,089,248
Other taxes 308,014 277,779 248,158 162,436 136,047
Use of money and property - - - 473,114 -
Revenue from Fiduciary Fund 4,004,069 527,556 - 2,387,683 1,745,012 Investment earnings 735,910 (474,168) 3,442,805 4,145,959 4,179,507 Other revenue 6,277,085 - 379,911 896,921 1,038,772
Transfers (Note 6) 617,936 1,649,041 - 1,642,806 1,290,335 Special / Extraordinary item 2,939,075 - - - -
Total governmental activities $ 29,076,748 $ 25,057,274 $ 22,695,925 $ 22,177,139 $ 20,381,042 Business-type activities:

Use of money and property $ 462,486 $ 3,208,319 $ 43,762 $ 205,023 $ 171,436 Revenue from Fiduciary Fund 1,472,643 518,052 155,744 1,648,115 3,850,536 Other revenue 49,137 1,366,103 63,988 2,649,760 14,378
Transfers (Note 6) (2,939,075) 2,306,094 (1,649,041) (1,642,806) (1,290,335) Total business-type activities $ (954,809) $ 7,398,568 $ (1,385,547) $ 2,860,092 $ 2,746,015 Total general revenues $ 32,455,842 28,121,939 $ 21,310,378 $ 25,037,231 $ 23,127,057 $ Change in Net Position
Governmental activities $ 7,574,314 $ 6,094,327 $ 8,053,145 $ 2,729,613 $ (379,437) Business-type activities: 3,507,835 (2,872,483) (393,911) 2,666,063 3,044,870 Total 11,082,149 $ $ 3,221,844 $ 7,659,234 $ 5,395,676 $ 2,665,433 Changes in Net Position (Continued)
Last Ten Fiscal Years
Fiscal Year
City of Patterson
Table 2
166
2018 2017 2016 2015 2014
General Revenues:

Governmental activities:

Taxes:

Property tax $ 3,417,541 $ 3,414,365 $ 3,172,489 $ 2,657,306 $ 2,068,125 Sales tax 5,027,535 5,502,627 5,045,260 3,732,177 3,394,908 Franchise tax 206,354 274,792 188,834 179,313 174,558
Motor vehicle in lieu 1,947,375 1,844,519 1,693,793 1,596,755 1,288,025 Other taxes 717,288 137,847 549,654 719,718 769,476
Use of money and property - 4,530,279 - 4,491,782 117,176 Revenue from Fiduciary Fund 1,681,843 - - - -
Investment earnings 4,515,819 4,312,058 6,075,652 809,908 - Other revenue 203,070 633,427 188,402 159,416 -
Transfers (Note 6) 1,271,753 895,861 1,371,990 2,117,754 201,549 Special / Extraordinary item - - - 1,083,500 -
Total governmental activities $ 18,988,578 $ 17,015,496 $ 22,816,353 $ 15,654,221 $ 9,907,225 Business-type activities:

Use of money and property $ 74,144 $ 31,002 $ 14,451 $ 13,985 $ 34,679 Revenue from Fiduciary Fund 500,786 - - - -
Other revenue 64,483 26,549 - - -
Transfers (Note 6) (1,271,753) (895,861) (1,371,990) (2,117,754) (1,083,500) Total business-type activities $ (632,340) $ (838,310) $ (1,357,539) $ (2,103,769) $ (1,048,821) Total general revenues $ 16,177,186 18,356,238 $ 21,458,814 $ 13,550,452 $ 8,858,404 $ Change in Net Position
Governmental activities $ 1,034,378 $ 2,351,370 $ 6,845,358 $ 2,465,919 $ (3,234,810) Business-type activities: (1,554,669) (1,210,250) (1,183,014) (1,952,735) (454,268) Total (520,291) $ $ 1,141,120 $ 5,662,344 $ 513,184 $ (3,689,078) Changes in Net Position (Continued)
Last Ten Fiscal Years
Fiscal Year
City of Patterson
Table 2
167
2023 2022 2021 2020 2019
FUND BALANCES:

General Fund
Nonspendable $ 138,149 $ 138,586 $ 106,172 $ 104,997 $ 84,466 Restricted 560,761 360,498 360,498 344,809 290,150
Committed 9,838,576 3,762,470 3,762,470 3,751,813 3,725,949 Assigned 6,236,338 2,896,296 2,896,296 2,889,800 2,879,593 Unassigned 1,389,339 12,651,739 6,589,826 1,984,909 1,192,981 Total General Fund $ 18,163,163 $ 19,809,589 $ 13,715,262 $ 9,076,328 8,173,139 All Other Governmental Funds
Nonspendable $ 6,596 $ 138,586 $ 3,338 $ - $ -
Restricted 72,309,934 75,829,140 75,922,386 75,515,298 74,293,766 Committed 10,364,796 13,042,711 7,173,724 4,986,655 4,905,500 Assigned 2,935,856 - 38,865 - 40,109
Unassigned (deficit) (4,469,077) 8,607,342 (3,567,982) (2,935,948) (2,777,683) Total All Other Governmental Funds $ 78,212,249 $ 100,553,635 $ 79,570,331 $ 77,566,005 $ 76,461,692 Total Fund Balance $ 96,375,412 $ 120,363,224 $ 93,285,593 $ 86,642,333 $ 84,634,831 City of Patterson
Table 3
Fund Balance, Governmental Funds
Last Ten Fiscal Years
Fiscal Year
168
2018 2017 2016 2015 2014
FUND BALANCES:

General Fund
Nonspendable $ 73,526 $ 68,630 $ 78,491 $ - $ 850
Restricted 146,789 144,229 51,773 40,508 81,663
Committed 3,658,050 3,642,337 3,626,143 3,605,039 3,605,039 Assigned 2,883,371 2,879,809 1,879,546 2,051,675 2,246,696 Unassigned 873,038 1,502,483 1,564,376 568,385 283,289
Total General Fund $ 7,634,774 $ 8,237,488 $ 7,200,329 $ 6,265,607 $ 6,217,537 All Other Governmental Funds
Nonspendable $ 2,865 $ 574 $ - $ - $ -
Restricted 75,770,466 76,995,568 78,162,371 78,664,140 2,935,022 Committed 4,905,500 6,016,084 5,734,508 6,335,270 5,833,844 Assigned - - 38,985 105 -
Unassigned (deficit) (1,283,973) (729,053) (283,235) (135,283) (152,677) Total All Other Governmental Funds $ 79,394,858 $ 82,283,173 $ 83,652,629 $ 84,864,232 $ 8,616,189 Total Fund Balance $ 87,029,632 $ 90,520,661 $ 90,852,958 $ 91,129,839 $ 14,833,726 City of Patterson
Table 3
Fund Balance, Governmental Funds (Continued)
Last Ten Fiscal Years
Fiscal Year
169
2023 2022 2021 2020 2019
Revenues:

Taxes:

Property $ 7,380,341 $ 6,466,296 $ 6,196,152 $ 3,621,765 $ 3,386,596 Sales 12,842,865 12,317,056 10,029,499 6,840,520 5,837,364 Franchise 247,538 193,226 222,803 211,963 205,047
Motor vehicle in lieu - 2,267,086 - 2,089,248
Other 308,014 277,779 248,158 162,436 136,047
License, permits, and fees 2,564,469 3,760,608 3,872,859 2,135,391 1,360,937 Charges for current services 5,780,377 5,165,200 4,651,557 4,446,008 4,369,186 Intergovernmental 4,868,843 7,400,132 5,943,756 6,225,231 3,483,936 Fines, forfeitures and penalties 112,090 158,125 339,080 66,683 181,044 Investment earnings 4,001,071 2,779,382 3,528,985 4,152,528 4,198,697 Revenue from Fiduciary Fund 735,910 518,052 527,556 2,387,683 1,745,012 Miscellaneous revenues 714,667 658,984 393,511 981,021 1,189,088 Total Revenues $ 39,556,185 $ 39,694,840 $ 35,953,916 $ 33,498,315 28,182,202 Expenditures:

Current:

General government $ 4,416,045 $ 3,280,417 $ 3,539,563 $ 3,803,016 $ 2,899,263 Police 6,542,712 5,909,652 5,410,959 5,373,752 5,374,098 Fire 6,037,410 5,402,965 5,289,020 5,057,265 4,696,647
Community development and planning 2,213,335 1,959,595 1,728,594 2,021,174 2,545,955 Public Works 4,920,769 4,270,332 3,899,114 3,323,065 3,267,381 Parks and recreation 3,046,238 2,321,417 1,878,060 3,713,674 4,014,566 Capital outlay 8,309,343 4,513,191 2,964,721 3,417,460 2,776,974 Debt service:

Principal 2,879,858 2,444,648 2,427,337 2,476,386 2,225,040 Interest and fiscal charges 3,975,707 3,697,802 3,822,329 3,947,827 4,067,414 Total Expenditures $ 33,800,019 42,341,417 $ 30,959,697 $ 33,133,619 $ 31,867,338 $ Excess (deficiency) of revenue over $ 5,894,821 (2,785,232) $ 4,994,219 $ 364,696 $ (3,685,136) $ (under) expenditures
Other financing sources (uses)
Proceeds from leases $ 464,205 $ - $ - $ -
Proceeds from loan repayments - - - -
Proceeds from issuance of bonds - 59,040 - - -
Transfers in 7,693,815 3,469,860 6,985,786 3,339,258 3,818,998 Transfers out (4,754,740) (2,155,679) (5,336,745) (1,696,452) (2,528,663) Total Other Financing Sources $ 1,373,221 3,403,280 $ 1,649,041 $ 1,642,806 $ 1,290,335 $ Net Change in Fund Balance $ 7,268,042 618,048 $ 6,643,260 $ 2,007,502 $ (2,394,801) $ Debt Service as a Percentage of Noncapital Expenditure 20.30% 20.97% 22.32% 21.62% 21.63% Source: City of Patterson Finance Department
City of Patterson
Table 4
Changes in Fund Balance of Governmental Funds
Last Ten Fiscal Years
Fiscal Year
170
2018 2017 2016 2015 2014
Revenues:

Taxes:

Property $ 3,417,541 $ 3,414,365 $ 3,172,489 $ 2,657,306 $ 2,068,125 Sales 5,027,535 5,502,627 5,045,260 3,732,177 3,394,908 Franchise 206,354 274,792 188,834 179,313 174,558
Motor vehicle in lieu 1,947,375 1,844,519 1,693,793 1,596,755 1,288,025 Other 131,701 137,847 549,654 719,718 769,476
License, permits, and fees 2,055,853 1,791,391 983,115 2,016,921 557,204 Charges for current services 5,519,738 3,849,087 3,763,566 4,021,749 3,680,478 Intergovernmental 2,028,281 1,989,969 1,340,990 1,844,850 2,138,010 Fines, forfeitures and penalties 146,100 157,307 239,936 193,350 211,018 Investment earnings 4,535,040 4,312,058 4,530,279 4,577,761 117,176 Revenue from Fiduciary Fund 1,681,843 - - - -
Miscellaneous revenues 355,285 612,457 188,402 1,565,122 416,362 Total Revenues $ 27,052,646 $ 23,886,419 $ 21,696,318 $ 23,105,022 $ 14,815,340 Expenditures:

Current:

General government $ 2,656,904 $ 2,507,830 $ 2,704,512 $ 2,744,062 $ 2,602,651 Police 6,377,259 4,218,306 4,290,965 4,039,064 3,916,598 Fire 2,437,226 3,574,689 3,274,834 3,069,601 2,822,442
Community development and planning 1,654,039 1,485,366 1,240,042 1,374,632 1,254,394 Public Works 3,707,312 2,874,435 2,691,886 2,746,358 3,114,271 Parks and recreation 3,719,906 2,466,882 1,940,339 1,841,033 1,741,109 Capital outlay 7,237,219 2,080,160 1,432,210 1,873,381 3,344,428 Debt service:

Principal 2,250,465 2,060,273 1,765,836 3,105,901 286,833 Interest and fiscal charges 4,204,098 3,954,933 4,016,686 4,123,116 80,122 Total Expenditures $ 25,222,874 34,244,428 $ 23,357,310 $ 24,917,148 $ 19,162,848 $ Excess (deficiency) of revenue over $ (1,336,455) (7,191,782) $ (1,660,992) $ (1,812,126) $ (4,347,508) $ (under) expenditures
Other financing sources (uses)
Proceeds from leases $ 161,990 - $ $ - $ - $ -
Proceeds from loan repayments - - 12,116 760 717,421
Proceeds from issuance of bonds 2,429,000 - - - -
Transfers in 4,107,492 3,012,930 4,711,665 4,655,106 3,295,570 Transfers out (2,835,739) (2,117,069) (3,339,675) (3,223,826) (2,212,070) Total Other Financing Sources $ 1,057,851 3,700,753 $ 1,384,106 $ 1,432,040 $ 1,800,921 $ Net Change in Fund Balance $ (278,604) (3,491,029) $ (276,886) $ (380,086) $ (2,546,587) $ Debt Service as a Percentage of Noncapital Expenditure 23.90% 25.99% 26.37% 31.37% 2.32% 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
171
2023 2022 2021 2020 2019
Revenues:

Taxes:

Property $ 7,381,341 $ 6,466,296 $ 6,196,152 $ 3,621,765 $ 3,386,596 Sales 12,842,865 12,317,056 10,029,499 6,840,520 5,837,364 Franchise 247,538 193,226 222,803 211,963 205,047
Motor vehicle in lieu - - 2,267,086 - 2,089,248
Other 308,014 277,779 248,158 162,436 136,047
Total Revenues $ 19,254,357 20,779,758 $ 16,696,612 $ 13,103,770 $ 11,654,302 $ Source: City of Patterson Finance Department
Fiscal Year
City of Patterson
Table 5
Tax Revenues by Source
Last Ten Fiscal Years
172
2018 2017 2016 2015 2014
Revenues:

Taxes:

Property $ 3,417,541 $ 2,931,682 $ 3,172,489 $ 2,657,306 $ 2,068,125 Sales 5,027,535 5,502,627 5,045,260 3,732,177 3,394,908 Franchise 206,534 274,792 188,834 179,313 174,558
Motor vehicle in lieu 1,947,375 1,844,519 1,693,793 1,596,755 1,288,025 Other 131,701 137,847 549,654 719,718 769,476
Total Revenues $ 10,691,467 10,730,686 $ 10,650,030 $ 8,885,269 $ 7,695,092 $ Source: City of Patterson Finance Department
Fiscal Year
City of Patterson
Table 5
Tax Revenues by Source (Continued)
Last Ten Fiscal Years
173
2023 2022 2021 2020 2019
Type of Customer
Residential 1,020,933 cf 1,065,086 cf 1,146,893 cf 1,095,305 cf 1,018,052 cf Commercial/Industrial 160,824 135,263 132,374 165,164 151,297 Irrigation 321,211 411,831 450,848 444,466 334,844
Total 1,502,968 cf 1,612,180 cf 1,730,115 cf 1,704,935 cf 1,504,193 cf Source: City of Patterson Finance Department
Fiscal Year
City of Patterson
Table 6a
Water Sold by Customer Type
Last Five Fiscal Years
174
Wastewater
Fiscal Year
Monthly
Base Rate
Additional
Per 100cf**
Monthly Base
Rate
2023 $ 17.12 $ 3.86 $ 49.94
2022 $ 16.79 $ 3.86 $ 49.94
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
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
175
2013-14 2014-15 2015-16* 2016-17 2017-18
Residential Property $ - $ 1,067,738,189 - $ $ 1,125,435,937 $ 1,221,805,158 Commercial Property - - 106,365,150 134,692,261 141,903,335 Industrial Property - 278,228,208 - 461,416,004 460,796,304 Other Property 1,243,040,268 1,490,319,496 187,566,714 62,594,490 66,537,768 Unsecured Property 22,211,957 69,354,774 81,491,675 87,592,650 84,553,479 Less: Tax-Exempt Property 18,900,554 18,375,785 35,591,679 36,416,220 38,086,325 Taxable Assessed Value $ 1,246,351,671 $ 1,541,298,485 $ 1,685,798,257 $ 1,835,315,122 $ 1,937,329,719 Total Direct Tax Rate (1) 1.126574 1.092819 1.097113 1.095707 1.104825 Estimated Actual Taxable Value (2) $ 1,246,351,671 $ 1,541,298,485 $ 2,474,212,386 $ 2,515,245,600 $ 2,880,528,379 Factor of Taxable Assessed Value (2) 1.000000 1.000000 1.467680 1.370471 1.486855 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
176
2018-19 2019-20 2020-21 2021-22 2022-23
Residential Property $ 1,336,735,402 $ 1,420,672,172 $ 1,472,464,677 $ 1,572,562,406 $ 1,727,967,560 Commercial Property 175,943,468 162,332,795 201,385,521 213,310,784 236,429,368 Industrial Property 464,865,277 470,160,844 537,164,362 535,210,557 541,200,991 Other Property 73,659,817 141,632,148 113,983,444 126,040,766 150,812,186 Unsecured Property 82,368,182 87,689,106 83,230,002 82,516,633 82,171,485 Less: Tax-Exempt Property 42,869,663 38,436,037 44,893,026 57,029,494 57,996,914 Taxable Assessed Value $ 2,081,525,436 $ 2,253,228,075 $ 2,363,334,980 $ 2,472,611,652 $ 2,680,584,676 Total Direct Tax Rate (1) 1.106684 1.141246 1.136632 1.131314 1.125102 Estimated Actual Taxable Value (2) $ 3,191,213,893 $ 3,457,556,850 $ 2,968,433,744 $ 4,764,749,852 $ 4,558,931,744 Factor of Taxable Assessed Value (2) 1.533113 1.534490 1.256036 1.927011 1.700723 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
177
Category 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Residential $ 1,125,435,937 $ 1,221,805,158 $ 1,336,735,402 $ 1,420,672,172 $ 1,472,464,677 $ 1,572,562,406 $ 1,727,967,560 Industrial 461,416,004 460,796,304 464,865,277 470,160,844 537,164,362 535,210,557 541,200,991 Commercial 134,692,261 141,903,335 162,332,795 175,943,468 201,385,521 213,310,784 236,429,368 Vacant 41,941,904 49,709,923 59,900,775 111,593,169 79,088,199 91,050,322 116,283,431 Agriculture 14,009,788 14,548,636 11,793,401 14,729,866 14,082,823 13,859,051 19,784,066 Unknown 5,164,703 1,245,101 1,096,217 9,299,298 18,838,976 19,138,532 12,713,957 Rural 1,337,947 712,923 727,181 5,866,493 1,818,114 1,836,948 1,873,685 Unitary 88,243 88,243 88,243 88,243 99,152 99,152 99,152 Miscellaneous 51,905 52,942 54,000 55,079 56,180 56,761 57,895 Institution - - - - - - -
Gross Secured Value 1,784,138,692 $ $ 1,890,862,565 $ 2,037,593,291 $ 2,208,408,632 $ 2,324,998,004 $ 2,447,124,513 $ 2,656,410,105 Unsecured $ 87,592,650 $ 84,553,479 $ 82,368,182 $ 87,689,106 $ 83,230,002 $ 83,230,002 $ 82,516,633 Exemptions 36,416,220 38,086,325 38,436,037 42,869,663 44,893,026 44,893,026 57,029,494 Net Taxable Value 1,835,315,122 $ $ 1,937,329,719 $ 2,081,525,436 $ 2,253,228,075 $ 2,363,334,980 $ 2,485,461,489 $ 2,681,897,244 Source: County Assessor data, MuniServices, LLC / Avenue Insights & Analytics limited.

City of Patterson
Table 7
Taxable Property by Use Code, City-Wide
Last Seven Fiscal Years
Fiscal Year
178
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Basic City and County Levy:

City of Patterson 0.188770 0.188770 0.188770 0.188770 0.188770 0.188770 0.188770 0.188770 0.188770 0.188770 All Others:

County General Fund 0.241442 0.241442 0.241442 0.241442 0.241442 0.241442 0.241442 0.241442 0.241442 0.241442 Co Supt of Schools 0.003947 0.003947 0.003947 0.003947 0.003947 0.003947 0.003947 0.003947 0.003947 0.003947 County Fire Service 0.005658 0.005658 0.005658 0.005658 0.005658 0.005658 0.005658 0.005658 0.005658 0.005658 Patterson Cemetery 0.007696 0.007696 0.007696 0.007696 0.007696 0.007696 0.007696 0.007696 0.007696 0.007696 Patterson Hospital District 0.034410 0.034410 0.034410 0.034410 0.034410 0.034410 0.034410 0.034410 0.034410 0.034410 Turlock Mosquito Abatement 0.011318 0.011318 0.011318 0.011318 0.011318 0.011318 0.011318 0.011318 0.011318 0.011318 Patterson Unified School District 0.386426 0.386426 0.386426 0.386426 0.386426 0.386426 0.386426 0.386426 0.386426 0.386426 Yosemite Community College 0.070620 0.070620 0.070620 0.070620 0.070620 0.070620 0.070620 0.070620 0.070620 0.070620 County School Service Fund 0.020908 0.020908 0.020908 0.020908 0.020908 0.020908 0.020908 0.020908 0.020908 0.020908 Schools-equalization aid 0.018355 0.018355 0.018355 0.018355 0.018355 0.018355 0.018355 0.018355 0.018355 0.018355 Schools-tuition 0.010450 0.010450 0.010450 0.010450 0.010450 0.010450 0.010450 0.010450 0.010450 0.010450 TOTAL 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 Override Assessments
Patterson U - 1996 0.016664 0.011640 0.010596 0.010415 0.009953 0.009910 0.008517 0.007773 0.007773 0.000000 Patterson U - 01A 0.069589 0.045680 0.043932 0.043952 0.042364 0.042913 0.037489 0.034404 0.034404 0.030812 Patterson U - 01B 0.011402 0.008691 0.007974 0.007850 0.000000 0.000000 0.009804 0.007718 0.007718 0.007859 Patterson U - 2008A 0.001938 0.004985 0.007691 0.010456 0.010179 0.011078 0.009759 0.009435 0.009435 0.009993 Patterson U - 2016 GO Ref 0.000000 0.000000 0.000000 0.000000 0.018261 0.016809 0.005718 0.006936 0.006936 0.006695 Patterson U - 2018A 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.046179 0.047588 0.047588 0.046326 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 0.019024 0.015663 0.011618 0.009190 0.007585 0.009093 0.008839 0.008883 0.008883 0.009875 YCCD 2010 D 0.000390 0.000334 0.000467 0.000459 0.000359 0.000410 0.000405 0.000425 0.000425 0.000000 YCCD 2012 Ref 0.007567 0.005826 0.008285 0.008500 0.008753 0.007962 0.007286 0.006554 0.006554 0.000000 YCCD 2015 Ref 0.000000 0.000000 0.006550 0.004885 0.007371 0.008509 0.007250 0.006916 0.006916 0.000000 Yosemite 2020 GOB Series A 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 Yosemite 2020 GOB Series B 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.006848 Yosemite 2022 GOB Refunding 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.006694 TOTAL 0.126574 0.092819 0.097113 0.095707 0.104825 0.106684 0.141246 0.136632 0.136632 0.125102 TOTAL TAX RATE 1.126574 1.092819 1.097113 1.095707 1.104825 1.106684 1.141246 1.136632 1.136632 1.125102 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
179
Taxpayer Taxable Value ($) Percent of Total City
Taxable Value (%) Taxable Value ($)
Percent of Total
City Taxable Value
(%)
WR Griffin Patterson LLC 109,581,278 4.09%
W W Grainger Inc 88,198,930 3.29% 91,714,790 7.36%
Bit Holdings Seventy-Seven Inc 82,548,402 3.08%
Longs Drug Stores California Inc 63,569,242 2.37% 49,824,060 4.00% Westcore Alpha Patterson LLC 59,915,115 2.24%
Kohls Department Stores Inc 40,527,730 1.51% 41,972,490 3.37% LBA RV-Company XVII LP 31,694,679 1.18%
Amazoncom Services Inc 29,468,770 1.10%
Wal Mart Real Estate Business Trust 25,642,471 0.96% 17,647,408 1.42% Sierra Pacific Refrig Serv LTD 14,483,786 0.54% 11,560,906 0.93% Ramos John J & Brenda J 13,859,998 0.52% 7,156,593 0.57% Restoration Hardware 13,703,080 0.51%
Pilot Travel Centers LLC 12,209,235 0.46%
Buzz Oates LLC 10,748,015 0.40% 2,548,980 0.20%
Gill Hospitality LLC 10,475,053 0.39%
Sai Shiva LLC 9,406,740 0.35%
KB Home Sacramento Inc 14,929,985 0.56%
Patterson Marketplace LLC 7,881,394 0.29% 6,783,462 0.54% Save Mart Portfolio Owner Fund V Ca LLC 9,324,200 0.35% 4,991,735 0.40% Traina Pacific LLC 7,646,697 0.29% 8,256,170 0.66%
El Centro Corner Petroleum LLC 7,116,319 0.27%
Three D Patterson LLC 7,098,914 0.26% 5,040,000 0.40%
Eagle Valley Investments 10,271,017 0.38%
Baldwin Ranch Land Co LLC 10,243,288 0.38%
Boersma Properties LLC - 0.00% 5,281,632 0.42%
Patterson Industrial Center LLC 32,787,877 2.63%
US Real Estate Limited Partnership LP 6,964,560 0.56%
Gea Mechanical Equipment Us In 4,379,520 0.35%
Ormond Peter M 4,301,802 0.35%
Snider Paul H 3,973,848 0.32%
Proto LLC 8,140,129 0.30% 3,921,000 0.31%
Karen Judd 3,546,010 0.28%
Keystone Flex II Associates LLC 3,442,543 0.28%
Patterson Plaza Associates LLC 3,280,097 0.26%
Westside Property Management 3,076,851 0.25%
Hensley Investment Co LLC 2,494,200 0.20%
Teg Investments 2,444,961 0.20%
Grewal Re Holdings LLC 2,462,354 0.20%
Total Top 25 Taxpayers 698,684,467 26.06% 329,853,849 26.47% Total Taxable Value 2,680,584,676 100.00% 1,246,351,671 100.00% Source: County Assessor data, MuniServices, LLC / Avenue Insights & Analytics 2013-14
City of Patterson
Table 9
Principal Property Tax Payers
Last Fiscal Year and Nine Years Ago
2022-23
180
Taxpayer Business Type Taxpayer Business Type
76 Service Stations Service Stations 76 Service Stations Service Stations 76 Service Stations Service Stations 76 Service Stations Service Stations Amazon Com Services Fulfillment Centers AutoZone Automotive Supply Stores Amazon MFA Fulfillment Centers Carls Jr Quick-Service Restaurants Arco AM PM Service Stations Chevron Patterson Service Stations Cali Kosher Cannabis Dispensaries CVS Pharmacy Drug Stores Chevron Patterson Service Stations Del Don Chemical Garden/Agricultural Supplies Del Don Fertilizer Company Garden/Agricultural Supplies Denny's Casual Dining Flying J Travel Plaza Service Stations Dollar Tree Variety Stores G's Food Mart Service Stations G's Food Mart Service Stations Grab N Go Patterson Service Stations Jack in the Box Quick-Service Restaurants JM Equipment Warehouse/Farm/Const. Equip. Jesses Used Cars Used Automotive Dealers Kwik Serv Gas Service Stations JM Equipment Warehse/Farm/Const. Equip.

Lowry Cardlock Fuel Petroleum Prod/Equipment Kwik Serv Gas Service Stations McAuley Ford New Motor Vehicle Dealers Lowry Cardlock Fuel Petroleum Prod/Equipment McDonalds Quick-Service Restaurants McAuley Ford New Motor Vehicle Dealers Patterson Lumber Company Building Materials McDonalds Quick-Service Restaurants Patterson Mobil Mart Service Stations Exxon Liquor & Food Service Stations Phillin Station Service Stations San Joaquin Equipment Warehse/Farm/Const. Equip.

San Joaquin Equipment Warehse/Farm/Const. Equip. Save Mart Supermarket Grocery Stores Save Mart Supermarket Grocery Stores Storeroom Solutions Light Industrial/Printers Thompson Chevrolet Buick New Motor Vehicle Dealers Taco Bell Quick-Service Restaurants Walmart Supercenter Retailer True Value Hardware Building Materials WW Grainger Electrical Equipment Walgreens Drug Stores
Source: HdL Companies
2022-23 2013-14
City of Patterson
Table 10
Principal Sales Tax Producers
Last Fiscal Year and Nine Years Ago
181
CATEGORY NAME 2014 Q1 2015 Q1 2016 Q1 2017 Q1 2018 Q1
All Other Outlets 339,350 $ 389,253 $ 592,368 $ 597,886 $ 567,498 $ Apparel Stores 233 799 597 774 526
Auto Dealers & Auto 89,599 107,648 104,804 123,336 123,204 Bldg. Matrl. & Farm 59,860 102,671 62,643 60,911 32,749 Drug Stores 9,079 9,002 8,922 9,318 4,655
Eating & Drinking Pl 51,559 53,868 58,015 56,766 56,023 Food Stores 14,677 18,922 16,884 14,235 13,203
Home Furnishings & A 4,366 5,519 9,228 12,564 10,601
General Merchandise 91,259 72,612 79,659 80,118 83,482
Other Retail Stores 1,655 3,149 3,345 3,495 5,543
Packaged Liquor Stor 1,209 689 997 8,353 4,945
Service Station 80,038 73,795 63,428 142,584 174,114
TOTAL 742,884 $ 837,927 $ 1,000,890 $ 1,110,340 $ 1,076,543 $ Source: HdL Companies
City of Patterson
Table 11
Historical Sales Tax Amounts by Benchmark Year
Last Ten Fiscal Years
* HdL combined business type Packaged Liquor Stores with Convenience Stores in 4Q16 thus causing a spike in 1Q17 and forward. 182
CATEGORY NAME 2019 Q1 2020 Q1 2021 Q1 2022 Q1 2023 Q1
All Other Outlets $ 536,620 $ 934,427 $ 1,802,510 $ 1,556,150 $ 1,623,385 Apparel Stores 1,116 894 30 222 379
Auto Dealers & Auto 111,997 113,273 171,906 153,886 169,261 Bldg. Matrl. & Farm 69,889 94,280 145,119 112,958 92,400 Drug Stores 23,628 17,646 35,512 33,705 27,710
Eating & Drinking Pl 74,473 51,621 84,011 89,794 93,097 Food Stores 13,447 11,203 18,345 19,660 18,691
Home Furnishings & A 9,814 12,462 11,105 11,550 11,693
General Merchandise 84,760 86,678 98,236 93,077 91,890
Other Retail Stores 4,237 -2,373 5,287 5,704 5,281
Packaged Liquor Store 2,877 6,607 7,165 6,372 6,126
Service Station 202,665 188,080 292,674 345,035 405,712 TOTAL $ 1,135,523 $ 1,514,798 $ 2,671,900 $ 2,428,113 $ 2,545,625 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
183
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184
Fiscal Year City 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)
2013-14 20,922 398,375,802 $ 19,041 $ 30.4 6,023 13.0% 17.8% 526,042 2014-15 402,136,016 21,094 $ $ 19,064 30.5 6,024 9.8% 9.3% 532,297 2015-16 436,077,360 22,590 $ $ 19,304 30.5 6,031 9.5% 9.0% 540,214 2016-17 459,580,598 22,730 $ $ 20,219 30.5 6,083 8.5% 8.1% 548,057 2017-18 503,526,733 23,414 $ $ 21,505 30.6 6,103 7.1% 7.2% 555,624 2018-19 539,051,882 23,764 $ $ 22,684 30.8 6,077 5.6% 5.5% 558,972 2019-20 544,361,808 23,074 $ $ 23,592 31.3 6,179 16.1% 14.9% 557,709 2020-21 593,436,826 23,304 $ $ 25,465 31.1 6,012 10.7% 10.0% 555,968 2021-22 660,385,084 24,370 $ $ 27,098 31.5 6,214 4.5% 4.6% 549,466 2022-23 768,597,389 24,317 $ $ 31,607 39.0 6,177 6.4% 5.4% 545,939 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
185
Business Name Number of
Employees
Percent of Total
Employment (%)
Number of
Employees
Percent of Total
Employment (%)
Patterson Joint Unified School District 817 7.50% 662 5.26% Amazon Fulfillment Center 582 5.34% 850 9.24%
CVS Caremark Distribution Center 514 4.72% 484 3.78%
Grainger Distribution Center 490 4.50% 348 2.62%
Walmart Supercenter 330 3.03% 241 2.26%
City of Patterson* 261 2.39% 208 1.09%
Traina Foods 157 1.44%
King's Roofing 141 1.29% 100 1.09%
Restoration Hardware Distribution Center 139 1.28% 122 1.33% Advanced Linen Service 84 0.77% 75 0.82%
Save Mart 73 0.79%
Brake Parts Inc (BPI) Distribution Center
Total Top 10 Employers 3,515 32.25% 3163 28.27%
Total City Labor Force (1) 10,900 9,200
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
2016-17
City of Patterson
Table 13
Principal Employers
2022-23
Last Fiscal Year and Six Years Ago
186
Total 2022-23 Assessed Valuation: $2,698,714,667
Total Debt % Applicable (1) City’s Share of Debt
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2023 6/30/2023 Yosemite Community College District 253,266,478.0 $ 3.239% 8,203,301 $ Patterson Joint Unified School District 63,185,189 71.120% 44,937,306 City of Patterson Community Facilities District No. 2005-1 15,825,000 100% 15,825,000 City of Patterson Community Facilities District No. 2015-1 4,610,000 100% 4,610,000 City of Patterson Community Facilities District No. 2018-1 4,415,000 100% 4,415,000 City of Patterson PFA Revenue Bonds (Less Bond Discount) 59,463,452 100% 59,463,452 TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT 400,765,119.0 $ 137,454,059 $ DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Stanislaus County Certificates of Participation 4,500,000 $ 4.378% 197,010.00 $ Stanislaus County Office of Education Certificates of Participation 785,000 4.378% 34,367 Patterson Joint Unified School District General Fund Obligations 10,315,000 71.120% 7,336,028 City of Patterson Lease Revenue Bonds 1,753,961 100% 1,753,961 Turlock Mosquito and Vector Control District Pension Obligation Bonds 1,396,626 10.724% 149,774 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 18,750,587.0 $ 9,471,140.0 $ TOTAL DIRECT DEBT $ 61,217,413
TOTAL OVERLAPPING DEBT $ 85,707,786
COMBINED TOTAL DEBT $ 146,925,199
Ratios to 2022-23 Assessed Valuation:

Direct Debt ($59,463,452) 2.20%
Total Direct and Overlapping Tax and Assessment Debt 5.09% Total Direct Debt ($61,217,413) 2.27%
Combined Total Debt 5.44%
Source: Avenu Insights & Analytics
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded lease obligations. (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.

Direct and Overlapping Governmental Activities Debt
City of Patterson
Table 14
187
Number Number Number Number Number
Authorized Authorized Authorized Authorized Authorized
18-19 19-20 20-21 21-22 22-23
Administration:

City Manager 11111
Program Manager 00001
Human Resources Director 11111
City Clerk 11111
HR Analyst 11112
Executive Administrative Assistant Confidential 11111
Deputy City Clerk 01111
Administrative Assistant 10000
IT Manager 01111
IT Technician II 01111
6 8 8 8 10
Finance:

Finance Director 11111
Accounting Manageer 00001
Revenue & Utility Billing Manager 11111
Supervising Accountant 11111
Accountant 11222
Accounting Technician 11111
Account Clerk, Senior 33344
Account Clerk 33212
11 11 11 11 13
Recreation & Community Services:

Recreation & Community Services Director 11111
Recreation & Community Services Manager 11111
Recreation & Community Services Supervisor 14444
Recreation Coordinator I 10000
Recreation Coordinator II 30000
Account Clerk 22222
Administrative Assistant II 00011
Facilities & Maintenance Supervisor 11100
Facilities Superintendent 00011
Maintenance Worker I 11001
Maintenance Worker II 00111
Maintenance Worker III 11111
12 11 11 12 13
Fire:

Chief 11111
Division Chief 22233
Fire Captain - Paramedic 22223
Fire Captain 44444
Fire Engineer - Paramedic 11111
Fire Engineer 55555
Fire Fighters - Paramedic 66669
Fire Prevention Specialist 11111
Administrative Manager 11111
Administrative Assistant II/Secretary II 11111
24 24 24 25 29
City of Patterson
Table 15
Full-Time Equivalent City Government Employees
By Function/Program/Department
Last Five Fiscal Years
188
Number Number Number Number Number
Authorized Authorized Authorized Authorized Authorized
18-19 19-20 20-21 21-22 22-23
Community Development:

Community Development Director 11111
Code Enforcement Officer I 11111
Code Enforcement Officer II 11112
3 3 3 3 4
Planning:

Planner 11111
Associate Planner 11111
Planning Technician II 22222
4 4 4 4 4
Engineering, Building & Capital Projects:

Director of Engineering 11111
Associate Engineer 11111
Assistant Engineer 11111
Secretary I 11111
44444
Capital Projects:

Capital Project Manager 1111 1
Building & Permits:

Permit Technician I 00222
Permit Technician II 11111
11333
Public Works:

Director of Public Works 11111
Deputy Director of Public Works Ops & Maint 11112
Sr. Administrative Manager 11111
Public Works Inspector I 10000
Public Works Inspector II 01112
Public Works Inspector III 11111
Management Analyst 33333
Administrative Assistant II/Secretary II 22222
Environmental Compliance Specialist 13
Maintenance Worker I 11111
11 11 11 12 16
Equipment Mechanic:

Mechanic - Crew Leader 11111
Mechanic I 00000
Mechanic II 11112
22223
Building Maintenance:

Maintenance Worker I 11222
Maintenance Worker II 11010
11012
Parks:

Parks Supervisor 11111
Maintenance Worker III 45444
Maintenance Worker II 33344
Maintenance Worker I 31213
11 10 10 10 12
Streets:

Public Works Supervisor - Streets 0.5 0.5 0.5 0.5 0.5
Maintenance Worker III 11
Maintenance Worker II 1 2211
Maintenance Worker I 1 0112

2.5 2.5 3.5 3.5 4.5
City of Patterson
Table 15
Full-Time Equivalent City Government Employees (Continued) By Function/Program/Department
Last Five Fiscal Years
189
Number Number Number Number Number
Authorized Authorized Authorized Authorized Authorized
18-19 19-20 20-21 21-22 22-23
Urban Forestry:

Public Works Supervisor - Tree 11111
Maintenance Worker III 11000
Maintenance Worker II 11145
Maintenance Worker I 22300
55556
Water:

Public Works Supervisor - Water 11111
Water Operator III 44433
Water Operator II 01100
Water Operator I 10000
Maintenance Worker III 11
Maintenance Worker II 11
Electrical & Instrumentation Manager 0.5 0.5 0.5 0.5 0.5 Electrician - Crew Leader 00000
Electrician Technician II 0.5 0.5 0.5 1 0.5
7 7 7 7.5 7
Sewer:

Wastewater Manager 11111
Chief Waste Water Operator 11111
Wastewater Operator III 21211
Wastewater Operator II 12112
Wastewater Operator I 10100
Wasterwater Operator in Training 22
Electrical & Instrumentation Manager 0.5 0 0.5 0.5 0.5
Electrician - Crew Leader 00000
Electrician Technician II 0.5 0 0.5 1 0.5
Maintenance Worker I 01013
7 6 7 9 11
Collection:

Public Works Supervisor - Collections 0.5 0.5 0.5 0.5 0.5 Maintenance Worker III 32344
Maintenance Worker II 01000
Maintenance Worker I 01100

3.5 4.5 4.5 4.5 4.5
Total Allocated Positions 116 116 119 125 147
Incentives Available: Specified by MOU
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) 190
Fiscal Year Loans Payable
Lease Revenue
Bonds Revenue Bonds Settlement Payable
Finance Purchase
Obligations and
Leases Total
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 - 2,172,830 66,516,789 364,000 33,518 69,087,137
2021 - 2,037,982 64,286,264 364,000 - 66,688,246
2022 - 1,898,414 61,856,080 364,000 72,094 64,190,588
2023 - 1,753,961 59,259,986 1,697,355 478,542 63,189,844 Fiscal Year Loans Payable
Public Offering
Revenue Bonds
Private Placement
Revenue Bonds Settlement Payable
Finance Purchase
Obligations and
Leases Total
2014 4,939,647 12,205,000 - - 35,452 17,180,099
2015 5,297,539 11,860,000 - - - 17,157,539
2016 4,926,020 11,585,000 - - - 16,511,020
2017 4,538,540 11,300,000 - - - 15,838,540
2018 4,134,079 9,865,000 2,658,300 - - 16,657,379
2019 3,889,225 8,565,000 2,630,800 - - 15,085,025
2020 3,627,227 17,609,352 2,602,300 - - 23,838,879
2021 3,040,868 17,176,312 2,572,900 - - 22,790,080
2022 3,046,581 16,728,271 2,542,500 - - 22,317,352
2023 3,388,219 16,265,229 2,511,000 1,123,211 - 23,287,659 Fiscal Year
Total Primary
Government
Percentage of
Personal Income Per Capita
2014 20,795,813 5.32% 998
2015 94,345,949 23.46% 4,473
2016 93,186,142 21.37% 4,125
2017 90,528,580 19.70% 3,983
2018 90,389,010 17.95% 3,860
2019 86,620,082 16.07% 3,645
2020 92,926,016 17.07% 4,027
2021 89,478,326 15.08% 3,840
2022 86,507,940 13.10% 3,550
2023 86,477,503 11.25% 3,556
See Demographic and Economic Statistics for personal income and population data.

Additional information can be found in Note 8 to the basic financial statements.

Revenue Bond information for FY2021 and FY2022 have been corrected compared to past filings.

Business-Type Activities
City of Patterson
Table 16
Ratio of Outstanding Debt By Type
Last Ten Fiscal Years
Governmental Activities
191
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192

Patterson City CouncilMay 7, 2024

Patterson City Council
May 7, 2024