Agenda packet, regular meeting — Patterson City Council, March 18, 2025

City of Patterson Page 1 Updated 3/12/2025 1:25 PM
Agenda
City of Patterson
City Council Regular Meeting
March 18, 2025
7:00 PM
Council Chambers
1 Plaza
Patterson, CA 95363

PUBLIC MEETING GUIDELINES
City of Patterson City Council meetings are conducted in person at City Hall Council Chambers. As a courtesy, and technology permitting, members of the public may participate virtually. However, the City cannot guarantee that the public’s access to teleconferencing and translating technology will be uninterrupted, and technical difficulties may occur from time to time.

MEMBERS OF THE PUBLIC MAY PARTICIPATE IN THE MEETING IN PERSON OR VIA TELECONFERENCE BY CALLING 1-669-900-9128, MEETING ID: 693 538 4239, PASSWORD: 20995363. JOIN FROM A PC, MAC, IPAD, IPHONE, OR ANDROID DEVICE BY USING THIS URL:
https://us02web.zoom.us/j/6935384239?pwd=ZmZwMFdYajRsTjlKTnNTamZCWXFXdz09 The meeting will be televised or available for public viewing on comcast cable channel 7 on the following days: Wednesday at 3:00 p.m., Friday at 8:00 p.m. and Saturday at 12:00 p.m. Or watch on internet Vimeo link: https://vimeo.com/channels/patterson/ To access written translation during the meeting, please scan the QR Code or click this link:

Para acceder a la traducción escrita durante la reunión, escanee el código QR o haga clic en este enlace:
https://attend.wordly.ai/join/HSEU-6978
Choose Language and Click Attend / Elija el idioma y haga clic en Asistir Use a headset on your phone for audio or read the transcript on your device.

Use audífonos en su teléfono para audio o lea la transcripción en su dispositivo.

City of Patterson Page 2 Updated 3/12/2025 1:25 PM
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk at (209) 895-8012. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. [28 CFR 35.102-35.104 ADA Title II] The City Council agenda and supporting public documents are available for viewing in City Hall, Administration Department, 1 Plaza, 2nd Floor, Patterson, California, during normal business hours. The City Council agenda and supporting public documents are also available online on the City web site pattersonca.gov listed under Popular Links “City Council Agendas” or please call or email the City Clerk at (209) 895-8012 or [email protected] If you wish to be notified of future City Council Meetings, please visit our web site pattersonca.gov go to Popular Links “City Council Agendas” and Subscribe to “RSS” ═══════════════════════════════════════════════════════════════

1. Call to Order

2. Pledge of Allegiance

3. Statements of Conflict

4. Items from the Public
Any member of the audience desiring to address the Council regarding a matter not on the agenda, please raise your hand or step to the podium, or if using the zoom app by pressing *9 on your cell phone at the time the item is announced by the Mayor. The public wishing to address the Council on items that do not appear on the agenda may do so; however, Council will take no action other than referring the item to staff for study and analysis and may place the item on a future agenda (Resolution 92-25)
In order that all interested parties have an opportunity to speak, any person addressing the Council will be limited to a maximum of three (3) minutes unless the Mayor grants a longer period of time (Resolution 2025-11)
Please State Your Name and City for the Record.

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

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

5.2. Approve Minutes of Special Meeting/Closed Session - March 4, 2025 (6:00 PM)

5.3. Approve Minutes of Regular Meeting - March 4, 2025 (7:00 PM)

5.4. Approve City Department Reports for the Month of February 2025 (Public Works, and Fire).

5.5. Approve City Commission Reports for the Month of February 2025 (Parks Recreation & Beautification Commission).

City of Patterson Page 3 Updated 3/12/2025 1:25 PM

5.6. Informational Item - Results of 2024 National Flood Insurance Program (NFIP) Community Rating System (CRS) Cycle Visit.

5.7. Approve Resolution Nos. 2025-12 and 2025-13 Declaring the City Council's Intention to Initiate Proceedings for the Annual Levy of Assessments and Ordering the Preparation of Engineer’s Reports for the Landscape Maintenance Districts (LMDs) and County Service Area (CSA) No. 15 for FY 2025/26.

6. Presentation/Action Item

6.1. Finance - Adopt Resolution No. 2025-14 Approving the City of Patterson MidYear Adjustments to the Budget for the Fiscal Year 2024/25 and Authorize the Finance Department to make the necessary budget adjustments.

Staff Report: Interim Finance Director Williams
Council: Motion to Adopt Resolution No. 2025-14 Approving the City of Patterson Mid-Year Adjustments to the Budget for the Fiscal Year 2024/25 and Authorize the Finance Department to make the necessary budget adjustments.

7. City Council Reports
A. Councilmember Hernandez
. Westside Healthcare Task Force (Councilmember Romero alternate) . Stanislaus Homeless Alliance (Councilmember Mora alternate) . Stanislaus County Hazardous Waste Advisory Committee (Councilmember Mora alternate)
B. Councilmember Romero
. San Joaquin Valley Air Pollution Control District (Mayor Pro Tem roque alternate)
C. Councilmember Mora
. Workforce Development Board (Mayor Pro Tem Roque alternate) D. Mayor Pro Tem Roque
. (EDAC) Stanislaus County Economic Development Action Committee (Councilmember Romero alternate)
E. Mayor Clauzel
. Stanislaus County Mayor's Meeting
. StanCOG (Mayor Pro Tem Roque alternate)
. League of California Cities (Mayor Pro Tem Roque 1st alternate, Councilmember Romer 2nd alternate)
City of Patterson Page 4 Updated 3/12/2025 1:25 PM

8. Other Matters

9. Adjournment

DECLARATION OF POSTING
I, Aracely Alegre, City Clerk of the City of Patterson, California do hereby declare that the foregoing notice was posted on the Bulletin Board at City Hall, 1 Plaza, Patterson, California on March 13, 2025.

The Agenda is also posted for public view on the Bulletin Board of the Patterson Branch Library, 46 N. Salado Avenue, Patterson, and the City of Patterson City Web Site www.pattersonca.gov Dated this 13th day of March 2025
/s/ Aracely Alegre, CMC
City of Patterson Page 1 Updated 3/7/2025 8:50 AM
City Of Patterson
Special Meeting/Closed Session Minutes
March 4, 2025
City Manager
Fernando Ulloa
City Attorney
Nubia Goldstein
Deputy City Attorney
Douglas White www.pattersonca.gov
Mayor
Michael Clauzel
City Council
Gabriela Hernandez, District A
Jessica Romero, District B
Kendra Mora, District C
Carlos Roque, District D
City Clerk
Aracely Alegre

1. Call to Order
Attendee Name Title Status Arrived
Michael Clauzel Mayor Present
Gabriela Hernandez District A Present
Jessica Romero District B Present
Kendra Mora District C Late 6:01 PM
Carlos Roque District D Excused
The special (closed session) meeting of the City Council of the City of Paterson was called to order in the City of Patterson, Council Chambers at 6:00 p.m. by Mayor Clauzel.

City Staff present:

City Manager Ulloa
Assistant City Manager Willett
The City Council will adjourn to Closed Session to address the following:
a. Conference with Legal Counsel - Existing Litigation (Gov. Code, § 54956.9) Name of Case: (Patterson Irrigation District, et al. v. City of Patterson, Alameda County Superior Court, Case No.: 23CV028091) b. Conference with Legal Counsel - Existing Litigation (Gov. Code, § 54956.9) Name of Case: (Building Industry Association of the Greater Valley, et al. v. City of Patterson, et al., Stanislaus County Superior Court, Case No.: CV-24-010405
c. Conference with Legal Counsel - Existing litigation pursuant to Government Code Section 54956.9(d)(1):

Central Valley - Sierra Associates (CVSA) v. City of Patterson, et. al (Stanislaus County Superior Court Case No. CV-23-005444)

5.2 Packet Pg. 5
Minutes Acceptance: Minutes of Mar 4, 2025 6:00 PM (Consent Calendar) City of Patterson Page 2 Updated 3/7/2025 8:50 AM

2. Statements of Conflict
None.

3. Items from the Public
None.

4. Adjourn to Closed Session
At 6:01 p.m. there being no items from the public, the Patterson City Council adjourned to Closed Session.

5. Report from Closed Session (if any)
At 6:59 p.m. Mayor Clauzel announced the following:

Regarding Item No. 1a: City Council approved by a 4-0 vote with Mayor Pro Tem absent a settlement agreement in the Patterson Irrigation District and West Stanislaus Irrigation District v. the City of Patterson matter. The settlement agreement places obligations on the city to ensure the city's ground water is being protected and monitored. Under the agreement the city must evaluate or require evaluation of the city's groundwater existing storm drain system, storm water recharge, sustenance and water quality. Further, the city is also obligated to require both that the Del Puerto Creek capture and recharge project is constructed and that the water supplied to offset new development's water supply is secured.

Regarding Items No. 1b and 1c: Both items were informational updates, and no reportable action was taken.

6. Adjournment
There being no further business, the special (Closed Session) meeting of the City Council of the City of Patterson of March 4, 2025 was adjourned at 6:59 p.m.

Approved by the Patterson City Council on (date pending).

5.2 Packet Pg. 6
Minutes Acceptance: Minutes of Mar 4, 2025 6:00 PM (Consent Calendar) City of Patterson Page 1 Updated 3/7/2025 1:06 PM
City Of Patterson
Regular Meeting Minutes
March 4, 2025
City Manager
Fernando Ulloa
City Attorney
Nubia Goldstein
Deputy City Attorney
Douglas White www.pattersonca.gov
Mayor
Michael Clauzel
City Council
Gabriela Hernandez, District A
Jessica Romero, District B
Kendra Mora, District C
Carlos Roque, District D
City Clerk
Aracely Alegre

1. Call to Order
Attendee Name Title Status Arrived
Michael Clauzel Mayor Present
Gabriela Hernandez District A Present
Jessica Romero District B Present
Kendra Mora District C Present
Carlos Roque District D Present
The regular meeting of the City Council of the City of Patterson of March 4, 2024 was called to order in the City of Patterson at 7:02 p.m. by Mayor Clauzel.

City Staff Present:

City Manager Ulloa
Assistant City Manager Willett
City Attorney Goldstein (remote)
Fire Chief Frye
Director of Engineering, Building & Capital Projects Rodriguez Recreation & Community Services Director Weaver
Police Chief Hill
IT Manager Marty
City Clerk Alegre

2. Pledge of Allegiance

3. Statements of Conflict
None.

4. Items from the Public

5.3 Packet Pg. 7
Minutes Acceptance: Minutes of Mar 4, 2025 7:00 PM (Consent Calendar) City of Patterson Page 2 Updated 3/7/2025 1:06 PM
CeeCee Howell, Public Information Officer for the West Stanislaus County Fire Protection District - read a letter in support of Fire Chief Frye.

Erickson Brown, a volunteer with the West Stanislaus County Fire Protection District - expressed support for Fire Chief Frye’s leadership.

Mayor Clauzel shared remarks in support of the West Stanislaus County Fire Protection District.

5. Consent Calendar
Item No. 5.4 was pulled by City Manager Ulloa to finalize closing documents for the project.

Mayor Pro Tem Roque motioned to approve Consent Calendar Items 5.1 through 5.7. The motion was seconded by Councilmember Mora and unanimously approved by a 5-0 roll call vote.

RESULT: ADOPTED
MOVER: Roque
SECONDER: Mora
AYES: Clauzel, Hernandez, Romero, Mora, Roque

5.1. 5.2.

5.3. 5.4.

5.5. 5.6.

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

Approve Minutes of Special Meeting/Closed Session - February 18, 2025 (6:00 PM)
Approve Minutes of Regular Meeting - February 18, 2025 (7:00 PM) Approve Resolution No. 2025-08, Accepting the Public Improvements for the Cromwell Shire 1 subdivision as complete for the Sycamore Offsite Improvements between English Birch Avenue and Somerset Way, Authorizing Staff to file the Notice of Completion and Commence the One-Year Warranty Period.

Approve Request for the Road Closures of Rogers Road south of Zacharias Road, north of the Restoration Hardware Truck access driveway, and Keystone Pacific Parkway west of Rogers Road from March 17, 2025 to July 14, 2025 to complete Underground Utilities and Road Improvements for I-5 Trade Center Project.

Approve Resolution No. 2025-09 Proclaiming Arbor Week during March 7-14, 2025, in the City of Patterson.

Adopt Resolution No. 2025-10, of the City Council of the City of Patterson, to Set a Public Hearing for the Proposed Vesting Tentative Subdivision Maps “A” and “B” in the Keystone Ranch Development Area.

6. City Staff Report

6.1. Resolution No. 2025-11 Public Comment Time Limits
City Clerk Alegre reviewed her staff report.

5.3 Packet Pg. 8
Minutes Acceptance: Minutes of Mar 4, 2025 7:00 PM (Consent Calendar) City of Patterson Page 3 Updated 3/7/2025 1:06 PM
At 7:11 p.m. Mayor Clauzel opened the item for public comments.

Elias Funez, Patterson Resident - Spoke in opposition of item.

At 7:13 p.m. with no further comments, Mayor Clauzel closed the public comment period.

Councilmember Hernandez motioned to Adopt Resolution No. 2025-11 approving an amendment to Resolution No. 92-25, reducing the individual public comment time limit from five (5) minutes to three (3) minutes per speaker. The motion was seconded by Councilmember Mora and unanimously approved by a 5-0 roll call vote.

RESULT: APPROVED
MOVER: Hernandez
SECONDER: Mora
AYES: Clauzel, Hernandez, Romero, Mora, Roque

7. City Council Reports
A. Councilmember Hernandez
Nothing to report.
. Westside Healthcare Task Force (Councilmember Romero alternate) . Stanislaus Homeless Alliance (Councilmember Mora alternate) . Stanislaus County Hazardous Waste Advisory Committee (Councilmember Mora alternate)
B. Councilmember Romero
Nothing to report.
. San Joaquin Valley Air Pollution Control District (Mayor Pro Tem roque alternate)
C. Councilmember Mora
Nothing to report.
. Workforce Development Board (Mayor Pro Tem Roque alternate) D. Mayor Pro Tem Roque
Nothing to report.
. (EDAC) Stanislaus County Economic Development Action Committee (Councilmember Romero alternate)

5.3 Packet Pg. 9
Minutes Acceptance: Minutes of Mar 4, 2025 7:00 PM (Consent Calendar) City of Patterson Page 4 Updated 3/7/2025 1:06 PM
E. Mayor Clauzel
Nothing to report.
. Stanislaus County Mayor's Meeting
. StanCOG (Mayor Pro Tem Roque alternate)
. League of California Cities (Mayor Pro Tem Roque 1st alternate, Councilmember Romer 2nd alternate)

8. Other Matters
Mayor Clauzel announced that the City has been awarded grant funds for the Las Palmas Safety Corridor Project through the Local Carbon Reduction Program. The grant will cover the design costs. Mayor Clauzel expressed appreciation for the Engineering team for their efforts.

9. Adjournment
There being no further business, the regular council meeting of March 4, 2025, was adjourned at 7:19 p.m.

Approved by the City Council on (date pending).

5.3 Packet Pg. 10
Minutes Acceptance: Minutes of Mar 4, 2025 7:00 PM (Consent Calendar) City Council Agenda Report
TO: Mayor Clauzel and Members of the City Council
FROM: Fernando Ulloa, City Manager
BY: Aracely Alegre, City Clerk
MEETING DATE: March 18, 2025
ITEM NO: 5.4
SUBJECT: Approve City Department Reports for the Month of February 2025 (Public Works, and Fire).

RECOMMENDATION
Motion to Approve City Department Reports for the Month of February 2025 (Public Works, and Fire).

5.4 Packet Pg. 11
February 2025
Parks, Recreation & Beautification
Commission
Monthly Report
The following information is provided as an update regarding the Parks, Recreation & Beautification Commission meeting activities during the month of November and updates for previously approved projects.

Parks, Recreation & Beautification Commission meetings are held on the 3rd Wednesday of every month at 5:00 pm in the City Hall Council Chambers. 5-Member Commission
Chair Adolfo Virgen Term: May 2024-2026
Vice-Chair Kandace Weyhrauch Term: May 2023-2025
Commissioner Joanne Marci Term: May 2024-2026
Commissioner Martha Blanco Term: May 2023-2025
Commissioner Oscar Roman Term: May 2023-2025
Parks & Recreation & Beautification Commission Meeting:

The regular meeting scheduled for February 19, 2025, was held in person at 5:00 p.m. The agenda items are listed below.

1. Follow up with Carlos from the Recreation Department regarding Chalk Art. (Recreation Supervisor Pollinger)

2. Any quotes for the plumbing issues at the Museum.
(Deputy Director Guluarte)

3. Community Garden results from the team with finding an individual or organization to have it be sustainable.
(PRBC Commission members)
Agendas & Minutes can be located on the city website under the agenda center.

The next regular meeting will be scheduled for March 19, 2025. The meeting will be held in person in the City Council Chambers.

5.4.a
Packet Pg. 12
Attachment: Parks, Rec, Beau Monthly Report - Feb 25 (Monthly Department Reports) City Council Agenda Report
TO: Mayor Clauzel and Members of the City Council
FROM: Fernando Ulloa, City Manager
BY: Aracely Alegre, City Clerk
MEETING DATE: March 18, 2025
ITEM NO: 5.5
SUBJECT: Approve City Commission Reports for the Month of February 2025 (Parks Recreation & Beautification Commission).

RECOMMENDATION
Motion to Approve City Commission Reports for the Month of February 2025 (Parks Recreation & Beautification Commission).

5.5 Packet Pg. 13
February 2025
Parks, Recreation & Beautification
Commission
Monthly Report
The following information is provided as an update regarding the Parks, Recreation & Beautification Commission meeting activities during the month of November and updates for previously approved projects.

The regular meeting scheduled for February 19, 2025, was held in person at 5:00 p.m. The agenda items are listed below.

1. Follow up with Carlos from the Recreation Department regarding Chalk Art. (Recreation Supervisor Pollinger)

2. Any quotes for the plumbing issues at the Museum.
(Deputy Director Guluarte)

The next regular meeting will be scheduled for March 19, 2025. The meeting will be held in person in the City Council Chambers.

5.5.a
Packet Pg. 14
Attachment: Parks, Rec, Beau Monthly Report - Feb 25 (City Commission Reports) City Council Agenda Report
TO:

FROM:

BY:

Mayor Clauzel and Members of the City Council
Fernando Ulloa, City Manager
Mike Willett, Assistant City Manager
MEETING DATE: March 18, 2025
ITEM NO: 5.6
SUBJECT: Informational Item - Results of 2024 National Flood Insurance Program (NFIP) Community Rating System (CRS) Cycle Visit.

RECOMMENDATION
Informational Item. No action needed.

BACKGROUND
The NFIP’s Community Rating System (CRS) is a voluntary program that encourages communities to exceed the minimum floodplain management standards set by the NFIP. In exchange, participating communities receive discounts on flood insurance premiums, reflecting the reduced flood risk resulting from their proactive measures. The CRS has three main goals:
. Minimize flood damage to insurable properties
. Enhance and support the insurance elements of the NFIP . Promote a comprehensive approach to floodplain management Communities earn credit points through various activities, which determine their CRS classification. There are 10 CRS Classes, with Class 1 offering the highest premium discount (45%) and requiring the most credit points, while Class 10 represents no participation or failure to meet the minimum point threshold, resulting in no premium reduction.

The CRS classes are based on the completion of 19 creditable activities, which are grouped into four categories:
. Public Information
. Mapping and Regulations

5.6 Packet Pg. 15
. Flood Damage Reduction
. Warning and Response

ANALYSIS
During the August 2024 CRS five-year cycle visit conducted by the Insurance Services Office, Inc. (ISO), the City of Patterson successfully maintained its CRS Class 8 rating, which provides a 10% reduction in flood insurance premiums for both residents and businesses. To retain this rating, the city must adhere to stricter floodplain standards than those required by the NFIP. A verification visit from ISO confirmed that Patterson continues to implement the programs that contributed to its Class 8 rating. Additionally, this visit provided an opportunity for the city to submit further activities that could potentially lead to a higher rating.

Throughout this five-year cycle, Patterson earned an additional 260 points toward its score through enhancements in areas such as Map Information Services, Outreach Projects, Hazard Disclosure, Flood Protection Information, Higher Regulatory Standards, Flood Data Maintenance, Stormwater Management, Floodplain Management Planning and Drainage System Management. Please refer to the attached Verification Report from FEMA for more details.

FISCAL IMPACT
There is no fiscal impact associated with this report. It is for informational purposes only.

5.6 Packet Pg. 16
U.S. Department of Homeland Security
500 C Street, SW
Washington, DC 20472
December 18, 2024
Mr. Fernando Ulloa
Patterson Interim City Manager
1 Plaza Circle
Patterson, California 95363
Dear Mr. Ulloa:

The purpose of this letter is to provide you with the results of the National Flood Insurance Program (NFIP) Community Rating System (CRS) field verification findings based on your 5-year cycle verification. The field verification report is enclosed for your records.

I am pleased to inform you that the Department of Homeland Security, Federal Emergency Management Agency (FEMA), has determined that the City of Patterson will retain its current rating as a Class 8 in the NFIP CRS. The floodplain management activities implemented by your community qualify it for a 10 percent discount on flood insurance premiums for most NFIP policies issued or renewed on or after October 1, 2025. This savings is a tangible result of the flood mitigation activities your community implements to protect lives and reduce property damage.

The CRS rating for your community will automatically be renewed annually as long as there are no NFIP noncompliance actions, so a notification letter will not be sent every year. This annual renewal will take place as long as your community continues to implement the CRS activities you certify in your annual recertification documentation. If no additional modifications or new CRS activities are added, the next verification visit for your community will be in accordance with its established 5-year cycle. In the interim, FEMA will periodically send the “NFIP/CRS Newsletter” and other notices to your CRS Coordinator to keep your community informed.

I commend you on your community actions and your determination to lead your community to be more disaster resistant. This commitment enhances public safety, property protection, and protects the natural functions of floodplains, and reduces flood insurance premiums.

If you have any questions or need additional information, please contact the FEMA Region IX Office, CRS Coordinator Antoinette Stein at (202) 288-1697.

Sincerely,
William H. Lesser, CRS Coordinator
Federal Insurance and Mitigation Administration
Enclosure
cc: Ms. Maria Encinas, CRS Coordinator

5.6.a
Packet Pg. 17
Attachment: CA Patterson CRS Cycle Visit 2024 Verification Letter (Results of 2024 National Flood Insurance Program (NFIP) Community

COMMUNITY
RATING
SYSTEM

VERIFICATION
REPORT
City of Patterson, CA Verified Class 8
NFIP Number: 060390 Cycle
Date of Verification Visit: July 30, 2024
This Verification Report is provided to explain the recommendations of Insurance Services Office, Inc. (ISO) to DHS/FEMA concerning credits under the Community Rating System (CRS) for the above named community.

A total of 1251 credit points are verified which results in a recommendation that the community remain a CRS Class 8. The community has met all class prerequisites.

The following is a summary of our findings with the total CRS credit points for each activity listed in parenthesis:

Activity 310 – Construction Certificate Management: Credit is provided for having written construction certificate management procedures for all new and substantially improved/substantially damaged buildings. (38 points)
Activity 320 – Map Information Service: Credit is provided for furnishing inquirers with basic flood zone information from the community’s latest Flood Insurance Rate Map (FIRM). Credit is also provided for the community offering additional FIRM information, flood depth data, and historical flood information. The service is publicized annually and records are maintained. (90 points)
Activity 330 – Outreach Projects: Credit is provided for informational outreach projects, general outreach projects, and targeted outreach projects. These projects are disseminated annually. (106 points)
Activity 340 – Hazard Disclosure: Credit is provided for the local real estate agents disclosure of flood hazards to prospective buyers. Credit is also provided for state regulations requiring disclosure of flood hazards. Real estate agents provide a brochure advising prospective buyers about insurance and checking property flood hazards. (56 points)
Activity 350 – Flood Protection Information: Credit is also provided for floodplain information displayed on the community’s website. (49 points) Activity 360 – Flood Protection Assistance: Credit is provided for offering one-onone advice regarding property protection and making site visits before providing advice.

The service is publicized annually and records are maintained. (55 points)

5.6.a
Packet Pg. 18
Attachment: CA Patterson CRS Cycle Visit 2024 Verification Letter (Results of 2024 National Flood Insurance Program (NFIP) Community City of Patterson, CA Page 2
NFIP #: 060390
Activity 430 – Higher Regulatory Standards: Credit is provided for enforcing regulations that require freeboard for new construction and substantial improvement, and local drainage protection. Credit is also provided for the enforcement of building codes, a Building Code Effectiveness Grading Schedule (BCEGS®) Classification, and regulations administration. (212 points)
Activity 440 – Flood Data Maintenance: Credit is provided for maintaining and using additional map data in the day to day management of the floodplain. Credit is also provided for establishing and maintaining a system of benchmarks and maintaining copies of all previous FIRMs and Flood Insurance Study reports. (150 points) Activity 450 – Stormwater Management: The community enforces regulations for soil and erosion control water quality. (10 points)
Section 502 – Repetitive Loss Category: Based on the updates made to the NFIP Report of Repetitive Losses as of May 15, 2019, the City of Patterson, CA has 4 repetitive loss properties and is a Category B community for CRS purposes. All requirements for a Category B community have been met. (No credit points are applicable to this section)
Activity 510 – Floodplain Management Planning: Credit is provided for the Stanislaus Multi-Jurisdictional Hazard Mitigation Plan, 2022, adopted on April 19, 2023.

A progress report must be submitted on an annual basis. (223 points) Activity 540 – Drainage System Maintenance: Credit is provided for the regular inspection and maintenance of the community’s natural drainage system. The community enforces a regulation prohibiting dumping in the drainage system and annually publicizes the regulation. (225 points)
Activity 630 – Dams: Credit is provided for a State Dam Safety Program. covering the dam failure hazard and flood safety measures is required annually. (37 points) Activity 710 – County Growth Adjustment: All credit in the 400 series is multiplied by the growth rate of the county to account for growth pressures. The growth rate for Stanislaus County, CA is 1.02.

5.6.a
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Attachment: CA Patterson CRS Cycle Visit 2024 Verification Letter (Results of 2024 National Flood Insurance Program (NFIP) Community City of Patterson, CA Page 3
NFIP #: 060390
Attached is the Community Calculations Worksheet that lists the verified credit points for the Community Rating System.

CEO Name / Address: CRS Coordinator Name / Address:

Fernando Ulloa Maria Encinas
Interim City Manager Water Resources Program Manager
1 Plaza Circle 1 Plaza Circle
Patterson, California 95363 Patterson, California 95363 (209) 895-8061
Date Report Prepared: October 17, 2024

5.6.a
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Attachment: CA Patterson CRS Cycle Visit 2024 Verification Letter (Results of 2024 National Flood Insurance Program (NFIP) Community Community : City of Patterson, CA NFIP Number : 060390
720 COMMUNITY CREDIT CALCULATIONS (Cycle):

CALCULATION SECTION :

Verified Activity Calculations: Credit
c310 38 38
c320 90 90
c330 106 106
c340 56 56
c350 49 49
c360 55 55
c370
c410 x CGA =
c420 x CGA =
c430 208 x CGA 1.02 = 212
c440 147 x CGA 1.02 = 150
c450 10 x CGA 1.02 = 10
c510 223 223
c520
c530
c540 225 225
c610
c620
c630 37 37
Community Classification Calculation:
cT = total of above cT = 1251
Community Classification (from Table 110-1): Class = 8
CEO Name/Address: CRS Coordinator Name/Address:

5.6.a
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Attachment: CA Patterson CRS Cycle Visit 2024 Verification Letter (Results of 2024 National Flood Insurance Program (NFIP) Community City Council Agenda Report
TO:

FROM:

BY:

Mayor Clauzel and Members of the City Council
Fernando Ulloa, City Manager
Mike Willett, Assistant City Manager
MEETING DATE: March 18, 2025
ITEM NO: 5.7
SUBJECT: Approve Resolution Nos. 2025-12 and 2025-13 Declaring the City Council's Intention to Initiate Proceedings for the Annual Levy of Assessments and Ordering the Preparation of Engineer’s Reports for the Landscape Maintenance Districts (LMDs) and County Service Area (CSA) No. 15 for FY 2025/26.

RECOMMENDATION
Motion to Approve Resolution Nos. 2025-12 and 2025-13 Declaring the City Council's Intention to Initiate Proceedings for the Annual Levy of Assessments and Ordering the Preparation of Engineer’s Reports for the Landscape Maintenance Districts (LMDs) and County Service Area (CSA) No. 15 for FY 2025/26.

BACKGROUND
LMDs and Benefit Assessment Districts (BADs) are special purpose districts established to fund specific maintenance activities. Properties within these districts receive a special benefit from the activities and are assessed an annual levy to fund those activities. The use of LMDs and BADs in Patterson dates back to the late 1980s. Most residential subdivisions built since then are required to establish an LMD and/or BAD.

Specifically, an LMD typically funds the on-going maintenance and repair of park equipment, structures, and landscaping. City street trees and sidewalk maintenance may also be included.

Typical BAD funds the operation and maintenance of storm drain inlets, drainage lines, pump stations, and streetlights. A BAD may also fund storm water management activities and limited street maintenance work. Included in the budgets for both LMDs and BADs is a city administrative charge to cover staff time spent preparing and administering the budgets and otherwise managing each district. The typical administrative fee is 15% of the annual operations

5.7 Packet Pg. 22
and maintenance budget.

The attached Resolutions do not cover the BADs since those districts do not require a Resolution Initiating Proceedings. The second Resolution is for County Service Area (CSA) No. 15, which covers the Villa del Lago (Rogers Road) commercial area. Since that project was initially developed outside the city limits, the maintenance district set-up was a County Service Area (CSA). In 2005, the city annexed the Villa Del Lago commercial area into the city limits and therefore took over the administration of the CSA. This district provides for maintenance of the signal light at Sperry Ave and Rogers Rd, the on-site storm drain basin and the sewer collection system on Rogers Rd.

The budget for each district is prepared and included in a document called the “Engineer’s Report.” This report and resolution declares the City's intention to initiate proceedings and direct the preparation of Engineer’s Reports applies to CSA No. 15 (Villa Del Lago) and the following Landscape Maintenance Districts:

LMDs
County Hollow Estates District
Kinshire Estates District
Patterson Estates I, III, IV District
Shirepark Estates District
Walnut Square Estates District
Heartland Ranch Landscape Maintenance District
Heartland Ranch Overlay Landscape Maintenance District
Miraggio Landscape Maintenance District
Sutter Pointe Landscape Maintenance District
Walker Ranch Landscape Maintenance District
Patterson Gardens Landscape Maintenance District
Keystone Pacific Business Park Landscape Maintenance District Keystone Pacific Business Park Landscape Maintenance District Annex No. 1 The next step in the process is for the preparation of the Engineer’s Reports for the LMDs, BADs, and CSA NO. 15. Once completed staff will bring those to Council for review and approval at the Intent Meeting scheduled for Tuesday, May 20, 2025. At that time Council will also establish the date and time for the Public Hearing, which is tentatively scheduled for Tuesday, June 17, 2025.

ANALYSIS
The reason for the assessments is to generate the revenue necessary to operate and maintain the facilities in each district.

FISCAL IMPACT
All costs associated with preparing the Engineer’s Reports, the annual levy and collection of assessments and advertising are charged to the respective Districts. There is no budget impact.

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RESOLUTION NO. 2025-12

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PATTERSON, INITIATING

PROCEEDINGS FOR THE ANNUAL LEVY OF ASSESSMENTS AND ORDERING THE PREPARATION OF AN ENGINEER’S REPORT FOR SPECIAL MAINTENANCE ASSESSMENT

DISTRICTS
WHEREAS, the City Council of the City of Patterson (the “City Council”) pursuant to the terms of the Landscape and Lighting Act of 1972, Division 15, Part 2 of the California Streets and Highways Code (commencing with Section 22500) (the “Act”), previously formed the special maintenance assessment districts known and designated as follows:

Country Hollow Estates Landscape and Lighting Maintenance District Kinshire Estates District Landscape and Lighting Maintenance District Patterson Estates I, III, and IV Landscape and Lighting Maintenance District Shirepark Estates Landscape and Lighting Maintenance District Walnut Square Landscape and Lighting Maintenance District Heartland Ranch Landscape and Lighting Maintenance District Heartland Ranch Overlay Zone 1 Landscape and Lighting Maintenance District Miraggio Landscape and Lighting Maintenance District
Sutter Point Landscape and Lighting Maintenance District Walker Ranch Landscape and Lighting Maintenance District Patterson Gardens Landscape and Lighting Maintenance District Keystone Pacific Business Park Landscape and Lighting Maintenance District Keystone Pacific Business Park Landscape and Lighting Maintenance District Annexation 1 (the “Landscape and Lighting Maintenance Districts”); and, WHEREAS, the City Council wishes to initiate proceedings to provide for the levy of assessments for Fiscal Year 2025/26 in order to provide for the necessary costs and expenses pertaining to the maintenance of the improvements within the Landscape and Lighting Maintenance Districts; and, WHEREAS, the City Council has retained NBS for the purpose of assisting with the annual levy and to prepare and file a report in accordance with the Act.

NOW, THEREFORE IT IS HEREBY RESOLVED AS FOLLOWS:

RECITALS

1. The above recitals are true and correct.

DECLARATION OF INTENTION

2. The public interest and convenience requires, and it is the intention of this legislative body, to levy and collect assessments to pay the annual costs and expenses for the installation, replacement, maintenance and/or servicing of the improvements within the Landscape and Lighting Maintenance Districts. No new improvements or substantial changes to the existing improvements are being proposed at this time.

ENGINEER’S REPORT

3. The City Council hereby orders NBS to prepare an Engineer’s Report regarding the Landscape and Lighting Maintenance Districts containing the following information:

A. The plans and specifications describing the general nature, location and extent of the improvements to be maintained.

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Attachment: Resolution No. 2025-12 Patterson LMD (Resolutions Nos. 2025-12 and 2025-13 LMDs and CSA Annual Levy of Assessments FY 25- B. An estimate of cost of the maintenance and/or servicing of the improvements for the referenced fiscal year.

C. A diagram showing the areas and the properties proposed to be assessed.

D. An assessment of the estimated costs of the maintenance and/or servicing, assessing the net amount upon all assessable lots and/or parcels in proportion to the benefits received.

NBS shall file the Engineer’s Report with the City Clerk of the City of Patterson, who shall then submit the Engineer’s Report to the City Council for immediate review and consideration.

FISCAL YEAR

4. The assessments relating to these proceedings will constitute the Landscape and Lighting Maintenance District revenues for the Fiscal Year commencing July 1, 2025 and ending June 30, 2026.

IMPROVEMENTS

5. There are no changes to existing improvements nor are there any items being added to the list of improvements previously approved at the formation of the Landscape and Lighting Maintenance Districts.

The foregoing resolution was adopted by the City Council at a regular meeting held on the 18 th day of March
2025 by the following roll call vote:

AYES:

NOES:

EXCUSED:

APPROVED:
__________________________
Michael Clauzel
Mayor of the City of Patterson
ATTEST:
__________________________
Aracely Alegre
City Clerk of the City of Patterson

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Attachment: Resolution No. 2025-12 Patterson LMD (Resolutions Nos. 2025-12 and 2025-13 LMDs and CSA Annual Levy of Assessments FY 25- I hereby certify that the foregoing is a full, correct, and true copy of a resolution passed by the City Council of the City of Patterson, a Municipal Corporation of the County of Stanislaus, State of California, at a regular meeting held on the 18th day of March, 2025 and I further certify that said resolution is in full force and effect and has never been rescinded or modified.

DATED:
___________________________
City Clerk City of Patterson

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Attachment: Resolution No. 2025-12 Patterson LMD (Resolutions Nos. 2025-12 and 2025-13 LMDs and CSA Annual Levy of Assessments FY 25- RESOLUTION NO. 2025-13

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PATTERSON, INITIATING

PROCEEDINGS FOR THE ANNUAL LEVY OF ASSESSMENTS AND ORDERING THE PREPARATION OF AN ENGINEER’S REPORT FOR COUNTY SERVICE AREA NO. 15 WHEREAS, the City Council of the City of Patterson (“City Council”), has previously adopted Resolution No. 2005-62 on June 21, 2005, authorizing the City to take over administration of County Service Area No. 15 (“CSA No. 15”). Further, on February 8, 2005, the Stanislaus County Board of Supervisors and Stanislaus Local Agency Formation Commission approved the transfer of CSA No. 15 from Stanislaus County to the City of Patterson. CSA No. 15 was formed on November 7, 1995, by resolution of the Board of Supervisors pursuant to the terms of the Government Code §25210 et. seq.

WHEREAS, the City Council wishes to initiate proceedings to provide for the levy and collection of assessments for Fiscal Year 2025/26 in order to provide for the costs and expenses necessary to pay for the maintenance and operations within CSA No. 15; and,
WHEREAS, the City Council has retained NBS for the purpose of assisting with the annual levy and to prepare and file a report in accordance with Government Code Section §25215.3.

NOW, THEREFORE IT IS HEREBY RESOLVED AS FOLLOWS:

RECITALS

1. That the above recitals are all true and correct.

DECLARATION OF INTENTION

2. That the public interest and convenience requires, and it is the intention of this legislative body, to levy and collect assessments to pay the annual costs and expenses to provide extended storm drainage to the Patterson Gateway development and maintain the traffic signals at the Sperry Road/Rogers Road intersection for CSA No. 15. Street maintenance services will also be provided.

ENGINEER’S REPORT

3. The City Council hereby orders NBS to prepare and file a report containing a description of each parcel of real property receiving the particular extended service and the amount of the assessment for each parcel be prepared once a year and filed with the City Clerk in accordance with Government Code §25210.77(A).

FISCAL YEAR

4. That the assessments as above authorized and levied for these proceedings will provide revenue and relate to the Fiscal Year commencing July 1, 2025 and ending June 30, 2026.

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Attachment: Resolution No. 2025-13 Patterson CSA (Resolutions Nos. 2025-12 and 2025-13 LMDs and CSA Annual Levy of Assessments FY 25- The foregoing resolution was passed by the City Council at a regular meeting held on the 18th day of March 2025, and the resolution adopted by the following vote:

AYES:

NOES:

ABSENT:

EXCUSED:

APPROVED:

Michael Clauzel
Mayor of the City of Patterson
ATTEST:
__________________________
Aracely Alegre
City Clerk of the City of Patterson
I hereby certify that the foregoing is a full, correct, and true copy of a resolution passed by the City Council of the City of Patterson, a Municipal Corporation of the County of Stanislaus, State of California, at a regular meeting held on the 18th day of March, 2025 and I further certify that said resolution is in full force and effect and has never been rescinded or modified.

DATED:
___________________________
City Clerk City of Patterson

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Attachment: Resolution No. 2025-13 Patterson CSA (Resolutions Nos. 2025-12 and 2025-13 LMDs and CSA Annual Levy of Assessments FY 25- City Council Agenda Report
TO:

FROM:

BY:

Mayor Clauzel and Members of the City Council
Fernando Ulloa, City Manager
Kevin Williams, Interim Finance Director
MEETING DATE: March 18, 2025
ITEM NO: 6.1
SUBJECT: Adopt Resolution No. 2025-14 Approving the City of Patterson Mid-Year Adjustments to the Budget for the Fiscal Year 2024/25 and Authorize the Finance Department to make the necessary budget adjustments.

RECOMMENDATION
Motion to Adopt Resolution No. 2025-14 Approving the City of Patterson Mid-Year Adjustments to the Budget for the Fiscal Year 2024/25 and Authorize the Finance Department to make the necessary budget adjustments.

BACKGROUND
Staff is submitting the Mid-Year Budget Review Report and proposed budget adjustments based on the information reviewed as of approximately mid-year. The adjustments include expenditure appropriations as well as increases in revenue estimates. In addition to the new requests from departments, staff identified other items that were omitted from the original FY 2024/25 budget.

ANALYSIS
A presentation will be made to the City Council outlining the mid-year budget review for FY 2024/25.

General Fund
Total revenues (including transfers in) are estimated for the fiscal year at $41.09 million, approximately $26 thousand less than the recommended adjusted budget of $41.1 million. Revenue estimates are coming in slightly lower due to a decrease in the

6.1 Packet Pg. 29
estimated Sales Tax Revenue in the year and a decrease in the amounts of Transfers in from the Utility Funds per the Cost Allocation Plan. It should be noted that the originally adopted budget includes grant revenues that are contingent on the activity related to the grant funding and may carryover into future fiscal years until the grant is completed.

Total estimated expenditures end the year at $53.9 million, approximately $56 thousand higher than the adjusted budget of $53.8 million. Expenditures are likely to be spent at a lower rate than originally budgeted primarily due to the vacancies of budgeted positions during the fiscal year and the normal under spending of expenditures such as Capital Outlay. During the adoption of the FY2024/25 budget, staff was directed by City Council to freeze some vacant positions. The estimated savings for the General Fund during the first half of the year was estimated to be $394 thousand and is included in its own column in the Mid-year Budget Review Report (Exhibit A).

In 2024, the City finalized a Cost Allocation Plan which serves as a basis to charge indirect overhead charges to other funds for the work provided to those funds by various administrative departments housed in the General Fund. In order to fully implement the Cost Allocation Plan, the City is required to change how it accounts for these overhead costs. It is estimated that the implementation of the Cost Allocation Plan will cost the General Fund $674 thousand in reduction of transfers in from Enterprise Funds as well as an increase in expenditures of $753 thousand by reallocating certain staff salaries from the Enterprise Funds.

In total the net adjustment to the General Fund is a decrease of $82,599.40 and is outlined in the attachments to the Mid-year Budget Review Report (Exhibit A). The General Fund is expected to have an available Fund Balance of $2.3 million at June 30, 2025.

Enterprise Funds
The City of Patterson provides residents with Solid Waste, Water and Wastewater services. The charges for these services (user fees), along with the costs for providing the services, are accounted for in individual Enterprise Funds. These funds are self-supporting and do not receive any General Fund support. User fees are set in accordance with Proposition 218, which requires that customers be given the opportunity to challenge proposed rates. Rate studies are conducted periodically to ensure the enterprise rates are sufficient to cover: operating expenses, capital improvements, upgrades and costs associated with meeting both State and Federal guidelines and regulations. FY2024/25 user fee budgets for the Enterprise Utility Funds have been adopted in line with rate study projections.

The net adjustments to the Enterprise Funds and each Fund’s available Working Capital are outlined in the attachments to the Mid-year Budget Review Report (Exhibit A).

Other Funds
Staff recommended Mid-year adjustments are included in the Adjusted Budget, where applicable, and adjustments to all funds are detailed in the attachments to the Mid-Year Budget Review Report (Exhibit A), and are summarized below:

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• Fund 190 - CFD 2003-1 Fire Station #2 - Due to an increase in the projected Fund Balance at 6/30/2024, the projected transfer needed from the General Fund to cure the Fund’s deficit was reduced by $575 thousand. Projected Available Balance after MidYear: $0.00 • Fund 325 - Gas Tax requires an increase in transfers out in the amount of $475,000 to partially fund the increase in project costs in Fund 327. Projected Available Balance after Mid-Year: $1.2 Million
• Fund 327 - Street Projects requires an increase in expenditure budget in the amount of $750,000 for five separate projects. Projected Available Balance after Mid-Year: $772 thousand
• Fund 329 - Measure L requires an increase in transfers out in the amount of $275,000 to partially fund the increase in project costs in Fund 327. Projected Available Balance after Mid-Year: $3.5 million
• Funds 120, 138, 176, 178, 179, 312, and 326 require additional adjustments to transfers from/to the General Fund to either cover fund deficits or to reimburse the General Fund for Salaries and Benefits of Assigned Staff. Projected Available Balance after Mid-Year for all funds: $0.00
• Transfers related to the implementation of the Cost Allocation Plan affected 31 of the City’s Funds.

The net adjustments to the General Fund and the Enterprise Funds are outlined in the attachments to the Mid-year Budget Review Report (Exhibit A).

FISCAL IMPACT
The total net budget adjustments for FY 2024-25 City-wide fiscal impacts are as follows:

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CFD 2013-1 16,247.20
CFD 2018-02 VOP MAINTENANCE 178,983.33
CFD 2018-01 VOP INFRASTRUCTURE 955.00
CFD 2015-2 1.00
Patt Gardens Fire Assmt Dist 334.00
Public Safety CFD 2003-1 444,277.00
West Patt Bus. Park CFD 2005-1 505.00
HR Reass Dist Loc Oblig Bonds 1,565.00
WPFA CFD 2001-1 199.00
HUD Federal Grant/Consortium (22,652.00)
HUD Home 156.00
Gas Tax 475,000.00
Local Transportation Fund (90,620.00)
Street Projects 5,372.00
Measure L 275,626.00
General Government Impact Fee 1,152.00
Parkland In-Lieu Fee 63.00
Storm Drain Fees 63.00
Garbage (578,900.12)
Sewer (269,733.46)
Water (761,041.17)
Grand Total of all Net Adjustments
(221,392.92)
Staff will keep the Council informed of any significant economic impacts to the budget as needed throughout the remainder of this fiscal year, and a financial update will be included as a part of the FY 2025/26 Budget workshop in May 2025.

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RESOLUTION NO. 2025-14

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PATTERSON APPROVING THE FISCAL YEAR 2024-25 MID YEAR BUDGET REVIEW REPORT

AND ADOPTING ITS RECOMMENDATIONS FOR REVISING THE FISCAL YEAR 2024-25 OPERATING AND CAPITAL BUDGETS
WHEREAS, the City is required by law to approve a budget prior to the beginning of each fiscal year, and finds it prudent to review the status of the budget at Mid-Year each year; and
WHEREAS, the Finance Director and other City Department Heads have undertaken a thorough review and projected revenues and expenditures for the remainder of the fiscal year; and WHEREAS, the City Council of City of Patterson has been presented with a Mid-Year Budget Review Report, and Staff recommendations; and
WHEREAS, the City Council has reviewed the Mid-Year Budget Review Report and wishes to approve and adopt the Staff recommendations and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Patterson hereby approves and adopts the Staff recommendations included in the Mid-Year Budget Review Report presented by the City Manager.

The foregoing resolution was introduced at a regular meeting of the City Council of the City of Patterson held on the 18th day of March 2025, by ______________, who moved its adoption, which motion was duly seconded by __________________, and it was upon roll call carried and the resolution adopted by the following roll call vote:

AYES:

NOES:

EXCUSED:

APPROVED:
___________________________
Michael Clauzel
Mayor of the City of Patterson

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Attachment: Resolution No. 2025-14 Mid-Year FY 24-25 (Resolution No. 2025-14 Approving FY 2024/25 Mid-Year) ATTEST:
_______________________________
Aracely Alegre
City Clerk of the City of Patterson
I hereby certify that the foregoing is a full, correct and true copy of a resolution passed by the City Council of the City of Patterson, a Municipal Corporation of the County of Stanislaus, State of California, at a regular meeting held on the 18th day of March 2025, and I further certify that said resolution is in full force and effect and has never been rescinded or modified.

DATED:
______________________________________
City Clerk of the City of Patterson

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Attachment: Resolution No. 2025-14 Mid-Year FY 24-25 (Resolution No. 2025-14 Approving FY 2024/25 Mid-Year) Exhibit A

CITY OF PATTERSON
Mid-year Budget Review Report
Fiscal Year 2024/25

OVERVIEW
The City Council approved the Fiscal Year 2024/25 Adopted Budget on August 20, 2024. The MidYear Budget Status Report provides a tool for the City of Patterson (City) to monitor its finances and to prepare for the upcoming fiscal year budget process. This report provides an update of the City’s budgetary position approximately midway through the fiscal year, with updates based on the requested amendments.

The major components to this report include the following:

I. Economic Update
An economic update on National, State, and local trends provides context to the Fiscal Year 2024/25 Mid-Year Budget Status Report.

II. Fiscal Year 2024/25 Mid-year Budget Status Summary
This section of the report provides estimated Fiscal Year 2024/25 operating results based on current revenue and expenditure trends for the fiscal year.

III. Proposed Mid-year Budget Amendments
This section of the report includes proposed mid-year budget amendments for Fiscal Year 2024/25.

BACKGROUND AND ANALYSIS
I. ECONOMIC UPDATE
The economic conditions discussed below help inform the Fiscal Year 2024/25 Mid-year Budget Status Report.

National
Inflation continues to be a driver in the economy over the past year, but numbers indicate it may be slowing. As the national economy continues to recover from the COVID-19 pandemic, the Federal Reserve’s primary focus has been to rein in inflation. There has been a major shift in employment and priorities leading to a strong jobs market. Job creation remains strong and the national unemployment rate at 4.1%, which is up from 3.5% from a year earlier per the US Bureau of Labor Statistics as of March 7, 2025.

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Attachment: Exhibit A (Resolution No. 2025-14 Approving FY 2024/25 Mid-Year) According to the statistics for the San Francisco Area as of December 2024, over the last 12 months the CPI-U advanced 2.4 percent. (See Chart 1 and Table A.) Food prices decreased 0.4 percent.

Energy prices increased 0.4 percent, largely the result of an increase in the price of electricity. Table A shows that the index for all items less food and energy rose 2.5 percent over the year.

NOTE: Area indexes do not measure differences in the level of prices between cities; they only measure the average change in prices for each area since the base period.

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Attachment: Exhibit A (Resolution No. 2025-14 Approving FY 2024/25 Mid-Year) State
In January 2025, Governor Gavin Newsom released his Fiscal Year 2025/26 Proposed Budget, which projects a balanced budget. However, The Legislative Analyst Office is showing a budget with a roughly $2 billion deficit, but affirms that the Governor’s Budget is “roughly” balanced.

The tables and related information below are directly from “The 2025-26 Budget: California’s Fiscal Outlook” as published by the California Legislative Analyst Office in November 2024:

Legislative Action Last Year Addressed Anticipated Budget Problem Proactively. On net, our assessment of the budget condition finds the state would have a small deficit of $2 billion. Given the size and unpredictability of the state budget, we view this to mean the budget is roughly balanced. If a budget problem of this magnitude were to materialize by the end of the budget process in June, relatively minor budget solutions would be needed.

State Faces Annual Multiyear Deficits of Around $20 Billion.

Figure 5 shows our forecast of the multiyear condition of the budget. While the budget is roughly balanced in the upcoming fiscal year, the state faces annual operating deficits beginning in 2026-27—growing from about $20 billion to about $30 billion. Although highly uncertain, these represent additional budget problems the Legislature would need to address in the coming years, for example by reducing spending, increasing taxes, shifting costs, or using more reserves. The

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Attachment: Exhibit A (Resolution No. 2025-14 Approving FY 2024/25 Mid-Year) magnitude of these deficits also indicates that, without other changes to spending or revenues, the state does not have capacity for new commitments.

Remaining Reserves Could Cover Much of Deficit in 2026-27.

The state has faced significant budget problems over the last two years—by our estimate, a $27 million deficit in 2023-23 and a $55 billion deficit in 2024-25 (excluding early action taken this year). Yet, over this time, the Legislature did not use much of the state’s reserves. Under our outlook, even assuming the state uses $7 billion in reserves in 2025-26, nearly $11 billion would remain in the BSA. Assuming the Legislature also suspended the otherwise required deposit in 2026-27, the state could cover about two-thirds of that year’s budget problem with reserves alone. However, in years thereafter, the state would need to make other changes to address the shortfalls. The State’s budget shortfalls could have potential impacts to city revenues, primarily in the form of grants and loans.

Faster Than Normal Spending Growth Contributing to Deficits. One reason the state faces operating deficits is growth in spending. Our estimate of annual total spending growth across the forecast period—from 2025-26 to 2028-29—is 5.8 percent (6.3 percent excluding K-14 education).

By historical standards, this is high. For example, in our last five Fiscal Outlooks, the total annual spending growth rate was 3.5 percent and only 3 percent for spending excluding K-14 education.

While there are always idiosyncrasies in spending patterns that can influence these growth rates—for example, the timing of one-time spending reductions or anomalies in federal funding— the increase in this growth is contributing to the state’s multiyear deficits.

Revenues Are Unlikely to Grow Fast Enough to Catch Up to Spending. The state typically faces a deficit when spending exceeds revenues in the budget window and an operating deficit when spending exceeds revenue in future years. An operating deficit—like the ones we currently anticipate—can arise either because of a difference in the levels of revenues and spending (a stable gap over time) or a difference in growth rates (a gap that grows over time). Both are an issue

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Attachment: Exhibit A (Resolution No. 2025-14 Approving FY 2024/25 Mid-Year) currently, as seen in Figure 7. Our forecasted spending growth is about 6 percent over the forecast period—a growth rate that is high by historical outlook standards and slightly above what we consider to be long-term revenue growth. Meanwhile, revenue growth over the outlook window is just above 4 percent— this is lower than its historical average largely due to policy choices, namely the limitations on deductions and credits that end during the forecast window. Taken together, we view it as unlikely that revenue growth will be fast enough to catch up to ongoing spending. This means that although the state does not face much of a budget problem this year, in the coming years, legislative action could be necessary to close this gap.

Oversight Key to Budget Management. Understanding which programs are working well and those which are in need of adjustment is a key starting place for considering future budget solutions. As we anticipate future budget problems are more likely than not, we recommend the Legislature conduct robust oversight of programs this budget season. Doing so can provide the Legislature necessary insight for whether the administration is implementing programs according to legislative intent as well as whether programs are achieving the desired outcomes.

Particularly given the significant program expansions in recent years and the state’s constrained fiscal capacity, the Legislature now has a key opportunity—if not a necessity—to assess the efficiency, effectiveness, equity, and priority of some of its recent augmentations and longerstanding programs.

Local
The City continues to see strong economic growth over the last several years. 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 has a diverse revenue structure and can continue to benefit from Measure L, 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. An update to the City’s garbage rates is underway, and sewer rates are slated to be updated next.

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 are coming to Patterson include one new industrial Warehouse (1,000,000 sf), a 120,000 sf furniture manufacturing company, 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.

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Attachment: Exhibit A (Resolution No. 2025-14 Approving FY 2024/25 Mid-Year) The city is fortunate that sales tax remains consistent in FY2025, but projections are showing a decrease from the adopted budget by $70 thousand. The major contributing factors for the consistent sales tax revenues is primarily due to ongoing on-line sales, agricultural products sales, and a diverse business portfolio.

II. FISCAL YEAR 2024-25 MID-YEAR BUDGET STATUS SUMMARY
The Mid-Year Budget Status Report represents staff’s best estimate of the City’s budgetary position at approximately midway through the fiscal year, based on activity to date, and making certain adjustments for revenues and expenditures as requested for the remainder of the fiscal year.

This section of the report includes a discussion of Fiscal Year 2024/25 revenue and expenditure estimates compared to budget for the General Fund and Enterprise Utility Funds.

A comparison of mid-year estimated amounts to budget for the General Fund follows:

General Fund (Funds 100, 101, 102, 103, 105, 111)
Adopted Budget
Prior Budget
Adjustments and
Budget Rollovers Adjusted Budget
Six Months of Salary
Savings / Salary
Adjustments CAP Implementation Mid-Year Requests FY25 Budget Estimate Revenues
Recreation Programs (228,390.00) - (228,390.00) - - - (228,390.00) Taxes (21,390,297.16) - (21,390,297.16) - - 70,000.00 (21,320,297.16) Licenses & Permits (1,796,132.96) - (1,796,132.96) - - - (1,796,132.96) Intergovernmental (1,287,882.60) - (1,287,882.60) - - - (1,287,882.60) Charges for Services (154,780.00) - (154,780.00) - - - (154,780.00) Fines & Forfeitures (96,000.00) - (96,000.00) - - - (96,000.00) Investment Earnings (744,576.62) - (744,576.62) - - - (744,576.62) Reimbursement - - - - - (528,040.01) (528,040.01)
Other Revenues (158,600.00) - (158,600.00) - - - (158,600.00) Transfers In (15,263,313.87) - (15,263,313.87) - 674,896.65 (190,528.53) (14,778,945.75) Revenue Total $ (41,119,973.21) $ - $ (41,119,973.21) $ - $ 674,896.65 $ (648,568.54) $ (41,093,645.10) Expenses
Salaries & Wages 10,545,293.26 (5,000.00) 10,540,293.26 (394,371.68) 506,686.13 - 10,652,607.71 Benefits 5,047,928.57 - 5,047,928.57 - 220,113.33 - 5,268,041.90 Professional & Contracted Serv 10,992,345.39 (168,047.31) 10,824,298.08 - - 85,772.50 10,910,070.58 Repair & Maintenance 333,526.00 24,799.25 358,325.25 - - 10,000.00 368,325.25 Materials & Supplies 605,563.00 209,975.04 815,538.04 - - - 815,538.04 Other Services & Charges 1,955,733.96 233,214.69 2,188,948.65 - - - 2,188,948.65 Recreation Programs 137,600.00 - 137,600.00 - - - 137,600.00 Capital Outlay 644,389.00 5,000,110.16 5,644,499.16 - - 40,000.00 5,684,499.16 Debt Service 453,792.09 - 453,792.09 - - - 453,792.09
Rentals 251,214.51 1,500.00 252,714.51 - - - 252,714.51 Transfers Out 17,615,352.31 - 17,615,352.31 - 27,066.00 (438,995.00) 17,203,423.31 Expense Total $ 48,582,738.09 $ 5,296,551.83 $ 53,879,289.92 $ (394,371.68) $ 753,865.47 $ (303,222.50) $ 53,935,561.21 Grand Total $ 7,462,764.88 $ 5,296,551.83 $ 12,759,316.71 $ (394,371.68) $ 1,428,762.12 $ (951,791.04) $ 12,841,916.11 Projected Available Fund Balance at 6/30/2025 at Budget Adoption $ 1,516,543.00 Increase/(Decrease) in FY25 Projected Fund Balance based on Actual FY24 Results $ 987,730.87 Projected Available Fund Balance at 6/30/2025 with updated FY2024 Actuals $ 2,504,273.87 Total Proceeds/(Cost) of Proposed FY2025 Approved Budget Actions $ (64,440.56) Total Proceeds/(Cost) of Proposed FY2025 Mid-Year Actions $ (82,599.40) Projected Available Fund Balance at 6/30/2025 with FY25 Mid-Year Actions $ 2,357,233.91 Purchase Order Rollovers already accounted for in Fund Balance $ 1,722,861.60 CIP Rollovers Already accounted for in Fund Balance $ 3,509,249.67

6.1.b
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Attachment: Exhibit A (Resolution No. 2025-14 Approving FY 2024/25 Mid-Year) • The FY 24/25 expenditure budget includes expenditures related to Capital Projects approved in the prior fiscal year and transfers out to other funds to cover deficits. These factors combined explain are the major contributions to the expenditure budget exceeding revenues. • Adjusted Budget includes staff Mid-year Budget recommendations previously approved by the City Manager or through prior Council action, and rollover of budgets from purchase orders and capital projects.

General Fund
Total requested budget adjustments for mid-year include a decrease in revenue estimates in the amount of $26 thousand due to a combination of factors including the implementation of the Cost Allocation Plan which shows a decrease in transfers in from the Utility Funds, the correction of transfers in from CFD Maintenance Funds for the reimbursement of salaries, and an adjustment to show reimbursements from developers on associated costs. The total offsetting expenditure requests are $82 thousand.

Revenues
Estimated results of the major revenue categories, Property Taxes and Sales Tax are trending slightly lower than budget, but not materially. Taxes represent the major sources of revenue for the City including property taxes, sales taxes and other local taxes.

A detailed discussion of major revenue categories is as follows:

Property Taxes are the second largest single source of revenue for the General Fund. Property tax revenue is based on the assessed valuation of property in the City. Current fiscal year projections are expected to not change from the original budget. As a result, no amendment is proposed for FY 2024/25.

Sales Tax revenues are the largest source of revenue for the General Fund. Despite the slowing economy, consumer spending has remained relatively steady, although slightly below the pace forecast in the original budget. As a result, our sales tax projections are coming in approximately $70 thousand less than originally predicted.

Below are HdL reports showing the Sales Tax by Major Industry Group as well as the trends for the past few years:

6.1.b
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Attachment: Exhibit A (Resolution No. 2025-14 Approving FY 2024/25 Mid-Year) Reimbursements are estimated at $528 thousand higher than the adopted budget, primarily due carried forward expenses from the prior year. The increase in reimbursements is needed as only the cost portion was carried over to FY25.

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Attachment: Exhibit A (Resolution No. 2025-14 Approving FY 2024/25 Mid-Year) Transfers In are estimated to decrease in total by $484 thousand. The Mid-year budget contains two separate items that are affecting the Transfers into the General Fund. First, the General Fund is anticipating to lose $674 thousand in transfers from the Utility Funds as the Cost Allocation Plan is implemented. Secondly, Transfers into the General Fund are increasing by the amount of $190 thousand from CFD Maintenance funds to reimburse for Salaries and Benefits.

In addition, the current predictions about the falling interest rate environment for the remainder of the fiscal year indicate that the city will experience large end of year fair market value adjustment gains in the investment portfolio that will positively impact the surplus at the end of the fiscal year. While this amount is not factored into the Mid-Year Budget adjustments, the result will positively contribute to this year’s final ending balances that will be made available for future budget needs.

Expenditures
The underspending of expenditures, or budget savings, are expected each fiscal year due to vacant positions and other budgeted expenditures not incurred during the fiscal year. Total estimated expenditures are $53.9 million, approximately $56 thousand more than the Adjusted Budget.

A brief explanation of the assumptions and major changes in expenditures follows:

Salaries and Benefits expenditures are estimated at $15.92 million, approximately $332 thousand higher than the adjusted budget. Savings in Salaries & Wages are expected at the end of the year as not all positions are filled for the entire fiscal year, but due to Council direction, certain positions were held vacant to give the City more time to determine available fund balance. We are currently estimating the aggregate savings from freezing vacant positions amounts to approximately $394 thousand dollars for the six months ending December 31, 2024. Additionally, it is the intention of staff to implement the completed Cost Allocation Plan. In order to fully implement, certain positions that were directly charged to other funds are now being reallocated to the General Fund for a total estimated cost of $726 thousand.

Professional & Contracted Services are estimated at approximately $85 thousand higher than the adjusted budget, due to the increase in cost to complete the update of the City’s Housing Element .

Repairs and Maintenance expenditures are estimated at $368 thousand, $10 thousand more than the adjusted budget. The increase in repairs and maintenance is for work that needs to be completed and Fire Station #51.

Capital Outlay expenditures are estimated at $5.6 million, $40 thousand more than the adjusted budget. The increase in capital outlay is to replace the perimeter fencing at the current site of the Police Department.

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Attachment: Exhibit A (Resolution No. 2025-14 Approving FY 2024/25 Mid-Year) Transfers Out The projected decrease in transfer out of the General Fund of $438 thousand is directly attributed to how Fund 190 (CFD2003-1 Fire Station #2) performed in FY24. The fund’s deficit was as large as originally projected, so the subsidy from the General Fund is able to be reduced.

Total combined General Fund budget amendments result in a net negative Mid-Year change of approximately $82 thousand.

Overall, the General Fund’s projected available balance at June 30, 2025 is predicted to be $2.3 million. This is $840 thousand more than projected at the time of the FY2024/25 budget adoption.

The General Fund out performed initial projections, but it is critical that the budget is actively managed to ensure that gains to available fund balance are not lost.

Enterprise Utility Funds
The City’s three enterprise utility funds (Garbage, Sewer and Water) are funded by the rates charged to customers. A rate study for each of the utilities is performed every 5 years, with rates modifications developed for the 5-year period. The rates are designed to comply with Article 13D of the California Constitution and to a) recover the City’s cost of providing water, sewer or garbage services, and b) allocate costs in proportion to the cost for serving each customer class.

Garbage Fund
This fund accounts for all financial transactions relating to the City’s garbage services. Services are on a user charge basis to residents and business owners located in Patterson. The city operates and maintains a solid waste system that serves approximately 7,000 customers, primarily residential. The City contracts with a third party to collect and dispose of its solid waste and has a contract with the County of Stanislaus to use its solid waste disposal sites.

6.1.b
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Attachment: Exhibit A (Resolution No. 2025-14 Approving FY 2024/25 Mid-Year) A comparison of mid-year estimated amounts to budget for the Garbage Fund:
• Adjusted Budget includes staff Mid-year Budget recommendations previously approved by the City Manager or through prior Council action and any approved carryovers from prior fiscal years.

The last Solid Waste Rate study was done in 2019 and proposed rate increases of 4.9% each fiscal year from FY 2019/20 through FY 2023/24. Staff is currently working on updating the Solid Waste rates through the update of the Solid Waste Rate Study.

Estimated expenditures of $4.9 million are about $552 thousand less than the adopted budget primarily due to estimated six months of salary savings ($90 thousand) and the implementation of the Cost Allocation Plan ($ 488 thousand).

The Solid Waste Fund’s projected available working capital at June 30, 2025 is estimated to be negative $285 thousand. For the Solid Waste Fund, the negative working capital amount means reserves are being used in the current fiscal year to fund operations by $285 thousand. Once the Solid Waste Fund (Fund 600)
Adopted Budget
Prior Budget
Adjustments and
Budget Rollovers Adjusted Budget
Six Months of Salary
Savings / Salary
Adjustments CAP Implementation Mid-Year Requests FY25 Budget Estimate Revenues
Taxes (44,530.00) - (44,530.00) - - - (44,530.00)
Intergovernmental (4,320.00) - (4,320.00) - - - (4,320.00) Charges for Services (4,401,882.14) - (4,401,882.14) - - - (4,401,882.14) Investment Earnings (32,082.58) - (32,082.58) - - - (32,082.58) Other Revenues (120,402.00) - (120,402.00) - - - (120,402.00) Transfers In - - - - - - -
Revenue Total $ (4,603,216.72) $ - $ (4,603,216.72) $ - $ - $ - $ (4,603,216.72) Expenses
Salaries & Wages 1,063,604.45 - 1,063,604.45 (90,760.86) (56,504.90) - 916,338.69 Benefits 470,460.03 - 470,460.03 - (28,146.70) - 442,313.33 Professional & Contracted Serv 3,193,422.00 24,287.55 3,217,709.55 - - - 3,217,709.55 Repair & Maintenance 13,400.00 62.77 13,462.77 - - - 13,462.77 Materials & Supplies 42,517.00 1,762.71 44,279.71 - - - 44,279.71 Other Services & Charges 19,800.00 - 19,800.00 - - - 19,800.00 Capital Outlay 5,000.00 - 5,000.00 - - - 5,000.00
Debt Service - - - - - - -
Rentals 11,450.00 - 11,450.00 - - - 11,450.00
Transfers Out 689,205.66 - 689,205.66 - (403,487.66) - 285,718.00 Expense Total $ 5,508,859.14 $ 26,113.03 $ 5,534,972.17 $ (90,760.86) $ (488,139.26) $ - $ 4,956,072.05 Grand Total $ 905,642.42 $ 26,113.03 $ 931,755.45 $ (90,760.86) $ (488,139.26) $ - $ 352,855.33 Projected Available Working Capital at 6/30/2025 at Budget Adoption $ (1,005,840.09) Increase/(Decrease) in FY25 Projected Available Working Capital based on Actual FY24 Results $ 141,906.61 Projected Available Working Capital at 6/30/2025 with updated FY2024 Actuals $ (863,933.48) Total Proceeds/(Cost) of Proposed FY2025 Approved Budget Actions $ - Total Proceeds/(Cost) of Proposed FY2025 Mid-Year Actions $ 578,900.12 Projected Available Working Capital at 6/30/2025 with FY25 Mid-Year Actions $ (285,033.36) Purchase Order Rollovers already accounted for in Working Capital $ 26,113.03 CIP Rollovers Already accounted for in Working Capital $ - Projected Reserve Balance at 6/30/2025 $ 1,694,396.04
Projected Available Working Capital without Reserve at 6/30/2025 with FY25 Mid-Year Actions $ 1,409,362.68

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Attachment: Exhibit A (Resolution No. 2025-14 Approving FY 2024/25 Mid-Year) new rates are passed, the Solid Waste Fund should be able to fund its operations going forward and will be able to replenish the reserve amount.

Sewer Fund
This fund accounts for all financial transactions relating to the City’s wastewater collection and treatment. The city provides wastewater service to approximately 7,000 customers, on a user charge basis. The majority are single family residents, and approximately 595 customers in Diablo Grande. The city owns, operates, and maintains its own wastewater system which includes a treatment plant, three lift stations, and a collection system.

A comparison of mid-year estimated amounts to budget for the Sewer Fund follows:
• Adjusted Budget includes staff Mid-year Budget recommendations previously approved by the City Manager or through prior Council action and any approved carryovers from prior fiscal years.

The 2020 Sewer Rate study proposed rate increases of 6% each year. The first increase was effective January 1, 2022, subsequent rates are effective each July 1 through July 1, 2025. Total revenues are estimated to only slightly change from the originally adopted budget of $10.1 million, and estimated expenditures of $11.9 million are approximately $269 thousdand less than the Sewer Fund (Funds 605, 606, 607)
Adopted Budget
Prior Budget
Adjustments and
Budget Rollovers Adjusted Budget
Six Months of Salary Savings /
Salary Adjustments CAP Implementation Mid-Year Requests FY25 Budget Estimate Revenues
Licenses & Permits - - - - - - -
Intergovernmental - - - - - - -
Charges for Services (6,021,043.45) - (6,021,043.45) - - - (6,021,043.45) Fines & Forfeitures - - - - - - -
Investment Earnings (17,495.46) - (17,495.46) - - - (17,495.46) Other Revenues (155,114.00) - (155,114.00) - - (1,600.00) (156,714.00) Transfers In (3,601,434.02) (359,793.00) (3,961,227.02) - - - (3,961,227.02) Revenue Total $ (9,795,086.93) $ (359,793.00) $ (10,154,879.93) $ - $ - $ (1,600.00) $ (10,156,479.93) Expenses
Salaries & Wages 2,407,006.65 - 2,407,006.65 (58,389.25) (230,560.02) 7,150.00 2,125,207.38 Benefits 1,250,196.37 - 1,250,196.37 - (98,570.01) - 1,151,626.36 Professional & Contracted Serv 1,144,886.00 28,223.15 1,173,109.15 - - - 1,173,109.15 Repair & Maintenance 240,200.00 34,736.54 274,936.54 - - - 274,936.54 Materials & Supplies 275,350.00 7,185.25 282,535.25 - - - 282,535.25 Other Services & Charges 238,968.00 1,600.00 240,568.00 - - - 240,568.00 Capital Outlay 744,850.00 456,269.31 1,201,119.31 - - 196,000.00 1,397,119.31 Debt Service 832,682.21 - 832,682.21 - - - 832,682.21
Rentals 110,300.00 - 110,300.00 - - - 110,300.00
Transfers Out 4,209,864.26 937.00 4,210,801.26 - (83,764.18) - 4,127,037.08 Expense Total $ 11,454,303.49 $ 528,951.25 $ 11,983,254.74 $ (58,389.25) $ (412,894.21) $ 203,150.00 $ 11,715,121.28 Grand Total $ 1,659,216.56 $ 169,158.25 $ 1,828,374.81 $ (58,389.25) $ (412,894.21) $ 201,550.00 $ 1,558,641.35 Projected Available Working Capital at 6/30/2025 at Budget Adoption $ (3,358,689.91) Increase/(Decrease) in FY25 Projected Available Working Capital based on Actual FY24 Results $ 377,854.95 Projected Available Working Capital at 6/30/2025 with updated FY2024 Actuals $ (2,980,834.96) Total Proceeds/(Cost) of Proposed FY2025 Approved Budget Actions $ - Total Proceeds/(Cost) of Proposed FY2025 Mid-Year Actions $ 269,733.46 Projected Available Working Capital at 6/30/2025 with FY25 Mid-Year Actions $ (2,711,101.50) Purchase Order Rollovers already accounted for in Working Capital $ 168,221.25 CIP Rollovers Already accounted for in Working Capital $ 937.00 Projected Reserve Balance at 6/30/2025 $ 1,950,072.11
Projected Available Working Capital without Reserve at 6/30/2025 with FY25 Mid-Year Actions $ (761,029.39)

6.1.b
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Attachment: Exhibit A (Resolution No. 2025-14 Approving FY 2024/25 Mid-Year) originally adopted budget. The three main factors contributing to the reduction in budget are six months worth of salary savings (savings of $58 thousand), the implementation of the Cost Allocation Plan (savings of $412 thousand) and new requests in the amount of $203 thousand.

The Sewer Fund’s projected available working capital at June 30, 2025 is estimated to be negative $2.7 million. The reserve for the Sewer Fund is currently sitting at $1.9 million. Once the reserves are added back to the deficit, the Sewer Fund has a negative working capital of $761 thousand.

The main factor causing the Sewer Fund’s deficit are delinquent amounts owed for services provided. Currently the amount owed to the Sewer Fund is approximately $3.1 million, and staff is working with legal counsel to resolve this matter. Due to the critical need for the infrastructure of this fund, operations must continue. In 2024, City Council adopted a resolution that allows the Utility Funds to borrow against the General Funds reserve in times of needs. A separate report and resolution will be brought to Council if it is determined that the Sewer Fund is in need of such a loan to continue operations.

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. The city owns and operates its own water system and provides service to approximately 7,400 customers. Groundwater wells are the City’s sole source of water supply. The city operates nine wells and three water storage facilities. The city continues to invest in expanding its water infrastructure to meet the demands of rapid population growth.

Comparison of mid-year estimated amounts to budget for the Water Fund can be found on the next page:

6.1.b
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Attachment: Exhibit A (Resolution No. 2025-14 Approving FY 2024/25 Mid-Year) • Adjusted Budget includes staff Mid-year Budget recommendations previously approved by the City Manager or through prior Council action and any approved carryovers from prior fiscal years.

Total revenues are estimated at $19.7 million, slightly higher than originally budgeted due to an increase for Transfers in. The latest water rate study was completed in 2022 and recommended overall rate increases of 2.0% each year over the next five years. Rate increases are proposed to be effective January 1 of each year. In the rate study, a survey was conducted comparing the typical water bills of regional agencies. Based on the survey performed, Patterson’s typical monthly residential water bill is in the middle range in the region.

Total expenditures are estimated at $25.3 million, $761 thousand less than the Adjusted Budget primarily due to six months worth of salary savings ($182 thousand), implementation of the Cost Allocation Plan ($585 thousand), and one Mid-year request of $7,150.

At June 30, 2025 the Water fund has an estimated available working capital in the amount of $7.1 million.

Water Fund (Funds 610, 611, 612)
Adopted Budget
Prior Budget
Adjustments and
Budget Rollovers Adjusted Budget
Six Months of Salary Savings /
Salary Adjustments CAP Implementation Mid-Year Requests FY25 Budget Estimate Revenues
Intergovernmental - - - - - - -
Charges for Services (7,477,298.03) - (7,477,298.03) - - - (7,477,298.03) Fines & Forfeitures - - - - - - -
Investment Earnings (276,262.71) - (276,262.71) - - - (276,262.71) Reimbursement - - - - - - -
Other Revenues (2,341,497.71) - (2,341,497.71) - - - (2,341,497.71) Transfers In (9,178,533.04) (431,000.00) (9,609,533.04) - - - (9,609,533.04) Revenue Total $ (19,273,591.49) $ (431,000.00) $ (19,704,591.49) $ - $ - $ - $ (19,704,591.49) Expenses
Salaries & Wages 2,533,874.86 - 2,533,874.86 (182,937.62) (219,621.22) 7,150.00 2,138,466.03 Benefits 1,386,884.99 - 1,386,884.99 - (93,396.63) - 1,293,488.36 Professional & Contracted Serv 836,020.00 20,109.82 856,129.82 - - - 856,129.82 Repair & Maintenance 210,150.00 2,510.77 212,660.77 - - - 212,660.77 Materials & Supplies 418,467.00 29,935.12 448,402.12 - - - 448,402.12 Other Services & Charges 1,022,615.00 - 1,022,615.00 - - - 1,022,615.00 Capital Outlay 1,421,050.00 6,538,906.97 7,959,956.97 - - - 7,959,956.97 Debt Service 1,202,517.86 - 1,202,517.86 - - - 1,202,517.86 Rentals 28,150.00 - 28,150.00 - - - 28,150.00
Transfers Out 9,985,028.75 431,000.00 10,416,028.75 - (272,235.71) - 10,143,793.04 Expense Total $ 19,044,758.46 $ 7,022,462.68 $ 26,067,221.14 $ (182,937.62) $ (585,253.56) $ 7,150.00 $ 25,306,179.97 Grand Total $ (228,833.03) $ 6,591,462.68 $ 6,362,629.65 $ (182,937.62) $ (585,253.56) $ 7,150.00 $ 5,601,588.48 Projected Available Working Capital at 6/30/2025 at Budget Adoption $ 8,223,276.77 Increase/(Decrease) in FY25 Projected Available Working Capital based on Actual FY24 Results $ 1,573,296.95 Projected Available Working Capital at 6/30/2025 with updated FY2024 Actuals $ 9,796,573.71 Total Proceeds/(Cost) of Proposed FY2025 Approved Budget Actions $ (3,363,281.95) Total Proceeds/(Cost) of Proposed FY2025 Mid-Year Actions $ 761,041.17 Projected Available Working Capital at 6/30/2025 with FY25 Mid-Year Actions $ 7,194,332.93 Purchase Order Rollovers already accounted for in Working Capital $ 2,812,125.91 CIP Rollovers Already accounted for in Working Capital $ 416,054.82 Projected Reserve Balance at 6/30/2025 $ 2,158,348.56
Projected Available Working Capital without Reserve at 6/30/2025 with FY25 Mid-Year Actions $ 9,352,681.49

6.1.b
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Attachment: Exhibit A (Resolution No. 2025-14 Approving FY 2024/25 Mid-Year) III. RECOMMENDED MID-YEAR BUDGET ADJUSTMENTS
The mid-year budget review provides an opportunity for the city to adjust the budget to recognize unanticipated revenues and costs and to propose expenditures to address high-priority community and operational needs. Any proposed adjustments are made with consideration of the resources needed to provide services to the public and the fiscal capacity to fund this level of resources. Each department continuously reviews its programs and operations, as well as changing economic conditions and emerging community needs.

A complete listing of all recommended increases is included as an attachment.

6.1.b
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Attachment: Exhibit A (Resolution No. 2025-14 Approving FY 2024/25 Mid-Year) Account Number Account Name
6 Months of Salary Savings /
Salary Adjustments CAP Implementation Mid-Year Requests Total Mid-Year Activity Comments 100-000-5020 Sales & Use Tax - - 70,000.00 70,000.00 Adjustment to Sales Tax Revenue Projection 100-000-5310 Developer Reimbursement - - (528,040.01) (528,040.01) Increase Reimbursement amount to match expenditures 100-100-6001 Salaries & Wages, Full-Time 13,848.56 355,783.36 369,631.92 100-100-6011 Leave Payout - 11,185.79 11,185.79
100-100-6100 FICA/Medicare - Employer - 5,321.06 5,321.06 100-100-6105 Retirement - 56,457.74 56,457.74
100-100-6110 Worker's Compensation - 11,324.90 11,324.90 100-100-6120 Medical Insurance - 73,062.14 73,062.14
100-100-6123 Post Retirement Medical Insur. - 2,133.60 2,133.60 100-100-6125 Dental Insurance - 6,092.03 6,092.03
100-100-6130 Vision Insurance - 762.00 762.00
100-100-6135 Life Insurance - 6,270.96 6,270.96
100-200-6001 Salaries & Wages, Full-Time (14,081.98) 130,216.46 116,134.49 100-200-6002 Salaries & Wages, Part-Time - 6,755.24 6,755.24 100-200-6011 Leave Payout - 2,745.29 2,745.29
100-200-6100 FICA/Medicare - Employer - 2,444.72 2,444.72 100-200-6105 Retirement - 19,701.50 19,701.50
100-200-6110 Worker's Compensation - 4,144.91 4,144.91
100-200-6120 Medical Insurance - 25,584.78 25,584.78
100-200-6123 Post Retirement Medical Insur. - 1,287.89 1,287.89 100-200-6125 Dental Insurance - 3,677.29 3,677.29
100-200-6130 Vision Insurance - 459.96 459.96
100-200-6135 Life Insurance - 1,387.86 1,387.86
100-300-6001 Salaries & Wages, Full-Time (8,205.34) - (8,205.34) 100-300-6210 Planning Services - - 85,772.50 85,772.50 Change order for additional work to complete housing element update 100-305-6001 Salaries & Wages, Full-Time (80,144.98) - (80,144.98) 100-310-6001 Salaries & Wages, Full-Time 1,477.35 - 1,477.35 100-400-6001 Salaries & Wages, Full-Time 11,417.32 - 11,417.32 100-400-6310 Facility Maintenance - - 10,000.00 10,000.00 Increase in funds to repair various items at Fire Station 51 100-500-7560 Machinery & Equipment Expense - - 40,000.00 40,000.00 Replace fencing around current Police Department Modulars 100-600-6001 Salaries & Wages, Full-Time (63,412.16) - (63,412.16) 100-605-6001 Salaries & Wages, Full-Time (35,699.49) - (35,699.49) 100-606-6001 Salaries & Wages, Full-Time (608.61) - (608.61) 100-607-6001 Salaries & Wages, Full-Time (2,740.45) - (2,740.45) 100-610-6001 Salaries & Wages, Full-Time (29,037.00) - (29,037.00) 100-611-6001 Salaries & Wages, Full-Time (89,634.47) - (89,634.47) 100-612-6001 Salaries & Wages, Full-Time 1,089.58 - 1,089.58 100-700-6001 Salaries & Wages, Full-Time (2,227.00) - (2,227.00) 100-705-6001 Salaries & Wages, Full-Time (13,441.52) - (13,441.52) 100-710-6001 Salaries & Wages, Full-Time (66,248.06) - (66,248.06) 100-780-6001 Salaries & Wages, Full-Time (13,446.72) - (13,446.72) 100-781-6001 Salaries & Wages, Full-Time (3,276.72) - (3,276.72) 100-998-5902 From Garbage Fund - 403,487.66 403,487.66
100-998-5903 From Sewer Fund - 84,578.18 84,578.18
100-998-5904 From Water Fund - 275,127.71 275,127.71
100-998-5917 From Other Funds - (88,296.90) (88,296.90) 100-998-5921 Transfers In CFD2013-1/Maint - - (14,430.20) (14,430.20) Increase in transfers to reimburse General Fund for Salaries and Benefits 100-998-5923 From CFD 2018-2 Maintenance - - (176,098.33) (176,098.33) Increase in transfers to reimburse General Fund for Salaries and Benefits 100-999-9016 To LMD's - - 23,376.00 23,376.00 Increase in transfers to LMDs to bring funds out of deficit after FY24 actuals 100-999-9019 To CFD 2003-1 - - (575,643.00) (575,643.00) Decrease in funding of CFD 2003-1's Deficit (Fire Station 52) after FY24 Actuals 100-999-9027 To Other Funds - - 113,272.00 113,272.00
102-999-9000 To General Fund - 2,406.00 2,406.00
103-999-9000 To General Fund - 24,660.00 24,660.00
120-175-5900 From General Fund - - (6,560.00) (6,560.00) Increase in funding from General Fund to Cover Deficit 122-175-9000 Transfers to General fund - 4,215.15 4,215.15 124-175-9000 Transfers to General fund - 4,215.15 4,215.15 126-175-9000 Transfers to General fund - 4,215.15 4,215.15 128-175-9000 Transfers to General fund - 4,215.15 4,215.15 138-175-5900 From General Fund - - (16,805.00) (16,805.00) Increase in funding from General Fund to Cover Deficit 146-175-9000 Transfers to General fund - 4,215.15 4,215.15 156-175-9000 Transfers to General fund - 4,215.15 4,215.15 158-175-9000 Transfers to General fund - 4,215.15 4,215.15 166-175-9000 Transfers to General fund - 4,215.15 4,215.15 176-998-5900 From General Fund - - (11.00) (11.00) Increase in funding from General Fund to Cover Deficit 176-999-9000 To General Fund - 8,110.67 8,110.67
178-999-6800 Transfers to General fund - 1,817.00 14,430.20 16,247.20 To reimburse the General Fund for Salaries and Benefits of assigned staff 179-999-9000 Transfer to Sewer Fund - 2,885.00 2,885.00 179-999-9001 Transfer to General Fund - - 176,098.33 176,098.33 To reimburse the General Fund for Salaries and Benefits of assigned staff 180-999-9000 To General Fund - 955.00 955.00
188-999-9013 To CFD 2003-1 - 1.00 1.00
Attachment 1

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Attachment: Attachment 1 - List of FY25 Mid-Year Adjustments (Resolution No. 2025-14 Approving FY Account Number Account Name
6 Months of Salary Savings /
Salary Adjustments CAP Implementation Mid-Year Requests Total Mid-Year Activity Comments 189-999-9013 To Fire Station 2 - 334.00 334.00
190-405-6001 Salaries & Wages, Full-Time (131,366.00) - (131,366.00) 190-998-5901 From General Fund - - 575,643.00 575,643.00 Decrease in funding from General Fund after FY24 Actuals 191-999-9000 To General Fund - 505.00 505.00
204-999-9005 To Heartland Ranch LMD - 1,565.00 1,565.00 250-999-9001 To General Fund - 199.00 199.00
312-998-5900 From General Fund - - (22,652.00) (22,652.00) Increase in funding from General Fund to Cover Deficit 314-999-9000 To General Fund - 156.00 156.00
325-999-9012 To Street Projects Fund - - 475,000.00 475,000.00 Transfer to Fund Additional Street Projects 326-998-5900 From General Fund - - (90,620.00) (90,620.00) Increase in funding from General Fund to Cover Deficit 327-000-7550 Improvements Expense - - 675,000.00 675,000.00 Park Center Drive Overlay ($175,000), American Eagle Overlay ($150,000), Mini Roundabout at Salado/7th ($150,000), Geotechnical Evaluation Baldwin Road ($50,000), Sperry/Rogers FDR Repair ($150,000) 327-000-7626 Salado Creek Bike Trail Proj - - 75,000.00 75,000.00 Additional Funds to Update Design 327-998-5905 From Gas Tax Fund - - (475,000.00) (475,000.00) Transfer to Fund Additional Street Projects 327-998-5916 From Measure L - - (275,000.00) (275,000.00) Transfer to Fund Additional Street Projects 327-999-9012 To LTF Fund - 5,372.00 5,372.00
329-999-9002 To Street Fund - - 275,000.00 275,000.00 Transfer to Fund Additional Street Projects 329-999-9005 To LTF Fund - 626.00 626.00
404-999-9014 To Water Capital Fund - 1,152.00 1,152.00
410-999-9000 To General Fund 63.00 63.00
415-999-9005 To Assessment Districts - 63.00 63.00
600-100-6001 Salaries & Wages, Full-Time (12,567.57) (25,135.14) (37,702.71) 600-100-6011 Leave Payout - (868.11) (868.11)
600-100-6100 FICA/Medicare - Employer - (377.05) (377.05) 600-100-6105 Retirement - (3,485.16) (3,485.16)
600-100-6110 Worker's Compensation - (800.07) (800.07)
600-100-6120 Medical Insurance - (6,501.95) (6,501.95)600-100-6123 Post Retirement Medical Insur. - (176.40) (176.40)600-100-6125 Dental Insurance - (503.67) (503.67)600-100-6130 Vision Insurance - (63.00) (63.00)600-100-6135 Life Insurance - (665.41) (665.41)600-200-6001 Salaries & Wages, Full-Time (107,291.52) (30,041.63) (137,333.15)600-200-6011 Leave Payout - (460.02) (460.02)600-200-6100 FICA/Medicare - Employer - (442.27) (442.27)600-200-6105 Retirement - (4,158.74) (4,158.74)600-200-6110 Worker's Compensation - (956.25) (956.25)600-200-6120 Medical Insurance - (8,555.69) (8,555.69)600-200-6123 Post Retirement Medical Insur. - (315.17) (315.17)600-200-6125 Dental Insurance - (899.89) (899.89)600-200-6130 Vision Insurance - (112.56) (112.56)600-200-6135 Life Insurance - (133.41) (133.41)600-790-6001 Salaries & Wages, Full-Time 29,098.23 - 29,098.23600-999-9000 To General Fund - (403,487.66) (403,487.66)605-000-5795 Miscellaneous Reimbursements - - (1,600.00) (1,600.00) Increase Reimbursement amount to match expenditures605-100-6001 Salaries & Wages, Full-Time (85,389.70) (170,779.40) (256,169.10)605-100-6011 Leave Payout - (5,345.18) (5,345.18)605-100-6100 FICA/Medicare - Employer - (2,553.81) (2,553.81)605-100-6105 Retirement - (27,168.66) (27,168.66)605-100-6110 Worker's Compensation - (5,436.06) (5,436.06)605-100-6120 Medical Insurance - (34,708.00) (34,708.00)605-100-6123 Post Retirement Medical Insur. - (1,016.40) (1,016.40) 605-100-6125 Dental Insurance - (2,902.11) (2,902.11)
605-100-6130 Vision Insurance - (363.00) (363.00)
605-100-6135 Life Insurance - (3,015.55) (3,015.55)
605-200-6001 Salaries & Wages, Full-Time (83,193.90) (49,916.34) (133,110.24) 605-200-6002 Salaries & Wages, Part-Time - (3,377.62) (3,377.62) 605-200-6011 Leave Payout - (1,141.48) (1,141.48)
605-200-6100 FICA/Medicare - Employer - (998.72) (998.72) 605-200-6105 Retirement - (7,731.04) (7,731.04)
605-200-6110 Worker's Compensation - (1,588.88) (1,588.88) 605-200-6120 Medical Insurance - (8,404.57) (8,404.57)
605-200-6123 Post Retirement Medical Insur. - (483.84) (483.84) 605-200-6125 Dental Insurance - (1,381.50) (1,381.50)
605-200-6130 Vision Insurance - (172.80) (172.80)
605-200-6135 Life Insurance - (645.07) (645.07)
605-305-6001 Salaries & Wages, Full-Time (67,951.15) - (67,951.15) 605-790-6001 Salaries & Wages, Full-Time 173,715.09 - 7,150.00 180,865.09 Reclassification of Fleets Services Position 605-790-7560 Machinery & Equipment Expense - - 196,000.00 196,000.00 Influent 20 HP Pump Station Replacement ($60,000), Effluent 10 HP Pump Station Replacement ($40,000), Pit Flex Rake/Existing Conveyor Belt System Replacement ($96,000) 605-791-6001 Salaries & Wages, Full-Time 5,326.41 - 5,326.41 605-792-6001 Salaries & Wages, Full-Time (896.00) - (896.00)

6.1.c
Packet Pg. 51
Attachment: Attachment 1 - List of FY25 Mid-Year Adjustments (Resolution No. 2025-14 Approving FY Account Number Account Name
6 Months of Salary Savings /
Salary Adjustments CAP Implementation Mid-Year Requests Total Mid-Year Activity Comments 605-999-9000 To General Fund - (84,578.18) (84,578.18)
606-999-9009 To Sewer Fund - 814.00 814.00
610-100-6001 Salaries & Wages, Full-Time (79,934.41) (159,868.82) (239,803.23) 610-100-6011 Leave Payout - (4,972.50) (4,972.50)
610-100-6100 FICA/Medicare - Employer - (2,390.20) (2,390.20) 610-100-6105 Retirement - (25,803.92) (25,803.92)
610-100-6110 Worker's Compensation - (5,088.77) (5,088.77) 610-100-6120 Medical Insurance - (31,852.19) (31,852.19) 610-100-6123 Post Retirement Medical Insur. - (940.80) (940.80) 610-100-6125 Dental Insurance - (2,686.25) (2,686.25)
610-100-6130 Vision Insurance - (336.00) (336.00)
610-100-6135 Life Insurance - (2,590.00) (2,590.00)
610-200-6001 Salaries & Wages, Full-Time (83,764.16) (50,258.50) (134,022.66) 610-200-6002 Salaries & Wages, Part-Time - (3,377.62) (3,377.62) 610-200-6011 Leave Payout - (1,143.78) (1,143.78)
610-200-6100 FICA/Medicare - Employer - (1,003.72) (1,003.72) 610-200-6105 Retirement - (7,811.73) (7,811.73)
610-200-6110 Worker's Compensation - (1,599.77) (1,599.77) 610-200-6120 Medical Insurance - (8,624.53) (8,624.53)
610-200-6123 Post Retirement Medical Insur. - (488.88) (488.88) 610-200-6125 Dental Insurance - (1,395.89) (1,395.89)
610-200-6130 Vision Insurance - (174.60) (174.60)
610-200-6135 Life Insurance - (609.38) (609.38)
610-305-6001 Salaries & Wages, Full-Time (189,441.33) - (189,441.33) 610-790-6001 Salaries & Wages, Full-Time 170,202.28 - 7,150.00 177,352.28 Reclassification of Fleets Services Position 610-999-9000 To General Fund - (275,127.71) (275,127.71) 611-999-9020 To General Fund - 2,892.00 2,892.00
Totals (857,825.41) (0.00) 636,432.49 (221,392.92)

6.1.c
Packet Pg. 52
Attachment: Attachment 1 - List of FY25 Mid-Year Adjustments (Resolution No. 2025-14 Approving FY FY 2024/25 Mid
-Year
Budget Review
1 March 18, 2025

6.1.d
Packet Pg. 53
Attachment: FY25 Mid-Year Budget Presentation (Resolution No. 2025-14 Approving FY 2024/25 Mid-Year) FY 2024/25 Mid
-Year Budget Review
2 • FY 2024/25 Total Mid-Year Adjustments
• General Fund Adjustments • Garbage Fund Adjustments • Sewer Fund Adjustments • Water Fund Adjustments

6.1.d
Packet Pg. 54
Attachment: FY25 Mid-Year Budget Presentation (Resolution No. 2025-14 Approving FY 2024/25 Mid-Year) 3 Total FY 2024/25 Mid-Year Adjustments
All Funds The total net budget adjustments for FY 2024/25 City-wide fiscal impacts are as follows:

Net Budget Adjustments by Fund
General Fund 82,599.40
Country Hollow - LMD (6,560.00)
Heartland Ranch - LMD 4,215.15
Heartland Ranch - Overlay 4,215.15
Kinshire Estates - LMD 4,215.15
Patterson Estates I/III/IV-LMD 4,215.15
Walnut Square - LMD (16,805.00)
Miraggio - LMD 4,215.15
Walker Ranch LMD 4,215.15
Patterson Gardens LMD 4,215.15
Keystone Annex 1 McShane - LMD 4,215.15
BAD Districts 8,099.67
CFD 2013-1 16,247.20
CFD 2018-02 VOP MAINTENANCE 178,983.33
CFD 2018-01 VOP INFRASTRUCTURE 955.00
CFD 2015-2 1.00
Patt Gardens Fire Assmt Dist 334.00
Public Safety CFD 2003-1 444,277.00
West Patt Bus. Park CFD 2005-1 505.00
HR Reass Dist Loc Oblig Bonds 1,565.00
WPFA CFD 2001-1 199.00
HUD Federal Grant/Consortium (22,652.00)
HUD Home 156.00
Gas Tax 475,000.00
Local Transportation Fund (90,620.00)
Street Projects 5,372.00
Measure L 275,626.00
General Government Impact Fee 1,152.00
Parkland In-Lieu Fee 63.00
Storm Drain Fees 63.00
Garbage (578,900.12)
Sewer (269,733.46)
Water (761,041.17)
Grand Total of all Net Adjustments (221,392.92)

6.1.d
Packet Pg. 55
Attachment: FY25 Mid-Year Budget Presentation (Resolution No. 2025-14 Approving FY 2024/25 Mid-Year) 4 FY 2024/25 Mid-Year Adjustments
General Fund
General Fund (Funds 100, 101, 102, 103, 105, 111)
Adopted Budget
Prior Budget
Adjustments and
Budget Rollovers Adjusted Budget
Six Months of Salary
Savings / Salary
Adjustments CAP Implementation Mid-Year Requests FY25 Budget Estimate Revenues
Recreation Programs (228,390.00) - (228,390.00) - - - (228,390.00) Taxes (21,390,297.16) - (21,390,297.16) - - 70,000.00 (21,320,297.16) Licenses & Permits (1,796,132.96) - (1,796,132.96) - - - (1,796,132.96) Intergovernmental (1,287,882.60) - (1,287,882.60) - - - (1,287,882.60) Charges for Services (154,780.00) - (154,780.00) - - - (154,780.00) Fines & Forfeitures (96,000.00) - (96,000.00) - - - (96,000.00) Investment Earnings (744,576.62) - (744,576.62) - - - (744,576.62) Reimbursement - - - - - (528,040.01) (528,040.01)
Other Revenues (158,600.00) - (158,600.00) - - - (158,600.00) Transfers In (15,263,313.87) - (15,263,313.87) - 674,896.65 (190,528.53) (14,778,945.75) Revenue Total $ (41,119,973.21) $ - $ (41,119,973.21) $ - $ 674,896.65 $ (648,568.54) $ (41,093,645.10) Expenses
Salaries & Wages 10,545,293.26 (5,000.00) 10,540,293.26 (394,371.68) 506,686.13 - 10,652,607.71 Benefits 5,047,928.57 - 5,047,928.57 - 220,113.33 - 5,268,041.90 Professional& Contracted Serv 10,992,345.39 (168,047.31) 10,824,298.08 - - 85,772.50 10,910,070.58 Repair & Maintenance 333,526.00 24,799.25 358,325.25 - - 10,000.00 368,325.25 Materials & Supplies 605,563.00 209,975.04 815,538.04 - - - 815,538.04 Other Services & Charges 1,955,733.96 233,214.69 2,188,948.65 - - - 2,188,948.65 Recreation Programs 137,600.00 - 137,600.00 - - - 137,600.00 CapitalOutlay 644,389.00 5,000,110.16 5,644,499.16 - - 40,000.00 5,684,499.16 Debt Service 453,792.09 - 453,792.09 - - - 453,792.09
Rentals 251,214.51 1,500.00 252,714.51 - - - 252,714.51 Transfers Out 17,615,352.31 - 17,615,352.31 - 27,066.00 (438,995.00) 17,203,423.31 Expense Total $ 48,582,738.09 $ 5,296,551.83 $ 53,879,289.92 $ (394,371.68) $ 753,865.47 $ (303,222.50) $ 53,935,561.21 Grand Total $ 7,462,764.88 $ 5,296,551.83 $ 12,759,316.71 $ (394,371.68) $ 1,428,762.12 $ (951,791.04) $ 12,841,916.11 Projected Available Fund Balance at 6/30/2025 at Budget Adoption $ 1,516,543.00 Increase/(Decrease) in FY25 Projected Fund Balance based on Actual FY24 Results $ 987,730.87 Projected Available Fund Balance at 6/30/2025 with updated FY2024 Actuals $ 2,504,273.87 Total Proceeds/(Cost) of Proposed FY2025 Approved Budget Actions $ (64,440.56) Total Proceeds/(Cost) of Proposed FY2025 Mid-Year Actions $ (82,599.40) Projected Available Fund Balance at 6/30/2025 with FY25 Mid-Year Actions $ 2,357,233.91 Purchase Order Rollovers already accounted for in Fund Balance $ 1,722,861.60 CIP Rollovers Already accounted for in Fund Balance $ 3,509,249.67

6.1.d
Packet Pg. 56
Attachment: FY25 Mid-Year Budget Presentation (Resolution No. 2025-14 Approving FY 2024/25 Mid-Year) General Fund (100) FY 2024/25 Mid-Year
Budget Review, continued
5 General Fund revenue estimates
increased from the adjusted budget due
to the following :
• Sales Taxes decreased $70 thousand
but remains fairly consistent with
initial projection.
• Reimbursements are estimated at
$528 thousand higher than the
adopted budget, primarily due
carried forward expenses from the
prior year. The increase in
reimbursements is needed as only
the cost portion was carried over to
FY25.
• Transfers In Decrease of
$484,368.12 - $674,896.65 Decrease
attributed to CAP and $190,528.53
increase attributed to
reimbursement from CFD
Maintenance Funds for Salary
Reimbursements
General Fund budgeted expenditure
estimates increased from the
adjusted budget due to the following:
• Salary & Benefit increases based on
CAP implementation – salary savings.
• Professional services increased due
to additional Housing Element Costs
• Repairs and Maintenance costs
increased due to needed repairs at
Fire Station #51
• Capital Outlay increased in order
to replace existing fencing at
Police Station Modulars
• Transfer Out Decreased because
Fire Station #52’s deficit was not
as large as initially expected.

6.1.d
Packet Pg. 57
Attachment: FY25 Mid-Year Budget Presentation (Resolution No. 2025-14 Approving FY 2024/25 Mid-Year) FY 2024/25 Mid-Year Adjustments
Solid Waste Fund
6 Solid Waste Fund (Fund 600)
Adopted Budget
Prior Budget
Adjustments and
Budget Rollovers Adjusted Budget
Six Months of Salary
Savings / Salary
Adjustments CAP Implementation Mid-Year Requests FY25 Budget Estimate Revenues
Taxes (44,530.00) - (44,530.00) - - - (44,530.00)
Intergovernmental (4,320.00) - (4,320.00) - - - (4,320.00) Charges for Services (4,401,882.14) - (4,401,882.14) - - - (4,401,882.14) Investment Earnings (32,082.58) - (32,082.58) - - - (32,082.58) Other Revenues (120,402.00) - (120,402.00) - - - (120,402.00) Transfers In - - - - - - -
Revenue Total $ (4,603,216.72) $ - $ (4,603,216.72) $ - $ - $ - $ (4,603,216.72) Expenses
Salaries & Wages 1,063,604.45 - 1,063,604.45 (90,760.86) (56,504.90) - 916,338.69 Benefits 470,460.03 - 470,460.03 - (28,146.70) - 442,313.33 Professional & Contracted Serv 3,193,422.00 24,287.55 3,217,709.55 - - - 3,217,709.55 Repair & Maintenance 13,400.00 62.77 13,462.77 - - - 13,462.77 Materials & Supplies 42,517.00 1,762.71 44,279.71 - - - 44,279.71 Other Services & Charges 19,800.00 - 19,800.00 - - - 19,800.00 CapitalOutlay 5,000.00 - 5,000.00 - - - 5,000.00
Debt Service - - - - - - -
Rentals 11,450.00 - 11,450.00 - - - 11,450.00
Transfers Out 689,205.66 - 689,205.66 - (403,487.66) - 285,718.00 Expense Total $ 5,508,859.14 $ 26,113.03 $ 5,534,972.17 $ (90,760.86) $ (488,139.26) $ - $ 4,956,072.05 Grand Total $ 905,642.42 $ 26,113.03 $ 931,755.45 $ (90,760.86) $ (488,139.26) $ - $ 352,855.33 Projected Available Working Capital at 6/30/2025 at Budget Adoption $ (1,005,840.09) Increase/(Decrease) in FY25 Projected Available Working Capital based on Actual FY24 Results $ 141,906.61 Projected Available Working Capital at 6/30/2025 with updated FY2024 Actuals $ (863,933.48) Total Proceeds/(Cost) of Proposed FY2025 Approved Budget Actions $ - Total Proceeds/(Cost) of Proposed FY2025 Mid-Year Actions $ 578,900.12 Projected Available Working Capital at 6/30/2025 with FY25 Mid-Year Actions $ (285,033.36) Purchase Order Rollovers already accounted for in Working Capital $ 26,113.03 CIP Rollovers Already accounted for in Working Capital $ - Projected Reserve Balance at 6/30/2025 $ 1,694,396.04
Projected Available Working Capital without Reserve at 6/30/2025 with FY25 Mid-Year Actions $ 1,409,362.68

6.1.d
Packet Pg. 58
Attachment: FY25 Mid-Year Budget Presentation (Resolution No. 2025-14 Approving FY 2024/25 Mid-Year) FY 2024/25 Mid-Year Adjustments
Sewer Fund
7 Sewer Fund (Funds 605, 606, 607)
Adopted Budget
Prior Budget
Adjustments and
Budget Rollovers Adjusted Budget
Six Months of Salary Savings /
Salary Adjustments CAP Implementation Mid-Year Requests FY25 Budget Estimate Revenues
Licenses & Permits - - - - - - -
Intergovernmental - - - - - - -
Charges for Services (6,021,043.45) - (6,021,043.45) - - - (6,021,043.45) Fines & Forfeitures - - - - - - -
Investment Earnings (17,495.46) - (17,495.46) - - - (17,495.46) Other Revenues (155,114.00) - (155,114.00) - - (1,600.00) (156,714.00) Transfers In (3,601,434.02) (359,793.00) (3,961,227.02) - - - (3,961,227.02) Revenue Total $ (9,795,086.93) $ (359,793.00) $ (10,154,879.93) $ - $ - $ (1,600.00) $ (10,156,479.93) Expenses
Salaries & Wages 2,407,006.65 - 2,407,006.65 (58,389.25) (230,560.02) 7,150.00 2,125,207.38 Benefits 1,250,196.37 - 1,250,196.37 - (98,570.01) - 1,151,626.36 Professional & Contracted Serv 1,144,886.00 28,223.15 1,173,109.15 - - - 1,173,109.15 Repair & Maintenance 240,200.00 34,736.54 274,936.54 - - - 274,936.54 Materials & Supplies 275,350.00 7,185.25 282,535.25 - - - 282,535.25 Other Services & Charges 238,968.00 1,600.00 240,568.00 - - - 240,568.00 Capital Outlay 744,850.00 456,269.31 1,201,119.31 - - 196,000.00 1,397,119.31 Debt Service 832,682.21 - 832,682.21 - - - 832,682.21
Rentals 110,300.00 - 110,300.00 - - - 110,300.00
Transfers Out 4,209,864.26 937.00 4,210,801.26 - (83,764.18) - 4,127,037.08 Expense Total $ 11,454,303.49 $ 528,951.25 $ 11,983,254.74 $ (58,389.25) $ (412,894.21) $ 203,150.00 $ 11,715,121.28 Grand Total $ 1,659,216.56 $ 169,158.25 $ 1,828,374.81 $ (58,389.25) $ (412,894.21) $ 201,550.00 $ 1,558,641.35 Projected Available Working Capital at 6/30/2025 at Budget Adoption $ (3,358,689.91) Increase/(Decrease) in FY25 Projected Available Working Capital based on Actual FY24 Results $ 377,854.95 Projected Available Working Capital at 6/30/2025 with updated FY2024 Actuals $ (2,980,834.96) Total Proceeds/(Cost) of Proposed FY2025 Approved Budget Actions $ - Total Proceeds/(Cost) of Proposed FY2025 Mid-Year Actions $ 269,733.46 Projected Available Working Capital at 6/30/2025 with FY25 Mid-Year Actions $ (2,711,101.50) Purchase Order Rollovers already accounted for in Working Capital $ 168,221.25 CIP Rollovers Already accounted for in Working Capital $ 937.00 Projected Reserve Balance at 6/30/2025 $ 1,950,072.11
Projected Available Working Capital without Reserve at 6/30/2025 with FY25 Mid-Year Actions $ (761,029.39)

6.1.d
Packet Pg. 59
Attachment: FY25 Mid-Year Budget Presentation (Resolution No. 2025-14 Approving FY 2024/25 Mid-Year) FY 2024/25 Mid-Year Adjustments
Water Fund
8 Water Fund (Funds 610, 611, 612)
Adopted Budget
Prior Budget
Adjustments and
Budget Rollovers Adjusted Budget
Six Months of Salary Savings /
Salary Adjustments CAP Implementation Mid-Year Requests FY25 Budget Estimate Revenues
Intergovernmental - - - - - - -
Charges for Services (7,477,298.03) - (7,477,298.03) - - - (7,477,298.03) Fines & Forfeitures - - - - - - -
Investment Earnings (276,262.71) - (276,262.71) - - - (276,262.71) Reimbursement - - - - - - -
Other Revenues (2,341,497.71) - (2,341,497.71) - - - (2,341,497.71) Transfers In (9,178,533.04) (431,000.00) (9,609,533.04) - - - (9,609,533.04) Revenue Total $ (19,273,591.49) $ (431,000.00) $ (19,704,591.49) $ - $ - $ - $ (19,704,591.49) Expenses
Salaries & Wages 2,533,874.86 - 2,533,874.86 (182,937.62) (219,621.22) 7,150.00 2,138,466.03 Benefits 1,386,884.99 - 1,386,884.99 - (93,396.63) - 1,293,488.36 Professional& Contracted Serv 836,020.00 20,109.82 856,129.82 - - - 856,129.82 Repair & Maintenance 210,150.00 2,510.77 212,660.77 - - - 212,660.77 Materials & Supplies 418,467.00 29,935.12 448,402.12 - - - 448,402.12 Other Services & Charges 1,022,615.00 - 1,022,615.00 - - - 1,022,615.00 Capital Outlay 1,421,050.00 6,538,906.97 7,959,956.97 - - - 7,959,956.97 Debt Service 1,202,517.86 - 1,202,517.86 - - - 1,202,517.86 Rentals 28,150.00 - 28,150.00 - - - 28,150.00
Transfers Out 9,985,028.75 431,000.00 10,416,028.75 - (272,235.71) - 10,143,793.04 Expense Total $ 19,044,758.46 $ 7,022,462.68 $ 26,067,221.14 $ (182,937.62) $ (585,253.56) $ 7,150.00 $ 25,306,179.97 Grand Total $ (228,833.03) $ 6,591,462.68 $ 6,362,629.65 $ (182,937.62) $ (585,253.56) $ 7,150.00 $ 5,601,588.48 Projected Available Working Capital at 6/30/2025 at Budget Adoption $ 8,223,276.77 Increase/(Decrease) in FY25 Projected Available Working Capital based on Actual FY24 Results $ 1,573,296.95 Projected Available Working Capital at 6/30/2025 with updated FY2024 Actuals $ 9,796,573.71 Total Proceeds/(Cost) of Proposed FY2025 Approved Budget Actions $ (3,363,281.95) Total Proceeds/(Cost) of Proposed FY2025 Mid-Year Actions $ 761,041.17 Projected Available Working Capital at 6/30/2025 with FY25 Mid-Year Actions $ 7,194,332.93 Purchase Order Rollovers already accounted for in Working Capital $ 2,812,125.91 CIP Rollovers Already accounted for in Working Capital $ 416,054.82 Projected Reserve Balance at 6/30/2025 $ 2,158,348.56
Projected Available Working Capital without Reserve at 6/30/2025 with FY25 Mid-Year Actions $ 9,352,681.49

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Attachment: FY25 Mid-Year Budget Presentation (Resolution No. 2025-14 Approving FY 2024/25 Mid-Year) FY 2024/25 Mid-Year Adjustments
Other Funds
· Fund 190 – CFD 2003-1 Fire Station #2 – Due to an increase in the projected Fund Balance at 6/30/2024, the projected transfer needed from the General Fund to cure the Fund’s deficit was reduced by $575 thousand. Projected Available Balance after Mid-Year: $0.00 · Fund 325 – Gas Tax requires an increase in transfers out in the amount of $475,000 to partially fund the increase in project costs in Fund 327. Projected Available Balance after Mid-Year: $1.2 Million · Fund 327 – Street Projects requires an increase in expenditure budget in the amount of $750,000 for five separate projects. Projected Available Balance after Mid-Year: $772 thousand · Fund 329 – Measure L requires an increase in transfers out in the amount of $275,000 to partially fund the increase in project costs in Fund 327. Projected Available Balance after Mid-Year: $3.5 million
· Funds 120, 138, 176, 178, 179, 312, and 326 require additional adjustments to transfers from/to the General Fund to either cover fund deficits or to reimburse the General Fund for Salaries and Benefits of Assigned Staff. Projected Available Balance after Mid-Year for all funds: $0.00 · Transfers related to the implementation of the Cost Allocation Plan affected 31 of the City’s Funds.

6.1.d
Packet Pg. 61
Attachment: FY25 Mid-Year Budget Presentation (Resolution No. 2025-14 Approving FY 2024/25 Mid-Year) Questions
&
Staff Recommendations
10 • Questions? • Adopt a Resolution Approving the Mid
-Year Budget Adjustments
for FY 2024/25.

6.1.d
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Attachment: FY25 Mid-Year Budget Presentation (Resolution No. 2025-14 Approving FY 2024/25 Mid-Year)

Patterson City CouncilMarch 18, 2025

Patterson City Council
March 18, 2025