Agenda packet — Patterson City Council, May 19, 2026 (part 3 of 6)

PROFESSIONAL SERVICES AGREEMENT

CITY OF PATTERSON
AND

BEAR ELECTRICAL SOLUTIONS
THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is made and entered into this 11 day of May 2026, (the “Effective Date”) by and between the City of Patterson, a California municipal corporation (“City”), and Bear Electrical Solutions, a [California limited liability company // California corporation] (“Contractor”). City and Contractor may herein be referred to individually as a “Party” and collectively as the “Parties”. There are no other parties to this Agreement.

RECITALS
A. City has determined that professional services are required for the continuation of Traffic Signal Maintenance and Repair (the “Project”).

B. Contractor has submitted a proposal to City that includes a scope of proposed Contractor services, attached hereto and described more fully in Exhibit A (“Services”).

C. Contractor represents that it is qualified, willing and able to provide the Services to City, and that it will perform Services related to the Project according to the rate schedule attached hereto and described more fully in Exhibit B (the “Rates”).

NOW, THEREFORE, in consideration of the promises and covenants set forth below, the Parties agree as follows:

AGREEMENT

1. Description of Work.
(a) Services. Contractor shall provide all labor, equipment, materials and supplies required to properly, adequately and completely perform the Services described in Exhibit A, subject to the terms and conditions set forth herein. Contractor shall determine the method, details and means of doing the work or rendering the Services, however, Contractor shall not receive compensation for the performance of any services unless they are included in Exhibit A, or the Parties otherwise agree in writing.
(b) Modification of Services. The City Manager or his designee may authorize extra or changed work. Failure of Contractor to secure written authorization for extra or changed work shall constitute a waiver of any and all right to an adjustment in the Rates, and Contractor shall be entitled to no compensation whatsoever for the performance of such work. Contractor further waives any and all right or remedy by way of restitution or quantum meruit for any and all extra work performed without such express and prior written authorization of the City Manager.

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2. Compensation. City shall pay Contractor according to the fee schedule set forth in the Rates, as full remuneration for performance of the Services. Payments shall not exceed those specified in the Rates unless approved by City in writing. Contractor agrees to maintain a log of time spent in connection with performing the Services. On a monthly basis, Contractor shall provide City, in reasonable and understandable detail, a description of the Services rendered pursuant to the Services and in accordance with the Rates. If the work is satisfactorily completed, City shall pay such invoice within thirty (30) days of its receipt. If City disputes any portion of any invoice, City shall pay the undisputed portion within the time stated above, and at the same time advise Contractor in writing of the disputed portion.

3. Reimbursement. Omitted.

4. Confidential Information. Contractor understands and agrees that, in the performance of Services under this Agreement or in the contemplation thereof, Contractor may have access to private or confidential information that may be owned or controlled by City and that such information may contain proprietary or confidential details, the disclosure of which to third parties may be damaging to City (“Confidential Information”).

Contractor shall not, either during or after the Term, disclose to any third party any Confidential Information without the prior written consent of City. If City gives Contractor written authorization to make any such disclosure, Contractor shall do so only within the limits and to the extent of that authorization. Such authorization does not guarantee that the City will grant any further disclosure of Confidential Information. Contractor may be directed or advised by the City Attorney on various matters relating to the performance of the Services on the Project or on other matters pertaining to the Project, and in such event, Contractor agrees that it will treat all communications between itself, its employees and its subcontractors as being communications which are within the attorney-client privilege.

5. Term. This Agreement shall become effective on the Effective Date and will conclude five (5) years after effective date, unless terminated earlier as provided in Section 6 or 7 below (the “Term”).
(a) Termination. City may terminate this Agreement prior to the expiration of the Term, without cause or reason, by notifying Contractor in writing of City’s desire to terminate this Agreement. Upon receipt of such notice, Contractor shall immediately cease performing the Services. Contractor will be entitled to compensation for Services actually performed as of the date Contractor receives such notice.
(b) Termination for Cause. Notwithstanding Section 6 above, this Agreement may be terminated by City for cause based on the loss or suspension of any licenses, permits or registrations required for the continued provision of the Services, or Contractor’s malfeasance.

Termination of the Agreement for cause as set forth in this Section shall relieve City from compensating Contractor.

6. Performance by Key Employee. Omitted.

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7. Property of City. The following will be considered and will remain the property of City:
(a) Documents. All reports, drawings, graphics, working papers and Confidential Information furnished by City in connection with the Services (“Documents”).

Nothing herein shall be interpreted as prohibiting or limiting City’s right to assign all or some of City’s interests in the Documents.
(b) Data. All data collected by Contractor and produced in connection with the Services including, but not limited to, drawings, plans, specifications, models, flow diagrams, visual aids, calculations, and other materials (“Data”). Nothing herein shall be interpreted as prohibiting or limiting City’s right to assign all or some of City’s interests in the Data. (c) Delivery of Documents and Data. Contractor agrees, at its expense and in a timely manner, to return to City all Documents and Data upon the conclusion of the Term or in the event of Termination.

8. Duties of City. In order to permit Contractor to render the Services required hereunder, City shall, at its expense and in a timely manner: (i) provide such information as Contractor may reasonably require to undertake or perform the Services; (ii) promptly review any and all documents and materials submitted to City by Contractor in order to avoid unreasonable delays in Contractor’s performance of the Services; and (iii) promptly notify Contractor of any fault or defect in the performance of Contractor’s Services hereunder.

9. Representations of Contractor. City relies upon the following representations by Contractor in entering into this Agreement:
(a) Qualifications. Contractor represents that it is qualified to perform the Services and that it possesses the necessary licenses, permits and registrations required to perform the Services or will obtain such licenses or permits prior to the time such licenses or permits are required. Contractor represents and warrants to City that Contractor shall, at Contractor’s sole cost and expense, keep in effect or obtain at all times during the Term of this Agreement, any licenses, permits, and registrations that are legally required for Contractor to practice Contractor's profession at the time the Services are rendered.
(b) Contractor Performance. Contractor represents and warrants that all Services under this Agreement shall be performed in a professional manner and shall conform to the customs and standards of practice observed on similar, successfully completed projects by specialists in the Services to be provided. Contractor shall adhere to accepted professional standards as set forth by relevant professional associations and shall perform all Services required under this Agreement in a manner consistent with generally accepted professional customs, procedures and standards for such Services. Contractor shall insure compliance with all applicable federal, state, and local laws, ordinances, regulations and permits, including but not limited to federal, state, and county safety and health regulations. All work or products completed by Contractor shall be completed using the best practices available for the profession. Contractor Packet Pg. 718

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agrees that, if a Service is not so performed in the discretion of the City, in addition to all of its obligations under this Agreement and at law, Contractor shall re-perform or replace unsatisfactory Service at no additional expense to City.

10. Independent Contractor; Subcontracting. Contractor will employ, at its own expense, all personnel reasonably necessary to perform the Services. All acts of Contractor, its agents, officers, employees and all others acting on behalf of Contractor relating to this Agreement will be performed as independent contractors. Contractor, its agents and employees will represent and conduct themselves as independent contractors and not as employees of City. Contractor has no authority to bind or incur any obligation on behalf of City. Except as City may specify in writing, Contractor shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Contractor shall have no authority, express or implied, pursuant to this Agreement to bind City to any obligation whatsoever. Contractor is prohibited from subcontracting this Agreement or any part of it unless such subcontracting is expressly approved by City in writing.

11. Insurance. Contractor and all of Contractor’s contractors and subcontractors shall obtain and maintain insurance of the types and in the amounts described in this paragraph and its subparagraphs with carriers reasonably satisfactory to City. (a) General Liability Insurance. Contractor shall maintain occurrence version commercial general liability insurance or an equivalent form with a limit of not less than Two Million Dollars ($2,000,000) per claim, Two Million Dollars ($2,000,000) per occurrence, and Four Million Dollars ($4,000,000) general aggregate. The Contractor’s general liability policy shall be primary and shall not seek contribution from the City’s coverage. The Contractor shall provide a CG 20 10 form (or equivalent) endorsing the City, its officers, agents, employees, and volunteers as additional insured under such policy.
(b) Workers’ Compensation Insurance. Contractor shall carry workers’ compensation insurance as required by the State of California under the Labor Code. Contractor shall also carry employer’s liability insurance in the amount of One Million Dollars ($1,000,000) per accident, with a One Million Dollar ($1,000,000) policy limit for bodily injury by disease, and a One Million Dollar ($1,000,000) limit for each employee’s bodily injury by disease. (c) Automobile Liability. Contractor shall maintain automobile liability insurance with coverage for any vehicle including those owned, leased, rented or borrowed. The limit amount for this insurance shall be no less than Two Million Dollars $2,000,000 per occurrence combined single limit for bodily injury and property damage. (d) Errors and Omissions Liability. Omitted.
(e) Other Insurance Requirements. Promptly upon execution of this Agreement and prior to commencement of any work, Contractor shall provide City with certificates of insurance evidencing that all insurance and endorsements required by this Agreement have been obtained and are in full force and effect. Approval of the insurance by City shall not relieve or Packet Pg. 719

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decrease any liability of Contractor. In addition, in the event any change is made in the insurance carrier, policies or nature of coverage required under this Agreement, Contractor shall notify City prior to making such changes.
(f) Material Breach. If Contractor, for any reason, fails to maintain insurance coverage that is required pursuant to this Agreement, such failure shall be deemed a material breach of this Agreement. City, at its sole option, may terminate this Agreement and obtain damages from Contractor resulting from said breach. Alternatively, City may purchase such required insurance coverage, and without further notice to Contractor, City may deduct from sums due to Contractor any premium costs advanced by City for such insurance. These remedies shall be in addition to any other remedies available to City.

12. Indemnification. Contractor shall protect, defend, indemnify, and hold harmless the City, its officers, employees, agents, and volunteers from any and all actions, claims, demands, loss, costs, damage, injury (including, without limitation, disability, injury or death of an employee of Contractor or its subcontractors), expenses (including but not limited to attorney's fees and costs of litigation or arbitration) and liability of every kind, that arise out of, pertain to or relate to willful or fraudulent misconduct or negligent acts, errors or omissions by Contractor, or any subcontractor, employee, contractor, representative or agent of Contractor, or anyone that Contractor controls (collectively “Liabilities”). Such obligations to defend, hold harmless and indemnify City and City’s Agents shall be apportioned to the extent that such Liabilities are caused in whole by the negligence or willful misconduct of City or City’s Agents. With respect to third party claims against the Contractor, the Contractor waives any and all rights of any type of express or implied indemnity against City and City’s Agents. This indemnification obligation is not limited in any way by any limitation on the amount or type of damages or compensation payable to or for Contractor or its agents under Workers’ Compensation acts, disability benefits acts or other employee benefit acts. Submission of insurance certificates or other proof of compliance with the insurance requirements in this Agreement does not relieve Contractor from liability under this indemnification section. The obligation of this indemnity article shall apply whether or not such insurance policies shall have been determined to be applicable to any of such damages or claims for damages.

13. Consequential Damages. Notwithstanding any other provision of this Agreement, in no event shall City be liable, regardless of whether any claim is based on contract or tort, for any special, consequential, indirect or incidental damages, including, but not limited to, lost profits or revenue, arising out of or in connection with this Agreement or the Services performed in connection with this Agreement.

14. Litigation. In the event that either Party brings an action under this Agreement for the breach or enforcement hereof, or must incur any collection expenses for any amounts due hereunder the prevailing Party in such action shall be entitled to its costs including reasonable attorney’s fees, whether or not such action is prosecuted to judgment.

15. Notices. Any notice or communication required hereunder between City or Contractor must be in writing, and may be given either personally, by registered or certified mail (return receipt requested), or by Federal Express, UPS or other similar couriers providing overnight Packet Pg. 720

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delivery. If personally delivered, a notice shall be deemed to have been given when delivered to the Party to whom it is addressed. Notices given by registered or certified mail shall be deemed to have been given and received on the first to occur of (a) actual receipt by any of the addressees designated below as the party to whom notices are to be sent, (b) on the date delivered as shown on a receipt issued by the courier, or (c) five (5) days after a registered or certified letter containing such notice, properly addressed, with postage prepaid, is deposited in the United States mail. If given by Federal Express or similar courier, a notice or communication shall be deemed to have been given and received on the date delivered as shown on a receipt issued by the courier. Any Party hereto may at any time, by giving ten (10) days written notice to the other Party hereto, designate any other address in substitution of the address to which such notice or communication shall be given. Such notices or communications shall be given to the Parties at the addresses in this paragraph set forth below:

If to City: City of Patterson
1 Plaza, PO Box 667
Patterson, CA 95363
Attn: City Clerk
With courtesy copies to: City of Patterson
1 Plaza, PO Box 667
Patterson, CA 95363
Attn: City Manager
And to: Churchwell White LLP
1414 K Street, 3rd Floor
Sacramento, California 95814
Attn: Douglas L. White, Esq.

If to Contractor: Bear Electrical Solutions
5320 South Watt Ave
Sacramento, CA 95826
Attn: Robert Asuncion

16. General Provisions.
(a) Recitals. The recitals set forth above are true and correct and are hereby incorporated into and made part of this Agreement by this reference. In the event of any inconsistency between the Recitals and Section 1 through 18 of this Agreement, Sections 1 through 18 shall prevail.
(b) Modification. No alteration, amendment, modification, or Termination of this Agreement shall be valid unless made in writing and executed by all of the Parties to this Agreement.

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(c) Waiver. No covenant, term, or condition or the breach thereof shall be deemed waived, except by written consent of the Party against whom the waiver is claimed, and any waiver of the breach of any covenant, term, or condition shall not be deemed to be a waiver of any preceding or succeeding breach of the same or any other covenant, term, or condition. (d) Authority. All Parties to this Agreement warrant and represent that they have the power and authority to enter into this Agreement and the names, titles, and capacities herein stated on behalf of any entities, persons, states, or firms represented or purported to be represented by such entities, persons, states or firms and that all former requirements necessary or required by the state or federal law in order to enter into the Agreement have been fully complied with. (e) Assignment. No Party shall assign, transfer, or otherwise dispose of this Agreement in whole or in part to any individual, firm, or corporation without the prior written consent of the other Party. Subject to the forgoing provisions, this Agreement shall be binding upon, and inure to the benefit of, the respective successors and assigns of the Parties. (f) Drafting and Ambiguities. Each Party acknowledges that it has reviewed, or has been provided the opportunity to review, this Agreement with its own legal counsel, and has freely entered into this Agreement. Any rule of construction that ambiguities are to be resolved against the drafting party does not apply in interpreting this Agreement. (g) Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the state of California.
(h) Venue. Venue for any legal proceedings shall be in the Superior Court of California for the County of Stanislaus.
(i) Severability. If any term, covenant, or condition of this Agreement is held by a court of competent jurisdiction to be invalid, the remainder of this Agreement shall remain in effect. (j) Counterparts. This Agreement may be executed simultaneously and in several counterparts, each of which shall be deemed an original, but which together shall constitute one and the same instrument.
(k) Audit. City shall have access at all reasonable times to all reports, contract records, contract documents, contract files, and personnel necessary to audit and verify Contractor’s charges to City under this Agreement.
(l) Entire Agreement. This Agreement, together with its specific references, attachments and exhibits, constitutes the entire agreement of the Parties with respect to the subject matters hereof, and supersedes any and all prior negotiations, understanding and agreements with respect hereto, whether oral or written.
(m) Mandatory and Permissive. “Shall” and “will” and “agrees” are mandatory. “May” and “can” are permissive.

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(n) Headings. Headings used in this Agreement are for reference purposes only and shall not be considered in construing this Agreement.
(o) Necessary Acts and Further Assurances. The Parties shall at their own cost and expense execute and deliver such further documents and instruments and shall take such other actions as may be reasonably required or appropriate to evidence or carry out the intent and purposes of this Agreement.
(p) Time is of the Essence. Time is of the essence in this Agreement for each covenant and term of a condition herein.

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IN WITNESS WHEREOF, the Parties have executed this Agreement, which shall be effective as of the above-referenced Effective Date.

CITY:

CITY OF PATTERSON, a California
municipal corporation
By:

Fernando Ulloa, City Manager
Date:

CONTRACTOR:

Bear Electrical Solutions, a [California limited
liability company // California Corporation]
By:

Name:

Date:

Approved as to Form:

Nubia Goldstein, City Attorney
Attest:

Aracely Alegre
City Clerk
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EXHIBIT A
Original Scope & Rate Schedule
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EXHIBIT B
Updated Rate Schedule w/CIP
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Exhibit B
Oiriginal Current CPI 26/27 CPI 27/28 CPI 28/29 29/30 30/31 Location Unit Cost Unit Cost 0.03 Unit Cost 0.03 Unit Cost 0.03 Unit Cost 0.03 Unit Cost 0.03 Unit Cost 1 Walnut Ave & Hartley Ave $85.00 $107.07 $3.21 $110.28 $3.31 $113.59 $3.41 $117.00 $3.51 $120.51 $3.62 $124.12 2 Sperry Ave & Ninth St $85.00 $91.47 $2.74 $94.21 $2.83 $97.04 $2.91 $99.95 $3.00 $102.95 $3.09 $106.04 3 Sperry Ave & Rogers Road $85.00 $107.07 $3.21 $110.28 $3.31 $113.59 $3.41 $117.00 $3.51 $120.51 $3.62 $124.12 4 Sperry Ave & Park Center Dr $85.00 $107.07 $3.21 $110.28 $3.31 $113.59 $3.41 $117.00 $3.51 $120.51 $3.62 $124.12 5 Sperry Ave & Baldwin Road $85.00 $91.47 $2.74 $94.21 $2.83 $97.04 $2.91 $99.95 $3.00 $102.95 $3.09 $106.04 6 Sperry Ave & Walker Ranch Parkway $85.00 $91.47 $2.74 $94.21 $2.83 $97.04 $2.91 $99.95 $3.00 $102.95 $3.09 $106.04 7 Sperry Ave & American Eagle $85.00 $91.47 $2.74 $94.21 $2.83 $97.04 $2.91 $99.95 $3.00 $102.95 $3.09 $106.04 8 Sperry Ave & Del Puerto Ave $85.00 $107.07 $3.21 $110.28 $3.31 $113.59 $3.41 $117.00 $3.51 $120.51 $3.62 $124.12 9 Ward Ave & American Eagle/M St $85.00 $107.07 $3.21 $110.28 $3.31 $113.59 $3.41 $117.00 $3.51 $120.51 $3.62 $124.12 10 Ward Ave & Las Palmas Ave $85.00 $91.47 $2.74 $94.21 $2.83 $97.04 $2.91 $99.95 $3.00 $102.95 $3.09 $106.04 11 Las Palmas Ave & First St $85.00 $107.07 $3.21 $110.28 $3.31 $113.59 $3.41 $117.00 $3.51 $120.51 $3.62 $124.12 12 Las Palmas Ave & Hartley Ave $85.00 $107.07 $3.21 $110.28 $3.31 $113.59 $3.41 $117.00 $3.51 $120.51 $3.62 $124.12 13 First St & Walnut Ave $85.00 $107.07 $3.21 $110.28 $3.31 $113.59 $3.41 $117.00 $3.51 $120.51 $3.62 $124.12 14 Sperry Ave & Las Palmas Ave $85.00 $107.07 $3.21 $110.28 $3.31 $113.59 $3.41 $117.00 $3.51 $120.51 $3.62 $124.12 15 Sperry Ave & Ward Ave $85.00 $91.47 $2.74 $94.21 $2.83 $97.04 $2.91 $99.95 $3.00 $102.95 $3.09 $106.04 16 Sperry Ave & Haggarty Road N/A $91.47 $2.74 $94.21 $2.83 $97.04 $2.91 $99.95 $3.00 $102.95 $3.09 $106.04 $1,275.00 $1,603.92 $1,652.04 $1,701.60 $1,752.65 $1,805.23 $1,859.38 $19,824.45
March 18, 2026
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CITY COUNCIL

AGENDA REPORT
TO: Mayor Clauzel and Members of the City Council
FROM: Fernando Ulloa, City Manager
BY: Tiffany Rodriguez, Director of Engineering Services MEETING DATE: May 19, 2026
ITEM NO: 6.6
SUBJECT: Adopt Resolution No. 2026-28 for the Final Approval and Execution of the Purchase and Sale Agreements for the Properties located within the Rogers Road Delta Mendota Canal Bridge Replacement Project; APN Numbers: 021- 025-038, 021-025-026, 021-028-001-002 -003,-030 and-032.

RECOMMENDATION
Motion to Adopt Resolution No. 2026-28 for the Final Approval and execution of the Purchase and Sale Agreements for the Properties located within the Rogers Road Delta Mendota Canal Bridge Replacement Project; APN Numbers: 021-025-038, 021-025-026, 021-028-001-002 - 003,-030 and-032.

BACKGROUND
The bridge is located 0.5 miles North of the intersection of Rogers Road and Sperry Avenue. This project would replace the 110-foot-long reinforced concrete T-beam bridge with a new 2-lane, 41- foot wide by 135-foot-long single span bridge. In addition, the bridge substructure (foundations and abutment walls) will be constructed to accommodate an ultimate bridge width of 65-feet (for the future widening of Rogers Road to a four-lane facility). The road approaches to the bridge will not be widened, but right-of-way is required to accommodate new access roads and detention basins to the Delta Mendota Canal. These new improvements will promote roadway transportation safety and help bring the bridge into compliance with today’s design standards.

ANALYSIS
The City desires to acquire the Subject Properties described and depicted in the attached agreements with the corresponding exhibits for public right-of-way associated with the Rogers Road Delta Mendota Canal Bridge Replacement Project. The City delivered pre-condemnation offer letters to the Sellers/Grantors to acquire the Subject Properties, pursuant to California legal requirements for proposed condemnations. City and Sellers’ both desire to avoid eminent domain Packet Pg. 729
litigation for City’s acquisition of the Subject Properties. The compensation set forth for the Subject Properties is in compromise and settlement, in lieu of such litigation.

The parties have agreed to the terms of the purchases and sales agreements. These Agreements supersedes all other agreements, whether oral or written, between CITY and SELLERS with respect to Subject Properties. The performance of these Agreements constitutes consideration for the Grant Deeds, Slope Easement Deeds and Public Utility Easement Deeds, and shall relieve CITY of all further obligations or claims with respect to the Subject Property or on account of the location, grade, construction or operation of the proposed public improvement Project.

SUMMARY OF TERMS
Staff has negotiated the terms of the purchase agreements with the property owners, based on appraisal information for the fair market value of the Properties.

Baldwin Ranch Land, Co. APN: 021-025-038 $20,300.00
Anna Gill, Jasdeep Singh
and Baljit Kaur
APN: 021-025-026 $35,000.00
Hensley Investment Co. APN: 021-028-001, -002, -
003, -030 and -032
$44,779.00

FISCAL IMPACT
The funding associated with these acquisitions will be allocated from the Highway Bridge Program Grant Funding (88.53%) and the Local City Funds (11.47%).

ATTACHMENT
Resolution No. 2026-28
Purchase & Sale Agreements for Subject Properties
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RESOLUTION NO. 2026-28

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PATTERSON

AUTHORIZING THE CITY MANAGER TO ENTER INTO PURCHASE AND SALE

AGREEMENTS ASSOCIATED WITH THE ROGERS ROAD DELTA MENDOTA CANAL

BRIDGE REPLACEMENT PROJECT
WHEREAS, pursuant to Section 37350 of the Government Code, the City Council for the City of Patterson (the "City Council") has the authority to purchase real property for any public purpose; and
WHEREAS, The City of Patterson desires to acquire Properties located within the Rogers Road Delta Mendota Canal Bridge Replacement Project; APN Numbers: 021-025-038, 021-025-026, 021-028-001 -002, -003, -030 and -032 for Public Rights-of-Ways; WHEREAS, the City has the authority to exercise the power of eminent domain. The City delivered pre-condemnation offer letters to the Sellers to acquire the Subject Properties, pursuant to California legal requirements for proposed condemnations; WHEREAS, the City Council finds that acquiring the Property through condemnation would result in significant costs due to attorney's fees, expert fees and other costs; and WHEREAS, t h e City and Sellers’ desire to avoid eminent domain litigation for City’s acquisition of the Subject Properties;
WHEREAS, the City obtained professional appraisals in August of 2024, which established the fair market value of the Subject Properties; the compensation set forth for the Subject Properties is in compromise and settlement, in lieu of such litigation; WHEREAS, the City has negotiated the following: APN: 021-025-038 $20,300; APN 021- 025-026 $35,000, and APN’s: 021-028-001 -002, -003, -030 and -032 for $44,779 WHEREAS, based on the above, the City Council finds that the total negotiated price of $100,079 is the most cost-effective manner to acquire the Properties, in-lieu of condemnation; and
WHEREAS, the funding associated with these acquisitions will be allocated from the Highway Bridge Program Grant Funding and the Local City Funds; WHEREAS, the City Council finds that the acquisition of the Subject Properties is necessary to accommodate the construction of the new accessroads and detention basins associated with the Rogers Road Delta Mendota Bridge Replacement Project; WHEREAS, the City Council finds it to be in the best interest of the City to purchase the the Subject Properties from Sellers in accordance with the terms of the proposed purchase agreements.

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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Patterson that the City Manager shall execute the Agreements, in substantially the same form as attached hereto, on behalf of the City of Patterson, for the purchases of the following Properties: APN Numbers: 021-025-038, 021-025-026, 021-028-001 -002, -003, -030 and -032: for the amount of One Thousand and Seventy -Nine Dollars ($100,079) including all costs as provided in the Agreement; and
AND BE IT FURTHER RESOLVED, that the City Manager shall take all actions necessary to facilitate the transfer of the Properties from the Sellers for the Subject Properties with the close of escrows for the Agreements.

PASSED AND ADOPTED by the City Council of the City of Patterson at a regular meeting held on the 19th day of May 2026; motioned by
_, seconded by ,and the resolution adopted 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
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 19th day of May 2026, and I further certify that said resolution is in full force and effect and has never been rescinded or modified.

DATED:

Clerk of the City of Patterson
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GRANTOR: BALDWIN RANCH LAND CO. LLC, A CALIFORNIA LIMITED LIABILITY COMPANY APN: 021-025-038 PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION

CITY OF PATTERSON

PROPERTY PURCHASE AND SALE AGREEMENT AND JOINT ESCROW

INSTRUCTIONS
This Property Purchase and Sale Agreement and Joint Escrow Instructions (“Agreement”) is entered into by and between BALDWIN RANCH LAND CO. LLC, A CALIFORNIA LIMITED LIABILITY COMPANY (“GRANTOR”) and the CITY OF PATTERSON, A CALIFORNIA MUNICIPAL CORPORATION (“CITY”). As used below, the term “GRANTOR” shall include the plural as well as the singular number. GRANTOR and CITY may hereinafter be individually referred to as “Party” and collectively referred to as “Parties” with respect to the following:

RECITALS
A. GRANTOR is the legal owner of real property located in County of Stanislaus, State of California, and identified as Stanislaus County Assessor as Parcel No. 021-025-038, and more particularly described in Exhibit 1 attached hereto and incorporated herein by this reference (“Larger Parcel”).

B. In conjunction with implementation of the Rogers Road Delta Mendota Canal Bridge Rehabilitation Project, (“Project”) located in the County of Stanislaus, CITY desires to acquire a portion of Fee Simple, Slope Easement, and Public Utility Easement Interest(s) (“Subject Property”) from and over the Larger Parcel, more specifically described and depicted in Exhibits A, A-1, B, B-1, C, and C-1.

C. CITY requires said Subject Property described and depicted in Exhibits A, A-1, B, B1, C, and C-1 for the Project, for a public use for which the CITY has the authority to exercise the power of eminent domain. On , 2025, the City delivered a pre-condemnation offer to Grantor to acquire the Subject Property, pursuant to California legal requirements for proposed condemnations. City and Grantor desire to avoid eminent domain litigation for City’s acquisition of the Subject Property. The compensation set forth herein for the Subject Property is in compromise and settlement, in lieu of such litigation.

NOW, THEREFORE, in consideration of the promises set forth herein and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, CITY and GRANTOR agree as follows:

TERMS

1. Entire Agreement
The parties have herein set forth the whole of their agreement. This Agreement supersedes all other agreements, whether oral or written, between CITY and GRANTOR with respect to Subject Property. The performance of this Agreement constitutes the entire consideration for the Grant Deed, Slope Easement Deed and Public Utility Easement Deed, and shall relieve CITY of Packet Pg. 733
GRANTOR: BALDWIN RANCH LAND CO. LLC, A CALIFORNIA LIMITED LIABILITY COMPANY APN: 021-025-038 PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION all further obligations or claims with respect to the Subject Property or on account of the location, grade, construction or operation of the proposed public improvement Project.

2. Grant to CITY
GRANTOR shall grant to CITY all of GRANTOR’s interest in the Fee Simple, Slope Easement, and Public Utility Easement, as described and depicted in Exhibits A, A-1, B, B-1, C, and C-1, by conveyance of a Grant Deed, Slope Easement Deed, and Public Utility Easement Deed. The Grant Deed, Slope Easement Deed and Public Utility Easement Deed are to be recorded in the official records of Stanislaus County, California, pursuant to the procedure described below. On or before the close of escrow, GRANTOR shall deliver the Grant Deed, Slope Easement Deed, and Public Utility Easement Deed to the Title Company.

3. CITY shall:

A. Pay the sum of TWENTY THOUSAND THREE HUNDRED AND 00/100 DOLLARS ($20,300.00) for the Subject Property identified in Exhibits A, A-1, B, B-1, C, and C-1 attached hereto and made a part hereof, to the following title company:

Fidelity National Title Company (“Escrow Holder”), for the account of the GRANTOR, the Escrow Number is to be determined, conditioned upon the Subject Property vesting in CITY free and clear of all recorded and unrecorded liens, leases, encumbrances, assessments, and taxes except any exceptions to title which are acceptable to CITY pursuant to section 9, Condition of Title, below. Clearing of any title exceptions not acceptable to CITY is the responsibility of GRANTOR.

B. Pay all escrow, recording, and title insurance charges, if any, incurred in this transaction. Parties shall pay their own costs associated with the drafting of this Agreement. City is exempt from the payment of recording fees and transfer taxes.

C. Prior to the close of escrow, have the authority to deduct and pay from the amount shown in Section 3A herein any amount necessary to satisfy any liens, bond demands and delinquent taxes due, together with penalties and interest thereon, and/or delinquent and unpaid non-delinquent taxes and assessments, which may have become a lien at the close of escrow. Taxes for the tax year in which this escrow closes shall be cleared and paid in the manner required by Section 5086 of the Revenue and Taxation Code if unpaid at the close of escrow. Close of escrow for this transaction shall be contingent upon the Escrow Holder receiving deeds of reconveyance from any deed of trust or mortgage holder trustees and beneficiaries.

4. CITY Performed Work
All work done under this Agreement shall conform to all applicable building, fire and sanitary laws, ordinances, and regulations relating to such work, and shall be done in a good and workmanlike manner. All structures, improvements or other facilities, when removed, and relocated, or reconstructed by CITY, shall be left in as good condition as found.

Packet Pg. 734
GRANTOR: BALDWIN RANCH LAND CO. LLC, A CALIFORNIA LIMITED LIABILITY COMPANY APN: 021-025-038 PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION

5. Subordination and/or Partial Reconveyance of Deed of Trust If this Subject Property is secured by a mortgage(s) or deed(s) of trust, GRANTOR is responsible for payment of any demand under authority of said mortgage or deed of trust out of GRANTOR’S proceeds. Such amounts may include, but not be limited to, subordination or partial reconveyance fees, paydown of principal, and payments of unpaid principal and interest.

GRANTOR agrees to assist CITY in securing said subordination or partial reconveyances.

6. Escrow Instructions
A. Opening of Escrow. For purposes of this Agreement, as between the Parties, the Escrow shall be deemed opened on the date Escrow Holder shall have received a fully executed original or originally executed counterparts of this Agreement from GRANTOR and CITY (“Opening of Escrow”). Escrow Holder shall notify CITY and GRANTOR, in writing, of the Opening of Escrow.

B. Supplemental Instructions. CITY and GRANTOR agree to execute, deliver and be bound by any reasonable or customary supplemental escrow instructions of Escrow Holder, or other instruments as may reasonably be required by Escrow Holder, in order to consummate the transaction contemplated by this Agreement. Any such supplemental instructions shall not conflict with, modify, or supersede any of the material portions of this Agreement. In the event of any inconsistency between the provisions of such supplemental instructions and the provisions of this Agreement, the provisions of this Agreement shall control.

C. Conditions Precedent to Closing. The following conditions must be met in order for Closing to occur (the “Conditions Precedent”): (i) the Subject Property must be in substantially the same condition at Closing as on the Effective Date; (ii) all liens, encumbrances, and other charges against the Subject Property not assumed by City, as specified in section 9 below, must be paid and discharged by GRANTOR prior to Closing; (iii) no uncured material, adverse change to the title to the Property shall have occurred since the Effective Date; and (iv) GRANTOR and CITY shall have complied with and otherwise performed, in all material respects, each of its obligations set forth in this Agreement. GRANTOR and CITY may, by mutual agreement in writing, extend the Closing as long as necessary to satisfy the applicable Conditions Precedent or waive any of the Conditions Precedent and proceed with Closing.

D. Close of Escrow. For purposes of this Agreement, the “Close of Escrow” shall be defined as the date on which the Grant Deed, Slope Easement Deed, and Public Utility Easement Deed are recorded in the Official Records of Stanislaus County, California (“Official Records”). The period commencing with the Effective Date and continuing through the Close of Escrow shall hereinafter be referred to as the “Escrow Period.”

7. Condition of Title
A. GRANTOR will cause the Escrow Holder to deliver to CITY within three (3) days following the Opening of Escrow a pro forma preliminary title report with respect to the Subject Property dated no earlier than one month prior to the Effective Date (“Report”), Packet Pg. 735
GRANTOR: BALDWIN RANCH LAND CO. LLC, A CALIFORNIA LIMITED LIABILITY COMPANY APN: 021-025-038 PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION together with legible copies of all documents referred to in Schedule B of the Report (“Underlying Documents”). CITY shall have until 5:00 p.m. Pacific on that date which is five (5) business days after the date CITY receives the Report (“Title Review Period”) to give GRANTOR and Escrow Holder written notice (“CITY’s Title Notice”) of CITY’s disapproval or conditional approval of any matters shown in the Report and the Underlying Documents (collectively, the Report and Underlying Documents shall hereinafter be referred to as the “Title Documents”).

B. If CITY delivers to GRANTOR a timely CITY’s Title Notice objecting to matters shown in the Title Documents, GRANTOR shall have until 5:00 p.m. Pacific on the fifth (5th) business day following the end of the Title Review Period to deliver written notice to CITY (“GRANTOR’s Title Response”) that GRANTOR intends to eliminate disapproved or conditionally approved title matters at GRANTOR’s sole cost and expense. GRANTOR’s failure to timely deliver to CITY the GRANTOR ’s Title Response shall be deemed to constitute GRANTOR’s election not to remove the disapproved or conditionally approved title matters. If GRANTOR fails to timely deliver to CITY the GRANTOR’s Title Response or GRANTOR delivers a timely GRANTOR’s Title Response refusing to eliminate disapproved or conditionally approved title matters, CITY shall have the right, by delivering written notice (“Final Title Notice”) to GRANTOR and Escrow Holder not later than five (5) business days following the delivery of GRANTOR ’s Title Response, to either: (i) waive its prior disapproval or conditional approval in which event said disapproved or conditionally approved matters, or (ii) terminate this Agreement and the Escrow created pursuant hereto, following which this Agreement, except for any matters which are expressly stated as surviving the Closing or termination of this Agreement, shall be of no further force or effect. CITY’s failure to deliver a Final Title Notice shall be deemed to be CITY’s election to take the action described in (ii) above to terminate this Agreement and the Escrow. All title matters which are either expressly approved or deemed approved shall be deemed to be “Permitted Exceptions”. Notwithstanding the foregoing, GRANTOR shall be obligated to remove and eliminate as exceptions to title to the Subject Property as of the Close of Escrow all monetary liens or encumbrances and all claims to fee title or leasehold or other possessory interests in the Subject Property.

8. Diligence Period
If CITY, in its sole discretion, for any reason or no reason at all, decides not to proceed with the close of escrow within seventy-five (75) days of the Effective Date (“Diligence Period”), CITY will have the right to terminate this Agreement by providing written notice to GRANTOR. Upon such termination, any sum paid for the Subject Property will be returned to CITY, and CITY will be responsible for all outstanding escrow costs as a result of entering into this Agreement.

9. Hazardous Wastes
To the best of GRANTOR’s knowledge: (i) the Subject Property is free of Hazardous Materials (defined below); (ii) there has been no storage, generation, disposal, release, discharge or treatment of any Hazardous Materials upon or in the Subject Property; (iii) there has been no actual or threatened storage, generation, disposal, release, discharge or treatment of an Hazardous Materials, on, from, or under the Subject Property which may have occurred prior to GRANTOR taking title to the Subject Property; (iv) no radon gas has been detected at the Packet Pg. 736
GRANTOR: BALDWIN RANCH LAND CO. LLC, A CALIFORNIA LIMITED LIABILITY COMPANY APN: 021-025-038 PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION Subject Property ; and (v) the Subject Property has not been the subject of any federal, state or local government action or third party claim because of the release, threat of release, discharge, storage, treatment, generation, emission or disposal of any Hazardous Materials on, in or from the Subject Property. GRANTOR shall not, prior to Closing, bring or permit any Hazardous Materials to be brought onto the Subject Property. The term “Hazardous Materials” shall mean, without limitation, any material or substance which is defined as a “hazardous waste”, “hazardous substance”, or the like under the laws or regulations of the State of California or United States (collectively, “Environmental Laws”) including, but not limited to, any material or substance that is: (a) petroleum, oil, gas, or any direct or derivative product or byproduct thereof; (b) defined or listed as a hazardous waste, extremely hazardous waste or restricted hazardous waste under the Hazardous Waste Control Law (Health and Safety Code section 25100 et seq.); (c) defined as a hazardous substance under the Carpenter-Presley-Tanner Hazardous Substance Account Act (Health and Safety Code section 78000 et seq.); (d) defined as a hazardous material, hazardous substance, or hazardous waste under the Hazardous Materials Release Response Plans and Inventory (Health and Safety Code section 25500 et seq.); (e) defined as a hazardous substance under Underground Storage of Hazardous Substances (Health and Safety Code section 25280 et seq.); (f) used oil (Health and Safety Code section 25250.1; (g) asbestos; (h) material defined as hazardous or extremely hazardous pursuant to Title 22 of the California Code of Regulations, Division 4.5, Chapter 10, Article 2; (i) material defined as waste or a hazardous substance pursuant to the Porter-Cologne Act (Water Code section 13020 et seq.); (j) material designated as a toxic pollutant pursuant to the Federal Water Pollution Control Act (33 U.S.C. section 1318); (k) material defined as a hazardous waste pursuant to the Federal Resource Conservation and Recovery Act, 42 U.S.C. section 6901 et seq.; (l) material defined as a hazardous substance pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, (42 U.S.C. section 9601 et seq.); (m) material defined as a hazardous material pursuant to the Hazardous Materials Transportation Act; or (n) material regulated by any other federal, state or local law, statute, ordinance code, rule, regulation, order or decree that is in effect and regulating, relating to, or imposing liability or standards of conduct concerning Hazardous Materials, oil wells, underground storage tanks or pipelines. Hazardous Materials include asbestos, petroleum products, and any other hazardous waste or substance which has, as of the date hereof, been determined to be hazardous or a pollutant by the U.S. Environmental Protection Agency, the U.S. Department of Transportation, or any instrumentality authorized to regulate substances in the environment which has jurisdiction over the Subject Property which substance causes the Subject Property (or any part thereof) to be in material violation of Environmental Laws.

The acquisition price of the Subject Property being acquired in this transaction reflects the fair market value of the Subject Property without the presence of contamination. If the Subject Property being acquired is found to be contaminated by the presence of hazardous material which requires mitigation under Federal or State law, the CITY may later, after the close of escrow, elect to recover its clean-up costs from those who caused or contributed to the contamination, including from the GRANTOR.

10. Inspection of the Property
A. Tests. CITY and CITY’s authorized agents, contractors, employees, and designees (“CITY’s Agents”) will have the right during the Diligence Period to go upon the Property for the purpose of making such surveys, soil, engineering, geological, environmental and other tests, inspections, and measurements (the “Tests”). The Tests shall include inspections for Hazardous Substances. All Tests will be at the sole cost and Packet Pg. 737
GRANTOR: BALDWIN RANCH LAND CO. LLC, A CALIFORNIA LIMITED LIABILITY COMPANY APN: 021-025-038 PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION expense of CITY. CITY shall provide GRANTOR with copies of all Tests. CITY will give reasonable advance notice to GRANTOR of any Tests that CITY or CITY’s Agents will perform. The notice will specify the nature of the Tests to be performed, the approximate date and time the Tests will be performed, and the person or entity performing the Tests. CITY will repair any damage to the Property caused by CITY’s inspection activities.

B. Property Documents. During the Diligence Period, GRANTOR will make available to CITY for CITY’s inspection, within five (5) days after CITY’s written request, all documents and information in GRANTOR’s possession or control pertaining to the Property, including but not limited to, any and all leases, liens, tentative and final maps, surveys, plats, title reports, soil reports, assessment or property tax documentation, environmental studies, entitlement documents, or land or building improvements made during GRANTOR’s time on the Property (collectively, the “Property Documents”).

GRANTOR will not be obligated to disclose to CITY any appraisal or opinions of the value of the Property, any of GRANTOR’s internal financial analyses, or materials relating to GRANTOR’s cost to acquire the Property. CITY acknowledges that the Property Documents are furnished to CITY solely as a courtesy. GRANTOR is not responsible for verifying the accuracy of any statements or other information contained in those documents. GRANTOR will retain and collect all originals or copies of the Property Documents.

11. Right of Possession and Use
It is agreed and confirmed by the parties notwithstanding other provisions in this Agreement, the right of possession and use of the Property Interest by the CITY, and/or its designees or assignees, including the right to remove and dispose of improvements, and install and connect utilities shall commence on the date the amount of the funds are deposited into the escrow controlling this transaction, and that amount shown in Section 3A herein includes, but is not limited to, full payment for such possession and use, including damages, if any, from said date.

12. Assignment
This Agreement may not be assigned by GRANTOR without CITY’s written consent, which may be withheld, conditioned, or delayed in CITY’s sole discretion. No assignment, however, shall release the original GRANTOR from its obligations under the Agreement. If this Agreement is assigned, the Agreement shall be binding on the assignee, its successors and assigns.

13. No Leases or Violations
GRANTOR warrants that there are no oral or written leases, rental agreements, or other contracts of any kind or nature affecting the Subject Property, and GRANTOR shall not enter into any contracts affecting the Subject Property during the term of this Agreement without the prior written consent of City. GRANTOR further agrees to hold CITY harmless and reimburse CITY for any and all of its losses and expenses occasioned by reason of any lease, rental agreement, or other contract of any kind or nature affecting the Subject Property.

Packet Pg. 738
GRANTOR: BALDWIN RANCH LAND CO. LLC, A CALIFORNIA LIMITED LIABILITY COMPANY APN: 021-025-038 PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION GRANTOR has no actual knowledge of any violation of governmental laws, regulations, or orders relating to the Subject Property.

14. Quitclaim Deeds
If any lessee interests are identified in Section 14 herein, as a condition precedent to approval of this Agreement by the CITY, Quitclaim Deeds or similar releases sufficient to clear any possessory rights from the Subject Property will be required. GRANTOR agrees to assist CITY in securing said Quitclaim Deeds or releases.

15. Release of Claims and Full and Complete Settlement
GRANTOR acknowledges that, in accordance with applicable provisions of California law, GRANTOR may otherwise be entitled to the payment of relocation expenses, compensation for loss of business goodwill, just compensation, damages to improvements, improvements pertaining to the realty, severance damages, inverse condemnation, unlawful pre-condemnation conduct, and other benefits and claims other than those expressly provided for in this Agreement (collectively, “Claims”). GRANTOR, on behalf of itself and its heirs, executors, administrators, successors and assigns, acknowledges that CITY’s performance under this Agreement constitutes full and complete satisfaction of CITY’s obligations to GRANTOR as with respect to those Claims.

GRANTOR hereby waives, to the maximum legal extent, any and all Claims, remedies and causes of action for damages, liabilities, losses or injuries related to this Agreement, whether known or unknown, foreseeable or unforeseeable. CITY and GRANTOR hereto agree that this Agreement is being entered into in order to avoid litigation and in lieu of CITY’s exercise of its eminent domain authority and shall not, in any manner, be construed as an admission of the fair market value of the Subject Property, or of any liability by any party to this Agreement.

GRANTOR, on behalf of itself and its heirs, executors, administrators, successors and assigns, hereby fully releases CITY, its successors, agents, representatives and assigns, and all other persons and associations, known and unknown, from all Claims and causes of action by reason of any damage which has been sustained, or may be sustained, as a result of CITY’s acquisition of the Subject Property or any preliminary steps thereto.

GRANTOR hereby acknowledges that it has either consulted with legal counsel, or had an opportunity to consult with legal counsel, regarding, the provisions of California Civil Code Section 1542, which provides:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT

THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR

SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF

EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR

HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER
SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.”
GRANTOR acknowledges that with respect to the acquisition of the Subject Property by CITY, GRANTOR may have sustained damage, loss, costs or expenses which are presently unknown and unsuspected, and such damage, loss, costs or expenses which may have been sustained, may give rise to additional damage, loss, costs or expenses in the future. Nevertheless, GRANTOR Packet Pg. 739
GRANTOR: BALDWIN RANCH LAND CO. LLC, A CALIFORNIA LIMITED LIABILITY COMPANY APN: 021-025-038 PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION hereby acknowledges, represents and warrants that this Agreement has been negotiated and agreed upon in light of that situation, and hereby waives, to the maximum legal extent, any rights accruing to it under Section 1542 or other statute or judicial decision of similar effect.

If this Agreement is terminated this Section 16 shall have no force and effect.

16. Notices.

All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered or sent by registered or certified mail, postage prepaid, return receipt requested, and shall be deemed received upon the earlier of (i) if personally delivered, the date of delivery to the address of the person to receive such notice, (ii) if mailed, three (3) business days after the date of posting by the United States post office, postage prepaid, or (iii) if delivered by Federal Express or other overnight courier, the date delivered as shown on a receipt issued by the courier.

To GRANTOR: Baldwin Ranch Land Co. LLC
1412 Rockhaven Drive
Modesto, CA 95356
To CITY: City of Patterson
1 Plaza
P.O. Box 667
Patterson, CA 95363
Attention: City Manager
Email:

Copy to: White Brenner LLP
1608 T Street
Sacramento, CA 95811
Attention: Nubia Goldstein
Email: [email protected]
To Escrow Holder: Fidelity National Title Company
Audra Meyer, Commercial Escrow Officer
8525 Madison Avenue, Suite 110
Fair Oaks, CA 95628
Email: [email protected]

17. Approval of CITY
GRANTOR understands that this Agreement is subject to the approval of CITY. Further, that this Agreement shall have no force or effect unless and until said CITY approval has been obtained.

Packet Pg. 740
GRANTOR: BALDWIN RANCH LAND CO. LLC, A CALIFORNIA LIMITED LIABILITY COMPANY APN: 021-025-038 PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION

18. Authority to Sign
GRANTOR and the signatories represent and warrant that the signatories to this Agreement are authorized to enter into this Agreement to convey real property and that no other authorizations are required to implement this Agreement on behalf of GRANTOR.

19. Integrity of Property
Except as otherwise provided herein or by express written permission granted by CITY, GRANTOR shall not, after the date of execution of this Agreement and the close of escrow, alienate, lien, encumber or otherwise transfer the Subject Property or any portion thereof or allow the same to occur, cause or allow any physical changes on the Subject Property, or enter into any lease or contract with respect to the Subject Property or any portion thereof which would survive the close of escrow and impair CITY’s use of the Subject Property. GRANTOR shall maintain the Subject Property in its current condition and shall make, at GRANTOR’s expense, all repairs necessary to maintain the Subject Property in such condition. GRANTOR bears all risk of loss prior to the Close of Escrow. If, prior to the Close of Escrow, any portion of the Subject Property is materially damaged by any casualty (other than those attributable to CITY) and such damage is not repaired by GRANTOR or arrangements for the escrow of funds sufficient to pay for necessary repairs are not made prior to Close of Escrow, then CITY will have the option to terminate this Agreement by providing written notice to GRANTOR.

20. Survival.

GRANTOR’S representations and warranties contained in this Agreement shall survive after the Close of Escrow. GRANTOR will not cause or permit any action to be taken which, to the best of GRANTOR’s knowledge, will cause any of its representations or warranties to be untrue in any material respects upon the Close of Escrow. GRANTOR agrees to indemnify, defend, and hold City harmless from all liabilities, claims, losses, damages, costs, and expenses (including reasonable attorney’s fees and costs) in connection with a breach of these representations and warranties., Any other obligations, representations and warranties that are expressly provided to survive termination of the Agreement and, if the Close of Escrow occurs, any provision which by its nature and effect is required to be performed after the Close of Escrow (collectively, the “Survival Obligations”) shall survive the Close of Escrow and remain binding and for the benefit of the Parties until fully performed. Upon termination, neither Party shall have any further obligations under the Agreement except for the Survival Obligations.

21. Counterparts Signature
This Agreement may be executed in counterparts, each of which shall be an original, but all counterparts shall constitute one agreement. This Agreement may be signed and delivered using facsimile machines and electronic transmission. Any signed facsimile or electronic transmission of this Agreement shall constitute an original counterpart.

Packet Pg. 741
GRANTOR: BALDWIN RANCH LAND CO. LLC, A CALIFORNIA LIMITED LIABILITY COMPANY APN: 021-025-038 PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION

22. Specific Performance and Other Remedies
In the event of a breach of this Agreement by GRANTOR, CITY shall be entitled to pursue any and all remedies available to it against GRANTOR, including, without limitation, claims for all damages attributable to GRANTOR’s breach, and specific performance of this Agreement.

23. Title VI of the Civil Rights Act of 1964
The parties to this Agreement shall, pursuant to Section 21.7(a) of Title 49, Code of Federal Regulations, comply with all elements of Title VI of the Civil Rights Act of 1964. This requirement under Title VI and the Code of Federal Regulations is to complete the USDOT-NonDiscrimination Assurance requiring compliance with Title VI of the Civil Rights Act of 164, 49 C.F.R Part 21, and 28 C.F.R. Section 50.3.

Further, no person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity that is the subject of this Agreement.

24. General Provisions
A. Recitals. The Recitals set forth above are hereby incorporated by this reference and made part of this Agreement. In the event of any conflict between the Recitals and Terms contained in this Agreement, the Terms will control.

B. Exhibits. All attached Exhibits are incorporated by reference and made a part of this Agreement.

C. Survival of Covenants. The covenants, indemnities, representations and warranties of GRANTOR and CITY set forth in this Agreement shall survive the Close of Escrow and shall not be deemed merged into the Deed upon its recordation.

D. Amendment. No amendments to this Agreement shall be effective unless such amendment is made in writing, signed by both Parties. No waiver of any right or remedy shall be effective unless in writing and signed by the Party against which it is sought to be enforced.

E. Time is of the Essence. Time is of the essence with respect to the payments and undertakings required of the Parties.

F. Good Faith. Whenever a party’s consent or approval is required under this Agreement, that consent or approval will not be unreasonably withheld, conditioned, or delayed, except as expressly provided to the contrary in this Agreement.

G. Severability. If any provision of this Agreement is determined by a court to be invalid and unenforceable, or if any provision of this Agreement is rendered invalid or unenforceable under any federal or state law which becomes effective after the Effective Packet Pg. 742
GRANTOR: BALDWIN RANCH LAND CO. LLC, A CALIFORNIA LIMITED LIABILITY COMPANY APN: 021-025-038 PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION Date, the remaining provisions shall continue in full force and effect and shall be interpreted to give effect to the purpose and intent of this Agreement. If, however, the Agreement is determined by a court to be invalid and unenforceable in its entirety, then the Agreement shall automatically terminate; provided that any obligations intended to survive a termination of this Agreement shall remain in effect to the extent otherwise permitted by law.

H. Attorney’s Fees; Venue. In the event any legal action or demand for arbitration is filed in relation to this Agreement, the unsuccessful Party in that proceeding shall pay to the successful Party the latter’s reasonable attorney’s fees in addition to any other relief recovered. Venue for legal proceedings shall be the Stanislaus County Superior Court, and this Agreement shall be governed by and construed in accordance with the laws of the State of California.

I. Waiver. Waiver by any Party of a breach of any provision of this Agreement shall be in writing and shall not operate or be construed as a waiver of any other or subsequent breach hereof, unless specifically stated in writing.

J. GRANTOR’s Certifications. Grantor is not a foreign person and is a “United States Person” as such term is defined in the Internal Revenue Code (see I.R.C. § 7701(a)(30)), nor a non-resident under the California Revenue and Taxation Code (see California Revenue and Taxation Code, § 18662).

K. No Obligations to Third Parties. Except as otherwise expressly provided herein, the execution and delivery of this Agreement shall not be deemed to confer any rights upon, nor obligate any of the Parties hereto, to any person or entity other than the Parties hereto.

Packet Pg. 743
GRANTOR: BALDWIN RANCH LAND CO. LLC, A CALIFORNIA LIMITED LIABILITY COMPANY APN: 021-025-038 PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first written herein below.

CITY:

CITY OF PATTERSON, A CALIFORNIA

MUNICIPAL CORPORATION
By:

Print Name
Title:__________________________
Date:__________________________
Approved as to form:

By:

Nubia Goldstein, City Attorney
Date:

GRANTOR:

BALDWIN RANCH LAND CO. LLC, A

CALIFORNIA LIMITED LIABILITY

COMPANY
By: _________________________________
Name:

Title: _______________________________
Date:__________________________
By: _________________________________
Name:

Title: _______________________________
Date:__________________________

NO OBLIGATION OTHER THAN SET FORTH HEREIN WILL BE RECOGNIZED Packet Pg. 744
GRANTOR: BALDWIN RANCH LAND CO. LLC, A CALIFORNIA LIMITED LIABILITY COMPANY APN: 021-025-038 PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION Exhibit 1 (Legal Description of Larger Parcel)
Packet Pg. 745
GRANTOR: BALDWIN RANCH LAND CO. LLC, A CALIFORNIA LIMITED LIABILITY COMPANY APN: 021-025-038 PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION Exhibit A (Legal Description – Grant Deed)
Packet Pg. 746
GRANTOR: BALDWIN RANCH LAND CO. LLC, A CALIFORNIA LIMITED LIABILITY COMPANY APN: 021-025-038 PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION Exhibit A-1 (Plat Map – Grant Deed)
Packet Pg. 747
GRANTOR: BALDWIN RANCH LAND CO. LLC, A CALIFORNIA LIMITED LIABILITY COMPANY APN: 021-025-038 PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION Exhibit B (Legal Description – Public Utility Easement Deed) Packet Pg. 748
GRANTOR: BALDWIN RANCH LAND CO. LLC, A CALIFORNIA LIMITED LIABILITY COMPANY APN: 021-025-038 PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION Exhibit B-1 (Plat Map – Public Utility Easement Deed)
Packet Pg. 749
GRANTOR: BALDWIN RANCH LAND CO. LLC, A CALIFORNIA LIMITED LIABILITY COMPANY APN: 021-025-038 PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION Exhibit C (Legal Description – Slope Easement Deed)
Packet Pg. 750
GRANTOR: BALDWIN RANCH LAND CO. LLC, A CALIFORNIA LIMITED LIABILITY COMPANY APN: 021-025-038 PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION Exhibit C-1 (Plat Map – Slope Easement Deed)
Packet Pg. 751
GRANTOR: ANNA GILL, JASDEEP SINGH AND BALJIT KAUR APN: 021-025-026 PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION

CITY OF PATTERSON

PROPERTY PURCHASE AND SALE AGREEMENT AND JOINT ESCROW

INSTRUCTIONS
This Property Purchase and Sale Agreement and Joint Escrow Instructions (“Agreement”) is entered into by and between ANNA GILL, A MARRIED WOMAN, AS HER SOLE AND

SEPARATE PROPERTY AND JASDEEP SINGH, A MARRIED MAN, AS HIS SOLE

AND SEPARATE PROPERTY AND BALJIT KAUR, A MARRIED WOMAN, AS HER SOLE AND SEPARATE PROPERTY (“GRANTOR”) and the CITY OF PATTERSON, A CALIFORNIA MUNICIPAL CORPORATION (“CITY”). As used below, the term “GRANTOR” shall include the plural as well as the singular number. GRANTOR and CITY may hereinafter be individually referred to as “Party” and collectively referred to as “Parties” with respect to the following:

RECITALS
A. GRANTOR is the legal owner of real property located in County of Stanislaus, State of California, and identified as Stanislaus County Assessor as Parcel No. 021-025-026, and more particularly described in Exhibit 1 attached hereto and incorporated herein by this reference (“Larger Parcel”).

B. In conjunction with implementation of the Rogers Road Delta Mendota Canal Bridge Rehabilitation Project, (“Project”) located in the County of Stanislaus, CITY desires to acquire a portion of Public Utility Easement and Slope Easement Interest(s) (“Subject Property”) from and over the Larger Parcel, more specifically described and depicted in Exhibits A, A-1, B, and B-1.

C. CITY requires said Subject Property described and depicted in Exhibits A, A-1, B, and B-1 for the Project, for a public use for which the CITY has the authority to exercise the power of eminent domain. On August 27, 2025, the City delivered a pre-condemnation offer to Grantor to acquire the Subject Property, pursuant to California legal requirements for proposed condemnations. City and Grantor desire to avoid eminent domain litigation for City’s acquisition of the Subject Property. The compensation set forth herein for the Subject Property is in compromise and settlement, in lieu of such litigation.

TERMS

1. Entire Agreement
The parties have herein set forth the whole of their agreement. This Agreement supersedes all other agreements, whether oral or written, between CITY and GRANTOR with respect to Subject Property. The performance of this Agreement constitutes the entire consideration for the Packet Pg. 752
GRANTOR: ANNA GILL, JASDEEP SINGH AND BALJIT KAUR APN: 021-025-026 PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION Public Utility Easement Deed and Slope Easement Deed, and shall relieve CITY of all further obligations or claims with respect to the Subject Property or on account of the location, grade, construction or operation of the proposed public improvement Project.

2. Grant to CITY
GRANTOR shall grant to CITY all of GRANTOR’s interest in the Slope Easement and Public Utility Easement as described and depicted in Exhibits A, A-1, B, and B-1, by conveyance of a Slope Easement Deed and Public Utility Easement Deed. The Slope Easement Deed and Public Utility Easement Deed are to be recorded in the official records of Stanislaus County, California, pursuant to the procedure described below. On or before the close of escrow, GRANTOR shall deliver the Slope Easement Deed and Public Utility Easement Deed to the Title Company.

3. CITY shall:

A. Pay the sum of THIRTY FIVE THOUSAND AND 00/100 DOLLARS ($35,000.00) for the Subject Property identified in Exhibits A, A-1, B, and B-1 attached hereto and made a part hereof, to the following title company: Fidelity National Title Company (“Escrow Holder”), for the account of the GRANTOR, the Escrow Number is to be determined, conditioned upon the Subject Property vesting in CITY free and clear of all recorded and unrecorded liens, leases, encumbrances, assessments, and taxes except any exceptions to title which are acceptable to CITY pursuant to section 9, Condition of Title, below. Clearing of any title exceptions not acceptable to CITY is the responsibility of GRANTOR.

Packet Pg. 753
GRANTOR: ANNA GILL, JASDEEP SINGH AND BALJIT KAUR APN: 021-025-026 PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION

5. Subordination or Partial Reconveyance of Deed of Trust If this Subject Property is secured by a mortgage(s) or deed(s) of trust, GRANTOR is responsible for payment of any demand under authority of said mortgage or deed of trust out of GRANTOR’S proceeds. Such amounts may include, but not be limited to, subordination or partial reconveyance fees, paydown of principal, and payments of unpaid principal and interest.

GRANTOR agrees to assist CITY in securing said subordination or partial reconveyances.

D. Close of Escrow. For purposes of this Agreement, the “Close of Escrow” shall be defined as the date on which the Slope Easement Deed and Public Utility Easement Deed are recorded in the Official Records of Stanislaus County, California (“Official Records”). The period commencing with the Effective Date and continuing through the Close of Escrow shall hereinafter be referred to as the “Escrow Period.”

7. Condition of Title
A. GRANTOR will cause the Escrow Holder to deliver to CITY within three (3) days following the Opening of Escrow a pro forma preliminary title report with respect to the Subject Property dated no earlier than one month prior to the Effective Date (“Report”), Packet Pg. 754
GRANTOR: ANNA GILL, JASDEEP SINGH AND BALJIT KAUR APN: 021-025-026 PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION together with legible copies of all documents referred to in Schedule B of the Report (“Underlying Documents”). CITY shall have until 5:00 p.m. Pacific on that date which is five (5) business days after the date CITY receives the Report (“Title Review Period”) to give GRANTOR and Escrow Holder written notice (“CITY’s Title Notice”) of CITY’s disapproval or conditional approval of any matters shown in the Report and the Underlying Documents (collectively, the Report and Underlying Documents shall hereinafter be referred to as the “Title Documents”).

9. Hazardous Wastes
To the best of GRANTOR’s knowledge: (i) the Subject Property is free of Hazardous Materials (defined below); (ii) there has been no storage, generation, disposal, release, discharge or treatment of any Hazardous Materials upon or in the Subject Property; (iii) there has been no actual or threatened storage, generation, disposal, release, discharge or treatment of an Hazardous Materials, on, from, or under the Subject Property which may have occurred prior to GRANTOR taking title to the Subject Property; (iv) no radon gas has been detected at the Packet Pg. 755
GRANTOR: ANNA GILL, JASDEEP SINGH AND BALJIT KAUR APN: 021-025-026 PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION Subject Property ; and (v) the Subject Property has not been the subject of any federal, state or local government action or third party claim because of the release, threat of release, discharge, storage, treatment, generation, emission or disposal of any Hazardous Materials on, in or from the Subject Property. GRANTOR shall not, prior to Closing, bring or permit any Hazardous Materials to be brought onto the Subject Property. The term “Hazardous Materials” shall mean, without limitation, any material or substance which is defined as a “hazardous waste”, “hazardous substance”, or the like under the laws or regulations of the State of California or United States (collectively, “Environmental Laws”) including, but not limited to, any material or substance that is: (a) petroleum, oil, gas, or any direct or derivative product or byproduct thereof; (b) defined or listed as a hazardous waste, extremely hazardous waste or restricted hazardous waste under the Hazardous Waste Control Law (Health and Safety Code section 25100 et seq.); (c) defined as a hazardous substance under the Carpenter-Presley-Tanner Hazardous Substance Account Act (Health and Safety Code section 78000 et seq.); (d) defined as a hazardous material, hazardous substance, or hazardous waste under the Hazardous Materials Release Response Plans and Inventory (Health and Safety Code section 25500 et seq.); (e) defined as a hazardous substance under Underground Storage of Hazardous Substances (Health and Safety Code section 25280 et seq.); (f) used oil (Health and Safety Code section 25250.1; (g) asbestos; (h) material defined as hazardous or extremely hazardous pursuant to Title 22 of the California Code of Regulations, Division 4.5, Chapter 10, Article 2; (i) material defined as waste or a hazardous substance pursuant to the Porter-Cologne Act (Water Code section 13020 et seq.); (j) material designated as a toxic pollutant pursuant to the Federal Water Pollution Control Act (33 U.S.C. section 1318); (k) material defined as a hazardous waste pursuant to the Federal Resource Conservation and Recovery Act, 42 U.S.C. section 6901 et seq.; (l) material defined as a hazardous substance pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, (42 U.S.C. section 9601 et seq.); (m) material defined as a hazardous material pursuant to the Hazardous Materials Transportation Act; or (n) material regulated by any other federal, state or local law, statute, ordinance code, rule, regulation, order or decree that is in effect and regulating, relating to, or imposing liability or standards of conduct concerning Hazardous Materials, oil wells, underground storage tanks or pipelines. Hazardous Materials include asbestos, petroleum products, and any other hazardous waste or substance which has, as of the date hereof, been determined to be hazardous or a pollutant by the U.S. Environmental Protection Agency, the U.S. Department of Transportation, or any instrumentality authorized to regulate substances in the environment which has jurisdiction over the Subject Property which substance causes the Subject Property (or any part thereof) to be in material violation of Environmental Laws.

10. Inspection of the Property
A. Tests. CITY and CITY’s authorized agents, contractors, employees, and designees (“CITY’s Agents”) will have the right during the Diligence Period to go upon the Property for the purpose of making such surveys, soil, engineering, geological, environmental and other tests, inspections, and measurements (the “Tests”). The Tests shall include inspections for Hazardous Substances. All Tests will be at the sole cost and Packet Pg. 756
GRANTOR: ANNA GILL, JASDEEP SINGH AND BALJIT KAUR APN: 021-025-026 PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION expense of CITY. CITY shall provide GRANTOR with copies of all Tests. CITY will give reasonable advance notice to GRANTOR of any Tests that CITY or CITY’s Agents will perform. The notice will specify the nature of the Tests to be performed, the approximate date and time the Tests will be performed, and the person or entity performing the Tests. CITY will repair any damage to the Property caused by CITY’s inspection activities.

Packet Pg. 757
GRANTOR: ANNA GILL, JASDEEP SINGH AND BALJIT KAUR APN: 021-025-026 PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION GRANTOR has no actual knowledge of any violation of governmental laws, regulations, or orders relating to the Subject Property.

THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR

SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF

EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR

HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER
SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.”
GRANTOR acknowledges that with respect to the acquisition of the Subject Property by CITY, GRANTOR may have sustained damage, loss, costs or expenses which are presently unknown and unsuspected, and such damage, loss, costs or expenses which may have been sustained, may give rise to additional damage, loss, costs or expenses in the future. Nevertheless, GRANTOR Packet Pg. 758
GRANTOR: ANNA GILL, JASDEEP SINGH AND BALJIT KAUR APN: 021-025-026 PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION hereby acknowledges, represents and warrants that this Agreement has been negotiated and agreed upon in light of that situation, and hereby waives, to the maximum legal extent, any rights accruing to it under Section 1542 or other statute or judicial decision of similar effect.

If this Agreement is terminated this Section 16 shall have no force and effect.

16. Notices.

To GRANTOR: ANNA GILL, JASDEEP SINGH AND BALJIT KAUR
370 Steven Bridges Court
Tracy, CA 95377
To CITY: City of Patterson
1 Plaza
P.O. Box 667
Patterson, CA 95363
Attention: City Manager
Email:

Copy to: White Brenner LLP
1608 T Street
Sacramento, CA 95811
Attention: Nubia Goldstein
Email: [email protected]
To Escrow Holder: Fidelity National Title Company
Attn: Audra Meyer, Commercial Escrow Officer
8525 Madison Avenue, Suite 110
Fair Oaks, CA 95628
Email: [email protected]

Packet Pg. 759
GRANTOR: ANNA GILL, JASDEEP SINGH AND BALJIT KAUR APN: 021-025-026 PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION

20. Survival.

Packet Pg. 760
GRANTOR: ANNA GILL, JASDEEP SINGH AND BALJIT KAUR APN: 021-025-026 PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION

B. Exhibits. All attached Exhibits are incorporated by reference and made a part of this Agreement.

E. Time is of the Essence. Time is of the essence with respect to the payments and undertakings required of the Parties.

G. Severability. If any provision of this Agreement is determined by a court to be invalid and unenforceable, or if any provision of this Agreement is rendered invalid or unenforceable under any federal or state law which becomes effective after the Effective Packet Pg. 761
GRANTOR: ANNA GILL, JASDEEP SINGH AND BALJIT KAUR APN: 021-025-026 PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION Date, the remaining provisions shall continue in full force and effect and shall be interpreted to give effect to the purpose and intent of this Agreement. If, however, the Agreement is determined by a court to be invalid and unenforceable in its entirety, then the Agreement shall automatically terminate; provided that any obligations intended to survive a termination of this Agreement shall remain in effect to the extent otherwise permitted by law.

Packet Pg. 762
GRANTOR: ANNA GILL, JASDEEP SINGH AND BALJIT KAUR APN: 021-025-026 PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first written herein below.

CITY:

CITY OF PATTERSON, A CALIFORNIA

MUNICIPAL CORPORATION
By:

Print Name
Title:__________________________
Date:__________________________
Approved as to form:

By:

Nubia Goldstein, City Attorney
Date:

GRANTOR:

ANNA GILL, A MARRIED WOMAN, AS

HER SOLE AND SEPARATE PROPERTY

AND JASDEEP SINGH, A MARRIED MAN,

AS HIS SOLE AND SEPARATE PROPERTY

AND BALJIT KAUR, A MARRIED

WOMAN, AS HER SOLE AND SEPARATE

PROPERTY
By: _________________________________
Anna Gill
Date:__________________________
By: _________________________________
Jasdeep Singh
Date:__________________________
By: _________________________________
Baljit Kaur
Date:__________________________

NO OBLIGATION OTHER THAN SET FORTH HEREIN WILL BE RECOGNIZED Packet Pg. 763
GRANTOR: ANNA GILL, JASDEEP SINGH AND BALJIT KAUR APN: 021-025-026 PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION Exhibit 1 (Legal Description of Larger Parcel)
Packet Pg. 764
GRANTOR: ANNA GILL, JASDEEP SINGH AND BALJIT KAUR APN: 021-025-026 PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION Exhibit A (Legal Description of Public Utility Easement) Packet Pg. 765
GRANTOR: ANNA GILL, JASDEEP SINGH AND BALJIT KAUR APN: 021-025-026 PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION Exhibit A-1 (Plat Map of Public Utility Easement)
Packet Pg. 766
GRANTOR: ANNA GILL, JASDEEP SINGH AND BALJIT KAUR APN: 021-025-026 PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION Exhibit B (Legal Description of Slope Easement)
Packet Pg. 767
GRANTOR: ANNA GILL, JASDEEP SINGH AND BALJIT KAUR APN: 021-025-026 PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION Exhibit B-1 (Plat Map of Slope Easement)
Packet Pg. 768
GRANTOR: HENSLEY INVESTMENT COMPANY, LLC A DELAWARE SERIES LIMITED

LIABILITY COMPANY, KIT FOX SERIES
PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION APN: 021-028-001, -002, -003, -030 and -032

CITY OF PATTERSON

PROPERTY PURCHASE AND SALE AGREEMENT AND JOINT ESCROW

INSTRUCTIONS
This Property Purchase and Sale Agreement and Joint Escrow Instructions (“Agreement”) is entered into by and between HENSLEY INVESTMENT COMPANY, LLC A DELAWARE SERIES LIMITED LIABILITY COMPANY, KIT FOX SERIES (“GRANTOR”) and the CITY OF PATTERSON, A CALIFORNIA MUNICIPAL CORPORATION (“CITY”). As used below, the term “GRANTOR” shall include the plural as well as the singular number.

GRANTOR and CITY may hereinafter be individually referred to as “Party” and collectively referred to as “Parties” with respect to the following:

RECITALS
A. GRANTOR is the legal owner of real property located in County of Stanislaus, State of California, and identified as Stanislaus County Assessor as Parcel No. 021-028-001, -002, - 003, -030 and -032, and more particularly described in Exhibit 1 attached hereto and incorporated herein by this reference (“Larger Parcel”).

B. In conjunction with implementation of the Rogers Road Delta Mendota Canal Bridge Rehabilitation Project, (“Project”) located in the County of Stanislaus, CITY desires to acquire a portion of Fee Simple and Temporary Construction Easement Interest(s) (“Subject Property”) from and over the Larger Parcel, more specifically described and depicted in Exhibits A, A-1, B, and B-1.

C. CITY requires said Subject Property described and depicted in Exhibits A, A-1, B, and B-1 for the Project, for a public use for which the CITY has the authority to exercise the power of eminent domain. On September 9, 2025, the City delivered a pre-condemnation offer to Grantor to acquire the Subject Property, pursuant to California legal requirements for proposed condemnations. City and Grantor desire to avoid eminent domain litigation for City’s acquisition of the Subject Property. The compensation set forth herein for the Subject Property is in compromise and settlement, in lieu of such litigation.

TERMS

LIABILITY COMPANY, KIT FOX SERIES
PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION APN: 021-028-001, -002, -003, -030 and -032
Grant Deed and Temporary Construction Easement Deed and shall relieve CITY of all further obligations or claims with respect to the Subject Property or on account of the location, grade, construction or operation of the proposed public improvement Project.

2. Grant to CITY
GRANTOR shall grant to CITY all of GRANTOR’s interest in the Fee Simple and Temporary Construction Easement as described and depicted in Exhibits A, A-1, B, and B-1, by conveyance of a Grant Deed and Temporary Construction Easement Deed. The Grant Deed and Temporary Construction Easement Deed are to be recorded in the official records of Stanislaus County, California, pursuant to the procedure described below. On or before the close of escrow, GRANTOR shall deliver the Grant Deed and Temporary Construction Easement Deed to the Title Company.

3. CITY shall:

A. Pay the sum of FORTY FOURTHOUSAND SEVEN HUNDRED SEVENTY NINE AND 00/100 DOLLARS ($44,779.00) for the Subject Property identified in Exhibits A, A-1, B, and B-1 attached hereto and made a part hereof, to the following title company: Fidelity National Title Company (“Escrow Holder”), for the account of the GRANTOR, the Escrow Number is to be determined, conditioned upon the Subject Property vesting in CITY free and clear of all recorded and unrecorded liens, leases, encumbrances, assessments, and taxes except any exceptions to title which are acceptable to CITY pursuant to section 9, Condition of Title, below. Clearing of any title exceptions not acceptable to CITY is the responsibility of GRANTOR.

4. Temporary Construction Easement
A. Permission is hereby granted to CITY, its employees and contractors to enter upon GRANTOR’s land where necessary with personnel, vehicles and equipment within that certain area identified in Exhibits “B” and “B-1” for the purpose of a Temporary Construction Easement (TCE).

Packet Pg. 770
GRANTOR: HENSLEY INVESTMENT COMPANY, LLC A DELAWARE SERIES LIMITED

LIABILITY COMPANY, KIT FOX SERIES
PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION APN: 021-028-001, -002, -003, -030 and -032
B. The rights of usage of the TCE shall be for a period of 36 months; said period shall commence no earlier than July 1, 2026. At least ten (10) business days’ advance written notice will be given to GRANTOR before work commences within the TCE. It is further understood that in no event shall the TCE extend beyond the project construction completion or June 30, 2028, whichever is earlier, except as provided below.

C. In case of unpredictable delays in construction, upon written notification by the CITY, the terms of the TCE may be extended by an amendment to this Agreement.

Grantor shall be compensated based on the fair market value at the time of the extension.

Payment shall be made to the Grantor for the extension period prior to the expiration of the original period.

D. In the event GRANTOR sells, conveys or assigns GRANTOR’s land as depicted in Exhibits “B” and “B-1”, GRANTOR shall notify the successor or assigner of the rights and obligations contained in this Agreement. GRANTOR shall indemnify and hold the CITY harmless from any such claims by any third party for any compensation arising from the TCE depicted in Exhibits “B” and “B-1” or the construction of the public improvement project.

5. CITY Performed Work
All work done under this Agreement shall conform to all applicable building, fire and sanitary laws, ordinances, and regulations relating to such work, and shall be done in a good and workmanlike manner. All structures, improvements or other facilities, when removed, and relocated, or reconstructed by CITY, shall be left in as good condition as found.

6. Subordination or Partial Reconveyance of Deed of Trust If this Subject Property is secured by a mortgage(s) or deed(s) of trust, GRANTOR is responsible for payment of any demand under authority of said mortgage or deed of trust out of GRANTOR’S proceeds. Such amounts may include, but not be limited to, subordination or partial reconveyance fees, paydown of principal, and payments of unpaid principal and interest.

GRANTOR agrees to assist CITY in securing said subordination or partial reconveyances.

7. Escrow Instructions
A. Opening of Escrow. For purposes of this Agreement, as between the Parties, the Escrow shall be deemed opened on the date Escrow Holder shall have received a fully executed original or originally executed counterparts of this Agreement from GRANTOR and CITY (“Opening of Escrow”). Escrow Holder shall notify CITY and GRANTOR, in writing, of the Opening of Escrow.

B. Supplemental Instructions. CITY and GRANTOR agree to execute, deliver and be bound by any reasonable or customary supplemental escrow instructions of Escrow Holder, or other instruments as may reasonably be required by Escrow Holder, in order to consummate the transaction contemplated by this Agreement. Any such supplemental instructions shall not conflict with, modify, or supersede any of the material portions of this Agreement. In the event of any inconsistency between the provisions of such Packet Pg. 771
GRANTOR: HENSLEY INVESTMENT COMPANY, LLC A DELAWARE SERIES LIMITED

LIABILITY COMPANY, KIT FOX SERIES
PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION APN: 021-028-001, -002, -003, -030 and -032
supplemental instructions and the provisions of this Agreement, the provisions of this Agreement shall control.

D. Close of Escrow. For purposes of this Agreement, the “Close of Escrow” shall be defined as the date on which the Grant Deed and Temporary Construction Easement Deed are recorded in the Official Records of Stanislaus County, California (“Official Records”). The period commencing with the Effective Date and continuing through the Close of Escrow shall hereinafter be referred to as the “Escrow Period.”

8. Condition of Title
A. GRANTOR will cause the Escrow Holder to deliver to CITY within three (3) days following the Opening of Escrow a pro forma preliminary title report with respect to the Subject Property dated no earlier than one month prior to the Effective Date (“Report”), together with legible copies of all documents referred to in Schedule B of the Report (“Underlying Documents”). CITY shall have until 5:00 p.m. Pacific on that date which is five (5) business days after the date CITY receives the Report (“Title Review Period”) to give GRANTOR and Escrow Holder written notice (“CITY’s Title Notice”) of CITY’s disapproval or conditional approval of any matters shown in the Report and the Underlying Documents (collectively, the Report and Underlying Documents shall hereinafter be referred to as the “Title Documents”).

LIABILITY COMPANY, KIT FOX SERIES
PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION APN: 021-028-001, -002, -003, -030 and -032
GRANTOR and Escrow Holder not later than five (5) business days following the delivery of GRANTOR ’s Title Response, to either: (i) waive its prior disapproval or conditional approval in which event said disapproved or conditionally approved matters, or (ii) terminate this Agreement and the Escrow created pursuant hereto, following which this Agreement, except for any matters which are expressly stated as surviving the Closing or termination of this Agreement, shall be of no further force or effect. CITY’s failure to deliver a Final Title Notice shall be deemed to be CITY’s election to take the action described in (ii) above to terminate this Agreement and the Escrow. All title matters which are either expressly approved or deemed approved shall be deemed to be “Permitted Exceptions”. Notwithstanding the foregoing, GRANTOR shall be obligated to remove and eliminate as exceptions to title to the Subject Property as of the Close of Escrow all monetary liens or encumbrances and all claims to fee title or leasehold or other possessory interests in the Subject Property.

9. Diligence Period
If CITY, in its sole discretion, for any reason or no reason at all, decides not to proceed with the close of escrow within seventy-five (75) days of the Effective Date (“Diligence Period”), CITY will have the right to terminate this Agreement by providing written notice to GRANTOR. Upon such termination, any sum paid for the Subject Property will be returned to CITY, and CITY will be responsible for all outstanding escrow costs as a result of entering into this Agreement.

10. Hazardous Wastes
To the best of GRANTOR’s knowledge: (i) the Subject Property is free of Hazardous Materials (defined below); (ii) there has been no storage, generation, disposal, release, discharge or treatment of any Hazardous Materials upon or in the Subject Property; (iii) there has been no actual or threatened storage, generation, disposal, release, discharge or treatment of an Hazardous Materials, on, from, or under the Subject Property which may have occurred prior to GRANTOR taking title to the Subject Property; (iv) no radon gas has been detected at the Subject Property ; and (v) the Subject Property has not been the subject of any federal, state or local government action or third party claim because of the release, threat of release, discharge, storage, treatment, generation, emission or disposal of any Hazardous Materials on, in or from the Subject Property. GRANTOR shall not, prior to Closing, bring or permit any Hazardous Materials to be brought onto the Subject Property. The term “Hazardous Materials” shall mean, without limitation, any material or substance which is defined as a “hazardous waste”, “hazardous substance”, or the like under the laws or regulations of the State of California or United States (collectively, “Environmental Laws”) including, but not limited to, any material or substance that is: (a) petroleum, oil, gas, or any direct or derivative product or byproduct thereof; (b) defined or listed as a hazardous waste, extremely hazardous waste or restricted hazardous waste under the Hazardous Waste Control Law (Health and Safety Code section 25100 et seq.); (c) defined as a hazardous substance under the Carpenter-Presley-Tanner Hazardous Substance Account Act (Health and Safety Code section 78000 et seq.); (d) defined as a hazardous material, hazardous substance, or hazardous waste under the Hazardous Materials Release Response Plans and Inventory (Health and Safety Code section 25500 et seq.); (e) defined as a hazardous substance under Underground Storage of Hazardous Substances (Health and Safety Code section 25280 et seq.); (f) used oil (Health and Safety Code section 25250.1; (g) asbestos; (h) material Packet Pg. 773
GRANTOR: HENSLEY INVESTMENT COMPANY, LLC A DELAWARE SERIES LIMITED

LIABILITY COMPANY, KIT FOX SERIES
PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION APN: 021-028-001, -002, -003, -030 and -032
defined as hazardous or extremely hazardous pursuant to Title 22 of the California Code of Regulations, Division 4.5, Chapter 10, Article 2; (i) material defined as waste or a hazardous substance pursuant to the Porter-Cologne Act (Water Code section 13020 et seq.); (j) material designated as a toxic pollutant pursuant to the Federal Water Pollution Control Act (33 U.S.C. section 1318); (k) material defined as a hazardous waste pursuant to the Federal Resource Conservation and Recovery Act, 42 U.S.C. section 6901 et seq.; (l) material defined as a hazardous substance pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, (42 U.S.C. section 9601 et seq.); (m) material defined as a hazardous material pursuant to the Hazardous Materials Transportation Act; or (n) material regulated by any other federal, state or local law, statute, ordinance code, rule, regulation, order or decree that is in effect and regulating, relating to, or imposing liability or standards of conduct concerning Hazardous Materials, oil wells, underground storage tanks or pipelines. Hazardous Materials include asbestos, petroleum products, and any other hazardous waste or substance which has, as of the date hereof, been determined to be hazardous or a pollutant by the U.S. Environmental Protection Agency, the U.S. Department of Transportation, or any instrumentality authorized to regulate substances in the environment which has jurisdiction over the Subject Property which substance causes the Subject Property (or any part thereof) to be in material violation of Environmental Laws.

The acquisition price of the Subject Property being acquired in this transaction reflects the fair market value of the Subject Property without the presence of contamination. If the Subject Property being acquired is found to be contaminated by the presence of hazardous material which
requires mitigation under Federal or State law, the CITY may later, after the close of escrow, elect to recover its clean-up costs from those who caused or contributed to the contamination, including from the GRANTOR.

11. Inspection of the Property
A. Tests. CITY and CITY’s authorized agents, contractors, employees, and designees (“CITY’s Agents”) will have the right during the Diligence Period to go upon the Property for the purpose of making such surveys, soil, engineering, geological, environmental and other tests, inspections, and measurements (the “Tests”). The Tests shall include inspections for Hazardous Substances. All Tests will be at the sole cost and expense of CITY. CITY shall provide GRANTOR with copies of all Tests. CITY will give reasonable advance notice to GRANTOR of any Tests that CITY or CITY’s Agents will perform. The notice will specify the nature of the Tests to be performed, the approximate date and time the Tests will be performed, and the person or entity performing the Tests. CITY will repair any damage to the Property caused by CITY’s inspection activities.

Packet Pg. 774
GRANTOR: HENSLEY INVESTMENT COMPANY, LLC A DELAWARE SERIES LIMITED

LIABILITY COMPANY, KIT FOX SERIES
PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION APN: 021-028-001, -002, -003, -030 and -032
GRANTOR will not be obligated to disclose to CITY any appraisal or opinions of the value of the Property, any of GRANTOR’s internal financial analyses, or materials relating to GRANTOR’s cost to acquire the Property. CITY acknowledges that the Property Documents are furnished to CITY solely as a courtesy. GRANTOR is not responsible for verifying the accuracy of any statements or other information contained in those documents. GRANTOR will retain and collect all originals or copies of the Property Documents.

12. Right of Possession and Use
It is agreed and confirmed by the parties notwithstanding other provisions in this Agreement, the right of possession and use of the Property Interest by the CITY, and/or its designees or assignees, including the right to remove and dispose of improvements, and install and connect utilities shall commence on the date the amount of the funds are deposited into the escrow controlling this transaction, and that amount shown in Section 3A herein includes, but is not limited to, full payment for such possession and use, including damages, if any, from said date.

13. Assignment
This Agreement may not be assigned by GRANTOR without CITY’s written consent, which may be withheld, conditioned, or delayed in CITY’s sole discretion. No assignment, however, shall release the original GRANTOR from its obligations under the Agreement. If this Agreement is assigned, the Agreement shall be binding on the assignee, its successors and assigns.

14. No Leases or Violations
GRANTOR warrants that there are no oral or written leases, rental agreements, or other contracts of any kind or nature affecting the Subject Property, and GRANTOR shall not enter into any contracts affecting the Subject Property during the term of this Agreement without the prior written consent of City. GRANTOR further agrees to hold CITY harmless and reimburse CITY for any and all of its losses and expenses occasioned by reason of any lease, rental agreement, or other contract of any kind or nature affecting the Subject Property.

GRANTOR has no actual knowledge of any violation of governmental laws, regulations, or orders relating to the Subject Property.

15. Quitclaim Deeds
If any lessee interests are identified in Section 15 herein, as a condition precedent to approval of this Agreement by the CITY, Quitclaim Deeds or similar releases sufficient to clear any possessory rights from the Subject Property will be required. GRANTOR agrees to assist CITY in securing said Quitclaim Deeds or releases.

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GRANTOR: HENSLEY INVESTMENT COMPANY, LLC A DELAWARE SERIES LIMITED

LIABILITY COMPANY, KIT FOX SERIES
PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION APN: 021-028-001, -002, -003, -030 and -032

16. Release of Claims and Full and Complete Settlement
GRANTOR acknowledges that, in accordance with applicable provisions of California law, GRANTOR may otherwise be entitled to the payment of relocation expenses, compensation for loss of business goodwill, just compensation, damages to improvements, improvements pertaining to the realty, severance damages, inverse condemnation, unlawful pre-condemnation conduct, and other benefits and claims other than those expressly provided for in this Agreement (collectively, “Claims”). GRANTOR, on behalf of itself and its heirs, executors, administrators, successors and assigns, acknowledges that CITY’s performance under this Agreement constitutes full and complete satisfaction of CITY’s obligations to GRANTOR as with respect to those Claims, except for possible compensation of loss goodwill as described in Section 25.

THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR

SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF

EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR

HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER
SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.”
GRANTOR acknowledges that with respect to the acquisition of the Subject Property by CITY, GRANTOR may have sustained damage, loss, costs or expenses which are presently unknown and unsuspected, and such damage, loss, costs or expenses which may have been sustained, may give rise to additional damage, loss, costs or expenses in the future. Nevertheless, GRANTOR hereby acknowledges, represents and warrants that this Agreement has been negotiated and agreed upon in light of that situation, and hereby waives, to the maximum legal extent, any rights accruing to it under Section 1542 or other statute or judicial decision of similar effect.

If this Agreement is terminated this Section 17 shall have no force and effect.

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GRANTOR: HENSLEY INVESTMENT COMPANY, LLC A DELAWARE SERIES LIMITED

LIABILITY COMPANY, KIT FOX SERIES
PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION APN: 021-028-001, -002, -003, -030 and -032

17. Notices.

To GRANTOR: Hensley Investment Company, LLC
895 Flower Street
Turlock, CA 95380
To CITY: City of Patterson
1 Plaza
P.O. Box 667
Patterson, CA 95363
Attention: City Manager
Email:

18. Approval of CITY
GRANTOR understands that this Agreement is subject to the approval of CITY. Further, that this Agreement shall have no force or effect unless and until said CITY approval has been obtained.

19. Authority to Sign
GRANTOR and the signatories represent and warrant that the signatories to this Agreement are authorized to enter into this Agreement to convey real property and that no other authorizations are required to implement this Agreement on behalf of GRANTOR.

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GRANTOR: HENSLEY INVESTMENT COMPANY, LLC A DELAWARE SERIES LIMITED

LIABILITY COMPANY, KIT FOX SERIES
PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION APN: 021-028-001, -002, -003, -030 and -032

20. Integrity of Property
Except as otherwise provided herein or by express written permission granted by CITY, GRANTOR shall not, after the date of execution of this Agreement and the close of escrow, alienate, lien, encumber or otherwise transfer the Subject Property or any portion thereof or allow the same to occur, cause or allow any physical changes on the Subject Property, or enter into any lease or contract with respect to the Subject Property or any portion thereof which would survive the close of escrow and impair CITY’s use of the Subject Property. GRANTOR shall maintain the Subject Property in its current condition and shall make, at GRANTOR’s expense, all repairs necessary to maintain the Subject Property in such condition. GRANTOR bears all risk of loss prior to the Close of Escrow. If, prior to the Close of Escrow, any portion of the Subject Property is materially damaged by any casualty (other than those attributable to CITY) and such damage is not repaired by GRANTOR or arrangements for the escrow of funds sufficient to pay for necessary repairs are not made prior to Close of Escrow, then CITY will have the option to terminate this Agreement by providing written notice to GRANTOR.

21. Survival.

22. Counterparts Signature
This Agreement may be executed in counterparts, each of which shall be an original, but all counterparts shall constitute one agreement. This Agreement may be signed and delivered using facsimile machines and electronic transmission. Any signed facsimile or electronic transmission of this Agreement shall constitute an original counterpart.

23. Specific Performance and Other Remedies
In the event of a breach of this Agreement by GRANTOR, CITY shall be entitled to pursue any and all remedies available to it against GRANTOR, including, without limitation, claims for all damages attributable to GRANTOR’s breach, and specific performance of this Agreement.

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GRANTOR: HENSLEY INVESTMENT COMPANY, LLC A DELAWARE SERIES LIMITED

LIABILITY COMPANY, KIT FOX SERIES
PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION APN: 021-028-001, -002, -003, -030 and -032

24. Title VI of the Civil Rights Act of 1964
The parties to this Agreement shall, pursuant to Section 21.7(a) of Title 49, Code of Federal Regulations, comply with all elements of Title VI of the Civil Rights Act of 1964. This requirement under Title VI and the Code of Federal Regulations is to complete the USDOT-NonDiscrimination Assurance requiring compliance with Title VI of the Civil Rights Act of 164, 49 C.F.R Part 21, and 28 C.F.R. Section 50.3.

25. Deferment of Claim for Loss of Goodwill
It is understood by the undersigned GRANTOR that the laws of the State of California permit the owner of a business located on property, all or a portion of which is to be acquired for a public improvement, to be compensated for the loss of goodwill to the business provided the owner of the business established that:
1) The loss is caused by the acquiring of the property or the injury to the remaining property. 2) The loss cannot reasonably be prevented by a relocation of the business or by taking steps and adopting procedures that a reasonably prudent person would take and adopt in preserving the goodwill.
3) Compensation for the loss will not be included in payment under Section 7262 of the Government Code. (Relocation Assistance Program.)
4) Compensation for the loss will not be duplicated in the compensation otherwise awarded to the owner. It is further understood and agreed that the undersigned GRANTOR, as required by State law, shall make the State tax returns of the business available for audit solely for the purpose of assisting and determining the amount of compensation to be paid for the loss of goodwill. It is understood that payment under Section 3(A) above does not include compensation for the loss of goodwill, if any.

It is further understood and agreed that compensation, if any, for the loss of goodwill shall be payable to the undersigned GRANTOR at a later date following the establishment of proof of such loss. Claims for such loss must be submitted to the CITY at 1 Plaza, P.O. Box 667, Patterson, CA 95363, Attn: City Manager, by June 30, 2028.

It is further understood and agreed that, if GRANTOR and the CITY cannot reach agreement on compensation, if any, for the loss of goodwill by June 20, 2029, the CITY shall file a declaratory relief action in superior court for the purpose of determining compensation, if any, for loss of GRANTOR’s business goodwill. It is understood that the sole issues to be determined in any declaratory relief action will be those contained in Code of Civil Procedure Section 1263.510 including the amount of compensation, if any, for GRANTOR’s loss of business goodwill and that no other issues will be raised by GRANTOR therein or in Packet Pg. 779
GRANTOR: HENSLEY INVESTMENT COMPANY, LLC A DELAWARE SERIES LIMITED

LIABILITY COMPANY, KIT FOX SERIES
PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION APN: 021-028-001, -002, -003, -030 and -032
preliminary proceedings thereto challenging the public use or necessity of the project, or the utilization therefor of GRANTOR’s property.

26. General Provisions
A. Recitals. The Recitals set forth above are hereby incorporated by this reference and made part of this Agreement. In the event of any conflict between the Recitals and Terms contained in this Agreement, the Terms will control.

B. Exhibits. All attached Exhibits are incorporated by reference and made a part of this Agreement.

E. Time is of the Essence. Time is of the essence with respect to the payments and undertakings required of the Parties.

G. Severability. If any provision of this Agreement is determined by a court to be invalid and unenforceable, or if any provision of this Agreement is rendered invalid or unenforceable under any federal or state law which becomes effective after the Effective Date, the remaining provisions shall continue in full force and effect and shall be interpreted to give effect to the purpose and intent of this Agreement. If, however, the Agreement is determined by a court to be invalid and unenforceable in its entirety, then the Agreement shall automatically terminate; provided that any obligations intended to survive a termination of this Agreement shall remain in effect to the extent otherwise permitted by law.

H. Attorney’s Fees; Venue. In the event any legal action or demand for arbitration is filed in relation to this Agreement, the unsuccessful Party in that proceeding shall pay to the successful Party the latter’s reasonable attorney’s fees in addition to any other relief recovered. Venue for legal proceedings shall be the Stanislaus County Superior Court, Packet Pg. 780
GRANTOR: HENSLEY INVESTMENT COMPANY, LLC A DELAWARE SERIES LIMITED

LIABILITY COMPANY, KIT FOX SERIES
PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION APN: 021-028-001, -002, -003, -030 and -032
and this Agreement shall be governed by and construed in accordance with the laws of the State of California.

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GRANTOR: HENSLEY INVESTMENT COMPANY, LLC A DELAWARE SERIES LIMITED

LIABILITY COMPANY, KIT FOX SERIES
PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION APN: 021-028-001, -002, -003, -030 and -032
IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first written herein below.

CITY:

CITY OF PATTERSON, A CALIFORNIA

MUNICIPAL CORPORATION
By:

Print Name
Title:__________________________
Date:__________________________
Approved as to form:

By:

Nubia Goldstein, City Attorney
Date:

GRANTOR:

HENSLEY INVESTMENT COMPANY,

LLC A DELAWARE SERIES LIMITED

LIABILITY COMPANY, KIT FOX
SERIES
By: _________________________________
Name:

Date:__________________________
By: _________________________________
Name:

Date:__________________________

NO OBLIGATION OTHER THAN SET FORTH HEREIN WILL BE RECOGNIZED Packet Pg. 782
GRANTOR: HENSLEY INVESTMENT COMPANY, LLC A DELAWARE SERIES LIMITED

LIABILITY COMPANY, KIT FOX SERIES
PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION APN: 021-028-001, -002, -003, -030 and -032
Exhibit 1 (Legal Description of Larger Parcel)
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GRANTOR: HENSLEY INVESTMENT COMPANY, LLC A DELAWARE SERIES LIMITED

LIABILITY COMPANY, KIT FOX SERIES
PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION APN: 021-028-001, -002, -003, -030 and -032
Exhibit 1 (Legal Description of Larger Parcel) CONT.

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GRANTOR: HENSLEY INVESTMENT COMPANY, LLC A DELAWARE SERIES LIMITED

LIABILITY COMPANY, KIT FOX SERIES
PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION APN: 021-028-001, -002, -003, -030 and -032
Exhibit A (Legal Description – Grant Deed)
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GRANTOR: HENSLEY INVESTMENT COMPANY, LLC A DELAWARE SERIES LIMITED

LIABILITY COMPANY, KIT FOX SERIES
PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION APN: 021-028-001, -002, -003, -030 and -032
Exhibit A-1 (Plat Map – Grant Deed)
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GRANTOR: HENSLEY INVESTMENT COMPANY, LLC A DELAWARE SERIES LIMITED

LIABILITY COMPANY, KIT FOX SERIES
PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION APN: 021-028-001, -002, -003, -030 and -032
Exhibit B (Legal Description – Temporary Construction Easement) Packet Pg. 787
GRANTOR: HENSLEY INVESTMENT COMPANY, LLC A DELAWARE SERIES LIMITED

LIABILITY COMPANY, KIT FOX SERIES
PROJECT NAME: ROGERS ROAD DELTA MENDOTA CANAL BRIDGE REHABILITATION APN: 021-028-001, -002, -003, -030 and -032
Exhibit B-1 (Plat Map – Temporary Construction Easement) Packet Pg. 788

CITY COUNCIL

AGENDA REPORT
TO: Mayor Clauzel and Members of the City Council
FROM: Fernando Ulloa, City Manager
BY: Jeff Hakola, Acting Fire Chief
MEETING DATE: May 19, 2026
ITEM NO: 6.7
SUBJECT: Approve Funding for New Fire Department Vehicle Purchase and Outfitting of Vehicle and authorize the Finance Department to make the necessary budget adjustments.

RECOMMENDATION
Motion to Approve Funding for New Fire Department Vehicle Purchase and Outfitting of Vehicle and authorize the Finance Department to make the necessary budget adjustments.

BACKGROUND
The Fire Department continues to experience increasing operational demands requiring reliable and properly equipped vehicles to support emergency response, administrative coordination, inspections, training, and incident management activities. The addition of a new vehicle to the fleet will improve operational efficiency, response readiness, and overall service delivery capabilities.

The proposed vehicle will be fully outfitted for Fire Department use, including emergency lighting, communications equipment, safety equipment, radios, graphics, and other necessary operational components. This vehicle will serve as an additional fleet resource to support current and future service demands associated with growth and development within the community.

Impact Fee Funds are intended to address the impacts of new development on public infrastructure and public safety services. The proposed vehicle addition is consistent with the intended use of those funds as it supports expanded service demands generated by community growth.

FISCAL IMPACT
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The total estimated project cost is $70,000 and will be funded through available Impact Fee Funds. No General Fund contribution is anticipated for this purchase.

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CITY COUNCIL

AGENDA REPORT
TO: Mayor Clauzel and Members of the City Council
FROM: Fernando Ulloa, City Manager
BY: Nubia Goldstein, City Attorney
MEETING DATE: May 19, 2026
ITEM NO: 6.8
SUBJECT: Adopt Resolution No. 2026-31 Authorizing the Appropriation and Transfer of Funds From the Affordable Housing In-Lieu Fee Fund.

RECOMMENDATION
Motion to Adopt Resolution No. 2026-31 Authorizing the Appropriation and Transfer of Funds From the Affordable Housing In-Lieu Fee Fund.

BACKGROUND & ANALYSIS
The Villages of Patterson development project began in 2006. The Villages Master Plan covers 692 acres located south of Eucalyptus Avenue, east of State Highway 33, west of Sycamore Avenue, and north of Walnut Avenue. Development of the Villages Master Plan stalled for a period of time, but development began progressing again around 2018.

The Villages Master Plan is subject to a Development Agreement executed in 2006, subsequently amended by Operating Memorandum in 2018 between the City and four (4) stakeholders developing various parcels of the Villages Master Plan, including most of Phase 1 between Olive Avenue and Walnut Avenue.

Self-Help Enterprises (“Self-Help”) is the developer of approximately 257 affordable units contemplated in the Villages Master Plan (known as the “Stonegate Shire” project), in the southwestern quadrant of the Villages Master Plan, as shown below. Self-Help recently began grading and development work for Phase 3, which includes approximately 79 units.

Packet Pg. 803
The Development Agreement provides certain affordable housing provisions to advance the objectives of the City’s Inclusionary Housing Ordinance (Chapter 18.86 of the Patterson Municipal Code). The Development Agreement provides for a “SHE Financing Fee,” which is to be assigned to the NET stakeholder if certain criteria are met. Such criteria includes if all of SHE’s units are in development before issuance of the 1,677th building permit within the Villages Master Plan.

NET is one of the original stakeholders that documented land write-downs and other costs and expenses to facilitate the Self-Help project, and who further receives reimbursement from other stakeholders and developers in the Villages Master Plan.

The City has previously authorized and transferred certain monies to Self-Help to advance development of the Self-Help units. A prior transfer in the amount $210,199.83 was made to SelfHelp in December 2024. Upon review, City staff determined that this transfer should have been made from the Affordable Housing In-Lieu Fund (“Affordable Housing Fund”) and not the SHE Financing Fee, which was established pursuant to the Development Agreement and is retained in the General Fund.

The attached resolution intends to rectify this error by appropriating and transferring such monies from the Affordable Housing Fund, so that the SHE Financing Fee can be properly administered in accordance with the provisions of the Development Agreement.

FISCAL IMPACT
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The Affordable Housing Fee Fund currently contains a total of $5,391,869.61, which the City Council is expected to budget in the future. The transfer from the Affordable Housing Fund in the amount of $210,199.83 would effectively approve the prior funding contribution to the Self-Help project retroactively, in order for City staff to continue administering the SHE Financing Fee and other associated reimbursement fees to NET in accordance with the Development Agreement.

ALTERNATIVE ACTIONS
The City Council’s options regarding the Resolution include:

1. Adopt the Resolution;

2. Continue the item to a later meeting of the City Council upon further clarification or direction to staff;

3. Reject the Resolution.

ATTACHMENTS

1. Resolution No. 2026-31
Packet Pg. 805
RESOLUTION NO. 2026-31

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PATTERSON

AUTHORIZING THE APPROPRIATION AND TRANSFER OF FUNDS FROM THE

AFFORDABLE HOUSING IN-LIEU FEE FUND
WHEREAS, on December 12, 2006, the City Council (“City Council”) of the City of Patterson (“City”) adopted Resolution 2006-122 approving a Combined Preliminary and Final Development Plan (“Villages Master Plan”) and other entitlements for the project known as the Villages of Patterson Project; and
WHEREAS, on December 19, 2006, City adopted Ordinance No. 681, which approved a Development Agreement that applies to properties within the Villages Master Plan. On October 15, 2018, the City approved an Operating Memorandum memorializing certain revisions to facilitate and update the 2006 Development Agreement (collectively, the “Development Agreement”); and
WHEREAS, Self-Help Enterprises (“SHE”) is developing approximately 257 affordable units (“Self-Help Project”) in the Villages Master Plan and has commenced development of Phase 3 of the entitled affordable units; and
WHEREAS, the Development Agreement provides for a “SHE Financing Fee” to be assigned to the “NET” stakeholder in accordance with the provisions of the Development Agreement, which is administered through the City’s General Fund; and WHEREAS, the City maintains an Affordable Housing In-Lieu Fee Fund (“Affordable Housing Fund”) established to collect fees paid by developers in lieu of providing required affordable housing units; and
WHEREAS, such fees are restricted for use for the production, preservation, and support of affordable housing consistent with applicable City ordinances and policies (Patterson Municipal Code, Chapter 18.86); and
WHEREAS, to assist with the development and financial feasibility of the SHE units, the City has previously authorized certain expenditure and transfer of monies to SHE for such affordable housing purposes, for which it determined that such expenditure and transfer would further the City’s affordable housing objectives; and
WHEREAS, City staff identified an accounting error in that such monies previously transferred to SHE in the amount of $210,199.83 should have been transferred from City’s Affordable Housing In-Lieu Fee Fund and not the General Fund; and WHEREAS, the City Council finds that the proposed use of funds is consistent with the purposes for which the Affordable Housing Fund was established, and that sufficient monies are Packet Pg. 806
available for the authorized appropriation and transfer without adversely affecting existing commitments and obligations.

NOW, THEREFORE, BE IT RESOLVED by the Patterson City Council as follows:

1. The City Council hereby approves and authorizes the appropriation of $210,199.83 from the Affordable Housing In-Lieu Fee Fund for the purpose of affordable housing development and gap financing in connection with development of the SHE units.

2. The Finance Director is hereby authorized and directed to transfer $210,199.83 from the Affordable Housing Fund (Fund No. 401) to the General Fund (Fund No. 100) for expenditure consistent with this resolution.

3. The City Manager is hereby authorized and directed to take all actions in accordance with the provisions of the Development Agreement, including but not limited to, provisions relating to assignment of the SHE Financing Fee to NET.

4. The Finance Director is authorized to make any necessary budgetary adjustments or administrative actions required to implement this Resolution in accordance with City financial policies and generally accepted accounting principles.

5. This Resolution shall take effect immediately upon adoption.

The foregoing resolution of the City Council of the City of Patterson was passed by the City Council at regular meeting held on the 19th day of May, 2026, by ____________________, who moved its adoption, which motion was duly seconded by ____________________, and the resolution adopted 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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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 19th day of May 2026, 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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CITY COUNCIL

AGENDA REPORT
TO: Mayor Clauzel and Members of the City Council
FROM: Fernando Ulloa, City Manager
BY: Kevin Williams, Finance Director
MEETING DATE: May 19, 2026
ITEM NO: 7.1
SUBJECT: Accept the City of Patterson’s 2024-25 Financial Audit Report, 2024-25 Single Audit Report, 2024-25 Transportation Development Act Funds Financial Audit Report, 2024-25 Abandoned Vehicle Abatement Program Financial Audit Report

RECOMMENDATION
Accept the City of Patterson’s 2024-25 Financial Audit Report, 2024-25 Single Audit Report, 2024-25 Transportation Development Act Funds Financial Audit Report, 2024-25 Abandoned Vehicle Abatement Program Financial Audit Report

BACKGROUND
The City of Patterson publishes financial statements presented in conformance with Generally Accepted Accounting Principles (GAAP). The financial statements were audited by the independent public accounting firm of The Pun Group, LLP, whose unmodified opinion is included within the financial section of the report. The unmodified opinion indicates that the financial statements present fairly the financial position of the City of Patterson as of June 30, 2025, and the results of operations, in accordance with generally accepted accounting principles.

As part of the audit, The Pun Group, LLP also reviewed and performed a test of the City’s internal accounting control procedures to determine if there are any material weaknesses or instances of non-compliance. Based on the audit, there is no instance of non-compliance.

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

The City of Patterson’s 2024-25 financial report, 2024-25 Single Audit Report, 2024-25 Packet Pg. 809
Abandoned Vehicle Abatement Program financial report and 2024-25 Transportation Development Act Funds financial report are available on the City’s website and are attached to this staff report.

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

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

As of June 30, 2025, the City’s governmental activities reported an ending net position of $125,168,157, an increase of 20.20% primarily due to an increase in operating grants and contributions and capital grants and contributions in the amounts of $3,073,549 and $4,477,228.

The General Fund is the chief operating fund of the City of Patterson. At the end of the current fiscal year, the committed, assigned and unassigned fund balance of the general fund was $22,091,531, while total fund balance was $23,129,530. The general fund’s ending fund balance decreased by $1.1 million compared to the prior year. As a measure of the General Fund’s liquidity, it may be useful to compare only the committed, assigned, and unassigned fund balance to total fund expenditures. Committed, assigned and unassigned fund balance represents 72.68% of the total general fund expenditures for the year, most of which is committed or assigned to meet future long-term obligations. The key factors in the increase of General Fund’s fund balance as follows:
• Overall, General Fund revenues (including transfers in) increased from last year by $3.8 million or 11% and expenditures (including transfers out) increased by $8.1 million or 27% over the prior year. Tax related revenue decreased by $1,491,086 due to a decrease in Sales Tax revenue of $1,959,397 from a one time sales tax correction that was received in FY24.

In addition however, increases in property tax of $543,900 were received as City residential and commercial real estate construction completed in FY 2025. Intergovernmental grants experienced an overall increase of $2,197,867 due to one-time funding received in FY 2025. In addition, license permit and fees increased by $346,199 in fiscal year 2025. • The overall increase in expenditures in the amount of $8.1 million can be attributed mostly to transfers out. FY2025 was the year in which any funds with a deficit were brought out of deficit. Most notably, CFD 2003-1 had operated at a deficit for multiple years and required a substantial General Fund subsidy.

As of the end of the current fiscal year, the City of Patterson’s governmental funds reported combined ending fund balances of $128,912,863, an increase of $13,181,138 in comparison with the prior year. The City’s governmental funds ending fund balances of $39,652,448 or 31% constitute committed, assigned and unassigned fund balance, which is available for spending at the government’s discretion within the guidelines of the funding sources. The remainder of the fund balance of $89,260,415 is either non-spendable or restricted for purposes imposed by creditors, grantors, contributors, laws, or regulations of other governments or through enabling legislation.

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Garbage funds. As of June 30, 2025, the City’s total ending net position of $55,350,154 an increase of 16.47% primarily due to a an increase in capital grants and contributions in the amount of $3,291,701 as well as annual rate increases of 2% for Water and 6% for Sewer that took effect in July of 2024 and January of 2025, respectively.

Water operating revenue increased by $1,293,327 and expenses increased by $503,125 in fiscal year 2025, resulting in operating income of $2.3 million. Revenue increased primarily due to the implementation of the new water rates in January 2025.

Sewer operating revenue increased by $640,658 and expenses increased by $497,014 in fiscal year 2025. The increase in operating revenue is primarily related to the 6% sewer rate increase in July 2024.

Garbage operating revenue increased by $47,016 in fiscal year 2025. The increase was due to an increase in the number of customers. Garbage expenses decreased by $16,395 primarily due to vacant positions throughout the year.

The unrestricted net position of the Enterprise Funds at the end of the year ended at a surplus of $898,415, an increase of $4,837,527 from the prior year. This change is primarily the result of an increase in revenue from planned rate increases, increased investment income, and the savings of salary from vacant positions.

FISCAL IMPACT
Acceptance of these reports does not affect the City’s budget or its financial condition. The report merely reflects an audit of the City’s financial records at June 30, 2025.

ATTACHMENT

1. City of Patterson’s FY 2024-25 Financial Audit Report

2. City of Patterson’s FY 2024-25 Single Audit Report

3. City of Patterson’s FY 2024-25 Transportation Development Act Funds Financial Report

4. City of Patterson’s FY 2024-25 Abandoned Vehicle Abatement Program Financial Audit Report

5. Presentation
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ANNUAL COMPREHENSIVE

FINANCIAL REPORT

FOR THE YEAR ENDED
JUNE 30, 2025

CITY OF PATTERSON,

CALIFORNIA

FOR THE YEAR ENDED
JUNE 30, 2025
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ANNUAL COMPREHENSIVE

FINANCIAL REPORT

FOR THE FISCAL YEAR ENDED
JUNE 30, 2025

CITY OF PATTERSON, CALIFORNIA

CITY OF PATTERSON

PREPARED AND ISSUED BY

PATTERSON FINANCE

DEPARTMENT
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City of Patterson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
Page
INTRODUCTORY SECTION (Unaudited)
Letter of Transmittal ....................................................................................................................................................... i Principal Officials .......................................................................................................................................................... v Organizational Chart ..................................................................................................................................................... vi GFOA Certificate of Achievement .............................................................................................................................. vii

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

Government-Wide Financial Statements:

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

Governmental Fund Financial Statements:

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

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

Statement of Fiduciary Net Position ......................................................................................................... 41 Statement of Changes in Fiduciary Net Position ...................................................................................... 42 Notes to the Basic Financial Statements ............................................................................................................. 47 Packet Pg. 814
City of Patterson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents (Continued)
Page
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule:

General Fund ................................................................................................................................................... 101 CFD 2003-1 Public Safety/Fire Protection Special Revenue Fund ................................................................. 102 Notes to the Budgetary Comparison Schedule ..................................................................................................... 103 Schedule of Proportionate Share of the Net Pension Liability ............................................................................... 104 Schedules of Plan Contributions – Pension ........................................................................................................... 106 Schedule of Changes in Net OPEB Liability and Related Ratios .......................................................................... 108 Schedule of Plan Contributions – OPEB ............................................................................................................... 109 Supplementary Information:

Nonmajor Special Revenue Funds:

Combining Balance Sheet ............................................................................................................................... 115 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ....................................... 123 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:

Debt Service Fund:

Patterson Public Financing Authority Debt Service Fund ........................................................................ 131 Special Revenue Funds:

Landscape Maintenance District Special Revenue Fund .......................................................................... 132 Benefit Assessment Districts Special Revenue Fund ................................................................................ 133 CSA #15 Assessment District Special Revenue Fund .............................................................................. 134 CFD 2001-01 Patterson Gardens Public Safety Special Revenue Fund ................................................... 135 Beautification Committee Special Revenue Fund .................................................................................... 136 State HCD Rehab Program Special Revenue Fund .................................................................................. 137 Federal CDBG Grant Special Revenue Fund ............................................................................................ 138 First Time Home Buyers Special Revenue Fund ...................................................................................... 139 Federal HOME Special Revenue Fund ..................................................................................................... 140 Neighborhood Stabilization Program Special Revenue Fund ................................................................... 141 Gas Tax Special Revenue Fund ................................................................................................................ 142 Local Transportation Special Revenue Fund ............................................................................................ 143 Local Transportation Non-Motorized Special Revenue Fund .................................................................. 144 Street Project Special Revenue Fund ........................................................................................................ 145 Measure L Special Revenue Fund ............................................................................................................ 146 Developer Housing In-Lieu Fee Special Revenue Fund ........................................................................... 147 Police Asset Forfeiture Special Revenue Fund ......................................................................................... 148 Westside Drainage Study Special Revenue Fund ..................................................................................... 149 CFD 2013-1 Special Revenue Fund .......................................................................................................... 150 CFD 2015-2 Public Safety Special Revenue Fund ................................................................................... 151 CFD 2018-2 VOP Maintenance Special Revenue Fund ........................................................................... 152 CFD 2022 Public Safety Special Revenue Fund ....................................................................................... 153 Packet Pg. 815
City of Patterson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents (Continued)
Page
FINANCIAL SECTION (Continued)
Supplementary Information (Continued)
Custodial Funds:

Combining Statement of Fiduciary Net Position – Custodial Funds ............................................................... 156 Combining Statement of Changes in Fiduciary Net Position – Custodial Funds ............................................ 158 STATISTICAL SECTION (Unaudited)
Description of Statistical Section Contents .................................................................................................................. 163 Financial Trends:

Net Position by Classification – Last Ten Fiscal Years ......................................................................................... 164 Changes in Net Position – Last Ten Fiscal Years .................................................................................................. 166 Fund Balance, Governmental Funds – Last Ten Fiscal Years ............................................................................... 170 Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years ......................................................... 172 Revenue Capacity:

Tax Revenues by Source – Last Ten Fiscal Years ................................................................................................. 174 Water Sold by Customer Type – Last Six Fiscal Years ......................................................................................... 176 Water and Wastewater Utility Rates – Last Ten Fiscal Years ............................................................................... 177 City-Wide Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ............... 178 Taxable Property by Use Code, City-Wide – Last Nine Fiscal Years ................................................................... 180 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years ................................................................... 182 Principal Property Tax Payers – Last Fiscal Year and Nine Years Ago ................................................................ 183 Principal Sales Tax Producers – Last Fiscal Year and Nine Years Ago ................................................................ 185 Historical Sales Tax Amounts by Benchmark Year – Last Ten Fiscal Years ........................................................ 186 Debt Capacity:

Ratio of Outstanding Debt by Type – Last Ten Fiscal Years ................................................................................ 188 Direct and Overlapping Governmental Activities Debt ......................................................................................... 189 Demographic and Economic Information:

Demographic and Economic Statistics – Last Ten Fiscal Years ............................................................................ 190 Principal Employers – Last Fiscal Year and Seven Years Ago ............................................................................. 191 Operating Information:

Full-Time Equivalent City Government Employees
By Function/Program/Department – Last Eight Fiscal Years .......................................................................... 192 Packet Pg. 816
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City of Patterson
1 Plaza
P.O. Box 667
Patterson, California 95363
Phone (209) 895-8000
i
February 20, 2026
To the Honorable Mayor,
Members of the City Council, and the
Citizens of City of Patterson, California
We are pleased to present the City of Patterson’s (the “City”) Annual Comprehensive Financial Report (“ACFR”) for the year ended June 30, 2025. The information in this ACFR is prepared in accordance with Accounting Principles Generally Accepted in the United States of America (“GAAP”) and included an unmodified opinion on the report by the City’s independent certified accountants. Although we rely on the standards and expertise of these external auditors, the responsibility for the accuracy and fairness of this report rests with the City.

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

CITY PROFILE
The City was incorporated in 1919 and is located in Stanislaus County, on Highway 33, along the Interstate 5 corridor, and is approximately 280 miles north of Los Angeles, 92 miles south of Sacramento, 89 miles southeast of San Francisco, and 45 miles southeast of Livermore. The City has a permanent staffing level of 156 City employees and serves approximately 24,370 residents in a land area of 6.0 square miles.

The City operates utilizing the Council-Manager form of government. The Mayor and four Council members are elected for staggered two-year and four-year terms, respectively, to govern the City. The City recently went to District elections for Council members. The Mayor's seat is still an at-large election.

The City Council is responsible for establishing policies, adopting the annual budget, appointing commissions and committees, and hiring the City Manager and City Attorney. The City Manager is responsible for implementing the Council’s policies, overseeing the day-to-day operations of the City, and appointing the directors of the various City departments.

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

General Government (Administration) includes staff and activities associated with the City Council, City Manager, City Clerk, City Attorney, Human Resources, Risk Management, Finance, Public Information Officer, Code Enforcement, and Information Technology.

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

Community Development includes Economic Development, Housing, Building and Planning.

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ii
Engineering includes Capital Projects, and Engineering Services.

Public Works includes Wastewater, Garbage, Water, Streets and Park Maintenance, and other facility maintenance.

Recreation and Community Services include Senior Center and Programs, Youth Programs and Sports, Adult Programs and Sports, Aquatics, and Special Events.

ECONOMIC CONDITION AND OUTLOOK
During FY 2024-25, the City continued to experience measured economic growth supported by ongoing residential development, steady commercial interest, and continued investment in public infrastructure and services. The city remains focused on fostering a balanced mix of housing, employment opportunities, and community-serving amenities that support long-term fiscal stability and quality of life for residents.

Commercial activity in the City remained active throughout the fiscal year, with continued interest in retail, service, and industrial uses, including logistics-oriented development within the City’s business parks. These activities reflect Patterson’s strategic regional location and contribute to employment opportunities and economic diversification. While shifts in consumer behavior toward online purchasing continue to affect traditional point-of-sale sales tax collections, the city continues to benefit from a diversified revenue structure, including Measure L, SB 1 transportation funding, and a broad mix of commercial activity.

Residential development continued during the fiscal year, with multiple subdivisions under construction or in active phase of build-out. This residential growth supports population increases, contributes to development-related revenues, and helps meet regional housing demand. The city continues to advance long-range housing planning efforts to accommodate future growth in a manner consistent with community priorities and state requirements.

In November 2024, the City Council adopted a five-year Strategic Plan that establishes clear priorities to guide policy decisions, budgeting, and the allocation of resources. The Strategic Plan serves as a framework for aligning the City’s operating and capital budgets with long-term objectives, ensuring that investments in infrastructure, public services, and community programs are fiscally sustainable and responsive to community needs.

The City’s enterprise operations remain financially stable. Water, sewer, and solid waste rates adopted in recent years are structured to support ongoing operations, capital maintenance, and infrastructure reinvestment. Periodic rate adjustments may be necessary in future years to ensure continued service reliability and long-term sustainability.

The City’s adopted budget for FY 2024-25 reflects a continued commitment to maintaining service levels, investing in capital improvement projects supported by grants and development fees, and sustaining public safety staffing. The city also continues to leverage external funding sources to support infrastructure improvements and community enhancement initiatives.

Overall, the City’s economic outlook remains stable. While broader economic conditions and evolving sales tax structures may introduce variability in certain revenue streams, the City’s conservative fiscal practices, diversified revenues, and continued development activity position it to manage these changes while maintaining financial resilience.

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

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

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

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

MAJOR INITIATIVES AND PROJECTS
As part of the budget preparation process, the City Council articulates goals and objectives for the next year and evaluates the progress made on the goals established as part of the previous budget. The following represent some of the most significant goals established for Fiscal Years 2024-2025 budget process:
 Continued advancement of the City’s Strategic Plan, including ongoing efforts to align operations and resources with long-term community objectives.
 Completion of the Citywide Information Technology Master Plan, initiated in FY2025 and is expected to be finalized in FY2026, which identified system deficiencies, redundancies, and opportunities to improve both internal and external service efficiencies.  Expansion of recreational amenities, including the development of additional baseball fields at the Sports Park and upgrades to aging facilities such as Garza Park, South Park and the Sports Park.
 Progress toward implementation of the Downtown Master Plan, supported by the receipt of a design award that positions the City to leverage additional grant and funding opportunities.  Extension of grant programs for downtown businesses, aimed at improving storefront facades and supporting local economic revitalization efforts.
 Ongoing pursuit of grant funding for infrastructure, public facilities, and community enhancement projects that continue to support sustainable growth and long-term community investment.

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CITY OF PATTERSON
Annual Comprehensive Financial Report

FISCAL YEAR
2024 – 2025
City Council
MAYOR
Michael Clauzel

COUNCIL MEMBERS
Shivaugn Alves, District A
Jessica Romero, District B
Dominic Farinha, District C
Carlos Roque, District D
Executive Staff
Fernando Ulloa, City Manager
Aracely Alegre, City Clerk
Casey Hill, Chief of Police
Jeffrey Frye, Chief of Fire
Marie R, Guillory-Jones , Director of Human Resource
Michael Willett, Director of Public Works
Tiffany Rodriguez, Director of Engineering, Building & Capital Projects Kevin Williams, Director of Finance
Ashley Weaver, Recreation & Community Services Director Bryan Stice, Community Development Director
Nubia Goldstein, City Attorney
Mayra Mandujano, Deputy City Attorney
v
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Citizens
City Council
City Manager City Attorney
Fire
Boards and
Commissions
Administration Public Works & Parks Engineering Services Community Development Recreation Police
Human
Resources
Finance
Information
Systems
Organizational Chart
City Clerk
vi
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Patterson
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2024
Executive Director/CEO
vii
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2121 North California Blvd., Suite 290
Walnut Creek, California 94596
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members
of the City Council of the City of Patterson
Patterson, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Patterson, California (the “City”), as of and for the year ended June 30, 2025, and the related notes to the basic financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2025, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of a Matter
Change in Accounting Principle
As discussed in Note 19 to the financial statements, the City implemented Governmental Accounting Standards Board (“GASB”) Statement No. 101, Compensated Absences, effective July 1, 2024. The implementation of this standard required the City to change its method of accounting for compensated absences and resulted in a restatement of beginning net position as of July 1, 2024. Our opinion is not modified with respect to this matter.

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

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

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, we
 exercise professional judgment and maintain professional skepticism throughout the audit.  identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.  evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

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

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

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The Combining and Individual Fund Financial Statements and Budgetary Comparison Schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements.

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

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the Introductory and Statistical Sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

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

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4 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 20, 2026, on our consideration of City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.

Walnut Creek, California
February 20, 2026
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City of Patterson
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2025
5 As management of the City of Patterson, California, (City) we offer readers of the City of Patterson’s Annual Comprehensive Financial Report this narrative overview and analysis of the financial performance of the City for the year ended June 30, 2025. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found in the introductory section of this report, and with the City’s Annual Comprehensive Financial Report, which follows this discussion.

Financial Highlights
 Changes in Net Position: The government’s total net position increased by 19.30% or $28,858,898 from the prior year. Governmental activities increased by $21,031,133 and business-type activities increased by $7,827,765 at the end of the fiscal year. The increase in total net position is primarily due to an increase in Charges for service, Operating Grants, Capital Grants, Investment earnings, while surpassing an increase in expenditures that led to a positive change in Net Position.  Governmental Activities: As of June 30, 2025, the City’s governmental activities reported an ending net position of $125,168,157, an increase of 20.20% primarily due to an increase in operating grants and contributions and capital grants and contributions in the amounts of $3,073,549 and $4,477,228.  Business-Type Activities: As of June 30, 2025, the City’s total ending net position of $55,350,154, an increase of 16.47% primarily due to a an increase in capital grants and contributions in the amount of $3,291,701 as well as annual rate increases of 2% for Water and 6% for Sewer that took effect in July of 2024 and January of 2025, respectively.
 General Fund: As of June 30, 2025, committed, assigned and unassigned fund balances of the general fund were $22,091,531. Of these funds $15,491,052 is committed or assigned for specific purposes in accordance with City policies and budgetary guidelines. The remaining balance of $6,600,479 is unassigned.

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

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

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

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

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City of Patterson
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
6 Both government-wide financial statements distinguish functions of the City of Patterson that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City of Patterson include general government, public safety, community development, public works and parks and recreation.

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

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

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

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

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

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

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

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

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

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

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

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City of Patterson
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
7 Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City of Patterson’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The fiduciary fund financial statement can be found on page 41– 42 of this report.

Notes to the basic financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the basic financial statements can be found on pages 47 – 97 of this report.

Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City of Patterson’s General Fund budgetary comparison schedule, pension and changes in net pension liabilities and related ratio schedules, pension contribution schedules, and other post-employment funding progress schedule. Required supplementary information can be found on pages 101 – 109 of this report.

The combining statements referred to earlier in connection with other governmental funds and agency funds are presented immediately following the required supplementary information. Combining and individual fund statements and schedules can be found on pages 115 – 153 of this report.

Government-wide Financial Analysis
As noted earlier, net positions may serve over time as a useful indicator of a government’s financial position. In the case of the City of Patterson, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $180,518,311 at June 30, 2025.

By far, the largest portion of the City of Patterson’s net position is its net investment in capital assets (i.e., land, buildings, improvements other than buildings, machinery and equipment, infrastructure, and construction in progress) as it represents $118,443,520 or 65.6% of the total net position. The City of Patterson uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City of Patterson’s investment in its capital assets are reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities. 2025 2024 2025 2024 2025 2024
Current and other assets $ 145,024,611 $ 129,386,816 $ 26,325,740 $ 19,882,001 $ 171,350,351 $ 149,268,817 Capital assets 76,772,972 72,638,447 63,291,803 60,439,184 140,064,775 133,077,631 Total assets 221,797,583 202,025,263 89,617,543 80,321,185 311,415,126 282,346,448 Deferred outflows of resources 6,222,046 6,427,990 2,709,907 2,914,011 8,931,953 9,342,001 Long-term liabilities 79,568,597 81,707,182 31,255,117 29,997,064 110,823,714 111,704,246 Other liabilities 18,766,491 17,444,765 3,067,675 2,760,569 21,834,166 20,205,334 Total liabilities 98,335,088 99,151,947 34,322,792 32,757,633 132,657,880 131,909,580 Deferred inflows of resources 4,516,384 5,164,282 2,654,504 2,955,174 7,170,888 8,119,456 Net Position:

Net investment in capital assets 71,809,745 67,129,360 46,633,775 48,241,694 118,443,520 115,371,054 Restricted 38,458,402 28,261,493 7,817,964 3,219,807 46,276,366 31,481,300 Unrestricted 14,900,010 8,746,171 898,415 (3,939,112) 15,798,425 4,807,059 Total net position $ 125,168,157 $ 104,137,024 $ 55,350,154 $ 47,522,389 $ 180,518,311 $ 151,659,413 Net Position
Governmental Activities Business-type Activities Total
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City of Patterson
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
8 A portion of the City of Patterson’s net position totaling $46,276,366 or 25.64%, represents resources that are subject to external restrictions on how they may be used. The remaining balance of $15,798,425 is unrestricted and may be used to meet the government’s ongoing obligation to citizens and creditors but is subject to designation for specific City programs.

At the end of the current fiscal year, the City of Patterson is able to report positive balances in all categories of net position for governmental activities and business-type activities.

Additional information on the change in net position can be found on page 20 – 21 of this report. 2025 2024 2025 2024 2025 2024
Revenues:

Program revenues:

Charges for services 11,305,383 $ 10,934,845 $ 20,573,731 $ 18,570,675 $ 31,879,114 $ 29,505,520 $ Operating grants and contributions 8,635,246 5,561,697 - - 8,635,246 5,561,697 Capital grants and contributions 8,926,451 4,449,223 4,267,115 975,414 13,193,566 5,424,637 Total program revenues 20,945,765 28,867,080 24,840,846 19,546,089 53,707,926 40,491,854 General revenues:

Taxes 21,713,416 23,204,502 - - 21,713,416 23,204,502
Investment earnings 6,050,686 4,647,090 952,560 797,750 7,003,246 5,444,840 Other and transfers 4,786,259 5,951,681 1,304,056 (2,527,856) 6,090,315 3,423,825 Total general revenues 33,803,273 32,550,361 2,256,616 (1,730,106) 34,806,977 32,073,167 Total revenues 54,749,038 61,417,441 27,097,462 17,815,983 88,514,903 72,565,021 Expenses:

General government 7,749,472 11,528,038 - - 11,528,038 7,749,472 Police 4,923,683 7,117,215 - 4,923,683 - 7,117,215
Fire 7,203,828 7,115,407 - 7,203,828 - 7,115,407
Community development and planning 2,401,299 2,314,006 - 2,401,299 - 2,314,006 Public works 7,445,875 6,537,838 - 7,445,875 - 6,537,838 Parks and recreation 4,079,397 4,312,372 - 4,079,397 - 4,312,372 Interest and fiscal charges 2,804,188 3,611,271 - 2,804,188 - 3,611,271 Water - - 7,124,980 6,643,380 7,124,980 6,643,380
Sewer - - 7,964,893 7,518,474 7,964,893 7,518,474
Garbage - - 4,179,824 4,116,413 4,179,824 4,116,413
Total expenses 38,757,581 40,386,308 19,269,697 18,278,267 59,656,005 57,035,848 Changes in net position $ 15,991,457 21,031,133 $ 7,827,765 $ (462,284) $ 28,858,898 $ 15,529,173 $ Net Position:

Beginning of year 88,145,567 104,137,024 47,522,389 47,984,673 151,659,413 136,130,240 End of year $ 104,137,024 125,168,157 $ 55,350,154 $ 47,522,389 $ 180,518,311 $ 151,659,413 $ Changes in Net Position
Governmental Activities Business-type Activities Total
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City of Patterson
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
9 Governmental activities. Overall, governmental revenues increased by $7.9 million or 38% from the prior year. Key elements of the change are as follows:
 Total taxes decreased by $1.4 million or 6% due to a decrease in sales tax by $1,959,397 and an increase in property tax by $543,900. The number of residential and commercial developments completed in FY2025 have increased and triggered the increase in property tax. The sales tax decrease was the normalization of sales tax revenue after the State of California paid out a sizeable correction in FY2024.  Charges for services increased incrementally by $370 thousand due to an increase in participation in activities where fees are charged.
 Operating grants and contributions increased by $3 million primarily due to one-time funding received during the year.
 Capital grants and contributions increased by $4.4 million primarily due to an increase in capital contributions related to donated infrastructure.
 Other and transfer revenues decreased by $1.1 million primarily due to a decrease in transfers in related to the implementation of the City’s cost allocation plan.

Overall, expenses in the governmental activities increased by $1,628,727 or 4.20% compared to the prior year.

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

Business-type activities. Overall, business-type revenues increased by $5,294,757 or 27% from the prior year. Key elements of the change are as follows:

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City of Patterson
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
10 Financial Analysis of the Government’s Funds
As noted earlier, the City of Patterson uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

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

CFD 2003-1 Public Safety/Fire Protection Services Special Revenue Fund The CFD 2003-1 Public Safety/Fire Protection Services Special Revenue Fund had revenues of $1,785,052, expenditures of $3,206,440, and transfers in of $7,455,787. The ending fund balance increase from ($4,259,196) at June 30, 2024 to $1,775,203 at June 30, 2025. The amount transferred in was from the General Fund to cover operating deficits over the life of the fund.

Patterson Public Financing Authority Debt Service Fund
The Patterson Public Financing Authority Debt Service Fund had revenues of $4,705,952, expenditures of $5,216,308, and transfers out of $284,353. The ending fund balance decreased from $61,677,567 at June 30, 2024 to $60,882,858 at June 30, 2025. The decrease in fund balance comes from the extinguishment of debt.

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

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City of Patterson
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
11 General Fund Financial Highlights
The General Fund is the chief operating fund of the City of Patterson. At the end of the current fiscal year, the committed, assigned and unassigned fund balance of the general fund was $22,091,531, while total fund balance was $23,129,530. The general fund’s ending fund balance decreased by $1.1 million compared to the prior year. As a measure of the General Fund’s liquidity, it may be useful to compare only the committed, assigned, and unassigned fund balance to total fund expenditures. Committed, assigned and unassigned fund balance represents 72.68% of the total general fund expenditures for the year, most of which is committed or assigned to meet future long-term obligations. The key factors in the increase of General Fund’s fund balance as follows:
• Overall, General Fund revenues (including transfers in) increased from last year by $3.8 million or 11% and expenditures (including transfers out) increased by $8.1 million or 27% over the prior year. Tax related revenue decreased by $1,491,086 due to a decrease in Sales Tax revenue of $1,959,397 from a one time sales tax correction that was received in FY24. In addition however, increases in property tax of $543,900 were received as City residential and commercial real estate construction completed in FY 2025. Intergovernmental grants experienced an overall increase of $2,197,867 due to one-time funding received in FY 2025. In addition, license permit and fees increased by $346,199 in fiscal year 2025. • The overall increase in expenditures in the amount of $8.1 million can be attributed mostly to transfers out.

FY2025 was the year in which any funds with a deficit were brought out of deficit. Most notably, CFD 2003-1 had operated at a deficit for multiple years and required a substantial General Fund subsidy.

General Fund Budgetary Highlights
For the fiscal year ended June 30, 2025, the General Fund’s revenue final amended budget increased over the original budget by $503,539 and actual revenue increased by $6,274,349 from the final amended budget of $26,360,199. The final amended expenditure budget increased by $5,475,405 over the original budget and the actual expenditures were $6,079,526 lower than the final amended budget. The related activities are summarized as follows:
 The actual revenue was higher than the final budget mainly due to more federal grant revenue, sales tax revenue, interest income, and charges for services related to new development.  The expenditure final budget was higher than the original budget by $5,607,897 due to Council approved budget increases primarily for capital outlay.
 General fund actual expenditure is lower than the final budget by $6 million primarily due to salary savings on vacant positions and the delay of capital outlay expenditures that will carry forward to FY2025-26.

Capital Asset and Long-Term Liabilities Administration
Capital assets. The City of Patterson’s total assets for its governmental and business-type activities as of June 30, 2025, amounts to $140,064,775 an increase of $6.9 million or 5.2% of total capital assets over the prior year. This investment in capital assets includes land, buildings, improvements, machinery and equipment, park facilities, and streets.

Additional information on the City of Patterson’s capital assets can be found in Note 7 to the basic financial statements. 2025 2024 2025 2024 2025 2024
Land $ 6,653,657 $ 5,459,235 $ 7,455,922 $ 7,455,922 $ 14,109,579 $ 12,915,157 Construction in progress 9,370,920 6,315,503 6,206,124 8,673,915 15,577,044 14,989,418 Depreciable/amortizable capital assets, net 60,748,395 60,863,709 49,629,757 44,309,347 110,378,152 105,173,056 Total assets 76,772,972 72,638,447 63,291,803 60,439,184 140,064,775 133,077,631 Capital Assets (Net of depreciation and amortization)
Governmental Activities Business-type Activities Total
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City of Patterson
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
12 Long-Term Liabilities. At the end of the current fiscal year, the City of Patterson’s total long-term debt and compensated absences outstanding decreased by $2,186,734. This decrease is mainly attributable to the normal payment of debt as prescribed.

Additional information on the City of Patterson’s long-term debt can be found in Note 8 and Note 9 to the basic financial statements.
2025 2024
Governmental Activities:

PPFA 2013 Heartland Ranch Revenue Bonds 641,013 $ $ 914,788 PPFA 2023 Series A Sp. Tax Revenue Bonds 52,185,000 54,360,000 Less: Bond Premium 6,176,658 6,397,253
2019 Lease Revenue Bonds 1,449,708 1,604,451
Finance purchase agreements 3,212,855 3,517,975
Lease liability 237,700 365,973
Subscription liability 35,169 4,519
Keystone Corporation Settlement 364,000 364,000
Settlement payable 1,333,355 1,333,355
Compensated Absences 1,741,214 1,717,718
Total governmental activities $ 67,376,672 $ 70,580,032 Business-type Activities:

Water Fund:
2021 State Revolving Fund Loan $ 3,922,423 $ 1,975,932
2019A Water Revenue Bonds 8,820,000 8,895,000
Add: Bond Premium 478,407 497,934
2019B Water Revenue Refunding Bonds 5,380,000 5,660,000 Add: Bond Premium 705,739 734,254
Compensated Absences 306,679 353,284
Total water fund 19,613,248 18,116,404
Sewer Fund:
2017 Sewer Refunding Revenue Bonds 2,349,700 2,478,400
2008 State Revolving Fund loan 262,549 311,135
2021 State Revolving Fund loan 1,497,244 1,397,532
Banc of America loan 1,014,647 1,128,267
CEC loan 736,395 942,116
Patterson Ranch Development Settlement 1,123,211 1,123,211 Compensated Absences 351,762 420,258
Total sewer fund 7,335,508 7,800,919
Garbage Fund:

Compensated Absences 103,015 117,822
Total garbage fund 117,822 103,015
Total business-type activities $ 27,051,771 $ 26,035,145 Packet Pg. 837
City of Patterson
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
13 Economic Condition, Outlook, and Activity
The City has continued to see economic growth over the last several years and remains focused on several new businesses interested in the City of Patterson. Factors that will impact our economic strength are the online sales which, in some instances, do not provide the city with a “point-of-sale” taxable nexus. Patterson benefits from a more diverse revenue structure including Measure L, SB1 revenue, and new businesses such as the Oak Harbor Freight Lines, Safavieh Distributors, Dutch Bros, and other interested business.

The City’s water and sewer 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. Additionally, new Garbage rates were approved in the year ended June 30, 2025, and went into effect on July 1, 2025.

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.

Next Year’s Budget
The following factors were taken into consideration during the preparation of the City’s budget for the fiscal year 2025- 2026.
• The annual inflation rate as measured by the consumer price index (CPI), increased 1.3 percent for the 12 months ending April 2025 for all items. The City anticipated additional price increases for the goods and services it needs to acquire.
• The expected increase in commercial and residential developments will contribute to increases in major revenue sources such as building permits and property tax. Sales tax was expected to only increase slightly. • The availability of both Federal/State grants and State Revolving Fund Loan (SRF). • The remaining American Rescue Plan Act spending will help the City to respond, rebuild and recover from the pandemic. Focusing on economic recovery, stabilizing the government, and uplifting our communities. All American Rescue Plan Act has been allocated, and the City will ensure that all program funds are expended by the due date.
• California’s minimum wage will increase to $16.90 per hour for all employers on January 1, 2026, which is up $0.40 from the 2025 rate of $16.50.
• The accumulation of Measure L revenue provides the funding source for the street capital projects that are being carefully planned to begin upon completion of various underground capital pipeline projects. • During the Water rate study, the City incorporated the 5-year long range capital improvement plan. The City will begin WM-6B replacement of water mains and service lines on the southside of the old town, WM-6A replacement of water mains and service lines in the downtown commercial area projects to enhance and improve the quality of our community’s sewer infrastructure, and continue with WM-19B Water Meter replacement project of changing out 6,500 meters and 1,000 meter boxes which is nearly complete.

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

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BASIC FINANCIAL STATEMENTS
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GOVERNMENT-WIDE FINANCIAL STATEMENTS
17 Packet Pg. 842
Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:

Cash and investments 72,839,034 $ 15,075,375 $ 87,914,409 $ Restricted cash and investments 3,932,590 420,397 4,352,987 Accounts receivable 1,029,902 2,795,699 3,825,601
Intergovernmental receivable 4,892,931 26,256 4,919,187 Interest receivable 586,723 113,774 700,497
Lease receivable - current 33,085 24,536 57,621
Due from Fiduciary Funds 47,530 - 47,530
Prepaid items 533,984 39,028 573,012
Total current assets 18,495,065 83,895,779 102,390,844
Noncurrent assets:

Cash and investments with fiscal agents 5,797,713 7,817,964 13,615,677 Investments held in trust 53,519,772 - 53,519,772
Lease receivable - noncurrent 199,593 12,711 212,304
Notes and loans receivable 1,611,754 - 1,611,754
Capital assets:

Non-depreciable 16,024,577 13,662,046 29,686,623
Depreciable and amortizable, net 60,748,395 49,629,757 110,378,152 Capital assets, net 76,772,972 63,291,803 140,064,775
Total noncurrent assets 71,122,478 137,901,804 209,024,282 Total assets 89,617,543 221,797,583 311,415,126

DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding - 270,715 270,715
OPEB-related deferred outflows of resources 1,874,070 866,921 2,740,991 Pension-related deferred outflows of resources 4,347,976 1,572,271 5,920,247 Total deferred outflows of resources 2,709,907 6,222,046 8,931,953 Primary Government
City of Patterson
Statement of Net Position
June 30, 2025
See accompanying Notes to the Basic Financial Statements. 18 Packet Pg. 843
Governmental Business-Type
Activities Activities Total

LIABILITIES
Current liabilities:

Accounts payable 5,107,533 1,105,992 6,213,525
Accrued liabilities 576,025 7,350 583,375
Accrued interest payable 1,038,006 75,933 1,113,939
Unearned revenue 590,672 77,394 668,066
Deposits payable 7,046,856 121,889 7,168,745
Compensated absences - due within one year 1,204,300 526,656 1,730,956 Long-term debt - due within one year 3,203,099 1,152,461 4,355,560 Total current liabilities 3,067,675 18,766,491 21,834,166 Noncurrent liabilities:

Compensated absences - due in more than one year 536,914 234,800 771,714 Long-term debt - due in more than one year 62,432,359 25,137,854 87,570,213 Net OPEB liability 6,965,428 2,469,923 9,435,351
Aggregate net pension liability 9,633,896 3,412,540 13,046,436 Total noncurrent liabilities 31,255,117 79,568,597 110,823,714 Total liabilities 34,322,792 98,335,088 132,657,880

DEFERRED INFLOWS OF RESOURCES
Lease-related deferred inflows of resources 232,678 37,247 269,925 OPEB-related deferred inflows of resources 4,283,706 2,617,257 6,900,963 Total deferred inflows of resources 2,654,504 4,516,384 7,170,888

NET POSITION
Net investment in capital assets 71,809,745 46,633,775 118,443,520 Restricted for:

Special programs 38,458,402 38,458,402 -
Capital projects 7,738,154 - 7,738,154
Debt service - 79,810 79,810
Total restricted 38,458,402 7,817,964 46,276,366
Unrestricted 14,900,010 898,415 15,798,425
Total net position $ 55,350,154 125,168,157 $ 180,518,311 $ Primary Government
City of Patterson
Statement of Net Position (Continued)
June 30, 2025
See accompanying Notes to the Basic Financial Statements. 19 Packet Pg. 844
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Governmental activities:

General government $ 11,528,038 $ 201,817 $ 3,462,428 $ 1,041,514 Police 4,923,683 119,765 239,792 -
Fire 7,203,828 2,682,969 596,498 -
Community development and planning 2,401,299 3,704,949 2,126,394 - Public works 7,445,875 3,671,599 2,204,694 7,885,146
Parks and recreation 4,079,397 924,284 5,440 (209)
Interest on long-term debt 2,804,188 - - -
Total governmental activities 40,386,308 11,305,383 8,635,246 8,926,451 Business-type Activities:

Water 7,124,980 8,994,776 2,357,522 -
Sewer 7,964,893 6,974,129 1,864,550 -
Garbage 4,179,824 4,604,826 - 45,043
Total business-type activities 19,269,697 20,573,731 4,267,115 - Total primary government $ 31,879,114 59,656,005 $ 8,635,246 $ 13,193,566 $ Program Revenues
City of Patterson
Statement of Activities
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements. 20 Packet Pg. 845
Governmental Business-Type
Functions/Programs Activities Activities Total
Governmental Activities:

General government (6,822,279) $ - $ (6,822,279) $
Police - (4,564,126) (4,564,126)
Fire - (3,924,361) (3,924,361)
Community development and planning 3,430,044 - 3,430,044 Public works 6,315,564 - 6,315,564
Parks and recreation (3,149,882) - (3,149,882)
Interest on long-term debt (2,804,188) - (2,804,188)
Total governmental activities - (11,519,228) (11,519,228) Business-type Activities:

Water 4,227,318 - 4,227,318
Sewer 873,786 - 873,786
Garbage 470,045 - 470,045
Total business-type activities 5,571,149 - 5,571,149
Total primary government 5,571,149 (11,519,228) (5,948,079) General revenues and transfers:

General revenues:

Taxes:

Property taxes 8,685,386 - 8,685,386
Sales taxes 12,590,086 - 12,590,086
Franchise taxes 207,841 - 207,841
Other taxes 230,103 - 230,103
Total taxes 21,713,416 - 21,713,416
Investment earnings 6,050,686 952,560 7,003,246
Revenue from Fiduciary Fund 2,781,220 2,392,036 5,173,256 Miscellaneous 879,315 37,744 917,059
Transfers (1,125,724) 1,125,724 -
Total general revenues and transfers 2,256,616 32,550,361 34,806,977 Changes in net position 7,827,765 21,031,133 28,858,898 Net Position:

Beginning of year, as restated (Note 19) 47,522,389 104,137,024 151,659,413 End of year $ 55,350,154 125,168,157 $ 180,518,311 $
Changes in Net Position
Net (Expense) Revenue and
City of Patterson
Statement of Activities (Continued)
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements. 21 Packet Pg. 846
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FUND FINANCIAL STATEMENTS
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24 Packet Pg. 849

GOVERNMENTAL FUND FINANCIAL STATEMENTS
25 Packet Pg. 850
CFD 2003-1 Patterson
Public Safety/ Public
General Fire Protection Financing
Fund Services Fund Authority
ASSETS
Cash and investments 26,815,854 $ 1,761,088 $ 1,340,324 $ Restricted cash and investments 3,932,590 - -
Cash and investments with fiscal agents - - 5,797,713
Investments held in trust - - 53,519,772
Receivables:

Accounts - 992,495 -
Intergovernmental 3,650,719 55,653 -
Interest - 188,908 4,685
Notes and loans 16,632 - -
Lease - 232,678 -
Due from other funds 24,047 - -
Due from Fiduciary Funds 47,530 - -
Prepaid items 12,936 300,684 220,364
Total assets $ 1,829,677 36,202,137 $ 60,882,858 $

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND FUND BALANCES
LIABILITIES:

Accounts payable 4,572,931 $ 21,007 $ - $
Accrued liabilities 542,558 33,467 -
Due to other funds - - -
Unearned revenue 112,124 - -
Deposit and other liabilities 6,973,006 - -
Total liabilities 54,474 12,200,619 -
DEFERRED INFLOWS OF RESOURCES:

Lease-related deferred inflows of resources 232,678 - - Unavailable revenue 639,310 - -
Total deferred inflows of resources 871,988 - -
FUND BALANCES:

Nonspendable 300,684 12,936 220,364
Restricted 737,315 1,762,267 60,662,494
Committed 12,113,995 - -
Assigned 3,377,057 - -
Unassigned (deficit) 6,600,479 - -
Total fund balances 23,129,530 1,775,203 60,882,858
Total liabilities, deferred inflows
of resource, and fund balances $ 36,202,137 $ 1,829,677 $ 60,882,858 Major Funds
June 30, 2025
City of Patterson
Balance Sheet
Governmental Funds
See accompanying Notes to the Basic Financial Statements. 26 Packet Pg. 851
Other Total
Governmental Governmental
Funds Funds
ASSETS
Cash and investments $ 42,921,768 $ 72,839,034
Restricted cash and investments 3,932,590 -
Cash and investments with fiscal agents 5,797,713 -
Investments held in trust 53,519,772 -
Receivables:

Accounts 37,407 1,029,902
Intergovernmental 1,186,559 4,892,931
Interest 393,130 586,723
Notes and loans 1,595,122 1,611,754
Lease - 232,678
Due from other funds - 24,047
Due from Fiduciary Funds - 47,530
Prepaid items - 533,984
Total assets $ 46,133,986 $ 145,048,658

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND FUND BALANCES
LIABILITIES:

Accounts payable $ 513,595 $ 5,107,533
Accrued liabilities - 576,025
Due to other funds 24,047 24,047
Unearned revenue 478,548 590,672
Deposit and other liabilities 73,850 7,046,856
Total liabilities 1,090,040 13,345,133
DEFERRED INFLOWS OF RESOURCES:

Lease-related deferred inflows of resources - 232,678
Unavailable revenue 1,918,674 2,557,984
Total deferred inflows of resources 1,918,674 2,790,662 FUND BALANCES:

Nonspendable - 533,984
Restricted 25,564,355 88,726,431
Committed 17,586,312 29,700,307
Assigned 3,377,057 -
Unassigned (deficit) (25,395) 6,575,084
Total fund balances 43,125,272 128,912,863
Total liabilities, deferred inflows
of resource, and fund balances $ 46,133,986 $ 145,048,658 City of Patterson
Balance Sheet (Continued)
Governmental Funds
June 30, 2025
See accompanying Notes to the Basic Financial Statements. 27 Packet Pg. 852
This page intentionally left blank.
28 Packet Pg. 853
Total fund balances of governmental funds $ 128,912,863 Amounts reported for governmental activities in the Statement of Net Position are different because:

Capital assets used in governmental activities are not current financial resources and therefore are not reported in governmental funds. 76,772,972
Pension-related deferred outflows/inflows of resources in the governmental activities were not financial resources (uses) and therefore were not reported in the Governmental Funds Balance Sheet.

Pension-related deferred outflows of resources 4,347,976 OPEB-related deferred outflows/inflows of resources in the governmental activities were not financial resources (uses) and therefore were not reported in the Governmental Funds Balance Sheet.

OPEB-related deferred outflows of resources 1,874,070
OPEB-related deferred inflows of resources (4,283,706)
Interest payable on long-term debt does not require current financial resources. Therefore, interest payable is not reported as a liability in the Governmental Funds Balance Sheet. (1,038,006) Unavailable revenues reported on the Governmental Fund Financial Statements resulting from activities in which revenues were earned but were not available are reclassified as revenues in the Government-Wide Financial Statements. 2,557,984 Long-term liabilities are not due and payable in the current period and therefore are not reported in the Governmental Funds Balance Sheet.

Long-term debt (65,635,458)
Compensated absences (1,741,214)
Net OPEB liability (6,965,428)
Aggregated net pension liability (9,633,896)
Net position of governmental activities $ 125,168,157
City of Patterson
Reconciliation of the Governmental Funds
Balance Sheet to the Government-Wide Statement of Net Position June 30, 2025
See accompanying Notes to the Basic Financial Statements. 29 Packet Pg. 854
CFD 2003-1 Patterson
Public Safety/ Public
General Fire Protection Financing
Fund Services Fund Authority
REVENUES:

Taxes:

Property $ - 8,685,386 $ - $
Sales - 12,590,086 -
Franchise - 207,841 -
Other - 230,103 -
Licenses, permits, and fees 2,184,909 - -
Charges for services 1,797,555 1,687,458 -
Intergovernmental:

Federal grant and subsidies 3,206,442 - -
Other governmental 652,263 - -
Fines, forfeitures and penalties 89,378 - -
Investment income (loss) 1,364,893 - 3,337,586
Revenue from Fiduciary Fund 1,031,378 - 1,368,366
Miscellaneous 97,594 594,314 -
Total revenues 1,785,052 32,634,548 4,705,952
EXPENDITURES:

Current:

General government 9,805,281 2,732 27,062
Police - 4,758,882 -
Fire 2,921,620 3,768,234 -
Community development and planning 2,358,636 - -
Public works 4,573,921 - -
Park and recreation 3,289,446 - -
Capital outlay 1,099,692 48,315 -
Debt service:

Principal 152,560 451,753 2,448,775
Interest and fiscal charges 257,420 81,213 2,740,471
Total expenditures 3,206,440 30,363,265 5,216,308

REVENUES OVER (UNDER)
EXPENDITURES (1,421,388) 2,271,283 (510,356)
OTHER FINANCING SOURCES (USES):

Inception of subscription agreement 46,827 - -
Transfers in 4,769,749 7,455,787 -
Transfers out (8,225,022) - (284,353)
Total financing sources (uses) 7,455,787 (3,408,446) (284,353) Net change in fund balances 6,034,399 (1,137,163) (794,709) FUND BALANCES (DEFICIT):

Beginning of year (4,259,196) 24,266,693 61,677,567
End of year $ 1,775,203 23,129,530 $ 60,882,858 $
Major Funds
For the Year Ended June 30, 2025
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances City of Patterson
See accompanying Notes to the Basic Financial Statements. 30 Packet Pg. 855
Other Total
Governmental Governmental
Funds Funds
REVENUES:

Taxes:

Property $ 8,685,386 - $
Sales 12,590,086 -
Franchise - 207,841
Other - 230,103
Licenses, permits, and fees 4,645,171 6,830,080
Charges for services 4,780,012 8,265,025
Intergovernmental:

Federal grant and subsidies 234,876 3,441,318
Other governmental 3,799,488 4,451,751
Fines, forfeitures and penalties - 89,378
Investment income (loss) 1,678,405 6,380,884
Revenue from Fiduciary Fund 381,476 2,781,220
Miscellaneous 8,007 699,915
Total revenues 54,652,987 15,527,435
EXPENDITURES:

Current:

General government 10,801,502 966,427
Police 4,758,882 -
Fire 6,697,126 7,272
Community development and planning 3,204 2,361,840
Public works 4,859,035 285,114
Park and recreation 3,289,446 -
Capital outlay 3,744,377 2,596,370
Debt service:

Principal 3,053,088 -
Interest and fiscal charges 3,079,104 -
Total expenditures 42,644,400 3,858,387

REVENUES OVER (UNDER)
EXPENDITURES 12,008,587 11,669,048
OTHER FINANCING SOURCES (USES):

Inception of subscription agreement 46,827 -
Transfers in 14,336,247 2,110,711
Transfers out (4,701,148) (13,210,523)
Total financing sources (uses) 1,172,551 (2,590,437)
Net change in fund balances 13,181,138 9,078,611
FUND BALANCES (DEFICIT):

Beginning of year 115,731,725 34,046,661
End of year $ 128,912,863 43,125,272 $
City of Patterson
Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Governmental Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements. 31 Packet Pg. 856
Net change in fund balances - total governmental funds $ 13,181,138 Amounts reported for governmental activities in the Statement of Activities are different because:

Governmental funds reported capital outlay as expenditures. However, in the Government-Wide Statement of Activities and Changes in Net Position, the cost of those assets was allocated over their estimated useful lives as depreciation and amortization expense. This was the amount of capital assets recorded in the current period. ($11,575 of the governmental fund capital outlay balance were for repairs and maintenance expenditures). 3,637,987 In the Government-Wide Statement of Activities, donated assets are reported as a capital contribution. 4,747,785 Depreciation and amortization expense on capital assets was reported in the Government-Wide Statement of Activities and Changes in Net Position, but it did not require the use of current financial resources. Therefore, depreciation and amortization expense was not reported as expenditures in the Governmental Funds. (4,251,247) Issuance of long-term liabilities does not provide current financial resources to governmental funds, but the issuance increased long-term liabilities in the Government-Wide Statement of Net Position.

Subscription liability (46,827)
Repayment of long-term liabilities was an expenditures in governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position.

Principal payment of long-term debt 3,053,088
Amortization of bond discount 220,595
Interest expenses on long-term debt was reported in the Government-Wide Statement of Activities, but it did not require the use of current financial resources. This amount represented the changes in accrued interest from prior year. 54,321 Compensated absences expenses reported in the Government-Wide Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. (23,496) Revenues in the Government-Wide Statement of Activities that do not provide current financial resources and are not reported as revenue in the governmental funds. 890,945
Certain pension expenses reported in the Government-Wide Statement of Activities do not require the use of current financial resources and therefore, are not reported as expenditures in governmental funds.

Changes in pension related deferred outflows of resources (676,887) Changes in net pension liabilities 36,647
Changes in pension related deferred inflows of resources 14,005 Certain OPEB expenses reported in the Government-Wide Statement of Activities do not require the use of current financial resources and therefore, are not reported as expenditures in governmental funds.

Changes in OPEB related deferred outflows of resources 470,943 Changes in net OPEB liabilities (971,121)
Changes in OPEB related deferred inflows of resources 693,257 Change in net position of governmental activities $ 21,031,133 City of Patterson
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements. 32 Packet Pg. 857

PROPRIETARY FUND FINANCIAL STATEMENTS
33 Packet Pg. 858
Water Sewer Garbage Total
ASSETS
Current assets:

Cash and investments $ 10,623,768 $ 2,612,036 $ 1,839,571 $ 15,075,375 Restricted cash and investments - 420,397 - 420,397
Accounts receivable 1,155,534 1,108,088 532,077 2,795,699 Intergovernmental receivable 2,006 7,778 16,472 26,256
Interest receivable 5,702 90,560 17,512 113,774
Lease receivable - current 24,536 - - 24,536
Advances from other funds - current - 150,233 - 150,233 Prepaid items 23,016 11,832 4,180 39,028
Total current assets 11,997,671 4,237,815 2,409,812 18,645,298 Noncurrent assets:

Cash and investments with fiscal agents 7,817,964 - - 7,817,964 Lease receivable - noncurrent 12,711 - - 12,711
Advances from other funds - noncurrent - 1,160,001 - 1,160,001 Capital assets:

Non-depreciable 7,592,753 6,069,293 13,662,046 -
Depreciable/amortizable, net 25,180,492 24,203,193 246,072 49,629,757 Capital assets, net 32,773,245 30,272,486 246,072 63,291,803 Total noncurrent assets 41,751,210 30,285,197 246,072 72,282,479 Total assets 53,748,881 34,523,012 2,655,884 90,927,777

DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding 135,942 134,773 - 270,715
OPEB-related deferred outflows of resources 405,280 350,324 111,317 866,921 Pension-related deferred outflows of resources 675,918 664,884 231,469 1,572,271 Total deferred outflows of resources 1,149,981 1,217,140 342,786 2,709,907

LIABILITIES
Current liabilities:

Accounts payable 552,631 300,904 252,457 1,105,992
Accrued liabilities 4,483 2,572 295 7,350
Deposits payable 121,889 - - 121,889
Unearned revenue 739 - 76,655 77,394
Accrued interest 27,406 48,527 - 75,933
Compensated absences - due within one year 243,294 212,112 71,250 526,656 Advances to other funds - due within one year 150,233 - - 150,233 Long-term liabilities - due within one year 596,452 556,009 - 1,152,461 Total current liabilities 1,495,651 1,321,600 400,657 3,217,908 Noncurrent liabilities:

Compensated absences - due within one year 108,468 94,567 31,765 234,800 Advances to other funds - due in more than one year 1,160,001 - - 1,160,001 Long-term liabilities - due in more than one year 18,750,560 6,387,294 25,137,854 - Net OPEB liability 1,079,596 1,171,755 218,572 2,469,923 Aggregate net pension liability 1,443,100 1,467,048 502,392 3,412,540 Total noncurrent liabilities 21,459,982 10,202,407 752,729 32,415,118 Total liabilities 22,955,633 11,524,007 1,153,386 35,633,026

DEFERRED INFLOWS OF RESOURCES
Lease-related deferred inflows of resources 37,247 - - 37,247 OPEB-related deferred inflows of resources 1,270,735 1,085,310 261,212 2,617,257 Total deferred inflows of resources 1,085,310 1,307,982 261,212 2,654,504

NET POSITION
Net investment in capital assets 21,419,413 24,968,290 246,072 46,633,775 Restricted:

Capital projects 7,738,154 - - 7,738,154
Debt service 79,810 - - 79,810
Total restricted - 7,817,964 - 7,817,964
Unrestricted (deficit) 1,620,542 (2,060,127) 1,338,000 898,415 Total net position $ 22,908,163 30,857,919 $ 1,584,072 $ 55,350,154 $ City of Patterson
Statement of Net Position
Proprietary Funds
June 30, 2025
Major Funds
See accompanying Notes to the Basic Financial Statements. 34 Packet Pg. 859
Water Sewer Garbage Total
OPERATING REVENUES:

Charges for services $ 8,407,232 $ 6,971,389 $ 4,547,147 $ 19,925,768 Fees, fines, and penalties 587,544 2,740 57,679 647,963 Miscellaneous 3,930 27,508 6,306 37,744
Total operating revenues 8,998,706 7,001,637 4,611,132 20,611,475 OPERATING EXPENSES:

Salaries and benefits 3,008,937 3,369,130 1,099,545 7,477,612 Contractual and professional services 251,855 631,088 2,502,078 3,385,021 Supplies and operating costs 1,987,961 1,696,646 521,318 4,205,925 Depreciation 1,376,855 2,122,100 56,883 3,555,838
Total operating expenses 6,625,608 7,818,964 4,179,824 18,624,396 OPERATING INCOME (LOSS) 2,373,098 (817,327) 431,308 1,987,079 NONOPERATING REVENUES (EXPENSES):

Revenue from Fiduciary Fund 2,392,036 - 2,392,036 -
Investment income 832,482 45,508 74,570 952,560
Interest expense (499,372) (145,929) (645,301) -
Total nonoperating revenues (expenses) 333,110 2,291,615 74,570 2,699,295

INCOME BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS 2,706,208 1,474,288 505,878 4,686,374 CAPITAL CONTRIBUTIONS AND TRANSFERS:

Capital contributions 2,357,522 1,864,550 45,043 4,267,115 Transfers in - 496,215 - 496,215
Transfers out (533,537) (802,684) (285,718) (1,621,939) Total capital contributions and transfers 1,823,985 1,558,081 (240,675) 3,141,391 CHANGES IN NET POSITION 4,530,193 3,032,369 265,203 7,827,765 NET POSITION:

Beginning of year, as restated (Note 18) 26,327,726 19,875,794 1,318,869 47,522,389 End of year $ 22,908,163 30,857,919 $ 1,584,072 $ 55,350,154 $ City of Patterson
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2025
Major Funds
See accompanying Notes to the Basic Financial Statements. 35 Packet Pg. 860
Water Sewer Garbage Total
Cash Flows from Operating Activities:

Cash received from customers $ 8,811,882 $ 6,662,119 $ 4,551,094 $ 20,025,095 Cash paid to suppliers (1,967,274) (2,234,133) (2,954,905) (7,156,312) Cash paid to employees (3,046,019) (3,420,631) (1,157,253) (7,623,903) Other 3,930 27,508 6,306 37,744
Net cash provided by operating activities 1,034,863 3,802,519 445,242 5,282,624 Cash Flows from Noncapital Financing Activities:

Advances between funds 146,638 (146,638) - -
Revenue from Fiduciary Fund - 2,392,036 - 2,392,036
Transfers in - 496,215 - 496,215
Transfers out (533,537) (802,684) (285,718) (1,621,939) Net cash provided by (used in) noncapital financing
activities (386,899) 1,938,929 (285,718) 1,266,312
Cash Flows from Capital and Related Financing Activities:

Capital contributions from grants - - 45,043 45,043
Capital contributions from developers and others 2,357,522 1,864,550 4,222,072 - Acquisition and construction of capital assets (3,557,515) (2,439,911) (5,997,426) - Proceeds from issuance of debt 1,946,491 170,179 2,116,670 - Principal paid on revenue bonds and loan (355,000) (567,093) (922,093) - Interest paid on capital debt (958,328) (137,444) (1,095,772) - Net cash provided by (used in) capital and related
financing activities (1,109,719) (566,830) 45,043 (1,631,506) Cash Flows from Investing Activities:

Interest 782,279 58,773 70,026 911,078
Net cash provided by investing activities 58,773 782,279 70,026 911,078 Net increase (decrease) in cash and cash equivalents 1,922,846 3,631,069 274,593 5,828,508 Cash and Cash Equivalents:

Beginning of year 14,810,663 1,109,587 1,564,978 17,485,228 End of year $ 3,032,433 18,441,732 $ 1,839,571 $ 23,313,736 $ Reconciliation of Cash and Cash Equivalents to the
Statement of Net Position:

Cash and investments 10,623,768 $ 2,612,036 $ 1,839,571 $ 15,075,375 $ Restricted cash and investments - 420,397 - 420,397
Cash and investments with fiscal agent 7,817,964 - - 7,817,964 Total cash and investments $ 3,032,433 18,441,732 $ 1,839,571 $ 23,313,736 $ City of Patterson
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025
Major Funds
See accompanying Notes to the Basic Financial Statements. 36 Packet Pg. 861
Water Sewer Garbage Total
Reconciliation of Operating Income (Loss) to
Net Cash Provided by Operating Activities
Operating income (loss) $ 2,373,098 $ (817,327) $ 431,308 $ 1,987,079 Adjustments to reconcile operating income (loss) to
net cash provided by operating activities:

Depreciation expense 1,376,855 2,122,100 56,883 3,555,838 Change in assets and liabilities:

Accounts receivable (190,816) (310,045) (22,327) (523,188) Intergovernmental receivable (1,896) (1,965) 5,633 1,772 Lease receivable - (18,254) - (18,254)
Prepaid items (15,873) (4,239) (2,146) (22,258)
OPEB-related deferred outflows of resources (78,135) (101,157) (37,358) (216,650) Pension-related deferred outflows of resources 157,977 143,196 102,313 403,486 Accounts payable 288,415 97,840 70,637 456,892
Accrued liabilities (408) 235 141 (32)
Deposits payable 9,818 - - 9,818
Unearned revenue - - (37,038) (37,038)
Compensated absences (46,605) (68,496) (14,807) (129,908) Net OPEB liability 161,120 208,594 77,036 446,750
Aggregate net pension liability (116,011) (84,963) (130,039) (331,013) Lease-related deferred inflows of resources - 18,254 - 18,254 OPEB-related deferred inflows of resources (115,020) (148,910) (316,206) (580,136) Pension-related deferred inflows of resources - - 261,212 261,212 Total adjustments 1,429,421 1,852,190 13,934 3,295,545
Net cash provided by (used in) operating activities $ 3,802,519 $ 1,034,863 $ 445,242 $ 5,282,624 Major Funds
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2025
City of Patterson
See accompanying Notes to the Basic Financial Statements. 37 Packet Pg. 862
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38 Packet Pg. 863

FIDUCIARY FUNDS FINANCIAL STATEMENTS
39 Packet Pg. 864
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40 Packet Pg. 865
Custodial
Funds
ASSETS
Cash and investments $ 5,272,383
Restricted cash and investments 186,219
Cash and investments with fiscal agents 19,689,913
Intergovernmental receivable 129,960
Interest receivable 108,191
Notes receivable 936,509
Total assets 26,336,501

LIABILITIES
Accounts payable 7,904
Due to City 47,530
Total liabilities 55,434

NET POSITION
Restricted for:

Individuals, organizations, and other governments 26,281,067 Total net position $ 26,281,067
City of Patterson
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
See accompanying Notes to the Basic Financial Statements. 41 Packet Pg. 866
Custodial
Funds
ADDITIONS:

Special assessments for other governments $ 8,072,696
Developer fees for other governments 3,377
Investment income 1,473,101
Total additions 9,549,174
DEDUCTIONS:

Administration 1,298,943
Payments on conduit bonds - principal 2,373,122
Payments on conduit bonds - interest 4,887,729
Contributions to City 5,173,256
Total deductions 13,733,050
Change in net position (4,183,876)
NET POSITION:

Beginning of year 30,464,943
End of period $ 26,281,067
City of Patterson
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements. 42 Packet Pg. 867
43 NOTES TO THE BASIC FINANCIAL STATEMENTS
Packet Pg. 868
44 This page intentionally left blank.

Packet Pg. 869
City of Patterson
Index to the Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
45 Note 1 – Summary of Significant Accounting Policies .............................................................................................. 47 A. Financial Reporting Entity .......................................................................................................................... 47 B. Basis of Accounting and Measurement Focus ............................................................................................ 48 C. Cash and Investments .................................................................................................................................. 51 D. Restricted Cash and Investments ................................................................................................................ 52 E. Accounts and Interest Receivable ............................................................................................................... 52 F. Leases .......................................................................................................................................................... 52 G. Subscription-Based Information Technology Arrangements (SBITAs) ..................................................... 54 H. Capital Assets .............................................................................................................................................. 54 I. Long-Term Debt ......................................................................................................................................... 55 J. Compensated Absences ............................................................................................................................... 55 K. Pensions ...................................................................................................................................................... 56 L. Other Postemployment Benefits (“OPEB”) ................................................................................................ 57 M. Property Taxes ............................................................................................................................................ 57 N. Net Position ................................................................................................................................................. 58 O. Fund Balances ............................................................................................................................................. 58 P. Use of Estimates.......................................................................................................................................... 59 Q. Implementation of New GASB Pronouncements for the Year Ended June 30, 2025 ................................. 59 R. Upcoming Government Accounting Standards Implementations ............................................................... 60 Note 2 – Cash and Investments ................................................................................................................................... 60 A. Cash Deposits .............................................................................................................................................. 61 B. Investments ................................................................................................................................................. 62 C. Risk Disclosures .......................................................................................................................................... 63 D. Fair Value Measurement ............................................................................................................................. 64 E. Investment in Local Agency Investment Fund ........................................................................................... 64 F. Investment in Central San Joaquin Valley Risk Management Authority Investment Pool ........................ 65 G. Investments Held in Public Agencies Retirement Services (PARS) Trust ................................................. 65 Note 3 – Leases Receivable .......................................................................................................................................... 65 A. Governmental Activities ............................................................................................................................. 65 B. Business-Type Activities ............................................................................................................................ 66 Note 4 – Loans and Notes Receivable ......................................................................................................................... 66 A. Governmental Activities ............................................................................................................................. 66 B. Fiduciary Fund ............................................................................................................................................ 67 Note 5 – Interfund Transactions ................................................................................................................................. 68 A. Due From and To Other Funds ................................................................................................................... 68 B. Advances To and From Other Funds .......................................................................................................... 68 C. Transfers In and Out ................................................................................................................................... 69 Note 6 – Due from Fiduciary Funds ............................................................................................................................ 69 Note 7 – Capital Assets ................................................................................................................................................. 70 A. Governmental Activities ............................................................................................................................. 70 B. Business-Type Activities ............................................................................................................................ 71 Packet Pg. 870
City of Patterson
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025
46 Note 8 – Long-Term Debt ............................................................................................................................................ 71 A. Governmental Activities ............................................................................................................................. 71 B. Business-Type Activities ............................................................................................................................ 75 Note 9 – Compensated Absences ................................................................................................................................. 80 A. Governmental Activities ............................................................................................................................. 80 B. Business-Type Activities ............................................................................................................................ 81 Note 10 – Conduit Debt ................................................................................................................................................ 81 Note 11 – Fund Balances .............................................................................................................................................. 82 Note 12 – Risk Management ........................................................................................................................................ 82 A. Coverage ..................................................................................................................................................... 83 Note 13 – Pension Plans ................................................................................................................................................ 84 A. Summary ..................................................................................................................................................... 84 B. General Information about Pension Plans ................................................................................................... 84 C. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions ...................................................................................................... 86 D. Payable to the Pension Plan ........................................................................................................................ 90 Note 14 – Other Postemployment Benefits ................................................................................................................. 90 A. Summary ..................................................................................................................................................... 90 B. General Information about OPEB ............................................................................................................... 90 C. Net OPEB Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB .......................................................................................................... 92 Note 15 – Deferred Compensation Plan ...................................................................................................................... 94 Note 16 – Other Required Disclosures ........................................................................................................................ 94 A. (Deficit) Net Position/Fund Balances ......................................................................................................... 94 B. Expenditures Exceeding Appropriations ..................................................................................................... 95 Note 17 – Net Position .................................................................................................................................................. 95 A. Net Investment in Capital Assets ................................................................................................................ 95 B. Restricted Net Position ................................................................................................................................ 96 Note 18 – Settlement with Eli Development Corporation ......................................................................................... 96 Note 19 – Restatements of Beginning Balances .......................................................................................................... 96 Note 20 – Commitments and Contingencies ............................................................................................................... 97 A. Litigation ..................................................................................................................................................... 97 B. Grants .......................................................................................................................................................... 97 C. Expedited Offsize Public Infrastructure Repayment Agreement ................................................................ 97 Packet Pg. 871
City of Patterson
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
47 Note 1 – Summary of Significant Accounting Policies
The accompanying basic financial statements of the City of Patterson, California (the “City”), have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as applied to governmental agencies. The Governmental Accounting Standards Board (“GASB”) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City’s accounting policies are described below.

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

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

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

Patterson Public Financing Authority: The Patterson Public Financing Authority (“PPFA”) was formed in 2001 pursuant to a joint exercise of powers agreement between the City and the former Redevelopment Agency of the City. PPFA is authorized to borrow money for the purpose of financing the acquisition of bonds, notes, and other obligations of, or for the purpose of making loans to, public entities, including the City and to provide financing for public capital improvements for lease to public entities, including the City.

The members of the City Council also sit as the Board of Directors of PPFA. The financial activities of the PPFA are reported in the debt service fund.

The City also participates in the following organization that does not meet the definition of a component unit:

West Patterson Financing Authority: The West Patterson Financing Authority (the “Authority”) was formed in 2001 pursuant to a joint exercise of powers agreement between the City and the former Redevelopment Agency of the. The primary activity of the Authority is issuing special tax bonds on behalf of the West Patterson Financing Authority Community Facilities District No. 2001-1 (Public Improvements).

The proceeds of the special tax bonds are used to finance the costs of certain engineering, design, construction and other expenses related to public infrastructure improvements.

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City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
48 Note 1 – Summary of Significant Accounting Policies (Continued) A. Financial Reporting Entity (Continued)
On October 18, 2005, pursuant to Resolution No. 2005-04 of the Board of Directors of the Authority, the Authority founded its Community Facilities District No. 2005-1 (West Patterson Business Park) and authorized special tax levies therein.

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

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

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

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

Deferred Outflows/Inflows of Resources
The Statement of Net Position and the Balance Sheet of Governmental Funds reports separate sections for Deferred Outflows of Resources, and Deferred Inflows of Resources, when applicable.

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

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

Government–Wide Financial Statements
The City’s government-wide financial statements include a statement of net position and a statement of activities.

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

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

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City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
49 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Government–Wide Financial Statements (Continued)
Certain types of transactions are reported as program revenues for the City in three categories:
 Charges for services
 Operating grants and contributions
 Capital grants and contributions
Certain eliminations have been made in regards to interfund activities, payables and receivables. All internal balances in the statement of net position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. However, those transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:
 Due from and to other funds
 Advances to and from other funds
 Transfers in and out
Governmental Fund Financial Statements
Governmental fund financial statements include a balance sheet and a statement of revenues, expenditures and changes in fund balances for all major governmental funds and non-major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in net position as presented in these statements to the net position presented in the government-wide financial statements. The City has presented all major funds that met the applicable criteria.

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

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

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

Grant revenues are recognized in the fiscal year in which all eligibility requirements are met. Under the terms of grant agreements, the City may fund certain programs with a combination of cost-reimbursement grants, categorical block grants, and general revenues. Thus, both restricted and unrestricted net position are available to finance program expenditures. The City's policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary.

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

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City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
50 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Governmental Fund Financial Statements (Continued)
Major governmental funds of the City are outlined below:

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

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

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

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

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

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

Major proprietary funds of the City are outlined below:

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

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

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

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

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City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
51 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Net Position and a Statement of Changes in Fiduciary Net Position. The City’s fiduciary funds represent custodial funds and private purpose trust funds. Fiduciary funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting.

Fiduciary fund types are accounted for according to the nature of the fund.

Custodial funds are used to report fiduciary activities that are not required to be reported in pension (and other employee benefit) trust funds, investment trust funds, or private-purpose trust funds. They are also used to account for various assessment districts for which the City acts as an agent for debt service activity, as the City is prohibited from levying additional taxes for these districts. Fiduciary funds are accounted for using the accrual basis of accounting. The City reports the following fiduciary funds:

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

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

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

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

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

The City participates in an investment pool managed by the State of California titled Local Agency Investment Fund (LAIF) which has invested a portion of the pool funds in structured notes and asset-backed securities.

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

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

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

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City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
52 Note 1 – Summary of Significant Accounting Policies (Continued) C. Cash and Investments (Continued)
Level 2 – Inputs, other than quoted prices included in Level 1, that are observable for the assets or liabilities through corroboration with market data at the measurement date.

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

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

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

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

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

F. Leases
Lessee
The City has a policy to recognize a lease liability and a right‐to‐use lease asset (lease asset) in the government‐wide financial statements. The City recognizes lease liabilities with an initial, individual value of $15,000 or more.

At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made.

Lease assets are recorded at the amount of the initial measurement of the lease liabilities and modified by any lease payments made to the lessor at or before the commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term along with any initial direct costs that are ancillary charges necessary to place the lease assets into service. Lease assets are amortized using the straightline method over the shorter of the lease term or the useful life of the underlying asset, unless the lease contains a purchase option that the City has determined is reasonably certain of being exercised. In this case, the lease asset is amortized over the useful life of the underlying asset.

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City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
53 Note 1 – Summary of Significant Accounting Policies (Continued) F. Leases (Continued)
Lessee (Continued)

Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.  The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.
 The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure any lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.

Lease assets are reported as right to use along with other capital assets and lease liabilities are reported with longterm debt on the Statement of net position.

Lessor
The City is a lessor for leases of special purpose facilities, office and commercial space, and land. The City recognizes leases receivable and deferred inflows of resources in the financial Statements.

At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflows of resources are initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date.

Subsequently, the deferred inflows of resources are recognized as revenue over the life of the lease term in a systematic and rational method.

Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.  The City uses its estimated incremental borrowing rate as the discount rate for leases.  The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.

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City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
54 Note 1 – Summary of Significant Accounting Policies (Continued) G. Subscription-Based Information Technology Arrangements (SBITAs) The City has a policy to recognize a SBITA liability and a right‐to‐use subscription asset (SBITA asset) in the financial statements with an initial, individual value of $25,000 or more with a subscription term greater than one year.

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

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

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

Right-to-use subscription assets are reported along with other capital assets and subscription liabilities are reported as long-term debt on the statement of net position.

H. Capital Assets
Capital assets, which include property, plant, equipment, infrastructure assets, and the right to use leased equipment and buildings, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Such assets are recorded at historical cost (except for intangible right‐to‐use lease assets) or estimated historical cost if purchased or constructed.. Donated capital assets are valued at their estimated acquisition value on the date donated. City policy has set the capitalization threshold at $5,000. Depreciation is recorded on a straight-line basis over estimated useful lives of the assets as follows:

Buildings and improvements 20-40 years
Machinery and equipment 3-6 years
Streets and roads 20 years
Curbs, gutters, sidewalks, and median curbs 20 years
Storm drains 75 years
Lease/subscription assets Contract term
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City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
55 Note 1 – Summary of Significant Accounting Policies (Continued) H. Capital Assets (Continued)
For all infrastructure systems, the City elected to use the basic approach for infrastructure reporting. The City defines infrastructure as the basic physical assets that allow the City to function. The assets include streets, sewer, and park lands. Each major infrastructure system can be divided into subsystems. For example, the street system can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, landscaping and land. These subsystems were not delineated in the basic financial statements. The appropriate operating department maintains information regarding the subsystems.

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

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

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

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

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

J. Compensated Absences
The City’s recognizes a liability for compensated absences for leave time that (1) has been earned for services previously rendered by employees, (2) accumulates and is allowed to be carried over to subsequent years, and (3) is more likely than not to be used as time off or settled (for example paid in cash to the employee or payment to an employee flex spending account) during or upon separation from employment. Based on the criteria listed, two types of leave qualify for liability recognition for compensated absences – vacation and sick leave. The liability for compensated absences includes salary-related benefits, where applicable.

Vacation: The City’s policy permits employees to accumulate earned but unused vacation benefits, which are eligible for payment at the employee’s current pay rate upon separation from employment. Eligible employees are accruing their vacation time on a monthly basis based on their years of continuous service. Effective July 1, 2016, the City changed its vesting procedures for department heads, going forward department heads will vest their annual vacation at the beginning of the year, whereas all other eligible employees vest in their vacation on a monthly basis.

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City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
56 Note 1 – Summary of Significant Accounting Policies (Continued) J. Compensated Absences (Continued)
Sick Leave: The City’s policy permits employees to accumulate earned but unused sick leave. There is no cap on the amount of sick leave that can be accrued. Employees with less than five years of employment do not have vested privilege on sick leave and their sick leave is forfeited upon termination. However, a liability for estimated value of sick leave that will be used by employees as time off is included in the liability for compensated absences.

Government-Wide Financial Statements
Compensated absences are accrued when incurred in the government-wide financial statements.

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

K. Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plans (Note 13). For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value.

The following timeframes are used for pension reporting:

Valuation Date June 30, 2023
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024
Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period. For the governmental activities, net pension liability is generally liquidated by the General Fund.

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City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
57 Note 1 – Summary of Significant Accounting Policies (Continued) L. Other Postemployment Benefits (“OPEB”)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s Retiree Benefits Plan (“OPEB Plan”) and additions to/deductions from OPEB Plan's fiduciary net position have been determined on the same basis as they are reported by the Plan (Note 14). For this purpose, the OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value, except for money market investments, which are reported at amortized cost.

The following timeframes are used for OPEB reporting:

Valuation Date June 30, 2024
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024
Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. The first amortized amounts are recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The amortization period differs depending on the source of gain or loss. The difference between projected and actual earnings is amortized on a straight-line basis over 5 years. All other amounts are amortized on a straight-line basis over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) at the beginning of the measurement period. For the governmental activities, net OPEB liability is generally liquidated by the General Fund.

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

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City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
58 Note 1 – Summary of Significant Accounting Policies (Continued) M. Property Taxes (Continued)
Property valuations are established by the Assessor of the County of Stanislaus for the secured and unsecured property tax rolls. Under the provisions of Article XIIIA of the State Constitution, properties are assessed at 100% of purchase price or value in 1978 whichever is later. From this base assessment, subsequent annual increases in valuation are limited to a maximum of 2 percent. However, increases to full value are allowed for property improvements or upon change in ownership. Personal property is excluded from these limitations, and is subject to annual reappraisal.

N. Net Position
For government-wide and proprietary fund financial statements, net position is categorized as follows:

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

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

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

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

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

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

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

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

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

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City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
59 Note 1 – Summary of Significant Accounting Policies (Continued) O. Fund Balances (Continued)
Unassigned – This amount is for any portion of the fund balances that do not fall into one of the above categories. The General Fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than the General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed or assigned for those purposes, it may be necessary to report negative unassigned fund balance in that particular fund.

When expenditures are incurred for purposes for which both restricted and unrestricted fund balances are available, the City’s policy is to apply restricted fund balances first, then unrestricted fund balances as they are needed.

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

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

Q. Implementation of New GASB Pronouncements for the Year Ended June 30, 2025 The requirements of the following accounting standards are effective for the purpose of implementation, if applicable to the City, for the year ended June 30, 2025. The financial statements included herein apply the requirements and provisions of these statements, including necessary retroactive adjustments to financial statement classifications and presentations.

GASB Statement No. 101 – In June 2022, GASB issued Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. Implementation of this Statement had a significant effect on the City's financial statements for the fiscal year ended June 30, 2025. See Note 19.

GASB Statement No. 102 – In December 2023, GASB issued Statement No. 102, Certain Risk Disclosures.

This Statement requires a government to assess whether a concentration or constraint makes the primary government reporting unit or other reporting units that report a liability for revenue debt vulnerable to the risk of a substantial impact. Additionally, this Statement requires a government to assess whether an event or events associated with a concentration or constraint that could cause the substantial impact have occurred, have begun to occur, or are more likely than not to begin to occur within 12 months of the date the financial statements are issued. Implementation of this Statement did not have a significant effect on the City's financial statements for the fiscal year ended June 30, 2025.

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City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
60 Note 1 – Summary of Significant Accounting Policies (Continued) R. Upcoming Government Accounting Standards Implementations The City is currently analyzing its accounting practices to determine the potential impact on the financial statements for the following GASB statements:

GASB Statement No. 103 – In April 2024, GASB issued Statement No. 103, Financial Reporting Model Improvements. The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. Application of this statement is effective for the City’s fiscal year ending June 30, 2026.

GASB Statement No. 104 – In September 2024, GASB issued Statement No. 104, Disclosure of Certain Capital Assets. This Statement requires certain types of capital assets to be disclosed separately in the capital assets note disclosures required by Statement 34. Lease assets recognized in accordance with Statement No. 87, Leases, and intangible right-to-use assets recognized in accordance with Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, should be disclosed separately by major class of underlying asset in the capital assets note disclosures. Subscription assets recognized in accordance with Statement No. 96, Subscription-Based Information Technology Arrangements, also should be separately disclosed. In addition, this Statement requires intangible assets other than those three types to be disclosed separately by major class. Application of this statement is effective for the City’s fiscal year ending June 30, 2026.

GASB Statement No. 105 – In December 2025, GASB issued Statement No. 105, Subsequent Events. This Statement establishes accounting and financial reporting requirements for events and transactions that occur after the financial statement date but before financial statements are issued. The Statement defines the types of subsequent events and requires disclosure of certain nonrecognized subsequent events. Application of this Statement is effective for the City’s fiscal year ending June 30, 2027.

Note 2 – Cash and Investments
The following is a summary of pooled cash and investments and restricted cash and investments at June 30, 2025:

Governmental Business-type Fiduciary
Activities Activities Funds Total
Cash and investments $ 72,839,034 $ 15,075,375 $ 5,272,383 $ 93,186,792 Restricted cash and investments 3,932,590 420,397 186,219 4,539,206 Cash and investments with fiscal agents 5,797,713 7,817,964 19,689,913 33,305,590 Investments held in trust 53,519,772 - 53,519,772 -
Total cash and investments $ 136,089,109 $ 23,313,736 $ 25,148,515 $ 184,551,360 Primary Government
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City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
61 Note 2 – Cash and Investments (Continued)
Cash, cash equivalents, and investments, consisted of the following at June 30, 2025:

Cash and cash equivalents:

Cash on hand 1,545 $
Deposits with financial institutions 14,499,332
Total cash and cash equivalents 14,500,877
Investments:

Local obligation bonds 53,519,772
Money market mutual funds 33,303,444
Central San Joaquin Valley Risk Authority 4,246,334
Investments Held in Section 115 Trust 3,932,590
Local Agency Investment Fund (LAIF) 75,048,343
Total investments 170,050,483
Total cash and investments $ 184,551,360
A. Cash Deposits
The carrying amounts of the City’s demand deposits were $14,499,332 at June 30, 2025. Bank balances were $16,317,900 at that date. The total amount of which was collateralized or insured with securities held by the pledging financial institutions in the City’s name is discussed below.

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

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

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City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
62 Note 2 – Cash and Investments (Continued)
B. Investments
Investments Authorized by the California Code and the City’s Investments Policy The table below identifies the investment types that are authorized by the City's investment policy. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy.

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

Maximum Maximum
Maximum Percentage of Investment in
Maturity Portfolio one Issuer
U.S. Treasure Obligations 5 years None None
U.S. Agency Securities 5 years None None
Certificates of Deposit 2 years None None
Local Agency Investment Fund (LAIF) None None None
Money Market Funds None None None
Annuities None None None
Mutual Funds None None None
Corporate Notes (Minimum rating of "AAA") None None None Local Agency Bonds (Local obligation bonds) 5 years None None Authorized Investment Type
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City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
63 Note 2 – Cash and Investments (Continued)
C. Risk Disclosures
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City's interest rate risk is mitigated is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

Information about the sensitivity of the fair values of the City's investments to market rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity as of June 30, 2025:
12 Months
Fair Value or Less 1-5 Years 6-10 Years Thereafter
Investments:

Local obligation bonds 53,519,772 $ 271,321 $ 351,235 $ - $ 52,897,216 $ Money market mutual funds 33,303,444 33,303,444 - - -
Central San Joaquin Valley Risk Authority 4,246,334 4,246,334 - - - Investments Held in Section 115 Trust 3,932,590 3,932,590 - - - Local Agency Investment Fund (LAIF) 75,048,343 75,048,343 - - - Total investments $ 116,802,032 170,050,483 $ 351,235 $ - $ 52,897,216 $ Maturity
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code or debt agreements, and the actual rating as of the fiscal year for each investment type.

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

Local obligation bonds 53,519,772 $ N/A Not rated Not rated Money market mutual funds 33,303,444 N/A AAAm Aaa-mf
Central San Joaquin Valley Risk Authority 4,246,334 N/A Not rated Not rated Investments Held in Section 115 Trust 3,932,590 N/A Not rated Not rated Local Agency Investment Fund (LAIF) 75,048,343 N/A Not rated Not rated Total investments $ 170,050,483
Credit Rating
Disclosures Relating to Concentration of Credit Risk
The City held the following investments in a single issuer (other than U.S. Treasury securities, external investment pools and mutual funds) that represented 5% or more of total City investment as of June 30, 2025:

Issuer Investment Type Amount
West Patterson Financing Authority Local obligation bonds 53,519,772 $ Packet Pg. 888
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
64 Note 2 – Cash and Investments (Continued)
C. Risk Disclosures (Continued)
Disclosures Relating to Concentration of Credit Risk
The City held the following investments in a single issuer (other than U.S. Treasury securities, external investment pools and mutual funds) that represented 5% or more of total City investment as of June 30, 2025:

Issuer Investment Type Amount
West Patterson Financing Authority Local obligation bonds 53,519,772 $ Disclosures Relating to Custodial Credit Risk
The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g. brokerdealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. None of the City’s investments was subject to custodial credit risk.

D. Fair Value Measurement
The City’s investments at June 30, 2025, categorized within the fair value hierarchy as described in Notre 1C are as follows:

Investments measured by fair value level: Total Level 2 Central San Joaquin Valley Risk Authority (CSJVRMA) $ 4,246,334 $ 4,246,334 Total investments by fair value level 4,246,334 $ 4,246,334 Investments not subject to the fair value hierarchy:

Local obligation bonds 53,519,772
Investments Held in Section 115 Trust 3,932,590
Local Agency Investment Funds (LAIF) 75,048,343
Money market mutual funds 33,303,444
Total investments not subject to the fair value hierarchy 165,804,149 Total investments $ 170,050,483
Debt and equity securities classified in Level 2 are valued using the following approaches:
• U.S. Treasuries, U.S. Agencies, and Commercial Paper: quoted prices for identical securities in markets that are not active;
• Medium term notes: quoted prices for similar securities in active markets; and • Asset-backed securities: recent appraisals of the asset value.

E. Investment in Local Agency Investment Fund
The City is a participant in LAIF which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. As of June 30, 2025, the City had $75,048,343 invested in LAIF. LAIF determines fair value on its investment portfolio based on market quotations for those securities where market quotations are readily available and based on amortized cost or best estimate for those securities where market value is not readily available. LAIF is reported at amortized cost, which approximates fair value.

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City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
65 Note 2 – Cash and Investments (Continued)
F. Investment in Central San Joaquin Valley Risk Management Authority Investment Pool The City invested in an investment pool account with the Central San Joaquin Valley Risk Management Authority (“CSJVRMA”). At June 30, 2025, this account was valued at $4,246,334. The City received an average yield of 0.01% for the fiscal year ended June 30, 2025 on this investment.

G. Investments Held in Public Agencies Retirement Services (PARS) Trust During the year ended June 30, 2022, the City established an irrevocable trust with PARS for the purpose of accumulating additional resources restricted for retirement benefits. PARS is the trust administrator while the City, as the plan administrator, is responsible to provide direction on the usage and distribution of the funds held in the PARS Trust. At June 30, 2025, the total amount accumulated in the Section 115 Trust was $3,932,590.

Note 3 – Lease Receivable
A. Governmental Activities
A portion of the City’s property is leased to others. Such property includes special purpose facilities, office and commercial space, and land. Lease receivable consists of agreements with other for the right-to-use of the underlying assets at various locations owned by the City. The terms of the arrangements range from 4 to 12 years.

The calculated interest rates used vary depending on the length of the lease. For the fiscal year ended June 30, 2025, the City recognized $26,617 in lease revenue and $4,085 in interest revenue. As of June 30, 2025, the balance of the deferred inflow of resources was $232,678.

A summary of changes in lease receivable for the fiscal year ended June 30, 2025 is as follows:

Balance Balance Due within Due in More
July 1, 2024 Additions Deletions June 30, 2025 One Year Than One Year Leases receivable $ 85,980 173,315 $ (26,617) $ 232,678 $ 33,085 $ 199,593 $ Classification
As of June 30, 2025, the required payments for these leases, including interest, are:

Year Ending
June 30, Principal Interest Total
2026 33,085 $ $ 3,443 $ 36,528
2027 34,031 2,805 36,836
2028 36,290 2,163 38,453
2029 36,977 1,750 38,727
2030 29,194 1,384 30,578
2031-2032 63,101 1,564 64,665
Total $ 232,678 $ 13,109 $ 245,787
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City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
66 Note 3 – Lease Receivable (Continued)
B. Business-Type Activities
The portion of the City’s property is leased to others. Such property includes special purpose facilities, office and commercial space, and land. Lease receivable consists of agreements with other for the right-to-use of the underlying assets at various locations owned by the City. The terms of the arrangements range from 4 to 6 years.

The calculated interest rates used vary depending on the length of the lease. For the fiscal year ended June 30, 2025, the City recognized $27,421 in lease revenue and $162 in interest revenue. As of June 30, 2025, the balance of the deferred inflow of resources was $37,247.

A summary of changes in lease receivable for the fiscal year ended June 30, 2025 is as follows:

Balance Balance Due within Due in More
July 1, 2024 Additions Deletions June 30, 2025 One Year Than One Year Leases receivable $ 45,675 18,993 $ (27,421) $ 37,247 $ 24,536 $ 12,711 $ Classification
As of June 30, 2025, the required payments for these leases, including interest, are:

Year Ending
June 30, Principal Interest Total
2026 24,536 $ $ 40 $ 24,576
2027 12,711 7 12,718
Total $ 37,247 $ 47 $ 37,294
Note 4 – Loans and Notes Receivable
A. Governmental Activities
The City engages in programs designed to encourage business enterprises, construction or improvements in lowto moderate income housing, or other projects. Under these programs, grants or loans are provided with favorable terms to businesses, homeowners or developers who agree to spend these funds in accordance with the City's terms. Although these notes are expected to be repaid in full, their balance has been offset in the fund financial statements by deferred inflows of resources, as they are not expected to be repaid within the first 60 days of fiscal year 2025.

Summary of changes in loans and notes receivable for the year ended June 30, 2025 is as follows:

Loans and Notes Loans and Notes Unavailable
Receivable Receivable Revenue
Balance Balance Balance
July 1, 2024 Additions Deletions June 30, 2025 June 30, 2025 Housing Authority of the County of Stanislaus $ 290,000 $ - $ 290,000 - $ $ 290,000 Greater Valley Housing Development Corporation 900,000 - 900,000 - 900,000 Housing Rehabilitation and Affordable Housing 422,635 - (881) 421,754 421,754 Total loans and notes receivable $ 1,612,635 $ - $ (881) $ 1,611,754 $ 1,611,754 Packet Pg. 891
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
67 Note 4 – Loans and Notes Receivable (Continued)
A. Governmental Activities (Continued)
Housing Authority of the County of Stanislaus
On December 1, 1997, the City entered into a 30-year loan agreement with the Housing Authority of the County of Stanislaus in the amount of $170,000. The note does not bear interest and principal payments are deferred for 30 years with a final maturity date of December 1, 2027. The balance of this note has been offset by deferred inflows of resources in the amount of $170,000 in the fund financial statements.

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

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

Housing Rehabilitation and Affordable Housing
The City has provided loans to various homeowners and businesses for rehabilitation. The loans have various interest rates and payment dates. The balance of these loans receivable at June 30, 2025 was $421,754. The balance of these loans have been offset by deferred inflows of resources in the amount of $421,754 in the financial statements.

B. Fiduciary Fund
Notes receivable as of June 30, 2025, was as follows:

Balance Balance
July 1, 2024 Additions Deletions June 30, 2025
Darron Silva Promissory Note $ 956,413 $ (19,904) - $ $ 936,509 Total notes receivable $ 956,413 $ (19,904) - $ $ 936,509 Packet Pg. 892
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
68 Note 4 – Loans and Notes Receivable (Continued)
B. Fiduciary Fund (Continued)
Darron Silva Promissory Note
On November 21, 2018, the City entered into a promissory note secured by deed of trust dated February 19, 2020 with Darron Silva, a developer within the City, in the amount of $1,045,000 for the sale of land to be developed.

On March 22, 2020 an amended promissory note secured by deed of trust was executed for the benefit of the City and encumbering the parcel. On August 20, 2024, an amended promissory note secured by deed of trust was executed to extend for another five year term. The promissory note bears 5% fixed interest rate per annum, payable at $5,610 per month for a term of 5 years amortized over 30 years. The outstanding principal amount plus any accrued and unpaid interest shall be due and payable on August 1, 2029. The balance of the note receivable at June 30, 2025 was $936,509.

Note 5 – Interfund Transactions
A. Due From and To Other Funds
Due from and to other funds as of June 30, 2025, was as follows:

Receivable Fund Payable Fund Amount Purpose
General Fund Federal CDBG Grant Special Revenue Fund $ 24,047 Overdrawn Cash B. Advances To and From Other Funds
Water Fund Advance to the Sewer Fund
On March 14, 2023, the Sewer Fund entered into loan agreement with the Water Fund in the amount of $1,600,000. The loan is to be repaid over 10 years at 2.425% interest rate per year. This loan is for funding the settlement with Patterson Ranch Development for oversized storm drain infrastructure. At June 30, 2025, the outstanding balance of the agreement was $1,310,234.

The annual requirements to amortize the loan are as follows:

Year Ending
June 30, Principal Interest Total
2026 150,233 $ 30,111 $ 180,344 $
2027 153,917 26,427 180,344
2028 157,692 22,652 180,344
2029 161,558 18,786 180,344
2030 165,520 14,824 180,344
2031-2033 521,314 19,719 541,033
Total $ 132,519 1,310,234 $ 1,442,753 $
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City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
69 Note 5 – Interfund Transactions (Continued)
C. Transfers In and Out
Transfers in and out for the year ended June 30, 2025, was as follows:

Transfers In Transfers Out Amount Purpose
General Fund Patterson Public Financing Authority Debt Service Fund $ 284,353 Capital projects General Fund Gas Tax Special Revenue Fund 300,000 Administration General Fund Benefit Assesment District Special Revenue Fund 28,718 Administration General Fund Landscape Maintenance District Special Revenue Fund 2,030,725 Indirect overhead General Fund CFD 2013-1 Special Revenue Fund 47,440 Indirect overhead General Fund CFD 2018-2 VOP Maintenance Special Revenue Fund 413,022 Indirect overhead General Fund CFD 2022 Public Safety Special Revenue Fund 42,274 Indirect overhead General Fund General Government Impact Fee Capital Projects Fund Indirect overhead 1,152 General Fund Parkland In-Lieu Fee Capital Projects Fund Indirect overhead 63 General Fund Storm Drain Impact Fee Capital Projects Fund Indirect overhead 63 General Fund Water Enterprise Fund 533,537 Indirect overhead General Fund Sewer Enterprise Fund 802,684 Indirect overhead General Fund Garbage Enterprise Fund 285,718 Indirect overhead Subtotal 4,769,749
CFD 2003-1 Public Safety/Fire
Protection Services Fund General Fund 6,506,884 Assessments CFD 2003-1 Public Safety/Fire
Protection Services Fund CFD 2015-2 Special Revenue Fund 188,047 Assessments CFD 2003-1 Public Safety/Fire Patterson Garden Fire Suppression Protection Services Fund Assessment Special Revenue Fund 760,856 Assessments Subtotal 7,455,787
Street Project Capital Projects Fund Local Transportation Fund Special Revenue Fund 18,412 Capital projects Street Project Capital Projects Fund Gas Tax Special Revenue Fund 97,948 Capital projects Street Project Capital Projects Fund Street Improvement Impact Fee Capital Projects Fund 383,713 Capital projects Subtotal 500,073
Sewer Enterprise Fund General Fund 112,763 Debt service Sewer Enterprise Fund Benefit Assessment Districts Special Revenue Fund 102,443 Administration Sewer Enterprise Fund CFD 2013-1 Special Revenue Fund 17,200 Capital projects Sewer Enterprise Fund CFD 2018-2 VOP Maintenance Special Revenue Fund 20,085 Indirect overhead Sewer Enterprise Fund Sewer Impact Fee Capital Projects Fund 243,724 Capital projects Subtotal 496,215
Landscape Maintenance District Special Revenue Fund General Fund 1,133,865 Indirect overhead Benefit Assesment District Special Revenue Fund General Fund 78,898 Indirect overhead CSA #15 Assessment District Special Revenue Fund General Fund Indirect overhead 6,727 Federal CDBG Grant Special Revenue Fund General Fund 193,573 Indirect overhead Local Transporation Special Revenue Fund General Fund 192,312 Indirect overhead Total $ 14,827,199
Note 6 – Due from Fiduciary Funds
Due from fiduciary funds as of June 30, 2025, was as follows:

Receivable Fund Payable Fund Amount Purpose
General Fund CFD 2015-1 Arambel-KDN Custodial Fund $ 47,530 Overdrawn Cash Packet Pg. 894
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
70 Note 7 – Capital Assets
A. Governmental Activities
Summary of changes in capital assets for governmental activities for the year ended June 30, 2025 is as follows:

Balance Adjustments/ Balance
July 1, 2024 Additions Deletions Transfers June 30, 2025 Capital assets, not being depreciated
Land $ 5,459,235 $ 1,194,422 $ - $ 6,653,657 - $
Construction in progress 6,315,503 3,135,491 (80,074) - 9,370,920 Total capital assets, not being depreciated 11,774,738 4,329,913 (80,074) - 16,024,577 Capital assets being depreciated/amortized:

Building 24,538,184 - - 24,538,184 -
Improvements 17,403,189 173,128 - 17,576,317 -
Infrastructure 49,004,018 3,553,363 80,074 - 52,637,455 Equipment 9,763,382 282,541 (46,142) 9,999,781 -
Lease assets - buildings and improvements 628,725 (27,509) - 601,216 - Subscription assets 110,022 46,827 (110,022) 46,827 -
Total capital assets being depreciated/amortized 101,447,520 4,055,859 (183,673) 105,399,780 80,074 Less accumulated depreciation/amortization for:

Building (9,122,084) (613,839) - (9,735,923) -
Improvements (11,450,355) (868,364) - (12,318,719) -
Infrastructure (13,167,333) (1,873,228) - (15,040,561) - Equipment (6,529,456) (699,290) 46,142 (7,182,604) -
Lease assets - buildings and improvements (208,963) (180,170) 27,509 (361,624) - Subscription assets (105,620) (16,356) 110,022 (11,954) - Total accumulated depreciation/amortization (40, 583,811) (4,251,247) 183,673 (44,651,385) - Total capital assets, being
depreciated/amortized, net 60,863,709 (195,388) 80,074 - 60,748,395 Total capital assets, net $ 72,638,447 $ 4,134,525 $ - $ 76,772,972 - $ Governmental activities depreciation and amortization expenses for capital assets for the year ended June 30, 2025 are as follows:

General government $ 623,658
Fire 478,265
Public works 2,418,960
Park and recreation 730,364
Total depreciation/amortization expense $ 4,251,247
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City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
71 Note 7 – Capital Assets (Continued)
B. Business-Type Activities
Summary of changes in capital assets for business-type activities for the year ended June 30, 2025 is as follows:

Balance Adjustments/ Balance
July 1, 2024 Additions Deletions Transfers June 30, 2025 Capital assets, not being depreciated
Land $ 7,455,922 $ - $ - $ 7,455,922 - $
Construction in progress 8,673,915 1,810,931 (4,278,722) - 6,206,124 Total capital assets, not being depreciated 16,129,837 1,810,931 (4,278,722) - 13,662,046 Capital assets, being depreciated
Building 3,608,900 - - 3,608,900 -
Infrastructure 78,821,596 4,277,744 4,278,722 - 87,378,062 Equipment 8,867,249 319,781 - 9,187,030 -
Subtotal 91,297,745 4,597,525 4,278,722 - 100,173,992
Less: accumulated depreciation
Building (30,074) (90,223) - (120,297) -
Infrastructure (41,200,750) (2,961,511) - (44,162,261) - Equipment (5,757,574) (504,103) - (6,261,677) -
Subtotal (46,988,398) (3,555,837) - (50,544,235) -
Total capital assets, being depreciated, net 44,309,347 1,041,688 4,278,722 - 49,629,757 Total capital assets, net $ 60,439,184 $ 2,852,619 $ - $ 63,291,803 - $ Business-type activities depreciation expenses for capital assets for the year ended June 30, 2025 are as follows:

Water $ 1,376,855
Sewer 2,122,100
Garbage 56,882
Total depreciation expense $ 3,555,837
Note 8 – Long-Term Debt
A. Governmental Activities
Summary of changes in long-term liabilities for the governmental activities for the year ended June 30, 2025 is as follows:

Original Balance Balance Due Within Due In More
Issuance July 1, 2024 Additions Deletions June 30, 2025 One Year Than One Year Private Placement:

PPFA 2013 Heartland Ranch Revenue Bonds 4,963,568 $ 914,788 $ - $ (273,775) $ 641,013 $ 284,557 $ 356,456 $ PPFA 2023 Series A Special Tax
Special Revenue Refunding Bonds 54,370,000 54,360,000 - (2,175,000) 52,185,000 2,395,000 49,790,000 Plus: Bond Premium 6,617,848 6,397,253 - (220,595) 6,176,658 220,595 5,956,063 2018 Lease Revenue Bonds 2,429,000 1,604,451 - (154,743) 1,449,708 160,158 1,289,550 Direct Borrowing:

Finance purchase agreements 3,517,975 3,517,975 - (305,120) 3,212,855 - 3,212,855 Lease liability 365,973 365,973 - (128,273) 237,700 129,609 108,091 Subscription liability 110,020 4,519 46,827 (16,177) 35,169 13,180 21,989 Keystone Corporation Settlement 1,300,000 364,000 - - 364,000 - 364,000 Patterson Ranch Development Settlement 1,333,355 1,333,355 - - 1,333,355 - 1,333,355 Total long-term debt $ 68,862,314 75,007,739 $ 46,827 $ (3,273,683) $ 65,635,458 $ 3,203,099 $ 62,432,359 $ Packet Pg. 896
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
72 Note 8 – Long-Term Debt (Continued)
A. Governmental Activities (Continued)
2013 Heartland Ranch Revenue Bonds
On July 30, 2013, the Patterson Public Financing Authority issued $4,963,568 of revenue refunding bonds (Series 2013 Heartland Ranch Revenue Bonds) to repay, in part, the principal of the Authority's 2002 Heartland Ranch Revenue bond. Interest on the bonds is payable semi-annually on March 2 and September 2 of each year through September 2, 2027, beginning on March 2, 2014. The interest rate on the bonds is 3.73 percent. Principal payments are due annually beginning on September 2, 2014. At June 30, 2025, the outstanding balance of the 2013 Heartland Ranch Revenue bonds was $641,013.

The annual debt service requirements are as follows:

Year Ending
June 30, Principal Interest Total
2026 284,557 $ 18,603 $ 303,160 $
2027 174,771 10,036 184,807
2028 181,685 3,388 185,073
Total $ 641,013 $ 32,027 $ 673,040
PPFA 2023 Series A Special Tax Revenue Refunding Bonds
On August 1, 2023, the Patterson Public Financing Authority issued $54,370,000 of special tax revenue refunding bonds (Series 2023 A) to refund the 2013 PPFA Series A Bonds and the 2013 PPFA Series B Bonds which had outstanding balances of $53,265,000 and $5,235,000, respectively. The bonds were sold with a net original issue premium of $6,617,848 and costs of issuance of $1,029,942 (including the underwriter’s discount, the fee for bond insurance and a surety fee for the reserve fund).

Interest on the bonds is payable semi-annually on March 1 and September 1 of each year through September 1, 2024, beginning on March 1, 2024. The interest rates on the bonds range from 2.790 to 3.890 percent. Principal payments are due annually beginning on September 1, 2024. The bonds are secured by a first pledge of the investment revenues and funds on deposit in the Bond Fund, Reserve Fund, and Special Tax Fund.

At June 30, 2025, the outstanding balance of the PPFA 2023 Series A Special Tax Revenue Refunding Bonds was $52,185,000.

The annual debt service requirements are as follows:

Year Ending
June 30, Principal Interest Total
2026 2,395,000 $ 2,549,375 $ 4,944,375 $
2027 2,550,000 2,425,750 4,975,750
2028 2,680,000 2,295,000 4,975,000
2029 2,810,000 2,157,750 4,967,750
2030 2,945,000 2,013,875 4,958,875
2031-2035 16,635,000 7,654,375 24,289,375
2036-2040 22,170,000 2,927,250 25,097,250
Total 52,185,000 $ $ 22,023,375 $ 74,208,375
Packet Pg. 897
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
73 Note 8 – Long-Term Debt (Continued)
A. Governmental Activities (Continued)
2018 Lease Revenue Bonds
In June 2018, the Patterson Public Financing Authority issued $2,429,000 of Lease Revenue Bonds, Series 2018 through ZMFU II, INC., a corporation organized under the laws of the State of Utah. The proceeds were utilized to provide funding for acquisition of land for a multipurpose center and adjacent park site. The bonds mature annually in amounts ranging from $62,400 to $102,760. Interest is due and payable semiannually at a rate of 3.47 percent. At June 30, 2025, the outstanding balance of the 2018 Lease Revenue Bonds was $1,449,708.

The annual debt service requirements are as follows:

Year Ending
June 30, Principal Interest Total
2026 160,158 $ 48,927 $ 209,085 $
2027 165,764 43,322 209,086
2028 171,566 37,520 209,086
2029 177,571 31,515 209,086
2030 183,786 25,300 209,086
2031-2033 590,863 36,394 627,257
Total 1,449,708 $ $ 222,978 $ 1,672,686
Finance Purchase Agreements
The City has entered into various finance purchase agreements for various fire equipment purchases. These lease qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of future minimum lease payments as of the date of inception. The finance purchase agreements carry annual interest rates from 5.23 to 6.76 percent with principal and interest payments due bi-annually. The asset acquired under the finance purchase agreement is classified as machinery, equipment and vehicles. The gross value of equipment acquired under finance purchase agreements at June 30, 2025, was $3,517,975, with an accumulated amortization of $203,395. The outstanding balance at June 30, 2025, was $3,212,855.

The annual debt service requirements are as follows:

Year Ending
June 30, Principal Interest Total
2026 - $ 127,819 $ 127,819 $
2027 278,346 196,962 475,308
2028 294,644 180,664 475,308
2029 311,911 163,397 475,308
2030 330,207 145,101 475,308
2031-2035 1,589,583 453,569 2,043,152
2036-2037 408,164 21,347 429,511
Total 3,212,855 $ $ 1,288,859 $ 4,501,714
Packet Pg. 898
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
74 Note 8 – Long-Term Debt (Continued)
A. Governmental Activities (Continued)
Lease Payable
The City has entered into leases for building space. The terms of the agreements range from 2 to 6 years. The interest rate on the lease payable was 1.875%. As of June 30, 2025, the capitalized right-to-use assets related to leases were $550,753 and the total lease liability was $237,700, of which $129,609 is reported as a current liability representing the amount due within the next fiscal year.

The annual debt service requirements are as follows:

Year Ending
June 30, Principal Interest Total
2026 $ 129,609 $ 2,196 $ 131,805
2027 73,633 705 74,338
2028 15,483 336 15,819
2029 18,975 102 19,077
Total $ 237,700 $ 3,339 $ 241,039
Subscription Liability
The City’s Governmental Activities has entered into subscription-based information technology arrangements (SBITAs) for services related to cloud-based software applications, data storage and management services. Under the terms of these arrangements, the Town does not take possession of the software at any time and the vendor provides ongoing services for the software's operation. The subscription period is 25 months and the calculated interest rate used was 2.92%.

As of June 30, 2025, the capitalized right-to-use assets related to SBITAs were $110,022 and the total subscription liability was $35,169, of which $13,180 is reported as a current liability representing the amount due within the next fiscal year.

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

Year Ending
June 30, Principal Interest Total
2026 13,180 $ 700 $ 13,880 $
2027 13,500 380 13,880
2028 8,489 111 8,600
Total 35,169 $ $ 1,191 $ 36,360
Keystone Corporation Settlement
On June 20, 2012, the City filed a complaint against Keystone Corporation and the Keystone Pacific Business Park for breach of contract (“Keystone”) based on Keystone’s failure to pay its share of General Plan updates costs incurred by the City. After this filing, the City and Keystone immediately began settlement discussions and requested the case be stayed. Subsequently, a Request for Dismissal was filed on June 24, 2013.

Packet Pg. 899
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
75 Note 8 – Long-Term Debt (Continued)
A. Governmental Activities (Continued)
Keystone Corporation Settlement (Continued)
Following the dismissal, the City and Keystone had settlement discussions regarding possible money owed to Keystone for the environmental and engineering work performed in relation to the Keystone project, which was not the subject of the City’s breach of contract claim.

Under the terms of the settlement agreement, the total amount the City will pay Keystone is $1,300,000. Of that sum, $936,000 will be paid in three annual installments, beginning July 15, 2014 with the final payment due in July 2016. The remaining amount of the settlement in the amount of $364,000 will be paid to Keystone upon collection from the entitlement or development of undeveloped land in the West Patterson Business Park. The settlement agreement does not require payment of the $364,000 in any particular time frame other than as early in the entitlement or development process as possible, but no later than entering into development agreements or approving tentative maps or final maps on currently underdeveloped land in the West Patterson Business Park. At June 30, 2025, the remaining balance of the settlement payable was $364,000.

Patterson Ranch Development Settlement
On November 3, 2022, Patterson Ranch Development LLC (PRD LLC) sent a letter to the City alleging that the City failed to comply with its Reimbursement Administration obligations under Section 5.9 of the Development Agreement in that it failed to condition the subdivision map approvals or reach a reimbursement agreement with the Stakeholders and PRD LLC to allow for the timely payment of the Reimbursement Obligation owed to PRD LLC for the Public Facilities Improvements. The City and PRD LLC had settlement discussions and PRD LLC has agreed to waive their claim as to the timing of the reimbursement obligation in exchange for a portion of the reimbursement obligation being paid immediately and the rest of the reimbursement obligation being covered after the issuance of bond proceeds from Community Facilities District 2018-1. Under the terms of the settlement agreement, the total amount the City will pay PRD LLC is $1,333,355. At June 30, 2025, the outstanding balance of the settlement liability was $1,333,355.

B. Business-Type Activities
Summary of changes in long-term liabilities for the business-type activities for the year ended June 30, 2025 is as follows:

Original Balance Balance Due Within Due In More
Issuance July 1, 2024 Additions Deletions June 30, 2025 One Year Than One Year Water Fund:

Public Offering:
2019A Water Revenue Bonds $ 9,215,000 $ 8,895,000 $ (75,000) - $ $ 8,820,000 $ 70,000 $ 8,750,000 Add: Bond Premium 497,934 - (19,527) - 478,407 478,407 - 2019B Water Revenue Refunding Bonds 7,015,000 5,660,000 (280,000) - 5,380,000 295,000 5,085,000 Add: Bond Premium 734,254 - (28,515) - 705,739 705,739 - Direct Borrowing:
2021 State Revolving Fund Loan 4,000,000 1,975,932 1,946,491 3,922,423 - 191,009 3,731,414 Total water fund 20,230,000 17,763,120 1,946,491 (403,042) 19,306,569 556,009 18,750,560 Sewer Fund:

Private Placement:
2017 Sewer Refunding Revenue Bonds 2,712,200 2,478,400 (128,700) - 2,349,700 132,800 2,216,900 Direct Borrowing:
2008 State Revolving Fund loan 774,790 311,135 (48,586) - 262,549 49,849 212,700 2021 State Revolving Fund Loan 2,084,000 1,397,532 170,179 (70,467) 1,497,244 69,979 1,427,265 Banc of America loan 951,540 1,128,267 (113,620) - 1,014,647 136,041 878,606 CEC loan 2,876,172 942,116 (205,721) - 736,395 207,783 528,612 Patterson Ranch Development Settlement 2,723,211 1,123,211 - 1,123,211 - 1,123,211 - Total sewer fund 12,121,913 7,380,661 170,179 (567,094) 6,983,746 596,452 6,387,294 Total business-type activities $ 25,143,781 32,351,913 $ 2,116,670 $ (970,136) $ 26,290,315 $ 1,152,461 $ 25,137,854 $ Packet Pg. 900
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
76 Note 8 – Long-Term Debt (Continued)
B. Business-Type Activities (Continued)
2019A Water Revenue Bonds
On December 24, 2019, the Patterson Public Financing Authority issued $9,215,000 Water Revenue Bonds, Series 2019A (“Series 2019A”). The City entered into an Installment Sale Agreement dated December 1, 2019 with the Patterson Public Financing Authority to assist with the financing of certain water system improvements in the amount of $9,591,000. The Series 2019A bonds are scheduled to mature on each June 1 from 2021 to 2049 with serial bonds from 2021 to 2039 and principal amounts ranging from $50,000 to $120,000 and term bonds maturing in 2044 in the amount of $3,415,000 and 2049 in the amount of $4,080,000. Interest rates range from

2.75 percent to 4.00 percent. The Series 2019A bonds are secured by a pledge of Net Revenues of the water System and are on parity with the Water Revenue Bonds, Series 2010. The Series 2019A bonds were sold with a net original issue premium of $585,803 and costs of issuance of $209,803 (including the underwriter’s discount, the fee for bond insurance and a surety fee for the reserve fund). At June 30, 2025, the outstanding balance of the 2019A Water Revenue Bonds was $8,820,000.

The annual debt service requirements are as follows:

Year Ending
June 30 Principal Interest Total
2026 $ 70,000 $ 307,544 $ 377,544
2027 75,000 304,744 379,744
2028 80,000 301,744 381,744
2029 85,000 298,544 383,544
2030 85,000 295,144 380,144
2031-2035 475,000 1,422,319 1,897,319
2036-2040 1,085,000 1,327,713 2,412,713
2041-2045 3,555,000 896,200 4,451,200
2046-2049 3,310,000 252,000 3,562,000
Total $ 8,820,000 $ 5,405,952 $ 14,225,952
2019B Water Revenue Refunding Bonds
On March 3, 2020 the PPFA issued $7,015,000 in Water Revenue Refunding Bonds, Series 2019B (“Series 2019B”) in order to refund in full the Series 2010 Water Revenue Bonds. The City entered into a First Supplemental Installment Sale Agreement dated March 1, 2021. Proceeds from the issuance of the bonds were held by the Bank of New York Mellon as Escrow Agent in escrow to redeem the remaining principal and accrued interest due on the Water Revenue Bonds, Series 2010 on June 1, 2021.

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

Interest on the refunding bonds is payable each December 1 and June 1 beginning on June 1, 2020. Principal is payable each June 1 beginning June 1, 2021 to June 1, 2039. At June 30, 2025, the outstanding balance of the 2019B Sewer Refunding Revenue Bonds was $5,380,000.

Packet Pg. 901
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
77 Note 8 – Long-Term Debt (Continued)
B. Business-Type Activities (Continued)
2019B Water Revenue Refunding Bonds (Continued)
The annual debt service requirements are as follows:

Year Ending
June 30 Principal Interest Total
2026 $ 295,000 $ 215,200 $ 510,200
2027 305,000 197,300 502,300
2028 315,000 184,900 499,900
2029 330,000 178,600 508,600
2030 345,000 165,400 510,400
2031-2035 1,940,000 608,600 2,548,600
2036-2039 1,850,000 188,800 2,038,800
Total $ 1,738,800 5,380,000 $ 7,118,800 $
2021 Water State Revolving Fund Loan
In 2021, the City entered into an agreement with the State Water Resource Board for a loan in the amount of $4,000,000. The loan amount is based on the amount of draws by the City for reimbursable costs. The loan bears interest in the amount of 1.2 percent. The loan principal payments are due annually on August 30th, starting in August 2025 with a final payment in August 2044. At June 30, 2025, the outstanding balance of the State Revolving Fund Loan was $3,922,423.

The annual debt service requirements are as follows:

Year Ending
June 30 Principal Interest Total
2026 191,009 $ 29,791 $ 220,800 $
2027 176,023 44,777 220,800
2028 178,135 42,665 220,800
2029 180,272 40,527 220,799
2030 182,436 38,364 220,800
2031-2035 945,548 158,450 1,103,998
2036-2040 1,003,659 100,340 1,103,999
2041-2045 1,065,341 38,657 1,103,998
Total $ 493,571 3,922,423 $ 4,415,994 $
2017 Sewer Refunding Revenue Bonds
On September 5, 2017, Resolution 2017-49 approved the refinancing of a portion of the Patterson Public Financing Authority Revenue Bonds, Series 2009 (City of Patterson Wastewater System Financing Project) (the “2009 Bonds”). The 2009 Bonds were originally issued to finance the costs of acquiring and constructing wastewater system improvements, fund a reserve fund and pay costs of issuance.

Packet Pg. 902
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
78 Note 8 – Long-Term Debt (Continued)
B. Business-Type Activities (Continued)
2017 Sewer Refunding Revenue Bonds (Continued)
The refinancing in the amount of $2,712,200 closed on September 21, 2017 as a direct placement to Capital One Public Funding at an interest rate of 3.4 percent. The refinancing refunded the 2039 term bond of the 2009 Bonds consisting of sinking fund payments from 2025 to 2039. Savings from the refinancing were capitalized in the amount of $469,905 and will be held by the City to provide additional funding for wastewater capital projects.

Interest on the refinancing is payable each December 1 and June 1 beginning December 1, 2017. Principal is payable each June 1 beginning June 1, 2018 to June 1, 2039. At June 30, 2025, the outstanding balance of the 2017 Sewer Refunding Revenue Bonds was $2,349,700.

The annual debt service requirements are as follows:

Year Ending
June 30 Principal Interest Total
2026 132,800 $ 79,890 $ 212,690 $
2027 136,800 75,375 212,175
2028 145,700 70,723 216,423
2029 149,300 65,770 215,070
2030 152,800 60,693 213,493
2031-2035 844,800 222,187 1,066,987
2036-2039 787,500 68,054 855,554
Total 2,349,700 $ 642,692 $ 2,992,392 $
2008 Sewer State Revolving Fund Loan
In 2008, the City entered into an agreement with the State Water Resource Board for a loan in the amount of $1,069,602. However, the project for the loan did not commence until fiscal year 2010. The loan amount is based on the amount of draws by the City for reimbursable costs. The loan bears interest at the amount of 1.3 percent.

The loan matures in October 2029. At June 30, 2025, the outstanding balance of the State Revolving Fund Loan was $262,549.

The annual debt service requirements are as follows:

Year Ending
June 30 Principal Interest Total
2026 49,849 $ 6,826 $ $ 56,675
2027 51,145 5,530 56,675
2028 52,475 4,200 56,675
2029 53,840 2,836 56,676
2030 55,240 1,436 56,676
Total $ 20,828 262,549 $ $ 283,377
Packet Pg. 903
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
79 Note 8 – Long-Term Debt (Continued)
B. Business-Type Activities (Continued)
2021 Sewer State Revolving Fund Loan
In 2021, the City entered into an agreement with the State Water Resource Board for a loan in the amount of $2,084,000 (of which $520,367 was forgiven). However, the project for the loan did not commence until the current fiscal year. The loan amount is based on the amount of draws by the City for reimbursable costs. The loan bears interest in the amount of 1.3 percent. The loan principal payments are due annually on December 29th, starting December 2024 with a final payment in December 2043. At June 30, 2025, the outstanding balance of the State Revolving Fund Loan was $1,497,244.

The annual debt service requirements are as follows:

Year Ending
June 30 Principal Interest Total
2026 69,979 $ 19,464 $ 89,443 $
2027 70,889 18,554 89,443
2028 71,810 17,633 89,443
2029 72,743 16,699 89,442
2030 73,690 15,754 89,444
2031-2035 383,068 64,148 447,216
2036-2040 408,624 38,592 447,216
2041-2044 346,441 11,332 357,773
Total $ 202,176 1,497,244 $ 1,699,420 $
Banc of America Public Capital Loan
In 2014, the City entered into an agreement with Banc of America Public Capital for a loan in the amount of $1,668,961 which was allocated between the General and Sewer Funds. Interest is calculated at 3.46 percent per annum payable each April and October 25 of each year through April 25, 2029. Principal payments are due semiannually on April 25 and October 25 are payable from energy savings from different funds that benefitted from solar panels, streetlights, and energy efficient fixtures. In 2015, the remaining General Fund balance of $686,473 was transferred to the Sewer fund. At June 30, 2025, the outstanding balance of the Banc of America Public Capital Loan was $1,014,647.

Year Ending
June 30 Principal Interest Total
2026 136,041 $ 33,940 $ 169,981 $
2027 160,803 29,020 189,823
2028 409,222 21,326 430,548
2029 308,581 8,030 316,611
Total $ 1,014,647 $ 92,316 $ 1,106,963
Packet Pg. 904
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
80 Note 8 – Long-Term Debt (Continued)
B. Business-Type Activities (Continued)
CEC Loan
In 2014, the City entered into an agreement with the California Energy Commission for a loan in the amount of $2,876,172. Interest is calculated at 1.0 percent per annum payable each June and December 22 of each year through December 22, 2028. Principal payments are due semi-annually on June 22 and December 22 and are paid from energy savings from the different funds that benefit from the solar panels, streetlights, and energy efficient fixtures. At June 30, 2025, the outstanding balance of the CEC loan was $736,395.

The annual debt service requirements are as follows:

Year Ending
June 30 Principal Interest Total
2026 $ 207,783 $ 6,847 $ 214,630
2027 209,866 4,764 214,630
2028 211,964 2,666 214,630
2029 106,782 535 107,317
Total $ 14,812 736,395 $ 751,207 $
Patterson Ranch Development Settlement
On November 3, 2022, Patterson Ranch Development LLC (PRD LLC) sent a letter to the City alleging that the City failed to comply with its Reimbursement Administration obligations under Section 5.9 of the Development Agreement in that it failed to condition the subdivision map approvals or reach a reimbursement agreement with the Stakeholders and PRD LLC to allow for the timely payment of the Reimbursement Obligation owed to PRD LLC for the Public Facilities Improvements. The City and PRD LLC had settlement discussions and PRD LLC has agreed to waive their claim as to the timing of the reimbursement obligation in exchange for a portion of the reimbursement obligation being paid immediately and the rest of the reimbursement obligation being covered after the issuance of bond proceeds from Community Facilities District 2018-1. Under the terms of the settlement agreement, the total amount the City will pay PRD LLC is $2,723,211. In Fiscal Year 2023, the Water Fund advanced the Sewer Fund $1,600,000 to pay for a portion of the settlement (see Note 5 B). At June 30, 2025, the outstanding balance of the settlement liability was $1,123,211.

Note 9 – Compensated Absences
A. Governmental Activities
Summary of changes in compensated absences for the year ended June 30, 2025 is as follows:

Balance
July 1, 2024, Increase/ Balance Due Within Due In More
as restated (Decrease) June 30, 2025 One Year Than One Year Governmental Activities $ 23,496 1,717,718 $ 1,741,214 $ 1,204,300 $ 536,914 $ Classification
Packet Pg. 905
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
81 Note 9 – Compensated Absences (Continued)
B. Business-Type Activities
Summary of changes in compensated absences for the year ended June 30, 2025 is as follows:

Balance
July 1, 2024, Increase/ Balance Due Within Due In More
as restated (Decrease) June 30, 2025 One Year Than One Year Business-Type Activities:

Water Fund 353,284 $ (46,605) $ 306,679 $ 212,112 $ 94,567 $ Sewer Fund 420,258 (68,496) 351,762 243,294 108,468
Garbage Fund 117,822 (14,807) 103,015 71,250 31,765
Total business-type activities $ 891,364 $ (129,908) $ 761,456 $ 526,656 $ 234,800 Classification
Note 10 – Conduit Debt
Special assessment districts in various parts of the City have issued debt to finance infrastructure improvements and facilities within their boundaries. The City is the collecting and paying agent for the debts issued by these Districts, but does not have a direct, contingent or moral obligation for the payment of this debt. Therefore, these debts are not included in the general long-term liabilities of the City.

The outstanding balance of each of these issues as of June 30, 2025 was as follows:

Heartland Ranch Authority Bonds $ 622,557
Community Facilities District No. 2013-A1 Special Tax Bonds 27,734,529 Community Facilities District No. 2013-A2 Special Tax Bonds 21,936,309 Community Facilities District No. 2013-B Special Tax Bonds 3,226,379 Community Facilities District No. 2005-1 Business Park Special Tax Bonds 8,775,000 Community Facilities District No. 2015-1 Special Tax Bonds 4,500,000 Community Facilities District No. 2018-1 Special Tax Bonds, Series 2021 4,340,000 Community Facilities District No. 2005-1 Special Tax Bonds, Series 2021 6,760,000 Community Facilities District No. 2018-1 2024 Bonds 10,885,000 Total $ 88,779,774
Packet Pg. 906
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
82 Note 11 – Fund Balances
At June 30, 2025, fund balances classification is as follows:

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

Prepaid items $ 300,684 $ 12,936 $ 220,364 $ 533,984 - $ Total nonspendable 300,684 12,936 220,364 533,984 -
Restricted:

Debt service 604,689 60,662,494 - 61,267,183 -
Public safety 1,762,267 - - 1,762,267 -
Assessment Districts - - 5,621,872 - 5,621,872
Grants 132,626 - 737,363 - 869,989
Streets and roads - - 5,702,954 - 5,702,954
Measure L - - 5,951,446 - 5,951,446
Developer housing in-lieu - - 4,550,056 - 4,550,056
Community Facilities Districts - - 1,426,431 - 1,426,431 Impact fee - - 1,574,233 - 1,574,233
Total restricted 737,315 1,762,267 60,662,494 25,564,355 88,726,431 Committed:

Contingencies 12,113,995 - - 12,113,995 -
Capital projects - - 17,586,312 - 17,586,312
Total committed 12,113,995 - 17,586,312 - 29,700,307
Assigned:

General government operations 1,127,600 - - 1,127,600 - Encumbrances 1,829,183 - - 1,829,183 -
OPEB 71,713 - - - 71,713
Capital projects 348,561 - - 348,561 -
Total assigned 3,377,057 - - 3,377,057 -
Unassigned (deficit) 6,600,479 - (25,395) - 6,575,084
Total $ 23,129,530 $ 1,775,203 $ 60,882,858 $ 43,125,272 $ 128,912,863 Note 12 – Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters for which the City obtains insurance coverage.

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

Packet Pg. 907
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
83 Note 12 – Risk Management (Continued)
Since 1986, the City has joined together with other cities to form a public entity risk pool known as the Central San Joaquin Valley Risk Management Authority (“CSJVRMA”), a joint powers authority established in accordance with the California government code. The relationship between the City and CS is such that the CSJVRMA is not a component unit of the City for financial reporting purposes. Financial statements for the CSJVRMA may be obtained from the CSJVRMA's management.

The CSJVRMA is currently operating as a common risk management and insurance program for 54 member cities.

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

The latest financial information of the CSJVRMA for fiscal year ended June 30, 2025, is as follows:

Total Assets $ 206,777,744
Total Liabilities $ 157,063,998
Net Position $ 49,713,746
Operating Revenues $ 85,738,001
Operating Expenses $ 86,877,199
Nonoperating Revenues (Expenses) $ 8,298,143
Change in Net Position $ 7,158,945
A. Coverage
The City participates in the Central San Joaquin Valley Risk Management Authority (CSJVRMA), a public entity risk pool currently operating as a common risk management and insurance program for 54 cities. The purpose of CSJVRMA is to spread the adverse effect of losses among the members and to purchase excess insurance as a group, thereby reducing its expense. The CSJVRMA is governed by a Board of Directors elected by the member agencies; it is not a component unit of the City. Audited financial statements are available from the Central San Joaquin Risk Management Authority at 1750 Creekside Oaks Drive, Suite 200, Sacramento, CA 95833.

The City participates in the following pooled coverages through CSJVRMA:

Type of Coverage (Deductible) Coverage Limits
Liability ($100,000) $ 54,000,000
Property ($5,000 to $25,000) 1,000,000,000
Worker's Compensation ($500,000) Statutory Limit
Boiler and Machinery ($5,000 to $25,000) 100,000,000
Automobile - for vehicles with values more than $25,000 ($500) 1,000,000,000 The CSJVRMA maintains separate records for each member for each year of participation. The records track cash paid to the CSJVRMA through deposit premium assessments, the City’s self-insured retention portion of claims paid, and the City’s allocation of shared risks. Three years after the close of the workers’ compensation coverage year and five years after the close of the general liability coverage year, the CSJVRMA assesses the status of all members for the year, then either makes a refund to a member if it has positive balance (i.e., payout and reserve experience is less than premiums paid) or collects any deficit.

During the fiscal year ended June 30, 2025, the City contributed $2,774,553 for current year coverage. Settled claims have not exceeded insurance coverage in any of the past three fiscal years.

Packet Pg. 908
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
84 Note 13 – Pension Plans
A. Summary
Governmental Business-Type
Activities Activities Total
Deferred outflows of resources:

Pension contribution after measurement date:

Miscellaneous 1,217,218 778,417 $ 1,995,635 $
Safety 866,793 - 866,793
Change in assumptions:

Miscellaneous 137,152 87,709 224,861
Safety 105,886 - 105,886
Difference between expected and actual experience:

Miscellaneous 443,364 283,533 726,897
Safety 339,324 - 339,324
Differences between City's contributions and
proportionate share of contributions
Miscellaneous 142,177 90,922 233,099
Safety 233,044 - 233,044
Adjustments due to differences in proportions
Miscellaneous 211,468 135,234 346,702
Safety 136,621 - 136,621
Differences between projected and actual investment
investment earnings
Miscellaneous 307,200 196,456 503,656
Safety 207,729 - 207,729
Total deferred outflows of resources $ 1,572,271 4,347,976 $ 5,920,247 $ Net pension liabilities:

Miscellaneous 5,336,229 $ 3,412,540 $ 8,748,769 $
Safety 4,297,667 - 4,297,667
Total net pension liabilities $ 3,412,540 9,633,896 $ 13,046,436 $ Pension expenses:

Miscellaneous 1,491,774 $ 953,995 $ 2,445,769 $
Safety 1,115,367 - 1,115,367
Total pension expenses $ 953,995 2,607,141 $ 3,561,136 $ B. General Information about Pension Plans
Plan Description
The City contributes to the California Public Employees’ Retirement System (“CalPERS”), a cost-sharing multiple-employer defined benefit pension plan. CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. CalPERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by State statute and City ordinance. Copies of the CalPERS annual financial report may be obtained from their Executive Office located at 400 P Street, Sacramento, California 95814.

Packet Pg. 909
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
85 Note 13 – Pension Plans (Continued)
B. General Information about Pension Plans (Continued)
Employees Covered by Benefit Terms
At June 30, 2024, measurement date, the following employees were covered by the benefit terms:

Miscellaneous Safety
Active employees 132 21
Transferred and terminated employees 92 11
Retired employees and beneficiaries 58 43
Total 282 75
Benefits Provided
CalPERS provide retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Classic and PEPRA Safety CalPERS member becomes eligible for service retirement upon attainment of age 55 with at least 5 years of credited service. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 62 with at least 5 years of service. The service retirement benefit is a monthly allowance equal to the product of the benefit factor, years of service, and final compensation.

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

Following are the benefit provisions for each plan:

Miscellaneous Safety
Miscellaneous PEPRA Safety PEPRA
Benefit formula 2.7% @ 55 2.0% @ 62 3.0% @ 50 2.7% @ 57 Benefit vesting schedule 5 years service 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life monthly for life Retirement age 556250 57
Monthly benefits, as a % of
eligible compensation 2.7% 2.0% 3.0% 2.7%
Required employee contribution rate 8.000% 7.750% 9.000% 13.750% Required employer contribution rate 15.170% 7.680% 25.650% 13.540% Contributions
For the year ended June 30, 2025, the contributions recognized as part of pension expense for each Plan are as follows:

Miscellaneous Safety Total
Contributions - employer $ 1,995,635 $ 866,793 $ 2,862,428 Packet Pg. 910
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
86 Note 13 – Pension Plans (Continued)
C. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions Proportionate Share of Net Pension Liability and Pension Expense The following table shows the plan’s proportionate share of the risk pool collective net pension liability over the measurement period:

Plan Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Miscellaneous
Balance at: 6/30/23 (Valuation date) 43,584,775 $ 34,547,147 $ 9,037,628 $ Balance at: 6/30/24 (Measurement date) 50,009,765 41,260,996 8,748,769 Net changes during 2023-2024 6,424,990 6,713,849 (288,859) Safety
Balance at: 6/30/23 (Valuation date) 17,355,375 $ 12,978,907 $ 4,376,468 $ Balance at: 6/30/24 (Measurement date) 19,401,948 15,104,281 4,297,667 Net changes during 2023-2024 2,046,573 2,125,374 (78,801) The City’s net pension liability/(asset) for each Plan is measured as the proportionate share of the net pension liability/(asset). The net pension liability/(asset) of each of the Plans is measured as of June 30, 2024, and the total pension liability/(asset) for each Plan used to calculate the net pension liability/(asset) was determined by an actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 using standard update procedures. The City’s proportion of the net pension liability/(asset) was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability/(asset) for each Plan as of June 30, 2024 and 2023 were as follows:

Miscellaneous Safety Total
Proportion - June 30, 2023 0.18074% 0.05855% 0.23929%
Proportion - June 30, 2024 0.18089% 0.05895% 0.23983%
Change - Increase/(Decrease) 0.00015% 0.00040% 0.00055% For the year ended June 30, 2025, the City recognized pension expense/credit of $2,445,769 and $1,115,367, for the Miscellaneous and Safety plans, respectively. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Contribution made after the measurement date 1,995,635 $ - $ Difference between expected and actual
experience 726,897 -
Changes of assumptions 224,861 -
Net difference between projected and actual
earnings on pension plan investments 503,656 -
Employer contributions in excess/(under)
proportionate share of contributions 233,099 -
Adjustments due to difference in proportions 346,702 -
Total $ - 4,030,850 $
Miscellaneous Plan
Packet Pg. 911
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
87 Note 13 – Pension Plans (Continued)
C. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Proportionate Share of Net Pension Liability and Pension Expense (Continued) Deferred Outflows Deferred Inflows
of Resources of Resources
Contribution made after the measurement date 866,793 $ - $ Difference between expected and actual
experience 339,324 -
Changes of assumptions 105,886 -
Net difference between projected and actual
earnings on pension plan investments 207,729 -
Employer contributions in excess/(under)
proportionate share of contributions 233,044 -
Adjustments due to difference in proportions 136,621 -
Total $ - 1,889,397 $
Safety Plan
Deferred Outflows Deferred Inflows
of Resources of Resources
Contribution made after the measurement date 2,862,428 $ - $ Difference between expected and actual
experience 1,066,221 -
Changes of assumptions 330,747 -
Net difference between projected and actual
earnings on pension plan investments 711,385 -
Employer contributions in excess/(under)
proportionate share of contributions 466,143 -
Adjustments due to difference in proportions 483,323 -
Total $ - 5,920,247 $
Aggregate Total
For the Miscellaneous Plan and Safety Plan, $1,995,635 and $866,793, respectively, was reported as deferred outflows of resources related to pensions resulting from City’s contributions subsequent to the measurement date and will be recognized as a reduction of the net pension liability in the year ended June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year Ended
June 30 Miscellaneous Plan Safety Plan Total
2025 $ 799,622 $ 416,401 $ 1,216,023
2026 1,323,668 613,850 1,937,518
2027 84,521 63,428 147,949
2028 (172,596) (71,075) (243,671)
2029 - - -
Thereafter - - -
Total $ 2,035,215 $ 1,022,604 $ 3,057,819
Deferred Outflows/(Inflows) of Resources
Packet Pg. 912
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
88 Note 13 – Pension Plans (Continued)
C. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Actuarial Assumptions
The total pension liabilities in the June 30, 2023 actuarial valuations were determined using the following actuarial assumptions:

Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Payroll Growth
Salary Increases
Mortality Rate Tables(1)
Post Retirement Benefit Increase
(1) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report from November 2021 that can be found on the CalPERS website.

Varies by Entry Age and Service
Derived using CalPERS’ Membership Data for all Funds
The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter.

2.30%

2.75%
Entry Age Normal in accordance with the requirement of GASB Statement No. 68

6.90%
Change of Assumptions
There were no assumption changes in 2024.

Discount Rate
The discount rate used to measure the total pension liability was 6.90%. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate.

Based on the testing, none of the tested plans run out of assets. Therefore, the current 6.90% discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 6.90% is applied to all plans in the Public Employees Retirement Fund. The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained at CalPERS’ website under the GASB 68 section.

Packet Pg. 913
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
89 Note 13 – Pension Plans (Continued)
C. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, staff took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses.

Assumed Asset Real Return
Allocation Years 1-102
Global Equity - Cap-weighted 30.00% 4.45%
Global Equity - Non-Cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
1 An expected inflation of 2.30% used for this period.
2 Figures are based on the 2021 Asset Liability Management study.

Asset Class1
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net position liability for the Plan, calculated using the discount rate for each Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

Discount Rate - 1% Current Discount Discount Rate + 1%
(5.90%) Rate (6.90%) (7.90%)
Miscellaneous 15,497,106 $ 8,748,769 $ 3,193,894 $
Safety 6,947,954 4,297,667 2,130,104
Total 22,445,060 $ 13,046,436 $ 5,323,998 $
Plan's Net Pension Liability/(Asset)
Packet Pg. 914
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
90 Note 13 – Pension Plans (Continued)
C. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

D. Payable to the Pension Plan
At June 30, 2025, the City had no outstanding amounts owed to the pension plan for contributions for the year ended June 30, 2025.

Note 14 – Other Postemployment Benefits
A. Summary
Governmental Business-Type
Activities Activities Total
Deferred outflows of resources:

Employer contributions made
subsequent to the measurement date $ 302,633 $ 139,995 $ 442,628 Difference between expected and actual experience 659,814 305,221 965,035 Changes in assumptions 911,623 421,705 1,333,328
Total deferred outflows of resources $ 1,874,070 $ 866,921 $ 2,740,991 Net OPEB liability:

Net OPEB liability $ 6,965,428 $ 2,469,923 $ 9,435,351
Total OPEB liability $ 6,965,428 $ 2,469,923 $ 9,435,351 Deferred inflows of resources:

Difference between expected and actual experience $ 1,356,238 $ 828,634 $ 2,184,872 Change in assumption 2,894,816 1,768,674 4,663,490
Net difference between projects and actual earnings on plan investments 32,652 19,949 52,601
Total deferred inflows of resources $ 4,283,706 $ 2,617,257 $ 6,900,963 Net OPEB expense $ 118,651 $ 42,074 $ 160,725
B. General Information about OPEB
Plan Description
The City’s administers a defined benefit OPEB plan (Plan), which provides medical insurance benefits to eligible retirees and their spouses in accordance with applicable Memoranda of Understanding and the California Government Code to all employees who retire from the City. The Plan is an agent multiple-employer defined benefit OPEB plan administered by the City and is governed by the City Council. No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75.

Packet Pg. 915
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
91 Note 14 – Other Postemployment Benefits (Continued)
B. General Information about OPEB (Continued)
Plan Description (Continued)
Employees of the Miscellaneous bargaining group and other non-represented employees, who retire from the City with ten years or more of contiguous City service, are eligible for a Post-Retirement Health Benefit for themselves and spouse or child or children. This benefit is finite in nature and provides for the cost of benefits for one year only. This cost is computed at the rate of the current health care premiums and the current dental premiums, in place at the time of retirement.

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

Membership in the plan consisted of the following at June 30, 2024, the valuation date:

Active employees 146
Inactives entitled to but not yet receiving benefits 17 Inactives currently receiving benefits 24
Total 187
Contributions
The obligation of the City to contribute to the Plan is established and may be amended by the City Council. For the 2023-24 fiscal year, measurement period, Payments made outside of the trust were $316,986. Employees are currently not required to contribute to the plan.

In fiscal year 2022, the City elected to begin prefunding its OPEB obligation through the use of an irrevocable trust established with the Public Agencies Retirement System (PARS) OPEB Trust Program. This trust fund is an agent multiple-employer plan. The trust is used to accumulate and invest funds necessary to pay for future retiree benefits and to reduce the Town’s future cash flow requirements. PARS is a tax qualified irrevocable trust, organized under Internal Revenue Code (IRC) Section 115, established to prefund retirement health benefits. At June 30, 2024, measurement date, the balance in this trust account was $1,424,845.

Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2024. The total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2024.

Packet Pg. 916
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
92 Note 14 – Other Postemployment Benefits (Continued)
C. Net OPEB Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB Actuarial Assumptions
The net OPEB liability in the June 30, 2024 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:

Discount Rate
Inflation
Aggregate payroll increases
Expected long-term investment rate of return
Mortality, Termination, and Disability
Mortality Improvement Scale
Healthcare Trend Rate - Non-Medicare
Healthcare Trend Rate - Medicare (Non-Kaiser)
Healthcare Trend Rate - Medicare (Kaiser)
An annual healthcare cost trend rate of 7.35% for 2027, decreasing to an ultimate rate of 3.45% in 2076.

An annual healthcare cost trend rate of 6.50% for 2027, decreasing to an ultimate rate of 3.45% in 2076.

An annual healthcare cost trend rate of 5.45% for 2027, decreasing to an ultimate rate of 3.45% in 2076.

Modified projected fully generational with Scale MP-2021

5.50%

2.50%

2.75%
n/a
CalPERS 2000-2019 Experience Study
Discount Rate
The discount rate used to measure the net OPEB liability was 5.50% percent. This discount rate is the mid-point, rounded to five basis points, of the range of 3-20 year municipal bond rate indices; S&P Municipal bond 20 Year High Grade Rate Index, Bond Buyer 20-Bond GO Index, and Fidelity GO AA 20 Year Bond Index.

Change in the Net OPEB Liability
Total OPEB Fiduciary Net Net OPEB
Liability Position Liability
Balance at June 30, 2023 9,048,176 $ 1,030,696 $ 8,017,480 $ Changes Recognized for the Measurement Period:

Service Cost 452,386 - 452,386
Interest on the total OPEB liability - 513,814 513,814
Difference between expected and actual experience 1,065,559 - 1,065,559 Changes of assumptions 97,247 - 97,247
Contributions from the employer - 569,584 (569,584)
Net investment income - 147,354 (147,354)
Administrative expenses - (5,803) 5,803
Benefit payments (316,986) (316,986) -
Net Changes during July 1, 2023 to June 30, 2024 1,812,020 394,149 1,417,871 Balance at June 30, 2024 (Measurement Date) 10,860,196 $ 1,424,845 $ 9,435,351 $ Packet Pg. 917
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
93 Note 14 – Other Postemployment Benefits (Continued)
C. Net OPEB Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (4.50 percent) or 1-percentage- point higher (6.50 percent) than the current discount rate:

Discount Rate - 1% Current Discount Discount Rate + 1%
(4.50%) Rate (5.50%) (6.50%)
$ 9,435,351 10,685,975 $ 8,367,845 $
Plan's Net OPEB Liability
Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates:

Healthcare Cost
-1% Trend Rates 1%
$ 9,435,351 8,460,702 $ 10,692,903 $
Plan's Net OPEB Liability
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2025, the City recognized OPEB expense of $160,725. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Difference between expected and actual experience 965,035 $ 2,184,872 $ Changes of assumptions 1,333,328 4,663,490
Net difference between projected and
actual earnings on plan investments - 52,601
Employer contributions made
subsequent to the measurement date 442,628 -
Total $ 6,900,963 2,740,991 $
The difference between projected OPEB plan investment earnings and actual earnings is amortized over a five year period. The remaining gains and losses are amortized over the expected average remaining service life. The expected average remaining service life is 10.6 years, which was determined as of July 1, 2023, the beginning of the measurement period, for employees covered by the OPEB plan benefit terms as of the valuation date.

Packet Pg. 918
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
94 Note 14 – Other Postemployment Benefits (Continued)
C. Net OPEB Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued)
For the OPEB Plan, $442,628 was reported as deferred outflows of resources related to pensions resulting from City’s contributions subsequent to the measurement date and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Year Ended Deferred Outflows/
June 30 (Inflows) of Resources
2026 $ (743,265)
2027 (742,267)
2028 (636,208)
2029 (590,899)
2030 (579,526)
Thereafter (1,310,435)
$ (4,602,600)
Note 15 – Deferred Compensation Plan
The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portion of their current salary until future years. Under these plans, participants are not taxed on the deferred portion of their compensation until distributed to them. Distributions are not available to the employees until termination, retirement, death or unforeseeable emergency as defined by the Plan.

Note 16 – Other Required Disclosures
A. (Deficit) Net Position/Fund Balances
At June 30, 2025, the following fund had a fund balance (deficit) or unrestricted net position (deficit), which will be eliminated through the reduction in future expenditures, the use of new funding sources, or transfers from the General Fund:

Fund Fund Type Deficit
Federal CDBG Grant Fund Special Revenue $ 25,395
Packet Pg. 919
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
95 Note 16 – Other Required Disclosures (Continued)
B. Expenditures Exceeding Appropriations
For the year ended June 30, 2025, expenditures exceeded appropriations in the following funds/functions:

Fund Function Excess Expenditures
General Fund Debt service - Principal $ 181,437
Debt service - Interest and fiscal charges 36,595
CFD 2003-1 Public Safety/Fire Protection Special Revenue Fund Debt service - Principal 74,336 Debt service - Interest and fiscal charges 42,551
Patterson Public Financing Authority Debt Service Fund General government 27,062 Debt service - Principal 65,000
Landscape Maintenance District Special Revenue Fund Public works 1,299 Capital outlay 43,330
CFD 2013-1 Special Revenue Fund Public works 2,828
CFD 2015-2 Public Safety Special Revenue Fund General government 50 CFD 2018-2 VOP Maintenance Special Revenue Fund General government 5,586 Public works 28,719
Note 17 – Net Position
A. Net Investment in Capital Assets
Net Investment in Capital Assets at June 30, 2025 consisted of the following:

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

Capital assets, nondepreciable 16,024,577 $ 13,662,046 $ Capital assets, depreciable/amortizable, net 60,748,395 49,629,757 Unspent bond proceeds - Restricted cash and investment - 420,397 Unspent bond proceeds - Cash with fiscal agent - 7,817,964 Deferred amount on refunding - 270,715
Long-term debt:

Accounts payable (capital-related) (27,795) -
Finance purchase agreements (3,212,855) -
Lease liability (237,700) -
Subscription liability (35,169) -
2018 Lease Revenue Bonds (1,449,708) -
2019A Water Revenue Bonds - (9,298,407)
2019B Water Revenue Refunding Bonds - (6,085,739)
2017 Sewer Refunding Revenue Bonds - (2,349,700)
2008 State Revolving Fund Loan - (262,549)
2021 State Revolving Fund Loan (5,419,667)
Banc of America loan - (1,014,647)
CEC loan - (736,395)
Total net investment in capital assets 71,809,745 $ 46,633,775 $ Packet Pg. 920
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
96 Note 17 – Net Position (Continued)
B. Restricted Net Position
Restricted Net Position at June 30, 2025 consisted of the following:

Governmental Business-Type
Activities Activities
Restricted net position:

Restricted amount on fund statements 88,726,431 $ 7,817,964 $ Unavailable revenue 2,557,984 -
Long-term debt offset by investments held by trust:

PPFA 2013 Heartland Ranch Revenue Bonds (641,013) -
PPFA 2023 Series A Special Tax
Special Revenue Refunding Bonds (52,185,000) -
Total restricted net position $ 38,458,402 $ 7,817,964
Note 18 – Settlement with Eli Development Corporation
On September 17, 2013, Eli Development Corporation submitted a reimbursement request to the City, pursuant to the development agreement between the City and Northeast Territories Patterson, LP, entered into as of December 19, 2006. The City has received the requested evidence from Eli Development Corporation and has determined that only a portion of the amount requested is subject to reimbursement. The landowner has proposed terms for settlement of the dispute and a release agreement has been prepared, subject to landowner review and acceptance. Therefore, the reimbursement would come from other parties and landowners, not the City.

Note 19 ‒ Restatements of Beginning Balances
During the current year, the City implemented GASB Statement No. 101, Compensated Absences. In addition to the value of unused vacation time owed to employees upon separation of employment, the City now recognizes an estimated amount of sick leave earned as of year-end that will be used by employees as time off in future years as part of the liability for compensated absences. The effects of the change in accounting principle are summarized below in the “Restatement – GASB 101 implementation” column in the table below.

June 30, 2024,
As Previously
Reported
Restatement -
GASB 101
implementation
June 30, 2024,
As Restated
Government-wide
Governmental activities $ 105,143,380 $ (1,006,356) $ 104,137,024 Business-type activities 48,012,963 (490,574) 47,522,389 Total government-wide $ 153,156,343 $ (1,496,930) $ 151,659,413 Proprietary funds
Enterprise funds
Major funds:

Water Fund $ 26,522,275 $ (194,549) $ 26,327,726
Sewer Fund 20,105,656 (229,862) 19,875,794
Garbage Fund 1,385,032 (66,163) 1,318,869
Total enterprise funds $ 48,012,963 $ (490,574) $ 47,522,389 Packet Pg. 921
City of Patterson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
97 Note 20 – Commitments and Contingencies
A. Litigation
The City is a defendant in certain legal actions arising in the normal course of operations. The accompanying basic financial statements reflect a liability for the probable amounts of loss associated with these claims.

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

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

C. Expedited Offsite Public Infrastructure Repayment Agreement In July 2022, the City entered into an Expedited Offsite Public Infrastructure Repayment Agreement with a retail and gasoline distributor (“the Corporation”). The purpose of the agreement is to support economic development by reimbursing the Corporation for the cost of constructing oversized offsite public infrastructure improvements that will serve future development within the City.

Under the terms of the agreement, the City has agreed to remit to the Corporation 100% of the local Bradley Burns sales tax revenues and local fuel tax revenues generated from the Corporation’s taxable sales each fiscal quarter, excluding penalty assessments. Payments begin in the first full fiscal quarter following the recording of the Notice of Completion for the improvements and continue until the City has reimbursed the Corporation up to a maximum amount of $5,044,040, representing infrastructure costs not allocable to the Corporation’s own development. Other than the rebate of these tax revenues, the City has made no additional commitments under the agreement.

The Notice of Completion for the improvements was recorded on June 3, 2025. For the fiscal year ended June 30, 2025, the City made no payments to the Corporation, and no City tax revenues were forgone under the terms of the agreement during the fiscal year.

Packet Pg. 922
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99 REQUIRED SUPPLEMENTARY INFORMATION
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100
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Packet Pg. 925
City of Patterson
Budgetary Comparison Schedule
General Fund
For the Year Ended June 30, 2025
101
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Taxes:

Property 8,371,449 $ 8,371,449 $ 8,685,386 $ 313,937 $
Sales 12,319,058 12,249,058 12,590,086 341,028
Franchise 255,000 255,000 207,841 (47,159)
Other 286,451 286,451 230,103 (56,348)
Licenses, permits, and fees 1,844,633 1,844,633 2,184,909 340,276 Charges for services 501,120 1,043,560 1,797,555 753,995 Intergovernmental:

Federal grant and subsidies - - 3,206,442 3,206,442
Other governmental 1,191,683 1,202,683 652,263 (550,420) Fines, forfeitures and penalties 96,000 96,000 89,378 (6,622) Interest 744,577 744,577 1,364,893 620,316
Miscellaneous 246,689 266,788 594,314 327,526
Total revenues 26,360,199 25,856,660 32,634,548 6,274,349 EXPENDITURES:

Current:

General government 6,810,776 12,464,532 9,805,281 2,659,251 Police 7,635,400 5,123,980 4,758,882 365,098
Fire 3,890,192 3,936,410 3,768,234 168,176
Community development and planning 2,731,860 2,729,772 2,358,636 371,136 Public works 4,730,967 4,759,531 4,573,921 185,610
Park and recreation 4,269,104 4,327,595 3,289,446 1,038,149 Capital outlay 445,295 2,609,830 1,099,692 1,510,138
Debt service:

Principal 232,967 270,316 451,753 (181,437)
Interest and fiscal charges 220,825 220,825 257,420 (36,595) Total expenditures 30,967,386 36,442,791 30,363,265 6,079,526

REVENUES OVER (UNDER)
EXPENDITURES (5,110,726) (10,082,592) 2,271,283 12,353,875 OTHER FINANCING SOURCES (USES):

Inception of subscription agreement - - 46,827 46,827
Transfers in 5,792,157 5,506,270 4,769,749 (736,521)
Transfers out (8,186,177) (7,774,248) (8,225,022) (450,774) Total other financing sources (uses) (2,394,020) (2,267,978) (3,408,446) (1,140,468) Net change in fund balances $ (7,504,746) $ (12,350,570) (1,137,163) $ 11,213,407 FUND BALANCE:

Beginning of year 24,266,693
End of year $ 23,129,530
Budgeted Amounts
Packet Pg. 926
City of Patterson
Budgetary Comparison Schedule
CFD 2003-1 Public Safety/Fire Protection Special Revenue Fund For the Year Ended June 30, 2025
102
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Charges for services $ 1,346,155 $ 1,346,155 $ 1,687,458 $ 341,303 Miscellaneous 47,000 47,000 97,594 50,594
Total revenues 1,393,155 1,393,155 1,785,052 391,897
EXPENDITURES:

Current:

General government 23,000 23,000 2,732 20,268
Fire 3,578,537 3,460,453 2,921,620 538,833
Capital outlay 351,400 381,403 48,315 333,088
Debt service:

Principal 78,224 78,224 152,560 (74,336)
Interest and fiscal charges 38,662 38,662 81,213 (42,551) Total expenditures 4,069,823 3,981,742 3,206,440 775,302

REVENUES OVER (UNDER)
EXPENDITURES (2,676,668) (2,588,587) (1,421,388) 1,167,199 OTHER FINANCING SOURCES (USES):

Transfers in 8,171,508 7,596,199 7,455,787 (140,412)
Transfers out (660,000) (660,000) - 660,000
Total other financing sources (uses) 7,511,508 6,936,199 7,455,787 519,588 Net change in fund balances $ 4,834,840 $ 4,347,612 6,034,399 $ 1,686,787 FUND BALANCE (DEFICIT):

Beginning of year (4,259,196)
End of year $ 1,775,203
Budgeted Amounts
Packet Pg. 927
City of Patterson
Notes to the Budgetary Comparison Schedule
Budgetary Information
For the Year Ended June 30, 2025
103
The City maintains budgetary controls in order to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. The City maintains an encumbrance accounting system to provide management with information regarding obligations against appropriations. Budgetary compliance is based on expenditures during the period (U.S. GAAP), rather than expenditures and encumbrances (non-GAAP). Because appropriations lapse at June 30, encumbrances outstanding at June 30, 2025 are disclosed in the notes to the financial statements. Appropriations for fiscal year 2025 will provide authority to complete those transactions.

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

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

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

1. The Finance Director submits a proposed budget by June 30 of each year to City Council. The operating budget includes proposed expenditures and the means of financing them.

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

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

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

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

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

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

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

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

Packet Pg. 928
City of Patterson
Schedule of Proportionate Share of the Net Pension Liability Last Ten Years
For the Year Ended June 30, 2025
104
Measurement period, year ended 6/20/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 Plan's proportion of the
net pension liability (asset) 0.1808865% 0.1807375% 0.1712600% 0.1456588% 0.1580126% Plan's proportionate share of
the net pension liability (asset) 8,748,769 $ 9,037,628 $ 8,013,797 $ 2,765,773 $ 6,665,091 $ Plan's covered payroll 5,184,055 $ 5,033,063 $ 4,886,469 $ 4,744,145 $ 4,605,966 $ Plan's proportionate share of
the net pension liability as a percentage
of covered payroll 168.76% 179.57% 164.00% 58.30% 144.71% Plan's fiduciary net position 41,260,996 $ 34,547,147 $ 31,389,666 $ 31,784,954 $ 24,491,193 $ Plan's fiduciary net position as a percentage
of the total pension liability 82.51% 79.26% 79.66% 92.00% 78.61% Plan's proportionate share of aggregate
employer contributions 1,706,925 $ 1,706,925 $ 1,426,665 $ 1,291,216 $ $ 1,103,312 Measurement period, year ended 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 Plan's proportion of the
net pension liability (asset) 0.1530113% 0.1496090% 0.1499839% 0.1499839% 0.1557567% Plan's proportionate share of
the net pension liability (asset) $ 6,127,339 $ 5,638,335 $ 5,912,437 $ 5,141,345 $ 4,273,133 Plan's covered payroll $ 4,471,812 $ 4,341,565 $ 4,215,111 $ 4,092,341 $ 3,973,147 Plan's proportionate share of
the net pension liability as a percentage
of covered payroll 137.02% 129.87% 140.27% 125.63% 107.55% Plan's fiduciary net position $ 22,526,868 $ 19,926,425 $ 16,132,739 $ 13,690,393 $ 12,687,998 Plan's fiduciary net position as a percentage
of the total pension liability 78.62% 77.94% 73.18% 72.70% 74.81% Plan's proportionate share of aggregate
employer contributions $ 1,043,720 $ 821,442 $ 821,442 $ 693,115 $ 748,691 Miscellaneous Plan
Packet Pg. 929
City of Patterson
Schedule of Proportionate Share of the Net Pension Liability (Continued) Last Ten Years
For the Year Ended June 30, 2025
105
Measurement period, year ended 6/30/2024 6/30/2023 6/30/2022 6/30/2021 Plan's proportion of the
net pension liability (asset) 0.058946% 0.058549% 0.056550% 0.050366% Plan's proportionate share of
the net pension liability (asset) 4,297,667 $ 4,376,468 $ 3,885,701 $ 1,767,602 $ Plan's covered payroll 1,495,997 $ $ 1,452,424 $ 1,452,424 $ 1,410,121 Plan's proportionate share of
the net pension liability as a percentage
of covered payroll 287.28% 301.32% 267.53% 125.35%
Plan's fiduciary net position $ 15,104,281 $ 12,978,907 $ 12,016,589 $ 12,315,218 Plan's fiduciary net position as a percentage
of the total pension liability 77.85% 74.78% 75.57% 87.45% Plan's proportionate share of aggregate
employer contributions $ 668,931 $ 668,931 $ 571,316 $ 552,488 Measurement period, year ended 6/30/2020 6/30/2019 6/30/2018 6/30/2017 Plan's proportion of the
net pension liability (asset) 0.047853% 0.046974% 0.045984% 0.046120% Plan's proportionate share of
the net pension liability (asset) $ 2,987,220 $ 2,756,215 $ 2,747,657 $ 2,388,655 Plan's covered payroll $ 1,329,174 $ 1,290,460 $ 1,252,874 $ 1,216,383 Plan's proportionate share of
the net pension liability as a percentage
of covered payroll 224.74% 213.58% 219.31% 196.37%
Plan's fiduciary net position $ 9,134,775 $ 8,394,137 $ 7,539,289 $ 6,653,977 Plan's fiduciary net position as a percentage
of the total pension liability 75.36% 75.28% 73.29% 73.58% Plan's proportionate share of aggregate
employer contributions $ 457,665 $ 393,732 $ 337,685 $ 312,567 Safety Plan
Packet Pg. 930
City of Patterson
Schedule of Plan Contributions – Pension
Last Ten Years
For the Year Ended June 30, 2025
106
Fiscal Year: 2024-25 2023-24 2022-23 2021-22 2020-21
Contractually determined contribution (actuarially determined) 1,995,635 $ $ 1,768,983 $ 1,706,925 $ 1,426,665 $ 1,291,216 Contributions in relation to the actuarially determined contributions (1,995,635) (1,768,983) (1,706,925) (1,426,665) (1,291,216) Contribution deficiency (excess) $ - $ - $ - $ - $ -
Covered payroll $ 5,184,055 5,339,577 $ 5,033,063 $ 4,886,469 $ 4,744,145 $ Contributions as a percentage of covered payroll 37.37% 32.93% 28.35% 26.42% 23.26% Fiscal Year: 2019-20 2018-19 2017-18 2016-17 2015-16
Contractually determined contribution (actuarially determined) 1,103,312 $ 1,043,720 $ 900,310 $ 821,442 $ 693,115 $ Contributions in relation to the actuarially determined contributions (1,103,312) (1,043,720) (900,310) (821,442) (693,115) Contribution deficiency (excess) $ - - $ - $ - $ - $
Covered payroll $ 4,471,812 4,605,966 $ 4,341,565 $ 4,215,111 $ 4,092,341 $ Contributions as a percentage of covered payroll 23.95% 23.34% 20.74% 19.49% 16.94% Notes to Schedule:

Methods and assumptions used to determine contribution rates for the fiscal year ended June 30, 2025:

Actuarial cost method Entry Age Actuarial Cost Method
Amortization method/period Level percentage of payroll
Asset valuation method Fair Market Value
Inflation 2.30%
Salary increases Varies by entry age and service
Payroll growth 2.80%
Investment rate of return 6.80% net of pension plan investment and administrative expenses.

Retirement age
Mortality
The probabilities of retirement are based on the 2021 CalPERS Experience Study for the period from 2000 and 2019.

The probabilities of mortality are based on the 2021 experience study report. The mortality table was developed based on CalPERS-specific data. The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP 2020 published by the Society of Actuaries.

Miscellaneous Plan
The actuarial methods and assumption used to set the actuarially determined contributions for Fiscal Year 2025 were derived from the June 30, 2022 funding valuation report.

Packet Pg. 931
City of Patterson
Schedule of Plan Contributions – Pension (Continued)
Last Ten Years
For the Year Ended June 30, 2025
107
Fiscal Year: 2024-25 2023-24 2022-23 2021-22 2020-21
Contractually determined contribution (actuarially determined) 866,793 $ 835,739 $ 668,931 $ 571,316 $ 552,488 $ Contributions in relation to the actuarially determined contributions (866,793) (835,739) (668,931) (571,316) (552,488) Contribution deficiency (excess) $ - $ - $ - $ - $ -
Covered payroll $ 1,540,877 1,587,103 $ 1,495,997 $ 1,452,424 $ 1,410,121 $ Contributions as a percentage of covered payroll 0.00% 56.25% 44.71% 39.34% 39.18% Fiscal Year: 2019-20 2018-19 2017-18 2016-17 2015-16
Contractually determined contribution (actuarially determined) 494,902 $ 457,665 $ 393,732 $ 337,685 $ 312,567 $ Contributions in relation to the actuarially determined contributions (494,902) (457,665) (393,732) (337,685) (312,567) Contribution deficiency (excess) $ - - $ - $ - $ - $
Covered payroll $ 1,329,174 1,369,049 $ 1,290,460 $ 1,252,874 $ 1,216,383 $ Contributions as a percentage of covered payroll 36.15% 34.43% 30.51% 26.95% 25.70% Notes to Schedule:

Methods and assumptions used to determine contribution rates for the fiscal year ended June 30, 2025:

Retirement age
Mortality
The probabilities of retirement are based on the 2021 CalPERS Experience Study for the period from 2000 and 2019.

Safety Plan
The actuarial methods and assumption used to set the actuarially determined contributions for Fiscal Year 2025 were derived from the June 30, 2022 funding valuation report.

Packet Pg. 932
City of Patterson
Schedule of Changes in Net OPEB Liability and Related Ratios Last Ten Years
For the Year Ended June 30, 2025
108
Measurement period, year ending: 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 1 Total OPEB liability
Service cost 452,386 $ $ 440,278 $ 1,156,354 $ 1,088,576 $ 930,865 $ 868,965 $ 951,252 $ 1,055,000 Interest 513,814 477,237 346,275 341,695 413,592 393,931 394,277 327,000 Changes of benefit terms - - - - - (891,666) - -
Differences between expected and actual experience 1,065,559 (1,645,289) - (1,584,352) - (552,203) - - Changes of assumptions 97,247 (6,213,884) - 639,497 1,127,249 490,438 102,481 (1,129,000) Benefit payments, including
refunds of member contributions (316,986) (212,186) (203,232) (164,926) (177,238) (163,179) (179,631) (175,000) Change in total OPEB liability 1,812,020 705,329 (6,559,776) 1,904,842 710,116 1,590,155 (175,490) 78,000 Total OPEB liability - beginning 9,048,176 8,342,847 14,902,623 12,997,781 12,287,665 10,697,510 10,873,000 10,795,000 Total OPEB liability - ending (a) $ 9,048,176 10,860,196 $ $ 8,342,847 $ 12,997,781 14,902,623 $ 12,287,665 $ 10,697,510 $ 10,873,000 $ OPEB fiduciary net position
Contributions - employer $ 569,584 $ 464,237 $ 955,100 $ 164,926 $ 177,238 $ 163,179 $ 179,631 $ 175,000 Net investment income 147,354 54,867 (21,455) - - - - - Benefit payments, including
refunds of member contributions (316,986) (212,186) (203,232) (164,926) (177,238) (163,179) (179,631) (175,000) Administrative expense (5,803) (4,455) (2,180) - - - - - Change in plan fiduciary net position 394,149 302,463 728,233 - - - - - Plan fiduciary net position - beginning 1,030,696 728,233 - - - - - - Plan fiduciary net position - ending (b) 1,424,845 1,030,696 728,233 - - - - - Plan net OPEB liability - ending (a) - (b) $ 9,435,351 $ 8,017,480 $ 7,614,614 $ 12,997,781 14,902,623 $ 12,287,665 $ 10,697,510 $ 10,873,000 $ Plan fiduciary net position as a
percentage of the total OPEB liability 13.12% 11.39% 8.73% 0.00% 0.00% 0.00% 0.00% 0.00% Covered-employee payroll $ 11,827,606 13,581,283 $ 9,551,738 $ $ 8,917,985 $ 8,559,266 $ 8,196,189 $ 7,352,843 $ 6,620,000 Plan net OPEB liability as a
percentage of covered-employee payroll 79.96% 76.50% 87.34% 167.11% 151.86% 149.92% 145.49% 164.24% Notes to Schedule
1 Information only presented from the implementation year.

Packet Pg. 933
City of Patterson
Schedule of Plan Contributions – OPEB
Last Ten Years
For the Year Ended June 30, 2025
109
Fiscal Year: 2024-25 2023-24 2022-23 2021-22 2020-21
Contractually determined
contribution (actuarially determined) 1,193,000 $ 1,029,000 $ 976,000 $ 955,100 $ 164,926 $ Contributions in relation to the
actuarially determined contributions (442,628) (569,584) (976,000) (955,100) (164,926) Contribution deficiency (excess) $ 750,372 $ 459,416 $ - $ - $ - Covered-employee payroll $ 14,145,968 $ 13,581,283 $ 11,827,606 $ 9,551,738 $ 8,917,985 Contributions as a percentage of
covered-employee payroll 3.13% 4.19% 8.25% 10.00% 1.85% Fiscal Year: 2019-20 2018-19 2017-18 2016-171
Contractually determined
contribution (actuarially determined) 177,238 $ 163,179 $ 179,631 $ 175,000 $ Contributions in relation to the
actuarially determined contributions (177,238) (163,179) (179,631) (175,000) Contribution deficiency (excess) $ - - $ - $ - $
Covered-employee payroll 8,559,266 $ 8,196,189 $ 7,352,843 $ 6,620,000 $ Contributions as a percentage of
covered-employee payroll 2.07% 1.99% 2.44% 2.64%
1 Information only presented from the implementation year.

Notes to Schedule:

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal, Level % of pay
Amortization method/period Level % of pay / 18-year fixed period for 2024/25 Asset valuation method Investment gains and losses spread over 5-year rolling period Discount rate
Inflation
Salary increases Varies by entry age and service
Medical trend Non-Medicare - 6.50% for 2023, decreasing to an ultimate rate of 7.35% in 2076 Medicare (Non-Kaiser) - 6.50% for 2027, decreasing to an ultimate rate of 3.45% in 2076 Medicare (Kaiser) - 5.45% for 2027, decreasing to an ultimate rate of 3.45% in 2076 Mortality CalPERS 2000-2019 Experience Study
Mortality improvement Mortality projected fully generational with Scale MP-2021 The actuarial methods and assumptions used to set the actuarially determined contributions for the fiscal year ended June 30, 2025 were as follows:

The actuarial methods and assumption used to set the actuarially determined contributions for Fiscal Year 2025 are as follows:

2.50%

5.50%
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Packet Pg. 935

SUPPLEMENTARY INFORMATION
111
Packet Pg. 936
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112
Packet Pg. 937

NON-MAJOR GOVERNMENTAL FUNDS
113
Packet Pg. 938
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114
Packet Pg. 939
CFD 2001-01
Landscape Benefit CSA #15 Patterson
Maintenance Assessment Assessment Gardens Beautification District Districts District Public Safety Committee
ASSETS
Cash and investments 1,923,761 $ 3,471,642 $ 18,330 $ 233,481 $ 42,974 $ Receivables:

Accounts - - - - -
Intergovernmental 20,398 5,472 201 7,452 -
Interest 28,199 29,543 97 8,336 360
Notes and loans - - - - -
Total assets $ 3,506,657 1,972,358 $ 18,628 $ 249,269 $ 43,334 $

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
LIABILITIES:

Accounts payable 116,191 $ 8,595 $ 254 $ - $ - $
Due to other funds - - - - -
Unearned revenue - - - - -
Deposits and other liabilities - - - - -
Total liabilities 8,595 116,191 254 - -
DEFERRED INFLOWS OF RESOURCES:

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

Restricted 1,856,167 3,498,062 18,374 249,269 43,334
Committed - - - - -
Unassigned (deficit) - - - - -
Total fund balances 1,856,167 3,498,062 18,374 249,269 43,334 Total liabilities, deferred inflows
of resources and fund balances $ 3,506,657 1,972,358 $ 18,628 $ 249,269 $ 43,334 $ (Continued)
City of Patterson
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2025
Special Revenue Funds
115
Packet Pg. 940
CDBG State Federal First Time Federal
HA Loan HCD Rehab CDBG Home HOME
Fund Program Grant Buyers Funds
ASSETS
Cash and investments $ 239,042 - $ $ 218,722 - $ $ 220,613 Receivables:

Accounts - - - - -
Intergovernmental - - 23,171 - -
Interest - 2,004 - 1,912 10,327
Notes and loans 293,489 3,072 - 74,869 188,815
Total assets $ 293,489 $ 244,118 $ 23,171 $ 295,503 $ 419,755

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
LIABILITIES:

Accounts payable $ - $ - $ 1,348 $ - $ -
Due to other funds - - 24,047 - -
Unearned revenue - - - - -
Deposits and other liabilities - - - - -
Total liabilities - - 25,395 - -
DEFERRED INFLOWS OF RESOURCES:

Unavailable revenue 293,489 3,072 23,171 74,869 197,076 Total deferred inflows of resources 293,489 3,072 23,171 74,869 197,076 FUND BALANCES (DEFICIT):

Restricted 241,046 - 220,634 - 222,679
Committed - - - - -
Unassigned (deficit) - - (25,395) - -
Total fund balances 241,046 - (25,395) 220,634 222,679
Total liabilities, deferred inflows
of resources and fund balances $ 244,118 293,489 $ 23,171 $ 295,503 $ 419,755 $ (Continued)
City of Patterson
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
Special Revenue Funds
June 30, 2025
116
Packet Pg. 941
Local
Neighborhood Local Transportation
Stabilization Transportation Fund Street Project
Program Gas Tax Fund Non Motorized Fund
ASSETS
Cash and investments 9,481 $ 2,425,718 $ 351,839 $ 91,694 $ 3,015,101 $ Receivables:

Accounts - - - - -
Intergovernmental - 178,300 - - 446,497
Interest 277 23,672 1,493 811 18,144
Notes and loans 26,544 - - - -
Total assets $ 2,627,690 36,302 $ 353,332 $ 92,505 $ 3,479,742 $

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
LIABILITIES:

Accounts payable - $ 23,923 $ - $ - $ 266,457 $
Due to other funds - - - - -
Unearned revenue - - 297,142 - -
Deposits and other liabilities - - - - -
Total liabilities 23,923 - 297,142 - 266,457
DEFERRED INFLOWS OF RESOURCES:

Unavailable revenue 26,632 - - - 262,793
Total deferred inflows of resources - 26,632 - - 262,793 FUND BALANCES (DEFICIT):

Restricted 9,670 2,603,767 56,190 92,505 2,950,492
Committed - - - - -
Unassigned (deficit) - - - - -
Total fund balances 9,670 2,603,767 56,190 92,505 2,950,492 Total liabilities, deferred inflows
of resources and fund balances $ 2,627,690 36,302 $ 353,332 $ 92,505 $ 3,479,742 $ (Continued)
Special Revenue Funds
City of Patterson
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
June 30, 2025
117
Packet Pg. 942
Developer
Housing Police Westside
Measure L In-Lieu Asset Drainage
Fund Fee Forfeiture Study CFD 2013-1
ASSETS
Cash and investments 5,663,058 $ 4,512,227 $ 4,615 $ 70,438 $ 1,267,329 $ Receivables:

Accounts - - - - -
Intergovernmental 480,270 - - - 18,582
Interest 47,477 37,829 39 591 11,167
Notes and loans - 1,008,333 - - -
Total assets $ 5,558,389 6,190,805 $ 4,654 $ 71,029 $ 1,297,078 $

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
LIABILITIES:

Accounts payable 57,953 $ - $ - $ - $ 1,084 $
Due to other funds - - - - -
Unearned revenue 181,406 - - - -
Deposits and other liabilities - - - - -
Total liabilities - 239,359 - - 1,084
DEFERRED INFLOWS OF RESOURCES:

Unavailable revenue - 1,008,333 - - -
Total deferred inflows of resources 1,008,333 - - - -
FUND BALANCES (DEFICIT):

Restricted 5,951,446 4,550,056 4,654 1,295,994 -
Committed - - - 71,029 -
Unassigned (deficit) - - - - -
Total fund balances 5,951,446 4,550,056 4,654 71,029 1,295,994 Total liabilities, deferred inflows
of resources and fund balances $ 5,558,389 6,190,805 $ 4,654 $ 71,029 $ 1,297,078 $ (Continued)
June 30, 2025
Special Revenue Funds
City of Patterson
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
118
Packet Pg. 943
CFD 2015-2 CFD 2018-2 CFD 2022 Downtown Community
Public VOP Public Revitalization Facility
Safety Maintenance Safety Impact Fee Impact Fee
ASSETS
Cash and investments 15,036 $ 1,379,618 $ 123,459 $ 192,454 $ 2,679,011 $ Receivables:

Accounts - - - - -
Intergovernmental - 5,281 935 - -
Interest 1,703 15,197 1,389 1,613 22,159
Notes and loans - - - - -
Total assets $ 1,400,096 16,739 $ 125,783 $ 194,067 $ 2,701,170 $

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
LIABILITIES:

Accounts payable - $ 9,995 $ - $ - $ - $
Due to other funds - - - - -
Unearned revenue - - - - -
Deposits and other liabilities - 26,674 - - -
Total liabilities 36,669 - - - -
DEFERRED INFLOWS OF RESOURCES:

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

Restricted 16,739 1,363,427 125,783 194,067 -
Committed - - - 2,701,170 -
Unassigned (deficit) - - - - -
Total fund balances 16,739 1,363,427 125,783 194,067 2,701,170 Total liabilities, deferred inflows
of resources and fund balances $ 1,400,096 16,739 $ 125,783 $ 194,067 $ 2,701,170 $ (Continued)
Non-Major Governmental Funds
June 30, 2025
Special Revenue Funds Capital Projects Funds
City of Patterson
Combining Balance Sheet (Continued)
119
Packet Pg. 944
General Parkland Street
Government Public Safety In-Lieu Improvement Water
Impact Fee Impact Fee Fee Impact Fee Impact Fee
ASSETS
Cash and investments $ 710,187 $ 1,358,546 $ 65,223 $ 2,693,533 $ 7,075,929 Receivables:

Accounts - - - - 29,239
Intergovernmental - - - - -
Interest 5,964 11,389 547 25,798 59,265
Notes and loans - - - - -
Total assets $ 716,151 $ 1,369,935 $ 65,770 $ 2,719,331 $ 7,164,433

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
LIABILITIES:

Accounts payable $ 19,627 $ - $ - $ - $ -
Due to other funds - - - - -
Unearned revenue - - - - -
Deposits and other liabilities - - - - -
Total liabilities 19,627 - - - -
DEFERRED INFLOWS OF RESOURCES:

Unavailable revenue - - - - 29,239
Total deferred inflows of resources - - - - 29,239
FUND BALANCES (DEFICIT):

Restricted - - - - -
Committed 696,524 1,369,935 65,770 2,719,331 7,135,194
Unassigned (deficit) - - - - -
Total fund balances 696,524 1,369,935 65,770 2,719,331 7,135,194 Total liabilities, deferred inflows
of resources and fund balances $ 1,369,935 716,151 $ 65,770 $ 2,719,331 $ 7,164,433 $ (Continued)
Capital Projects Funds
Non-Major Governmental Funds
June 30, 2025
City of Patterson
Combining Balance Sheet (Continued)
120
Packet Pg. 945
Delta Aquatic
Storm Drain Sewer Mendota Center Future Water
Impact Fee Impact Fee Storm Gate Construction Acquisition ASSETS
Cash and investments $ 1,341,762 $ 10,881 $ 186,865 $ 822,452 $ 164,470 Receivables:

Accounts - 8,168 - - -
Intergovernmental - - - - -
Interest 11,242 2,043 1,567 6,895 1,379
Notes and loans - - - - -
Total assets $ 1,353,004 $ 21,092 $ 188,432 $ 829,347 $ 165,849

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
LIABILITIES:

Accounts payable $ - $ 8,168 $ - $ - $ -
Due to other funds - - - - -
Unearned revenue - - - - -
Deposits and other liabilities - - - - -
Total liabilities - 8,168 - - -
DEFERRED INFLOWS OF RESOURCES:

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

Restricted - - - - -
Committed 1,353,004 12,924 188,432 829,347 165,849
Unassigned (deficit) - - - - -
Total fund balances 1,353,004 12,924 188,432 829,347 165,849 Total liabilities, deferred inflows
of resources and fund balances $ 21,092 1,353,004 $ 188,432 $ 829,347 $ 165,849 $ (Continued)
Capital Projects Funds
Non-Major Governmental Funds
June 30, 2025
City of Patterson
Combining Balance Sheet (Continued)
121
Packet Pg. 946
Total
Heartland Downtown Non-major
Ranch Assistance Governmental
Infrastructure Fee Funds
ASSETS
Cash and investments 49,357 $ 272,920 $ 42,921,768 $
Receivables:

Accounts - - 37,407
Intergovernmental - - 1,186,559
Interest 2,288 414 393,130
Notes and loans - - 1,595,122
Total assets $ 275,208 49,771 $ 46,133,986 $

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
LIABILITIES:

Accounts payable $ - - $ 513,595 $
Due to other funds - - 24,047
Unearned revenue - - 478,548
Deposits and other liabilities 47,176 - 73,850
Total liabilities - 47,176 1,090,040
DEFERRED INFLOWS OF RESOURCES:

Unavailable revenue - - 1,918,674
Total deferred inflows of resources - - 1,918,674
FUND BALANCES (DEFICIT):

Restricted - 25,564,355 -
Committed 2,595 275,208 17,586,312
Unassigned (deficit) - - (25,395)
Total fund balances 2,595 275,208 43,125,272
Total liabilities, deferred inflows
of resources and fund balances $ 275,208 49,771 $ 46,133,986 $ (Concluded)
Non-Major Governmental Funds
June 30, 2025
Capital Projects Funds
City of Patterson
Combining Balance Sheet (Continued)
122
Packet Pg. 947
CFD 2001-01
Landscape Benefit CSA #15 Patterson
Maintenance Assessment Assessment Gardens Beautification District Districts District Public Safety Committee
REVENUES:

Licenses, permits, and fees - $ - $ - $ - $ - $
Charges for services 2,253,617 555,428 7,907 595,441 -
Intergovernmental:

Federal grant and subsidies - - - - -
Other governmental - - - - -
Investment income 99,246 129,989 331 24,692 1,736
Revenue from Fiduciary Fund - - - - -
Miscellaneous - - - - -
Total revenues 2,352,863 685,417 8,238 620,133 1,736
EXPENDITURES:

Current:

General government 929,768 - - - -
Fire - - - 7,272 -
Community development and planning - - 3,204 - -
Public works 1,299 132,436 - - -
Capital outlay 43,330 - - - -
Total expenditures 974,397 132,436 3,204 7,272 -

REVENUES OVER (UNDER)
EXPENDITURES 1,378,466 552,981 5,034 612,861 1,736
OTHER FINANCING SOURCES (USES):

Transfers in 1,133,865 78,898 6,727 - -
Transfers out (2,030,725) (131,161) (760,856) - -
Total financing sources (uses) (896,860) (52,263) 6,727 (760,856) - Net change in fund balances 500,718 481,606 11,761 (147,995) 1,736 FUND BALANCES (DEFICIT):

Beginning of year 1,374,561 2,997,344 6,613 397,264 41,598 End of year $ 3,498,062 1,856,167 $ 18,374 $ 249,269 $ 43,334 $ (Continued)
Special Revenue
Non-Major Governmental Funds
For the Year Ended June 30, 2025
City of Patterson
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 123
Packet Pg. 948
CDBG State Federal First Time Federal
HA Loan HCD Rehab CDBG Home HOME
Fund Program Grant Buyers Funds
REVENUES:

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

Federal grant and subsidies - - - - -
Other governmental - - - - -
Investment income - 9,656 - 9,759 8,582
Revenue from Fiduciary Fund - - - - -
Miscellaneous - - - 2,012 3,868
Total revenues - 9,656 - 11,771 12,450
EXPENDITURES:

Current:

General government - - - - -
Fire - - - - -
Community development and planning - - - - -
Public works - - - - -
Capital outlay - - 25,395 - -
Total expenditures - - 25,395 - -

REVENUES OVER (UNDER)
EXPENDITURES - 9,656 (25,395) 11,771 12,450
OTHER FINANCING SOURCES (USES):

Transfers in - - 193,573 - -
Transfers out - - - - -
Total financing sources (uses) - 193,573 - - -
Net change in fund balances 9,656 - 168,178 11,771 12,450 FUND BALANCES (DEFICIT):

Beginning of year 231,390 - (193,573) 208,863 210,229
End of year $ 241,046 - $ (25,395) $ 220,634 $ 222,679 $ (Continued)
Special Revenue Funds
Non-Major Governmental Funds
For the Year Ended June 30, 2025
City of Patterson
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) 124
Packet Pg. 949
Local
Neighborhood Local Transportation
Stabilization Transportation Fund Street Project
Program Gas Tax Fund Non Motorized Fund
REVENUES:

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

Federal grant and subsidies - - - - 234,876
Other governmental - 1,372,049 - 11,353 -
Investment income 369 94,526 7,194 3,909 111,480
Revenue from Fiduciary Fund - - - - 345,589
Miscellaneous - - - - -
Total revenues 1,466,575 369 7,194 15,262 691,945
EXPENDITURES:

Current:

General government - - - - -
Fire - - - - -
Community development and planning - - - - -
Public works - 102,589 - - 10,170
Capital outlay - 23,480 - - 1,429,170
Total expenditures 126,069 - - - 1,439,340

REVENUES OVER (UNDER)
EXPENDITURES 1,340,506 369 7,194 15,262 (747,395)
OTHER FINANCING SOURCES (USES):

Transfers in - - 192,312 505,336 -
Transfers out (397,948) - (18,586) (5,089) -
Total financing sources (uses) (397,948) - 173,726 (5,089) 505,336 Net change in fund balances 942,558 369 180,920 10,173 (242,059) FUND BALANCES (DEFICIT):

Beginning of year 9,301 1,661,209 (124,730) 82,332 3,192,551 End of year $ 2,603,767 9,670 $ 56,190 $ 92,505 $ 2,950,492 $ (Continued)
Special Revenue Funds
For the Year Ended June 30, 2025
City of Patterson
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
125
Packet Pg. 950
Developer
Housing Police Westside
Measure L In-Lieu Asset Drainage
Fund Fee Forfeiture Study CFD 2013-1
REVENUES:

Licenses, permits, and fees - $ 1,480,609 $ - $ - $ - $ Charges for services - - - - 288,646
Intergovernmental:

Federal grant and subsidies - - - - -
Other governmental 2,416,086 - - - -
Investment income 222,246 157,948 187 2,846 47,042
Revenue from Fiduciary Fund - - - - -
Miscellaneous - - - - -
Total revenues 1,638,557 2,638,332 187 2,846 335,688
EXPENDITURES:

Current:

General government - - - - 19,365
Fire - - - - -
Community development and planning - - - - -
Public works - - - - 2,828
Capital outlay 925,541 - - - -
Total expenditures - 925,541 - - 22,193

REVENUES OVER (UNDER)
EXPENDITURES 1,638,557 1,712,791 187 2,846 313,495
OTHER FINANCING SOURCES (USES):

Transfers in - - - - -
Transfers out - - - - (64,640)
Total financing sources (uses) - - - - (64,640)
Net change in fund balances 1,638,557 1,712,791 187 2,846 248,855 FUND BALANCES (DEFICIT):

Beginning of year 4,238,655 2,911,499 4,467 68,183 1,047,139 End of year $ 4,550,056 5,951,446 $ 4,654 $ 71,029 $ 1,295,994 $ (Continued)
Special Revenue Funds
For the Year Ended June 30, 2025
City of Patterson
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
126
Packet Pg. 951
CFD 2015-2 CFD 2018-2 CFD 2022 Downtown Community
Public VOP Public Revitalization Facility
Safety Maintenance Safety Impact Fee Impact Fee
REVENUES:

Licenses, permits, and fees - $ - $ - $ 84,000 $ 552,807 $ Charges for services 105,990 804,342 168,641 - -
Intergovernmental:

Federal grant and subsidies - - - - -
Other governmental - - - - -
Investment income 5,695 52,428 2,196 6,402 97,251
Revenue from Fiduciary Fund - - - - 35,887
Miscellaneous - - - - -
Total revenues 856,770 111,685 170,837 90,402 685,945
EXPENDITURES:

Current:

General government 25 17,269 - - -
Fire - - - - -
Community development and planning - - - - -
Public works - 33,012 2,780 - -
Capital outlay - 13,052 - - -
Total expenditures 63,333 25 2,780 - -

REVENUES OVER (UNDER)
EXPENDITURES 793,437 111,660 168,057 90,402 685,945
OTHER FINANCING SOURCES (USES):

Transfers in - - - - -
Transfers out (188,047) (433,107) (42,274) - -
Total financing sources (uses) (188,047) (433,107) (42,274) - - Net change in fund balances 360,330 (76,387) 125,783 90,402 685,945 FUND BALANCES (DEFICIT):

Beginning of year 93,126 1,003,097 103,665 - 2,015,225
End of year $ 1,363,427 16,739 $ 125,783 $ 194,067 $ 2,701,170 $ (Continued)
City of Patterson
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
For the Year Ended June 30, 2025
Special Revenue Funds Capital Projects Funds
127
Packet Pg. 952
General Parkland Street
Government Public Safety In-Lieu Improvement Water
Impact Fee Impact Fee Fee Impact Fee Impact Fee
REVENUES:

Licenses, permits, and fees $ 233,268 $ 123,313 $ 1,045,873 - $ $ 647,258 Charges for services - - - - -
Intergovernmental:

Federal grant and subsidies - - - - -
Other governmental - - - - -
Investment income 25,735 53,162 2,637 107,734 273,332
Revenue from Fiduciary Fund - - - - -
Miscellaneous - - - - -
Total revenues 259,003 176,475 2,637 1,153,607 920,590
EXPENDITURES:

Current:

General government - - - - -
Fire - - - - -
Community development and planning - - - - -
Public works - - - - -
Capital outlay 44,099 - - - -
Total expenditures 44,099 - - - -

REVENUES OVER (UNDER)
EXPENDITURES 214,904 176,475 2,637 1,153,607 920,590
OTHER FINANCING SOURCES (USES):

Transfers in - - - - -
Transfers out (1,152) - (63) (383,713) -
Total financing sources (uses) (1,152) - (63) (383,713) - Net change in fund balances 176,475 213,752 2,574 769,894 920,590 FUND BALANCES (DEFICIT):

Beginning of year 482,772 1,193,460 63,196 1,949,437 6,214,604 End of year $ 1,369,935 696,524 $ 65,770 $ 2,719,331 $ 7,135,194 $ (Continued)
For the Year Ended June 30, 2025
Capital Projects Funds
City of Patterson
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
128
Packet Pg. 953
Delta Aquatic
Storm Drain Sewer Mendota Center Future Water
Impact Fee Impact Fee Storm Gate Construction Acquisition REVENUES:

Licenses, permits, and fees $ 159,037 $ 149,271 $ 146,985 - $ $ - Charges for services - - - - -
Intergovernmental:

Federal grant and subsidies - - - - -
Other governmental - - - - -
Investment income 54,220 8,403 7,549 30,692 6,648
Revenue from Fiduciary Fund - - - - -
Miscellaneous - - - - 2,127
Total revenues 213,257 157,674 7,549 177,677 8,775
EXPENDITURES:

Current:

General government - - - - -
Fire - - - - -
Community development and planning - - - - -
Public works - - - - -
Capital outlay 92,303 - - - -
Total expenditures 92,303 - - - -

REVENUES OVER (UNDER)
EXPENDITURES 120,954 157,674 7,549 177,677 8,775
OTHER FINANCING SOURCES (USES):

Transfers in - - - - -
Transfers out (63) (243,724) - - -
Total financing sources (uses) (63) (243,724) - - -
Net change in fund balances (86,050) 120,891 7,549 177,677 8,775 FUND BALANCES (DEFICIT):

Beginning of year 1,232,113 98,974 180,883 651,670 157,074 End of year $ 12,924 1,353,004 $ 188,432 $ 829,347 $ 165,849 $ (Continued)
Capital Projects Funds
City of Patterson
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
For the Year Ended June 30, 2025
129
Packet Pg. 954
Total
Heartland Downtown Non-major
Ranch Assistance Governmental
Infrastructure Fee Funds
REVENUES:

Licenses, permits, and fees - $ 22,750 $ 4,645,171 $
Charges for services - - 4,780,012
Intergovernmental:

Federal grant and subsidies - - 234,876
Other governmental - - 3,799,488
Investment income 10,589 1,994 1,678,405
Revenue from Fiduciary Fund - - 381,476
Miscellaneous - - 8,007
Total revenues 33,339 1,994 15,527,435
EXPENDITURES:

Current:

General government - - 966,427
Fire - - 7,272
Community development and planning - - 3,204
Public works - - 285,114
Capital outlay - - 2,596,370
Total expenditures - - 3,858,387

REVENUES OVER (UNDER)
EXPENDITURES 33,339 1,994 11,669,048
OTHER FINANCING SOURCES (USES):

Transfers in - - 2,110,711
Transfers out - - (4,701,148)
Total financing sources (uses) - - (2,590,437)
Net change in fund balances 33,339 1,994 9,078,611
FUND BALANCES (DEFICIT):

Beginning of year 601 241,869 34,046,661
End of year $ 275,208 2,595 $ 43,125,272 $
(Concluded)
Capital Projects Funds
City of Patterson
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
For the Year Ended June 30, 2025
130
Packet Pg. 955
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Investment income (loss) 3,545,633 $ 3,408,748 $ 3,337,586 $ (71,162) $ Revenue from Fiduciary Fund 1,579,741 1,579,741 1,368,366 (211,375) Total revenues 4,988,489 5,125,374 4,705,952 (282,537)
EXPENDITURES:

Current:

General government - - 27,062 (27,062)
Debt service:

Principal 2,640,559 2,383,775 2,448,775 (65,000)
Interest and fiscal charges 2,979,710 2,979,710 2,740,471 239,239 Total expenditures 5,363,485 5,620,269 5,216,308 147,177

REVENUES OVER (UNDER)
EXPENDITURES (374,996) (494,895) (510,356) (135,360)
OTHER FINANCING SOURCES (USES):

Transfers out - (154,842) (284,353) (129,511)
Total other financing sources (uses) (154,842) - (284,353) (129,511) Net change in fund balances $ (529,838) (494,895) $ (794,709) (264,871) $ FUND BALANCE:

Beginning of year 61,677,567
End of year $ 60,882,858
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Patterson Public Financing Authority Debt Service Fund
For the Year Ended June 30, 2025
131
Packet Pg. 956
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Charges for services 2,258,510 $ 2,258,510 $ 2,253,617 $ (4,893) $ Investment income - - 99,246 99,246
Total revenues 2,258,510 2,258,510 2,352,863 94,353
EXPENDITURES:

Current:

General government 1,215,293 1,215,293 929,768 285,525
Public works - - 1,299 (1,299)
Capital outlay - - 43,330 (43,330)
Total expenditures 1,215,293 1,215,293 974,397 240,896

REVENUES OVER (UNDER)
EXPENDITURES 1,043,217 1,043,217 1,378,466 335,249
OTHER FINANCING SOURCES (USES):

Transfers in 1,110,500 1,133,865 1,133,865 -
Transfers out (1,899,781) (1,933,502) (2,030,725) (97,223) Total other financing sources (uses) (789,281) (799,637) (896,860) (97,223) Net change in fund balances $ 243,580 253,936 $ 481,606 238,026 $ FUND BALANCE:

Beginning of year 1,374,561
End of year $ 1,856,167
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Landscape Maintenance District Special Revenue Fund
For the Year Ended June 30, 2025
132
Packet Pg. 957
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Charges for services 556,981 $ 556,981 $ 555,428 $ (1,553) $ Investment income 62,587 62,587 129,989 67,402
Total revenues 619,568 619,568 685,417 65,849
EXPENDITURES:

Current:

Public works 2,673,875 1,108,295 132,436 975,859
Capital outlay 3,400 3,400 - 3,400
Total expenditures 2,677,275 1,111,695 132,436 979,259

REVENUES OVER (UNDER)
EXPENDITURES (2,057,707) (492,127) 552,981 1,045,108
OTHER FINANCING SOURCES (USES):

Transfers in 78,887 78,898 78,898 -
Transfers out (150,362) (1,880,049) (131,161) 1,748,888 Total other financing sources (uses) (71,475) (1,801,151) (52,263) 1,748,888 Net change in fund balances $ (2,293,278) (2,129,182) $ 500,718 2,793,996 $ FUND BALANCE:

Beginning of year 2,997,344
End of year $ 3,498,062
-
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Benefit Assessment Districts Special Revenue Fund
For the Year Ended June 30, 2025
133
Packet Pg. 958
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Charges for services 8,522 $ 8,522 $ 7,907 $ (615) $
Investment income 11 11 331 320
Total revenues 8,533 8,533 8,238 (295)
EXPENDITURES:

Current:

Community development and planning 12,650 12,650 3,204 9,446 Total expenditures 12,650 12,650 3,204 9,446

REVENUES OVER (UNDER)
EXPENDITURES (4,117) (4,117) 5,034 9,151
OTHER FINANCING SOURCES (USES):

Transfers in 6,727 6,727 6,727 -
Total other financing sources (uses) 6,727 6,727 6,727 - Net change in fund balances $ 2,610 2,610 $ 11,761 9,151 $ FUND BALANCE (DEFICIT):

Beginning of year 6,613
End of year $ 18,374
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual CSA #15 Assessment District Special Revenue Fund
For the Year Ended June 30, 2025
134
Packet Pg. 959
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Charges for services 553,166 $ 553,166 $ 595,441 $ 42,275 $ Investment income 2,742 2,742 24,692 21,950
Total revenues 555,908 555,908 620,133 64,225
EXPENDITURES:

Current:

Fire 7,801 7,801 7,272 529
Total expenditures 7,801 7,801 7,272 529

REVENUES OVER (UNDER)
EXPENDITURES 548,107 548,107 612,861 64,754
OTHER FINANCING SOURCES (USES):

Transfers out (893,646) (893,980) (760,856) 133,124
Total other financing sources (uses) (893,980) (893,646) (760,856) 133,124 Net change in fund balances $ (345,873) (345,539) $ (147,995) 197,878 $ FUND BALANCE:

Beginning of year 397,264
End of year $ 249,269
-
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual CFD 2001-01 Patterson Gardens Public Safety Special Revenue Fund For the Year Ended June 30, 2025
135
Packet Pg. 960
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Investment income 979 $ 979 $ 1,736 $ 757 $
Total revenues 979 979 1,736 757
EXPENDITURES:

Current:

Public works 3,300 3,300 - 3,300
Total expenditures 3,300 3,300 - 3,300
Net change in fund balances $ (2,321) (2,321) $ 1,736 4,057 $ FUND BALANCE:

Beginning of year 41,598
End of year $ 43,334
-
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Beautification Committee Special Revenue Fund
For the Year Ended June 30, 2025
136
Packet Pg. 961
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Investment income 5,443 $ 5,443 $ 9,656 $ 4,213 $
Total revenues 5,443 5,443 9,656 4,213
Net change in fund balances $ 5,443 5,443 $ 9,656 4,213 $ FUND BALANCE:

Beginning of year 231,390
End of year $ 241,046
-
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual State HCD Rehab Program Special Revenue Fund
For the Year Ended June 30, 2025
137
Packet Pg. 962
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
EXPENDITURES:

Capital outlay - $ $ 123,873 $ 25,395 $ 98,478
Total expenditures - 123,873 25,395 98,478

REVENUES OVER (UNDER)
EXPENDITURES - (123,873) (25,395) 98,478
OTHER FINANCING SOURCES (USES):

Transfers in 233,081 255,733 193,573 (62,160)
Total other financing sources (uses) 233,081 255,733 193,573 (62,160) Net change in fund balances $ 131,860 233,081 $ 168,178 36,318 $ FUND BALANCE (DEFICIT):

Beginning of year (193,573)
End of year $ (25,395)
-
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Federal CDBG Grant Special Revenue Fund
For the Year Ended June 30, 2025
138
Packet Pg. 963
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Investment income 6,082 $ 6,082 $ 9,759 $ 3,677 $
Miscellaneous - - 2,012 2,012
Total revenues 6,082 6,082 11,771 5,689
Net change in fund balances $ 6,082 6,082 $ 11,771 5,689 $ FUND BALANCE:

Beginning of year 208,863
End of year $ 220,634
-
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual First Time Home Buyers Special Revenue Fund
For the Year Ended June 30, 2025
139
Packet Pg. 964
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Investment income 14,630 $ 14,630 $ 8,582 $ (6,048) $
Miscellaneous - - 3,868 3,868
Total revenues 14,630 14,630 12,450 (2,180)

REVENUES OVER (UNDER)
EXPENDITURES 14,630 14,630 12,450 (2,180)
OTHER FINANCING SOURCES (USES):

Transfers out - (156) - 156
Total other financing sources (uses) (156) - - 156
Net change in fund balances $ 14,474 14,630 $ 12,450 (2,024) $ FUND BALANCE:

Beginning of year 210,229
End of year $ 222,679
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Federal HOME Special Revenue Fund
For the Year Ended June 30, 2025
140
Packet Pg. 965
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Investment income 473 $ 473 $ 369 $ (104) $
Total revenues 473 473 369 (104)
Net change in fund balances $ 473 473 $ 369 (104) $
FUND BALANCE:

Beginning of year 9,301
End of year $ 9,670
-
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Neighborhood Stabilization Program Special Revenue Fund For the Year Ended June 30, 2025
141
Packet Pg. 966
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Intergovernmental:

Other governmental 1,292,721 $ 1,292,721 $ 1,372,049 $ 79,328 $ Investment income 23,458 23,458 94,526 71,068
Total revenues 1,316,179 1,316,179 1,466,575 150,396
EXPENDITURES:

Current:

Public works 85,000 119,559 102,589 16,970
Capital outlay 197,000 169,000 23,480 145,520
Total expenditures 282,000 288,559 126,069 162,490

REVENUES OVER (UNDER)
EXPENDITURES 1,034,179 1,027,620 1,340,506 312,886
OTHER FINANCING SOURCES (USES):

Transfers out (300,000) (1,720,993) (397,948) 1,323,045 Total other financing sources (uses) (300,000) (1,720,993) (397,948) 1,323,045 Net change in fund balances $ (693,373) 734,179 $ 942,558 1,635,931 $ FUND BALANCE:

Beginning of year 1,661,209
End of year $ 2,603,767
-
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Gas Tax Special Revenue Fund
For the Year Ended June 30, 2025
142
Packet Pg. 967
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Investment income 4,467 $ 4,467 $ 7,194 $ 2,727 $
Total revenues 4,467 4,467 7,194 2,727

REVENUES OVER (UNDER)
EXPENDITURES 4,467 4,467 7,194 2,727
OTHER FINANCING SOURCES (USES):

Transfers in 101,692 192,312 192,312 -
Transfers out - (92,677) (18,586) 74,091
Total other financing sources (uses) 99,635 101,692 173,726 74,091 Net change in fund balances $ 104,102 106,159 $ 180,920 76,818 $ FUND BALANCE (DEFICIT):

Beginning of year (124,730)
End of year $ 56,190
-
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Local Transportation Special Revenue Fund
For the Year Ended June 30, 2025
143
Packet Pg. 968
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Investment income 2,209 $ 2,209 $ 3,909 $ 1,700 $
Miscellaneous - - - -
Total revenues 2,209 2,209 15,262 13,053

REVENUES OVER (UNDER)
EXPENDITURES 2,209 2,209 15,262 13,053
OTHER FINANCING SOURCES (USES):

Transfers out - (186,522) (5,089) 181,433
Total other financing sources (uses) (186,522) - (5,089) 181,433 Net change in fund balances $ (184,313) 2,209 $ 10,173 194,486 $ FUND BALANCE:

Beginning of year 82,332
End of year $ 92,505
-
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Local Transportation Non-Motorized Special Revenue Fund For the Year Ended June 30, 2025
144
Packet Pg. 969
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Intergovernmental:

Federal grant and subsidies - $ 1,289,191 $ 234,876 $ (1,054,315) $ Other governmental - 1,853,503 - (1,853,503)
Investment income 72,120 72,120 111,480 39,360
Revenue from Fiduciary Fund - - 345,589 345,589
Total revenues 3,214,814 72,120 691,945 (2,522,869)
EXPENDITURES:

Current:

Public works - 57,764 10,170 47,594
Capital outlay 567,969 10,158,670 1,429,170 8,729,500
Total expenditures 567,969 10,216,434 1,439,340 8,777,094

REVENUES OVER (UNDER)
EXPENDITURES (495,849) (7,001,620) (747,395) 6,254,225
OTHER FINANCING SOURCES (USES):

Transfers in 473,896 5,081,568 505,336 (4,576,232)
Transfers out - (5,372) - 5,372
Total other financing sources (uses) 473,896 5,076,196 505,336 (4,570,860) Net change in fund balances $ (1,925,424) (21,953) $ (242,059) 1,683,365 $ FUND BALANCE:

Beginning of year 3,192,551
End of year $ 2,950,492
-
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Street Project Special Revenue Fund
For the Year Ended June 30, 2025
145
Packet Pg. 970
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Intergovernmental:

Other governmental 1,133,170 $ 1,133,170 $ 2,416,086 $ 1,282,916 $ Investment income 85,647 85,647 222,246 136,599
Total revenues 1,218,817 1,218,817 2,638,332 1,419,515
EXPENDITURES:

Capital outlay 764,198 2,317,494 925,541 1,391,953
Total expenditures 764,198 2,317,494 925,541 1,391,953

REVENUES OVER (UNDER)
EXPENDITURES 454,619 (1,098,677) 1,712,791 2,811,468
OTHER FINANCING SOURCES (USES):

Transfers out (473,896) (714,289) - 714,289
Total other financing sources (uses) (473,896) (714,289) - 714,289 Net change in fund balances $ (1,812,966) (19,277) $ 1,712,791 3,525,757 $ FUND BALANCE:

Beginning of year 4,238,655
End of year $ 5,951,446
-
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure L Special Revenue Fund
For the Year Ended June 30, 2025
146
Packet Pg. 971
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Licenses, permits, and fees 1,196,142 $ 1,196,142 $ 1,480,609 $ 284,467 $ Investment income 31,890 31,890 157,948 126,058
Total revenues 1,228,032 1,228,032 1,638,557 410,525
Net change in fund balances $ 1,228,032 1,228,032 $ 1,638,557 410,525 $ FUND BALANCE:

Beginning of year 2,911,499
End of year $ 4,550,056
-
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Developer Housing In-Lieu Fee Special Revenue Fund
For the Year Ended June 30, 2025
147
Packet Pg. 972
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Investment income 105 $ 105 $ 187 $ 82 $
Total revenues 105 105 187 82
Net change in fund balances $ 105 105 $ 187 82 $
FUND BALANCE:

Beginning of year 4,467
End of year $ 4,654
-
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Police Asset Forfeiture Special Revenue Fund
For the Year Ended June 30, 2025
148
Packet Pg. 973
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Investment income 1,604 $ 1,604 $ 2,846 $ 1,242 $
Total revenues 1,604 1,604 2,846 1,242
Net change in fund balances $ 1,604 1,604 $ 2,846 1,242 $ FUND BALANCE:

Beginning of year 68,183
End of year $ 71,029
-
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Westside Drainage Study Special Revenue Fund
For the Year Ended June 30, 2025
149
Packet Pg. 974
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Charges for services 219,300 $ 219,300 $ 288,646 $ 69,346 $ Investment income 18,752 18,752 47,042 28,290
Total revenues 238,052 238,052 335,688 97,636
EXPENDITURES:

Current:

General government 36,911 40,211 19,365 20,846
Public works - - 2,828 (2,828)
Total expenditures 40,211 36,911 22,193 18,018

REVENUES OVER (UNDER)
EXPENDITURES 197,841 201,141 313,495 115,654
OTHER FINANCING SOURCES (USES):

Transfers out (84,415) (33,447) (64,640) (31,193)
Total other financing sources (uses) (33,447) (84,415) (64,640) (31,193) Net change in fund balances $ 164,394 116,726 $ 248,855 84,461 $ FUND BALANCE:

Beginning of year 1,047,139
End of year $ 1,295,994
-
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual CFD 2013-1 Special Revenue Fund
For the Year Ended June 30, 2025
150
Packet Pg. 975
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Charges for services 102,726 $ 102,726 $ 105,990 $ 3,264 $ Investment income 1,177 1,177 5,695 4,518
Total revenues 103,903 103,903 111,685 7,782
EXPENDITURES:

Current:

General government (25) (25) 25 (50)
Total expenditures (25) (25) 25 (50)

REVENUES OVER (UNDER)
EXPENDITURES 103,928 103,928 111,660 7,732
OTHER FINANCING SOURCES (USES):

Transfers out (195,335) (195,336) (188,047) 7,289
Total other financing sources (uses) (195,336) (195,335) (188,047) 7,289 Net change in fund balances $ (91,408) (91,407) $ (76,387) 15,021 $ FUND BALANCE:

Beginning of year 93,126
End of year $ 16,739
-
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual CFD 2015-2 Public Safety Special Revenue Fund
For the Year Ended June 30, 2025
151
Packet Pg. 976
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Charges for services 222,286 $ 222,286 $ 804,342 $ 582,056 $ Investment income 14,225 14,225 52,428 38,203
Total revenues 236,511 236,511 856,770 620,259
EXPENDITURES:

Current:

General government 11,683 11,683 17,269 (5,586)
Public works 2,708 4,293 33,012 (28,719)
Capital outlay 14,000 14,000 13,052 948
Total expenditures 28,391 29,976 63,333 (33,357)

REVENUES OVER (UNDER)
EXPENDITURES 208,120 206,535 793,437 586,902
OTHER FINANCING SOURCES (USES):

Transfers out (44,058) (196,183) (433,107) (236,924)
Total other financing sources (uses) (44,058) (196,183) (433,107) (236,924) Net change in fund balances $ 10,352 164,062 $ 360,330 349,978 $ FUND BALANCE:

Beginning of year 1,003,097
End of year $ 1,363,427
-
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual CFD 2018-2 VOP Maintenance Special Revenue Fund
For the Year Ended June 30, 2025
152
Packet Pg. 977
Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Charges for services 84,547 $ 84,547 $ 168,641 $ 84,094 $ Investment income - - 2,196 2,196
Total revenues 84,547 84,547 170,837 86,290
EXPENDITURES:

Current:

Public works - 2,911 2,780 131
Total expenditures 2,911 - 2,780 131

REVENUES OVER (UNDER)
EXPENDITURES 81,636 84,547 168,057 86,421
OTHER FINANCING SOURCES (USES):

Transfers out (84,547) (84,547) (42,274) 42,273
Total other financing sources (uses) (84,547) (84,547) (42,274) 42,273 Net change in fund balances $ (2,911) - $ 125,783 128,694 $ FUND BALANCE:

Beginning of year -
End of year $ 125,783
-
Budgeted Amounts
City of Patterson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual CFD 2022 Public Safety Special Revenue Fund
For the Year Ended June 30, 2025
153
Packet Pg. 978
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154
Packet Pg. 979

CUSTODIAL FUNDS
155
Packet Pg. 980
CFD 2001-1 CFD 2005-1
West Patterson West
Financing Patterson CFD 2015-1 Heartland
Authority Business Park Arambel-KDN Ranch 2013
ASSETS
Cash and investments $ 3,525,505 $ 83,590 $ - $ 441,562 Restricted cash and investments - 186,219 - -
Cash and investments with fiscal agents 228,169 8,953,084 429,721 230,691 Accounts receivable 4,777 7,707 - -
Intergovernmental receivable 47,092 73,087 - 1,681
Interest receivable 58,200 35,989 - 3,715
Notes receivable 936,509 - - -
Total assets 4,800,252 9,339,676 429,721 677,649

LIABILITIES
Accounts payable - 3,420 1,154 -
Due to City - - 47,530 -
Total liabilities - 3,420 48,684 -

NET POSITION
Restricted for:

Individuals, organizations, and other
governments 4,800,252 9,336,256 381,037 677,649
Total net position $ 4,800,252 $ 9,336,256 $ 381,037 $ 677,649 June 30, 2025
Fiduciary Funds - Custodial Funds
Combining Statement of Fiduciary Net Position
City of Patterson
156
Packet Pg. 981
CFD 2022-2
West CFD 2018-1
Patterson VOP
Baldwin Ranch Infrastructure Total
ASSETS
Cash and investments 288,064 $ 933,662 $ 5,272,383 $
Restricted cash and investments - - 186,219
Cash and investments with fiscal agents - 9,848,248 19,689,913 Accounts receivable 661 181 13,326
Intergovernmental receivable 6,290 1,810 129,960
Interest receivable 7,863 2,424 108,191
Notes receivable - - 936,509
Total assets 10,796,724 292,479 26,336,501

LIABILITIES
Accounts payable - 3,330 7,904
Due to City - - 47,530
Total liabilities - 3,330 55,434

NET POSITION
Restricted for:

Individuals, organizations, and other
governments 292,479 10,793,394 26,281,067
Total net position $ 10,793,394 292,479 $ 26,281,067 $
City of Patterson
Combining Statement of Fiduciary Net Position (Continued) Fiduciary Funds - Custodial Funds
June 30, 2025
157
Packet Pg. 982
CFD 2001-1 CFD 2005-1
West Patterson West
Financing Patterson CFD 2015-1 Heartland
Authority Business Park Arambel-KDN Ranch 2013
ADDITIONS:

Special assessments for other governments $ 5,038,595 $ 1,157,338 $ 304,262 $ 382,578 Developer fees for other governments - - - -
Investment income 280,976 493,084 1,140 8,793
Total additions 5,319,571 1,650,422 305,402 391,371
DEDUCTIONS:

Administration 18,443 15,146 5,553 32,739
Payments on conduit bonds - principal 2,093,122 155,000 60,000 - Payments on conduit bonds - interest 3,287,147 651,900 237,588 - Projects payments - - - -
Contributions to City 2,130,117 2,738,130 - 304,054
Total deductions 7,528,829 3,560,176 303,141 336,793
Changes in net position (2,209,258) (1,909,754) 2,261 54,578 NET POSITION:

Beginning of year 7,009,510 11,246,010 378,776 623,071
End of year $ 4,800,252 $ 9,336,256 $ 381,037 $ 677,649 For the Year Ended June 30, 2025
Fiduciary Funds - Custodial Funds
Combining Statement of Changes in Fiduciary Net Position City of Patterson
158
Packet Pg. 983
CFD 2022-2
West CFD 2018-1
Patterson VOP
Baldwin Ranch Infrastructure Total
ADDITIONS:

Special assessments for other governments 301,777 $ 888,146 $ 8,072,696 $ Developer fees for other governments - 3,377 3,377
Investment income 5,013 684,095 1,473,101
Total additions 1,575,618 306,790 9,549,174
DEDUCTIONS:

Administration 14,311 1,212,751 1,298,943
Payments on conduit bonds - principal - 65,000 2,373,122 Payments on conduit bonds - interest - 711,094 4,887,729 Projects payments - - -
Contributions to City - 955 5,173,256
Total deductions 1,989,800 14,311 13,733,050
Changes in net position (414,182) 292,479 (4,183,876)
NET POSITION:

Beginning of year - 11,207,576 30,464,943
End of year $ 10,793,394 292,479 $ 26,281,067 $
City of Patterson
Combining Statement of Changes in Fiduciary Net Position (Continued) Fiduciary Funds - Custodial Funds
For the Year Ended June 30, 2025
159
Packet Pg. 984
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160
Packet Pg. 985

STATISTICAL SECTION
161
Packet Pg. 986
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162
Packet Pg. 987
Contents Page
164
Helps readers understand how the City's financial position and well-being have changed over time. 174
188
190
Help readers understand the socioeconomic environment within which the City's financial activities take place, and provides information to facilitate comparisons of financial statement information over time and among other governments.
192
Information about the City's operations and resources to help readers use financial information to understand and assess the related services the City provides and the activities it performs.

Operating Information…………………………………………………………………………………….

The Statistical Section provides financial statement users with additional historical perspective, context, and detail to assist in using the information in the financial statements, notes to financial statements, and required supplementary information to understand and assess a government's economic condition.

The Statistical Section is required by the Governmental Accounting Standards Board (GASB) to be reported in the following sections:

Helps readers understand and assess the affordability of the City's current level of outstanding debt and the City's ability to issue additional debt in the future.

STATISTICAL SECTION
Financial Trends Information…………………………………………………………………………….

Debt Capacity Information…………………………………………………………………………..

Demographic and Economic Information……………………………………………………………….

Revenue Capacity Information…………………………………………………………………………..

Helps readers understand and assess the City's ability to generate its own sources of revenue, the most significant local revenue source being sales and use tax. 163
Packet Pg. 988
2025 2024 2023 2022 2021
Governmental activities:

Net investment in capital assets $ 71,809,745 $ 67,129,360 $ 67,681,454 $ 61,241,920 $ 59,507,530 Restricted 38,458,402 28,261,493 14,864,418 15,315,965 14,976,923 Unrestricted net position (deficit) 14,900,010 9,752,527 6,606,051 9,993,088 413,664 Total Net Position $ 125,168,157 $ 105,143,380 $ 89,151,923 $ 86,550,973 $ 74,898,117 Business-type activities:

Net investment in capital assets $ 46,633,775 $ 48,241,694 $ 49,988,310 $ 36,458,905 $ 36,978,338 Restricted 7,817,964 3,219,807 3,137,525 3,133,590 3,133,810 Unrestricted net position (deficit) 898,415 (3,448,538) (4,650,588) 4,888,385 2,943,625 Total Net Position $ 55,350,154 $ 48,012,963 $ 48,475,247 $ 44,480,880 $ 43,055,773 Primary Government:

Net investment in capital assets $ 118,443,520 $ 115,371,054 $ 117,669,764 $ 97,700,825 $ 96,485,868 Restricted 46,276,366 31,481,300 18,001,943 18,449,555 18,110,733 Unrestricted net position (deficit) 15,798,425 6,303,989 1,955,463 14,881,473 3,357,289 Total Net Position $ 180,518,311 $ 153,156,343 $ 137,627,170 $ 131,031,853 $ 117,953,890 Source: City of Patterson Finance Department
Note: Some prior year balances may have been restated from previous financial statements to reflect the new GASB implementations or prior period reinstatements
City of Patterson
Table 1
Net Position by Classification
Last Ten Fiscal Years
Fiscal Year
164
Packet Pg. 989
2020 2019 2018 2017 2016
Governmental activities:

Net investment in capital assets $ 61,274,713 $ 60,390,350 $ 60,721,785 $ 55,621,936 $ 55,756,984 Restricted 10,752,749 11,572,138 8,385,204 6,391,176 5,270,127 Unrestricted net position (deficit) (5,182,490) (7,892,944) (4,612,193) 1,816,668 1,909,873 Total Net Position $ 66,844,972 $ 64,069,544 $ 64,494,796 $ 63,829,780 $ 62,936,984 Business-type activities:

Net investment in capital assets $ 37,930,411 $ 37,746,179 $ 37,346,159 $ 38,857,716 $ 35,232,028 Restricted 983,202 469,817 469,905 4,102,582 -
Unrestricted net position (deficit) 4,536,071 2,567,625 (77,313) 517,319 1,250,675 Total Net Position $ 43,449,684 $ 40,783,621 $ 37,738,751 $ 39,375,035 $ 40,585,285 Primary Government:

Net investment in capital assets $ 99,205,124 $ 98,136,529 $ 98,067,944 $ 94,479,652 $ 90,989,012 Restricted 11,735,951 12,041,955 8,855,109 6,391,176 9,372,709 Unrestricted net position (deficit) (646,419) (5,325,319) (4,689,506) 2,333,987 3,160,548 Total Net Position $ 110,294,656 $ 104,853,165 $ 102,233,547 $ 103,204,815 $ 103,522,269 Source: City of Patterson Finance Department
Note: Some prior year balances may have been restated from previous financial statements to reflect the new GASB implementations or prior period reinstatements
City of Patterson
Table 1
Net Position by Classification (Continued)
Last Ten Fiscal Years
Fiscal Year
165
Packet Pg. 990
Fiscal Year
2025 2024 2023 2022 2021
Expenses
Governmental activities:

General government $ 11,528,038 $ 7,749,472 $ 10,196,494 $ 3,280,417 $ 4,196,700 Police 4,923,683 7,117,215 6,739,695 5,909,652 5,859,954 Fire 7,230,454 7,115,407 6,294,195 5,402,965 5,592,559
Community development and planning 2,401,299 2,314,006 2,329,664 1,959,595 1,829,511 Public works 7,419,249 6,537,838 8,127,788 4,270,332 5,414,262 Parks and recreation 4,079,397 4,312,372 3,959,583 2,321,417 2,747,819 Interest and fiscal charges 2,804,188 3,611,271 3,905,165 6,142,450 3,818,561 Total governmental activities $ 40,386,308 $ 38,757,581 $ 41,552,584 $ 29,286,828 $ 29,459,366 Business-type activities:

Water $ 7,123,292 $ 6,643,380 $ 7,594,552 $ 4,019,102 $ 5,056,402 Sewer 7,964,893 7,518,474 7,506,130 4,709,466 5,532,181 Garbage 4,179,824 4,116,413 3,422,477 3,152,032 2,774,714 Total business-type activities $ 19,268,009 $ 18,278,267 $ 18,523,159 $ 11,880,600 $ 13,363,297 Total expenses $ 59,654,317 $ 57,035,848 $ 60,075,743 $ 41,167,428 $ 42,822,663 Program Revenues
Governmental activities:

Charges for services:

General government 201,817 $ 369,569 $ 338,534 $ 274,622 $ 553,126 $ Police 119,765 163,852 87,704 153,959 177,795
Fire 2,682,969 2,944,815 2,216,509 2,058,970 1,965,540
Community development and planning 3,704,949 2,815,452 780,969 984,408 796,707 Public works 3,671,599 3,189,913 1,323,138 1,399,256 961,761 Parks and recreation 924,284 1,451,244 2,403,693 2,330,698 2,463,997 Operating grants and contributions 8,635,246 5,561,697 3,200,329 5,918,650 3,564,498 Capital grants and contributions 8,926,451 4,449,223 9,699,274 3,494,698 4,333,162 Total governmental activities 28,867,080 $ 20,945,765 $ 20,050,150 $ 16,615,261 $ 14,816,586 $ Business-type activities:

Water 8,993,088 $ 7,671,454 $ 7,269,812 $ 6,755,521 $ 6,336,607 $ Sewer 6,974,129 6,335,105 5,431,483 4,716,644 4,440,546 Garbage 4,604,826 4,564,116 4,127,989 3,878,211 3,577,780 Operating grants and contributions - - - 33,872 -
Capital grants and contributions 4,267,115 975,414 6,156,519 81,253 - Total business-type Activities 24,839,158 $ 19,546,089 $ 22,985,803 $ 15,465,501 $ 14,354,933 $ Total program revenues $ 40,491,854 53,706,238 $ 43,035,953 $ 32,080,762 $ 29,171,519 $ Net (Expense) Program Revenues
Governmental activities $ (11,519,228) $ (17,811,816) $ (21,502,434) $ (12,671,567) $ (14,642,780) Business-type activities 5,571,149 1,267,822 4,462,644 3,584,901 991,636 Total Primary Government $ (5,948,079) $ (16,543,994) $ (17,039,790) $ (9,086,666) $ (13,651,144) City of Patterson
Table 2
Changes in Net Position
Last Ten Fiscal Years
166
Packet Pg. 991
Fiscal Year
2020 2019 2018 2017 2016
Expenses
Governmental activities:

General government $ 4,514,103 $ 3,167,076 $ 3,328,847 $ 2,259,261 $ 2,003,932 Police 5,838,153 6,711,694 6,880,924 4,458,567 4,156,842 Fire 5,367,429 4,937,738 2,699,018 3,532,864 3,594,435
Community development and planning 2,084,354 2,523,052 1,724,146 3,024,928 1,258,725 Public works 4,687,210 4,455,175 4,790,738 2,631,811 4,652,522 Parks and recreation 4,536,510 4,618,872 4,473,167 3,277,134 2,696,555 Interest and fiscal charges 3,942,429 4,360,669 3,847,304 3,955,958 3,935,590 Total governmental activities $ 30,970,188 $ 30,774,276 $ 27,744,144 $ 23,140,523 $ 22,298,601 Business-type activities:

Water $ 5,404,924 $ 4,561,024 $ 4,917,985 $ 4,481,750 $ 3,567,751 Sewer 5,533,806 5,287,098 5,297,929 4,893,962 4,221,112 Garbage 2,912,990 2,545,016 2,397,523 2,310,200 2,080,840 Total business-type activities $ 13,851,720 $ 12,393,138 $ 12,613,437 $ 11,685,912 $ 9,869,703 Total expenses $ 44,821,908 $ 43,167,414 $ 40,357,581 $ 34,826,435 $ 32,168,304 Program Revenues
Governmental activities:

Charges for services:

General government 374,895 $ 653,327 $ 4,797 $ 678,608 $ 108,119 $ Police 86,776 198,638 300,973 218,337 268,929
Fire 1,741,172 1,620,028 720,761 587,593 413,973
Community development and planning 810,870 530,975 65,114 645,985 390,721 Public works 968,384 920,656 2,362,593 2,161,045 2,000,190 Parks and recreation 1,890,773 1,763,473 1,690,041 1,481,692 1,804,685 Operating grants and contributions 2,040,401 2,064,434 2,767,848 1,590,404 998,122 Capital grants and contributions 3,609,391 2,262,266 1,877,817 1,112,733 342,867 Total governmental activities 11,522,662 $ 10,013,797 $ 9,789,944 $ 8,476,397 $ 6,327,606 $ Business-type activities:

Water 5,660,058 $ 4,764,097 $ 4,197,555 $ 3,680,373 $ 3,389,473 $ Sewer 4,610,985 4,665,525 4,344,858 4,011,227 3,855,492 Garbage 3,378,155 3,228,053 3,079,843 2,921,089 2,800,845 Operating grants and contributions - 34,318 68,852 701,283 - Capital grants and contributions 8,493 - - - (1,582)
Total business-type Activates 13,657,691 $ 12,691,993 $ 11,691,108 $ 11,313,972 $ 10,044,228 $ Total program revenues $ 22,705,790 25,180,353 $ 21,481,052 $ 19,790,369 $ 16,371,834 $ Net (Expense) Program Revenues
Governmental activities $ (19,447,526) $ (20,760,479) $ (17,954,200) $ (14,664,126) $ (15,970,995) Business-type activities (194,029) 298,855 (922,329) (371,940) 174,525 Total Primary Government $ (19,641,555) $ (20,461,624) $ (18,876,529) $ (15,036,066) $ (15,796,470) City of Patterson
Table 2
Changes in Net Position (Continued)
Last Ten Fiscal Years
167
Packet Pg. 992
2025 2024 2023 2022 2021
General Revenues:

Governmental activities:

Taxes:

Property tax $ 8,685,386 $ 8,141,486 $ 7,381,341 $ 6,466,296 $ 6,196,152 Sales tax 12,590,086 14,549,483 12,842,865 12,317,056 10,029,499 Franchise tax 207,841 241,771 247,538 193,226 222,803
Motor vehicle in lieu* - - - - -
Other taxes 230,103 271,762 308,014 277,779 248,158
Use of money and property - - - - -
Investment earnings 6,050,686 4,647,090 735,910 (474,168) 3,442,805 Revenue from Fiduciary Fund 2,781,220 2,409,468 4,004,069 527,556 - Miscellaneous 879,315 818,875 6,277,085 - 379,911
Transfers 1,125,724 2,723,338 617,936 1,649,041 -
Special / Extraordinary item - 2,939,075 - - -
Total governmental activities $ 32,550,361 $ 33,803,273 $ 29,076,748 $ 25,057,274 $ 22,695,925 Business-type activities:

Investment earnings $ 952,560 $ 797,750 $ 462,486 $ 3,208,319 $ 43,762 Revenue from Fiduciary Fund 2,392,036 135,683 1,472,643 518,052 155,744 Miscellaneous 37,744 59,799 49,137 1,366,103 63,988
Transfers (1,125,724) (2,723,338) (2,939,075) 2,306,094 (1,649,041) Total business-type activities $ 2,256,616 $ (1,730,106) $ (954,809) $ 7,398,568 $ (1,385,547) Total general revenues $ 32,073,167 34,806,977 $ 28,121,939 $ 32,455,842 $ 21,310,378 $ Change in Net Position
Governmental activities $ 21,031,133 $ 15,991,457 $ 7,574,314 $ 6,094,327 $ 8,053,145 Business-type activities: 7,827,765 (462,284) 3,507,835 (2,872,483) (393,911) Total 28,858,898 $ $ 15,529,173 $ 11,082,149 $ 3,221,844 $ 7,659,234 *In 2021, the City started grouping the motor vehicle in lieu revenue with property tax.

City of Patterson
Table 2
Changes in Net Position (Continued)
Last Ten Fiscal Years
Fiscal Year
168
Packet Pg. 993
2020 2019 2018 2017 2016
General Revenues:

Governmental activities:

Taxes:

Property tax $ 3,621,765 $ 3,386,596 $ 3,417,541 $ 3,414,365 $ 3,172,489 Sales tax 6,840,520 5,837,364 5,027,535 5,502,627 5,045,260 Franchise tax 211,963 205,047 206,354 274,792 188,834
Motor vehicle in lieu* 2,267,086 2,089,248 1,947,375 1,844,519 1,693,793 Other taxes 162,436 136,047 717,288 137,847 549,654
Use of money and property 473,114 - - 4,530,279 -
Investment earnings 4,145,959 4,179,507 4,515,819 4,312,058 6,075,652 Revenue from Fiduciary Fund 2,387,683 1,745,012 1,681,843 - - Miscellaneous 896,921 1,038,772 203,070 633,427 188,402 Transfers 1,642,806 1,290,335 1,271,753 895,861 1,371,990 Special / Extraordinary item - - - - -
Total governmental activities $ 22,177,139 $ 20,381,042 $ 18,988,578 $ 17,015,496 $ 22,816,353 Business-type activities:

Investment earnings $ 205,023 $ 171,436 $ 74,144 $ 31,002 $ 14,451 Revenue from Fiduciary Fund 1,648,115 3,850,536 500,786 - - Miscellaneous 2,649,760 14,378 64,483 26,549 -
Transfers (1,642,806) (1,290,335) (1,271,753) (895,861) (1,371,990) Total business-type activities $ 2,860,092 $ 2,746,015 $ (632,340) $ (838,310) $ (1,357,539) Total general revenues $ 23,127,057 25,037,231 $ 18,356,238 $ 16,177,186 $ 21,458,814 $ Change in Net Position
Governmental activities $ 2,729,613 $ (379,437) $ 1,034,378 $ 2,351,370 $ 6,845,358 Business-type activities: 2,666,063 3,044,870 (1,554,669) (1,210,250) (1,183,014) Total 5,395,676 $ $ 2,665,433 $ (520,291) $ 1,141,120 $ 5,662,344 *In 2021, the City started grouping the motor vehicle in lieu revenue with property tax.

City of Patterson
Table 2
Changes in Net Position (Continued)
Last Ten Fiscal Years
Fiscal Year
169
Packet Pg. 994
2025 2024 2023 2022 2021
FUND BALANCES:

General Fund
Nonspendable $ 300,684 $ 249,161 $ 138,149 $ 138,586 $ 106,172 Restricted 737,315 624,198 560,761 360,498 360,498
Committed 12,113,995 10,759,106 9,838,576 3,762,470 3,762,470 Assigned 3,377,057 7,449,656 6,236,338 2,896,296 2,896,296 Unassigned 6,600,479 5,184,572 1,389,339 12,651,739 6,589,826 Total General Fund $ 23,129,530 $ 24,266,693 $ 18,163,163 $ 19,809,589 $ 13,715,262 All Other Governmental Funds
Nonspendable $ 233,300 $ 252,049 $ 6,596 $ 138,586 $ 3,338 Restricted 87,989,116 81,245,044 72,309,934 75,829,140 75,922,386 Committed 17,586,312 14,550,061 10,364,796 13,042,711 7,173,724 Assigned - - 2,935,856 - 38,865
Unassigned (deficit) (25,395) (4,582,122) (4,469,077) 8,607,342 (3,567,982) Total All Other Governmental Funds $ 105,783,333 $ 91,465,032 $ 78,212,249 $ 100,553,635 $ 79,570,331 Total Fund Balance $ 128,912,863 $ 115,731,725 $ 96,375,412 $ 120,363,224 $ 93,285,593 City of Patterson
Table 3
Fund Balance, Governmental Funds
Last Ten Fiscal Years
Fiscal Year
170
Packet Pg. 995
2020 2019 2018 2017 2016
FUND BALANCES:

General Fund
Nonspendable $ 104,997 $ 84,466 $ 73,526 $ 68,630 $ 78,491 Restricted 344,809 290,150 146,789 144,229 51,773
Committed 3,751,813 3,725,949 3,658,050 3,642,337 3,626,143 Assigned 2,889,800 2,879,593 2,883,371 2,879,809 1,879,546 Unassigned 1,984,909 1,192,981 873,038 1,502,483 1,564,376 Total General Fund $ 9,076,328 8,173,139 $ 7,634,774 $ 8,237,488 $ 7,200,329 All Other Governmental Funds
Nonspendable $ - $ - $ 2,865 $ 574 $ -
Restricted 75,515,298 74,293,766 75,770,466 76,995,568 78,162,371 Committed 4,986,655 4,905,500 4,905,500 6,016,084 5,734,508 Assigned - 40,109 - - 38,985
Unassigned (deficit) (2,935,948) (2,777,683) (1,283,973) (729,053) (283,235) Total All Other Governmental Funds $ 77,566,005 $ 76,461,692 $ 79,394,858 $ 82,283,173 $ 83,652,629 Total Fund Balance $ 86,642,333 $ 84,634,831 $ 87,029,632 $ 90,520,661 $ 90,852,958 City of Patterson
Table 3
Fund Balance, Governmental Funds (Continued)
Last Ten Fiscal Years
Fiscal Year
171
Packet Pg. 996
2025 2024 2023 2022 2021
Revenues:

Taxes:

Property $ 8,685,386 $ 8,141,486 $ 7,380,341 $ 6,466,296 $ 6,196,152 Sales 12,590,086 14,549,483 12,842,865 12,317,056 10,029,499 Franchise 207,841 241,771 247,538 193,226 222,803
Motor vehicle in lieu - - - - -
Other 230,103 271,762 308,014 277,779 248,158
License, permits, and fees 6,830,080 7,853,941 2,564,469 3,760,608 3,872,859 Charges for current services 8,265,025 6,896,074 5,780,377 5,165,200 4,651,557 Intergovernmental 7,893,069 5,528,802 4,868,843 7,400,132 5,943,756 Fines, forfeitures and penalties 89,378 236,381 112,090 158,125 339,080 Investment earnings 6,380,884 4,908,897 4,001,071 2,779,382 3,528,985 Revenue from Fiduciary Fund 2,781,220 2,409,468 735,910 518,052 527,556 Miscellaneous revenues 699,915 631,503 714,667 658,984 393,511 Total Revenues $ 54,652,987 $ 51,669,568 $ 39,556,185 $ 39,694,840 $ 35,953,916 Expenditures:

Current:

General government $ 10,801,502 $ 7,053,219 $ 4,416,045 $ 3,280,417 $ 3,539,563 Police 4,758,882 7,054,677 6,542,712 5,909,652 5,410,959 Fire 6,723,752 6,615,410 6,037,410 5,402,965 5,289,020
Community development and planning 2,361,840 2,263,392 2,213,335 1,959,595 1,728,594 Public Works 4,859,035 4,355,004 4,920,769 4,270,332 3,899,114 Parks and recreation 3,289,446 3,488,259 3,046,238 2,321,417 1,878,060 Capital outlay 3,717,751 6,189,280 8,309,343 4,513,191 2,964,721 Debt service:

Principal 3,053,088 59,316,490 2,879,858 2,444,648 2,427,337 Interest and fiscal charges 3,079,104 3,284,656 3,975,707 3,697,802 3,822,329 Total Expenditures $ 99,620,387 42,644,400 $ 42,341,417 $ 33,800,019 $ 30,959,697 $ Excess (deficiency) of revenue over $ (47,950,819) 12,008,587 $ (2,785,232) $ 5,894,821 $ 4,994,219 $ (under) expenditures
Other financing sources (uses)
Proceeds from loan repayments $ - $ - $ - $ - $ -
Proceeds from bond issuance 54,370,000 - - 59,040 -
Bond premium received 6,617,848 - - - -
Proceeds from leases - 77,971 464,205 - -
Inception of finance purchase agreement 3,517,975 - - - - Inception of subscription agreement 46,827 - - - -
Transfers in 14,336,247 5,225,574 7,693,815 3,469,860 6,985,786 Transfers out (13,210,523) (2,502,236) (4,754,740) (2,155,679) (5,336,745) Total Other Financing Sources $ 67,307,132 1,172,551 $ 3,403,280 $ 1,373,221 $ 1,649,041 $ Net Change in Fund Balance $ 19,356,313 13,181,138 $ 618,048 $ 7,268,042 $ 6,643,260 $ Debt Service as a Percentage of Noncapital Expenditure 15.72% 66.99% 20.30% 20.97% 22.32% Source: City of Patterson Finance Department
City of Patterson
Table 4
Changes in Fund Balance of Governmental Funds
Last Ten Fiscal Years
Fiscal Year
172
Packet Pg. 997
2020 2019 2018 2017 2016
Revenues:

Taxes:

Property $ 3,621,765 $ 3,386,596 $ 3,417,541 $ 3,414,365 $ 3,172,489 Sales 6,840,520 5,837,364 5,027,535 5,502,627 5,045,260 Franchise 211,963 205,047 206,354 274,792 188,834
Motor vehicle in lieu 2,267,086 2,089,248 1,947,375 1,844,519 1,693,793 Other 162,436 136,047 131,701 137,847 549,654
License, permits, and fees 2,135,391 1,360,937 2,055,853 1,791,391 983,115 Charges for current services 4,446,008 4,369,186 5,519,738 3,849,087 3,763,566 Intergovernmental 6,225,231 3,483,936 2,028,281 1,989,969 1,340,990 Fines, forfeitures and penalties 66,683 181,044 146,100 157,307 239,936 Investment earnings 4,152,528 4,198,697 4,535,040 4,312,058 4,530,279 Revenue from Fiduciary Fund 2,387,683 1,745,012 1,681,843 - - Miscellaneous revenues 981,021 1,189,088 355,285 612,457 188,402 Total Revenues 33,498,315 $ 28,182,202 $ 27,052,646 $ 23,886,419 $ 21,696,318 Expenditures:

Current:

General government $ 3,803,016 $ 2,899,263 $ 2,656,904 $ 2,507,830 $ 2,704,512 Police 5,373,752 5,374,098 6,377,259 4,218,306 4,290,965 Fire 5,057,265 4,696,647 2,437,226 3,574,689 3,274,834
Community development and planning 2,021,174 2,545,955 1,654,039 1,485,366 1,240,042 Public Works 3,323,065 3,267,381 3,707,312 2,874,435 2,691,886 Parks and recreation 3,713,674 4,014,566 3,719,906 2,466,882 1,940,339 Capital outlay 3,417,460 2,776,974 7,237,219 2,080,160 1,432,210 Debt service:

Principal 2,476,386 2,225,040 2,250,465 2,060,273 1,765,836 Interest and fiscal charges 3,947,827 4,067,414 4,204,098 3,954,933 4,016,686 Total Expenditures $ 31,867,338 33,133,619 $ 34,244,428 $ 25,222,874 $ 23,357,310 $ Excess (deficiency) of revenue over $ (3,685,136) 364,696 $ (7,191,782) $ (1,336,455) $ (1,660,992) $ (under) expenditures
Other financing sources (uses)
Proceeds from loan repayments $ - $ - $ - $ - $ 12,116
Proceeds from bond issuance - 2,429,000 - - -
Bond premium received - - - - -
Proceeds from leases - - 161,990 - -
Inception of finance purchase agreement - - - - -
Inception of subscription agreement - - - - -
Transfers in 3,339,258 3,818,998 4,107,492 3,012,930 4,711,665 Transfers out (1,696,452) (2,528,663) (2,835,739) (2,117,069) (3,339,675) Total Other Financing Sources $ 1,290,335 1,642,806 $ 3,700,753 $ 1,057,851 $ 1,384,106 $ Net Change in Fund Balance $ (2,394,801) 2,007,502 $ (3,491,029) $ (278,604) $ (276,886) $ Debt Service as a Percentage of Noncapital Expenditure 21.62% 21.63% 23.90% 25.99% 26.37% Source: City of Patterson Finance Department
Fiscal Year
City of Patterson
Table 4
Changes in Fund Balance of Governmental Funds (Continued) Last Ten Fiscal Years
173
Packet Pg. 998
2025 2024 2023 2022 2021
Revenues:

Taxes:

Property $ 8,685,386 $ 8,141,486 $ 7,381,341 $ 6,466,296 $ 6,196,152 Sales 12,590,086 14,549,483 12,842,865 12,317,056 10,029,499 Franchise 207,841 241,771 247,538 193,226 222,803
Motor vehicle in lieu* - - - - -
Other 230,103 271,762 308,014 277,779 248,158
Total Taxes $ 21,713,416 $ 23,204,502 $ 20,779,758 $ 19,254,357 $ 16,696,612 *In 2021, the City started grouping the motor vehicle in lieu revenue with property tax.

Source: City of Patterson Finance Department
Fiscal Year
City of Patterson
Table 5
Tax Revenues by Source
Last Ten Fiscal Years
174
Packet Pg. 999
2020 2019 2018 2017 2016
Revenues:

Taxes:

Property $ 3,621,765 $ 3,386,596 $ 3,417,541 $ 2,931,682 $ 3,172,489 Sales 6,840,520 5,837,364 5,027,535 5,502,627 5,045,260 Franchise 211,963 205,047 206,534 274,792 188,834
Motor vehicle in lieu 2,267,086 2,089,248 1,947,375 1,844,519 1,693,793 Other 162,436 136,047 131,701 137,847 549,654
Total Taxes $ 13,103,770 $ 11,654,302 $ 10,730,686 $ 10,691,467 $ 10,650,030 *In 2021, the City started grouping the motor vehicle in lieu revenue with property tax.

Source: City of Patterson Finance Department
Fiscal Year
City of Patterson
Table 5
Tax Revenues by Source (Continued)
Last Ten Fiscal Years
175
Packet Pg. 1000
2025 2024 2023 2022 2021 2020
Type of Customer
Residential* $ 1,098,565 $ 1,023,340 $ 1,020,933 $ 1,065,086 $ 1,146,893 $ 1,095,305 Commercial/Industrial* 179,376 168,410 160,824 135,263 132,374 165,164 Irrigation* 509,277 403,161 321,211 411,831 450,848 444,466 Total* $ 1,787,218 $ 1,594,911 $ 1,502,968 $ 1,612,180 $ 1,730,115 $ 1,704,935 Source: City of Patterson Finance Department
* Amounts in Cubic Feet
Fiscal Year
City of Patterson
Table 6
Water Sold by Customer Type
Last Six Fiscal Years
176
Packet Pg. 1001
Wastewater
Fiscal Year
Monthly
Base Rate
Additional
Per 100cf**
Monthly Base
Rate
2025 $ 17.81 $ 4.05 $ 63.06
2024 17.46 3.97 59.49
2023 17.12 3.89 49.94
2022 16.79 3.86 49.94
2021 15.12 3.48 49.94
2020 13.62 3.14 49.94
2019 12.27 2.82 49.94
2018 11.06 2.54 44.44
2017 11.06 2.54 44.44
2016 11.04 2.76 41.92
100 cf = 100 cubic feet (748 gallons)
Rates are based on 3/4" meter, which is the standard household meter size. **The Utility charges an excess use rate above normal demand.

FY2023 and FY2024 Water rates were corrected this year.

Source: City of Patterson Finance Department
City of Patterson
Table 7
Water and Wastewater Utility Rates
Last Ten Fiscal Years
Water
177
Packet Pg. 1002
2015-16 2016-17 2017-18 2018-19 2019-20
Residential Property $ 1,067,738,189 $ 1,125,435,937 $ 1,221,805,158 $ 1,336,735,402 $ 1,420,672,172 Commercial Property 134,692,261 106,365,150 141,903,335 162,332,795 175,943,468 Industrial Property 278,228,208 461,416,004 460,796,304 464,865,277 470,160,844 Other Property 187,566,714 62,594,490 66,537,768 73,659,817 141,632,148 Unsecured Property 81,491,675 87,592,650 84,553,479 82,368,182 87,689,106 Less: Tax-Exempt Property 35,591,679 36,416,220 38,086,325 38,436,037 42,869,663 Taxable Assessed Value $ 1,685,798,257 $ 1,835,315,122 $ 1,937,329,719 $ 2,081,525,436 $ 2,253,228,075 Total Direct Tax Rate (1) 1.097113 1.095707 1.104825 1.106684 1.141246 Estimated Actual Taxable Value (2) $ 2,474,212,386 $ 2,515,245,600 $ 2,880,528,379 $ 3,191,213,893 $ 3,457,556,850 Factor of Taxable Assessed Value (2) 1.467680 1.370471 1.486855 1.533113 1.534490 Source: County Assessor data, MuniServices, LLC / Neumo (1) Total Direct Tax Rate is represented by TRA 5-001
(2) Estimated Actual Value is derived from a series of calculations comparing median assessed values from 1940 to current median sale prices.

Based on these calculations a factor was extrapolated and applied to current assessed values.

Fiscal Year
City of Patterson
Table 8
City-Wide Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
178
Packet Pg. 1003
2020-21 2021-22 2022-23 2023-24 2024-25
Residential Property $ 1,472,464,677 $ 1,572,562,406 $ 1,727,967,560 $ 1,902,837,372 $ 2,029,982,173 Commercial Property 213,310,784 201,385,521 236,429,368 245,997,504 271,715,398 Industrial Property 537,164,362 535,210,557 541,200,991 558,911,277 574,517,395 Other Property 113,983,444 126,040,766 150,812,186 223,032,283 291,132,202 Unsecured Property 83,230,002 82,516,633 82,171,485 97,076,853 94,938,906 Less: Tax-Exempt Property 57,029,494 44,893,026 57,996,914 64,414,026 67,841,543 Taxable Assessed Value $ 2,363,334,980 $ 2,472,611,652 $ 2,680,584,676 $ 2,963,441,263 $ 3,194,444,531 Total Direct Tax Rate (1) 1.136632 1.131314 1.125102 1.164085 1.167741 Estimated Actual Taxable Value (2) $ 2,968,433,744 $ 4,764,749,852 $ 4,558,931,744 $ 6,494,406,767 $ 9,372,666,365 Factor of Taxable Assessed Value (2) 1.256036 1.927011 1.700723 2.191509 2.934052 Source: County Assessor data, MuniServices, LLC / Neumo (1) Total Direct Tax Rate is represented by TRA 5-001
(2) Estimated Actual Value is derived from a series of calculations comparing median assessed values from 1940 to current median sale prices.

Based on these calculations a factor was extrapolated and applied to current assessed values.

City of Patterson
Table 8
City-Wide Assessed Value and Estimated Actual Value of Taxable Property (Continued) Last Ten Fiscal Years
Fiscal Year
179
Packet Pg. 1004
Category 2016-17 2017-18 2018-19 2019-20
Residential 1,125,435,937 $ 1,221,805,158 $ 1,336,735,402 $ 1,420,672,172 $ Industrial 461,416,004 460,796,304 464,865,277 470,160,844 Commercial 134,692,261 141,903,335 162,332,795 175,943,468 Vacant 41,941,904 49,709,923 59,900,775 111,593,169
Agriculture 5,164,703 1,245,101 1,096,217 9,299,298
Unknown 14,009,788 14,548,636 11,793,401 14,729,866
Professional - - - -
Rural 1,337,947 712,923 727,181 5,866,493
Unitary 51,905 52,942 54,000 55,079
Miscellaneous 88,243 88,243 88,243 88,243
Institution - - - -
Gross Secured Value $ 1,890,862,565 1,784,138,692 $ 2,037,593,291 $ 2,208,408,632 $ Unsecured 87,592,650 $ 84,553,479 $ 82,368,182 $ 87,689,106 $ Exemptions 36,416,220 38,086,325 38,436,037 42,869,663
Net Taxable Value $ 1,937,329,719 1,835,315,122 $ 2,081,525,436 $ 2,253,228,075 $ Source: County Assessor data, MuniServices, LLC / Neumo City of Patterson
Table 9
Taxable Property by Use Code, City-Wide
Last Nine Fiscal Years
Fiscal Year
180
Packet Pg. 1005
Category 2020-21 2021-22 2022-23 2023-24 2024-25
Residential $ 1,472,464,677 $ 1,572,562,406 $ 1,902,837,372 1,727,967,560 $ 2,029,982,173 $ Industrial 537,164,362 535,210,557 541,200,991 558,911,277 574,517,395 Commercial 201,385,521 213,310,784 236,429,368 245,997,504 271,715,398 Vacant 79,088,199 91,050,322 116,283,431 186,921,093 252,581,362 Agriculture 18,838,976 19,138,532 12,713,957 13,300,143 10,762,920 Unknown 14,082,823 13,859,051 19,784,066 20,801,687 22,125,868 Professional - - - - 3,527,827
Rural 1,818,114 1,836,948 1,873,685 1,911,156 2,030,436 Unitary 56,180 56,761 57,895 39,152 43,557
Miscellaneous 99,152 99,152 99,152 59,052 60,232
Institution - - - - -
Gross Secured Value $ 2,447,124,513 2,324,998,004 $ 2,656,410,105 $ 2,930,778,436 $ 3,167,347,168 $ Unsecured 83,230,002 $ 82,516,633 $ 82,171,485 $ 97,076,853 $ 94,938,906 $ Exemptions 44,893,026 57,029,494 57,996,914 64,414,026 67,841,543 Net Taxable Value $ 2,472,611,652 2,363,334,980 $ 2,680,584,676 $ 2,963,441,263 $ 3,194,444,531 $ Source: County Assessor data, MuniServices, LLC / Neumo City of Patterson
Table 9
Taxable Property by Use Code, City-Wide (Continued)
Last Nine Fiscal Years
Fiscal Year
181
Packet Pg. 1006
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Basic City and County Levy:

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

County General Fund 0.241442 0.241442 0.241442 0.241442 0.241442 0.241442 0.241442 0.241442 0.241442 0.241442 Co Supt of Schools 0.003947 0.003947 0.003947 0.003947 0.003947 0.003947 0.003947 0.003947 0.003947 0.003947 County Fire Service 0.005658 0.005658 0.005658 0.005658 0.005658 0.005658 0.005658 0.005658 0.005658 0.005658 Patterson Cemetery 0.007696 0.007696 0.007696 0.007696 0.007696 0.007696 0.007696 0.007696 0.007696 0.007696 Patterson Hospital District 0.034410 0.034410 0.034410 0.034410 0.034410 0.034410 0.034410 0.034410 0.034410 0.034410 Turlock Mosquito Abatement 0.011318 0.011318 0.011318 0.011318 0.011318 0.011318 0.011318 0.011318 0.011318 0.011318 Patterson Unified School District 0.386426 0.386426 0.386426 0.386426 0.386426 0.386426 0.386426 0.386426 0.386426 0.386426 Yosemite Community College 0.070620 0.070620 0.070620 0.070620 0.070620 0.070620 0.070620 0.070620 0.070620 0.070620 County School Service Fund 0.020908 0.020908 0.020908 0.020908 0.020908 0.020908 0.020908 0.020908 0.020908 0.020908 Schools-equalization aid 0.018355 0.018355 0.018355 0.018355 0.018355 0.018355 0.018355 0.018355 0.018355 0.018355 Schools-tuition 0.010450 0.010450 0.010450 0.010450 0.010450 0.010450 0.010450 0.010450 0.010450 0.010450 TOTAL 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 Override Assessments
Patterson U - 1996 0.010596 0.010415 0.009953 0.009910 0.008517 0.007773 0.009910 0.000000 0.000000 0.000000 Patterson U - 01A 0.043932 0.043952 0.042364 0.042913 0.037489 0.034404 0.042913 0.030812 0.024990 0.023072 Patterson U - 01B 0.007974 0.007850 0.000000 0.000000 0.009804 0.007718 0.000000 0.007859 0.007317 0.007107 Patterson U - 2008A 0.007691 0.010456 0.010179 0.011078 0.009759 0.009435 0.011078 0.009993 0.009547 0.009575 Patterson U - 2016 GO Ref 0.000000 0.000000 0.018261 0.016809 0.005718 0.006936 0.016809 0.006695 0.006199 0.005845 Patterson U - 2018A 0.000000 0.000000 0.000000 0.000000 0.046179 0.047588 0.000000 0.046326 0.042528 0.040194 Patterson 2022 GOB Series A 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.050396 0.055704 YCCD 2005 A 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 YCCD 2007 C 0.011618 0.009190 0.007585 0.009093 0.008839 0.008883 0.009093 0.009875 0.010324 0.010354 YCCD 2010 D 0.000467 0.000459 0.000359 0.000410 0.000405 0.000425 0.000410 0.000000 0.000000 0.000000 YCCD 2012 Ref 0.008285 0.008500 0.008753 0.007962 0.007286 0.006554 0.007962 0.000000 0.000000 0.000000 YCCD 2015 Ref 0.006550 0.004885 0.007371 0.008509 0.007250 0.006916 0.008509 0.000000 0.000489 0.000000 Yosemite 2020 GOB Series A 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 Yosemite 2020 GOB Series B 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.006848 0.006385 0.006804 Yosemite 2022 GOB Refunding 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.006694 0.005910 0.009086 TOTAL 0.097113 0.095707 0.104825 0.106684 0.141246 0.136632 0.106684 0.125102 0.164085 0.167741 TOTAL TAX RATE 1.097113 1.095707 1.104825 1.106684 1.141246 1.136632 1.106684 1.125102 1.164085 1.167741 Source: County Assessor data, MuniServices, LLC / Neumo TRA 5-001 is represented for this report
*In 1978, California voters enacted Proposition 13 which held property taxes to 1% of the assessed value. Taxing entity's do not impose mileage rates but instead receive a share of the total 1% tax.

City of Patterson
Table 10
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
Fiscal Year
182
Packet Pg. 1007
Taxpayer Taxable Value ($)
Percent of Total City
Taxable Value (%) Taxable Value ($)
Percent of Total
City Taxable Value
(%)
WR Griffin Patterson LLC $ 114,008,359 3.57% $ 43,746,431 2.59% W W Grainger Inc 99,800,058 3.12% 95,450,426 5.66%
Bit Holdings Seventy-Seven Inc 85,883,355 2.69%
Longs Drug Stores California Inc 66,897,710 2.09% 59,485,160 3.53% Westcore Alpha Patterson LLC 62,706,964 1.96%
SBN V AG I LLC 50,084,123 1.57%
Kohl's Department Stores Inc 41,320,720 1.29% 41,564,600 2.47% Baldwin Ranch Development LLC 35,501,611 1.11%
LBA RV-Company XVII LP 32,975,143 1.03%
Amazon.Com Services Inc 26,320,680 0.82%
Wal-Mart Real Estate Business Trust 24,063,514 0.75% 25,249,872 1.50% 1151 Commerce LLC 17,958,630 0.56%
Ramos John J & Brenda J 15,794,705 0.49% 8,714,984 0.52% Sierra Pacific Refrig Serv Ltd 15,480,213 0.48% 13,248,285 0.79% Eagle Valley Investments 14,823,956 0.46%
Lennar Homes Of California LLC 14,174,573 0.44%
Rogers Road LLC 13,999,032 0.44%
Restoration Hardware Inc 12,931,120 0.40%
Pilot Travel Centers LLC 12,598,602 0.39%
Gill Hospitality LLC 10,602,237 0.33%
Buzz Oates LLC 10,010,566 0.31%
OT SM Owner C LLC 9,879,500 0.31%
Sai Shiva LLC 9,742,058 0.30%
US Real Estate Ltd. Partnership 65,127,942 3.86%
Golden State FC LLC 56,936,600 3.38%
Traina Pacific LLC 8,837,512 0.52%
Patterson Marketplace LLC 6,959,112 0.41%
Save Mart Supermarkets 5,070,344 0.30%
Arambel Jeffery E 4,910,656 0.29%
Ormond Peter M 4,407,670 0.26%
Gea Mechanical Equipment Us In 4,386,987 0.26%
Snider Paul H 4,071,645 0.24%
Proto 3,921,000 0.23%
Beth Christensen 3,863,780 0.23%
Patterson Plaza Assoc LLC 3,359,437 0.20%
525 Baldwin LLC 2,974,500 0.18%
Westside Property Mgmt 2,915,949 0.17%
Vop North LLC 2,737,145 0.16%
Total Top 25 Taxpayers 835,813,846 26.16% 511,986,459 30.37% Total Taxable Value 3,194,444,531 100.00% 1,685,798,257 100.00% Source: County Assessor data, MuniServices, LLC / Neumo 2015-16
City of Patterson
Table 11
Principal Property Tax Payers
Last Fiscal Year and Nine Years Ago
2024-25
183
Packet Pg. 1008
This page intentionally left blank.
184
Packet Pg. 1009
Taxpayer Business Type Taxpayer Business Type
76 Service Stations 76 Service Stations
Alpine Trusss Light Industrial/Printers AGI Farms Food Service Equip/Supplies Amazon Com Services Fulfillment Centers Chevron Service Stations Amazon MFA Fulfillment Centers Chevron Patterson Service Stations Arco AM PM Service Stations Del Don Chemical Garden/Agricultural Supplies Cali Kosher Cannabis Denny's Casual Dining
Chevron Service Stations Jack in the Box Quick-Service Restaurants Chevron Service Stations JM Equipment Warehse/Farm/Const. Equip.

Del Don Fertilizer Company Garden/Agricultural Supplies Kwik Serv Gas Service Stations Flying J Travel Plaza Service Stations Lowry Cardlock Fuel Petroleum Prod/Equipment Jack in the Box Quick-Service Restaurants McAuley Ford New Motor Vehicle Dealers JM Equipment Warehse/Farm/Const. Equip. McDonalds Quick-Service Restaurants Kwik Serv Gas Service Stations Phillin Station Service Stations Loves Travel Stop Service Stations Premier Packaging Light Industrial Printers Lowry Cardlock Fuel Petroleum Prod/Equipment Restoration Hardware Fulfillment Centers McAuley Ford New Motor Vehicle Dealers San Joaquin Equipment Warehse/Farm/Const. Equip.

McDonalds Quick-Service Restaurants Save Mart Supermarket Grocery Stores O'Reilly Auto Parts Automotive Supply Stores Taco Bell Quick-Service Restaurants San Joaquin Equipment Warehse/Farm/Const. Equip. Thompson Chevrolet Buick New Motor Vehicle Dealers Save Mart Supermarket Grocery Stores True Value Hardware Building Materials Thompson Chevrolet Buick New Motor Vehicle Dealers Valero Service Stations Valero Service Stations WW Grainger Electrical Equipment WW Grainger Electrical Equipment Walgreens Drug Stores
Walmart Supercenter Discount Dept Stores Walmart Supercenter Discount Department Stores Source: HdL Companies
City of Patterson
Table 12
Principal Sales Tax Producers
Last Fiscal Year and Nine Years Ago
2024-25 2015-16
185
Packet Pg. 1010
CATEGORY NAME 2016 2017 2018 2019 2020
All Other Outlets $ 592,368 $ 597,886 $ 567,498 $ 536,620 $ 934,427 Apparel Stores 597 774 526 1,116 894
Auto Dealers & Auto 104,804 123,336 123,204 111,997 113,273 Bldg. Matrl. & Farm 62,643 60,911 32,749 69,889 94,280
Drug Stores 8,922 9,318 4,655 23,628 17,646
Eating & Drinking Pl 58,015 56,766 56,023 74,473 51,621 Food Stores 16,884 14,235 13,203 13,447 11,203
Home Furnishings & A 9,228 12,564 10,601 9,814 12,462
General Merchandise 79,659 80,118 83,482 84,760 86,678
Other Retail Stores 3,345 3,495 5,543 4,237 -2,373
Packaged Liquor Store 997 8,353 4,945 2,877 6,607
Service Station 63,428 142,584 174,114 202,665 188,080
TOTAL $ 1,000,890 $ 1,110,340 $ 1,076,543 $ 1,135,523 $ 1,514,798 Source: HdL Companies
City of Patterson
Table 13
Historical Sales Tax Amounts by Benchmark Year
Last Ten Fiscal Years
* HdL combined business type Packaged Liquor Stores with Convenience Stores in 2016 thus causing a spike in 2017 and forward. 186
Packet Pg. 1011
CATEGORY NAME 2021 2022 2023 2024 2025
All Other Outlets $ 1,802,510 $ 1,556,150 $ 1,623,385 $ 1,508,510 $ 1,671,418 Apparel Stores 30 222 379 397 444
Auto Dealers & Auto 171,906 153,886 169,261 162,815 140,979 Bldg. Matrl. & Farm 145,119 112,958 92,400 76,710 85,594 Drug Stores 35,512 33,705 27,710 20,072 21,830
Eating & Drinking Pl 84,011 89,794 93,097 97,938 100,094 Food Stores 18,345 19,660 18,691 21,002 20,003
Home Furnishings & A 11,105 11,550 11,693 112,743 10,338 General Merchandise 98,236 93,077 91,890 96,776 92,160
Other Retail Stores 5,287 5,704 5,281 5,317 6,147
Packaged Liquor Store 7,165 6,372 6,126 6,837 6,519
Service Station 292,674 345,035 405,712 378,539 347,543 TOTAL $ 2,671,900 $ 2,428,113 $ 2,545,625 $ 2,487,656 $ 2,503,069 Source: HdL Companies
* HdL combined business type Packaged Liquor Stores with Convenience Stores in 2016 thus causing a spike in 2017 and forward.

City of Patterson
Table 13
Historical Sales Tax Amounts by Benchmark Year (Continued) Last Ten Fiscal Years
187
Packet Pg. 1012
Fiscal
Year
Lease Revenue
Bonds
Revenue
Bonds
Settlement
Payable
Finance
Purchase
Obligations Lease Liability
SubscriptionBased IT
Arrangements Total
2016 - $ 75,999,122 $ $ 676,000 $ - $ - $ 76,675,122 - $ 2017 74,197,073 - 364,000 128,967 128,967 74,819,007 -
2018 2,429,000 70,840,652 364,000 97,979 97,979 73,829,610 - 2019 2,303,118 68,801,769 364,000 66,170 66,170 71,601,227 - 2020 2,172,830 66,516,789 364,000 33,518 33,518 69,120,655 - 2021 2,037,982 64,286,264 364,000 - - 66,688,246 -
2022 1,898,414 61,856,080 364,000 72,094 72,094 64,262,682 - 2023 1,753,961 59,316,898 1,697,355 420,639 420,639 57,903 63,667,395 2024 1,604,451 61,672,041 1,697,355 3,883,948 3,883,948 4,519 72,746,262 2025 1,449,708 59,002,671 1,697,355 3,212,855 237,700 35,169 65,635,458 Fiscal
Year Loans Payable
Public
Offering
Revenue
Bonds
Private
Placement
Revenue Bonds
Settlement
Payable Total
2016 4,926,020 $ $ 11,585,000 $ - $ 16,511,020 - $
2017 4,538,540 11,300,000 - 15,838,540 -
2018 4,134,079 9,865,000 2,658,300 16,657,379 -
2019 3,889,225 8,565,000 2,630,800 15,085,025 -
2020 3,627,227 17,609,352 2,602,300 23,838,879 -
2021 3,040,868 17,176,312 2,572,900 22,790,080 -
2022 3,046,581 16,728,271 2,542,500 22,317,352 -
2023 3,388,219 16,265,229 2,511,000 1,123,211 23,287,659 2024 5,754,982 15,787,188 2,478,400 1,123,211 25,143,781 2025 7,433,258 15,384,146 2,349,700 1,123,211 26,290,315 Fiscal
Year
Total Primary
Government
Percentage of
Personal
Income Per Capita
2016 93,186,142 $ 21.37% $ 4,125
2017 90,657,547 19.70% 3,983
2018 90,486,989 17.95% 3,860
2019 86,686,252 16.07% 3,645
2020 92,959,534 17.07% 4,027
2021 89,478,326 15.08% 3,840
2022 86,580,034 13.10% 3,550
2023 86,955,054 13.10% 3,556
2024 97,890,043 11.17% 3,949
2025 91,925,773 9.32% 3,554
See Demographic and Economic Statistics for personal income and population data.

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

Revenue Bond Information for FY2023 has been corrected compared to past filings.

In prior filings, Leases and Subscriptions were reported together. In FY2024, these amounts have been separated.

Business-Type Activities
City of Patterson
Table 14
Ratio of Outstanding Debt By Type
Last Ten Fiscal Years
Governmental Activities
188
Packet Pg. 1013
Total 2024-25 Assessed Valuation: $3,213,011,331
Total Debt % Applicable (1) City’s Share of Debt
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2025 6/30/2025 Yosemite Community College District $ 229,290,111.0 3.425% $ 7,853,186 Patterson Joint Unified School District 57,733,238 72.986% 42,137,181 City of Patterson Community Facilities District No. 2005-1 15,535,000 100.000% 15,535,000 City of Patterson Community Facilities District No. 2015-1 4,500,000 100.000% 4,500,000 City of Patterson Community Facilities District No. 2018-1 15,225,000 100.000% 15,225,000 City of Patterson PFA Revenue Bonds (Plus Bond Premium) 59,002,671 100.000% 59,002,671 TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT 381,286,020 $ $ 144,253,038 DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Stanislaus County Certificates of Participation 3,450,000 $ 4.613% 159,149 $ Patterson Joint Unified School District General Fund Obligations 9,600,000 72.986% 7,006,656 City of Patterson Lease Revenue Bonds 1,449,708 100.000% 1,449,708 Finance Purchase Agreements 3,212,855 100.000% 3,212,855 Lease Liability 249,348 100.000% 237,700
Subscription Liability 35,169 100.000% 35,169
Settlement Liability 1,697,355 100.000% 1,697,355
Turlock Mosquito and Vector Control District Pension Obligation Bonds 1,137,375 11.225% 127,670 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 20,831,810 $ 13,926,262 $ TOTAL DIRECT DEBT $ 65,635,458
TOTAL OVERLAPPING DEBT $ 92,543,842
COMBINED TOTAL DEBT $ 158,179,300
Ratios to 2024-25 Assessed Valuation:

Direct Debt ($59,002,671) 1.84%
Total Direct and Overlapping Tax and Assessment Debt 4.49% Total Direct Debt ($65,635,458) 2.04%
Combined Total Debt 4.92%
Source: Avenu Insights & Analytics & City of Patterson Finance Department (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded lease obligations. (1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.

Direct and Overlapping Governmental Activities Debt
City of Patterson
Table 15
189
Packet Pg. 1014
Fiscal Year
City Population
(1)
Personal
Income (2)
Per Capita
Personal
Income (2)
Median
Age (4)
**Public
School
Enrollment
County
Unemploymen
t Rate (%) (3)
City
Unemploymen
t Rate (%) (3)
County
Population (1)
2015-16 436,077,360 22,590 $ $ 19,304 30.5 6,031 9.5% 9.0% 540,214 2016-17 459,580,598 22,730 20,219 30.5 6,083 8.5% 8.1% 548,057 2017-18 503,526,733 23,414 21,505 30.6 6,103 7.1% 7.2% 555,624 2018-19 539,051,882 23,764 22,684 30.8 6,077 5.6% 5.5% 558,972 2019-20 544,361,808 23,074 23,592 31.3 6,179 16.1% 14.9% 557,709 2020-21 593,436,826 23,304 25,465 31.1 6,012 10.7% 10.0% 555,968 2021-22 660,385,084 24,370 27,098 31.5 6,214 4.5% 4.6% 549,466 2022-23 768,597,389 24,317 31,607 39.0 6,177 6.4% 5.4% 545,939 2023-24 876,598,446 24,790 35,361 30.4 6,138 6.2% 5.3% 548,744 2024-25 986,235,866 25,868 38,126 30.9 6,070 6.6% 8.5% 555,765 Source: MuniServices, LLC / Neumo, U.S. Census Bureau.

1.) Population Projections are provided by the California Department of Finance Projections.

2.) Income Data is provided by the U.S. Census Bureau.

3.) Unemployment Data is provided by the EDD's Bureau of Labor Statistics Department.

4.) Median Age reflects the U.S. Census data estimation table. ** Student Enrollment reflects the total number of students enrolled in Patterson Joint Unified.

City of Patterson
Table 16
Demographic and Economic Statistics
Last Ten Fiscal Years
190
Packet Pg. 1015
Business Name
Number of
Employees
Percent of Total
Employment (%)
Number of
Employees
Percent of Total
Employment (%)
Patterson Joint Unified School District 927 7.73% 617 6.78% CVS Caremark Distribution Center 535 4.46% 466 5.12%
Amazon Fulfillment Center 525 4.38% 1000 10.99%
Grainger Distribution Center 457 3.81% 346 3.80%
Walmart Supercenter 307 2.56% 241 2.65%
City of Patterson* 260 2.17% 225 2.47%
Traina Foods 161 1.34%
King's Roofing 139 1.16% 100 1.10%
Restoration Hardware Distribution Center 102 0.85% 122 1.34% Advanced Linen Service 99 0.83%
Save Mart 73 0.80%
Brake Parts Inc (BPI) Distribution Center 56 0.62%
Total Top 10 Employers 3,512 29.27% 3,246 35.67%
Total City Labor Force (1) 12,000 9,100
Source: MuniServices, LLC / Neumo
Source: FY2017-18, City of Patterson -- ACFR Publication Report (1) Total City Labor Force provided by EDD Labor Force Data.

Notes:

Results based on direct correspondence with
*Includes full and part time.
>> Kohls Distribution Center has declined to participate in the Employers list. << 2017-18
City of Patterson
Table 17
Principal Employers
2024-25
Last Fiscal Year and Seven Years Ago
191
Packet Pg. 1016
Number Number Number Number Number Number Number Number Authorized Authorized Authorized Authorized Authorized Authorized Authorized Authorized 17-18 18-19 19-20 20-21 21-22 22-23 23-24 24-25
Administration:

City Manager 11111111
Assistant City Manager 00000001
Program Manager 00000111
Public Information Officer 00000011
Human Resources Director 11111111
City Clerk 11111111
HR Analyst 11111222
HR Technician 00000011
Executive Administrative Assistant Confidential 11111111 Deputy City Clerk 00111111
Administrative Assistant 11000000
IT Manager 00111111
IT Technician II 00111111
Senior Code Enforcement Officer 00000011
Code Enforcement Officer II 11111200
Code Enforcement Officer I 11111111
Graffiti Abatement Technician 00000011
8 8 10 10 10 13 15 16
Finance:

Finance Director 11111111
Accounting Manager 0000111
Revenue & Utility Billing Manager 11111111
Supervising Accountant 11111111
Accountant 01122222
Accounting Technician 11111111
Account Clerk, Senior 33334455
Account Clerk 23321211
9 11 11 11 11 13 13 13
Recreation & Community Services:

Recreation & Community Services Director 11111111
Recreation & Community Services Manager 11111111
Recreation & Community Services Supervisor 01444455
Recreation Coordinator I 31000011
Recreation Coordinator II 13000022
Account Clerk 22222200
Administrative Assistant I 22
Administrative Assistant II 0001111
Facilities & Maintenance Supervisor 11110000
Facilities Superintendent 0001111
Maintenance Worker I 11100111
Maintenance Worker II 00011100
Maintenance Worker III 11111122
11 12 11 11 12 13 17 17
Fire:

Chief 11111111
Division Chief 22223333
Fire Captain - Paramedic 22222332
Fire Captain 34444434
Fire Engineer - Paramedic 11111133
Fire Engineer 45555533
Fire Fighters - Paramedic 66666933
Fire Fighters 00000034
Fire Marshall 10000011
Fire Prevention Specialist 01111111
Administrative Manager 11111111
Administrative Assistant II 11111111
22 24 24 24 25 29 26 27
City of Patterson
Table 18
Full-Time Equivalent City Government Employees
By Function/Program/Department
Last Eight Fiscal Years
192
Packet Pg. 1017
Number Number Number Number Number Number Number Number Authorized Authorized Authorized Authorized Authorized Authorized Authorized Authorized 17-18 18-19 19-20 20-21 21-22 22-23 23-24 24-25
Community Development:

Community Development Director 11111111
Planner 11111111
Associate Planner 11111111
Planning Technician II 22222222
55555555
Building & Permits:

Permit Technician I 00022222
Permit Technician II 11111111
11133333
Engineering
Director of Engineering 11111111
Deputy Director of Engineering 00000001
Associate Engineer 01111111
Assistant Engineer 21111111
Management Analyst 00000011
Secretary I 11111111
44444456
Capital Projects:

Capital Project Manager 11111 110
Public Works:

Director of Public Works 11111111
Deputy Director of Public Works Ops & Maint 11111222
Deputy Director of Public Works Compliance & Adm 00000011 Sr. Administrative Manager 11111100
Public Works Inspector I 11000000
Public Works Inspector II 00111222
Public Works Inspector III 11111111
Management Analyst 33333323
Water Resource Program Manager 00000011
Administrative Assistant I 00000011
Administrative Assistant II 22222211
Environmental Compliance Specialist 00001333
Maintenance Worker I 01111100
10 11 11 11 12 16 15 16
Equipment Mechanic:

Mechanic - Crew Leader 11111111
Mechanic I 00000000
Mechanic II 11111222
22222333
Building Maintenance:

Maintenance Worker I 01122222
Maintenance Worker II 21101000
21101222
Parks:

Parks Supervisor 11111122
Maintenance Worker III 64544444
Maintenance Worker II 13334444
Maintenance Worker I 23121344
10 11 10 10 10 12 14 14
Streets:

Public Works Supervisor - Streets 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 Maintenance Worker III 1111
Maintenance Worker II 1 1 221111
Maintenance Worker I 1 1 011232

2.5 2.5 2.5 3.5 3.5 4.5 5.5 4.5
City of Patterson
Table 18
Full-Time Equivalent City Government Employees (Continued) By Function/Program/Department
Last Eight Fiscal Years
193
Packet Pg. 1018
Number Number Number Number Number Number Number Number Authorized Authorized Authorized Authorized Authorized Authorized Authorized Authorized 17-18 18-19 19-20 20-21 21-22 22-23 23-24 24-25
Urban Forestry:

Public Works Supervisor - Tree 11111111
Maintenance Worker III 11100000
Maintenance Worker II 11114535
Maintenance Worker I 22230065
5 5 5 5 5 6 10 11
Water:

Public Works Supervisor - Water 11111111
Water Operator III 34443322
Water Operator II 00110000
Water Operator I 11000000
Water Operator in Training 00000022
Maintenance Worker III 1100
Maintenance Worker II 1122
56666677
Sewer:

Wastewater Manager 11111111
Chief Waste Water Operator 11111111
Wastewater Operator III 12121111
Wastewater Operator II 21211211
Wastewater Operator I 11010022
Wasterwater Operator in Training 2200
Maintenance Worker I 00101311
6 6 6 6 7 10 7 7
Collection:

Public Works Supervisor - Collections 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 Maintenance Worker III 13234443
Maintenance Worker II 20100002
Maintenance Worker I 00110000

3.5 3.5 4.5 4.5 4.5 4.5 4.5 5.5
Electrical & Instrumentation
Electrical & Instrumentation Manager 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 Electrician Technician II 1.0 1.0 1.0 1.0 2.0 1.0 2.0 2.0 Electrician Technician I 1.0

2.0 2.0 2.0 2.0 3.0 2.0 3.0 4.0
Total Allocated Positions 109 116 117 119 125 147 156 161 Incentives Available: Specified by MOU
Source: City of Patterson Finance Department
By Function/Program/Department
Last Eight Fiscal Years
City of Patterson
Table 18
Full-Time Equivalent City Government Employees (Continued) 194
Packet Pg. 1019
City of Patterson
Patterson, California
Single Audit and
Independent Auditor’s Reports
For the Year Ended June 30, 2025
Packet Pg. 1020
Packet Pg. 1021
City of Patterson
Table of Contents
Page
Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................................................... 1 Independent Auditor’s Report on Compliance for Each Major Federal Program, on Internal Control Over Compliance Required by the Uniform Guidance, and on Schedule of Expenditures of Federal Awards ..................................................................................... 3 Schedule of Expenditures of Federal Awards ............................................................................................................ 7 Notes to the Schedule of Expenditures of Federal Awards ........................................................................................ 9 Schedule of Findings and Questioned Costs ............................................................................................................ 10 Packet Pg. 1022
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2121 North California Blvd., Suite 290
Walnut Creek, California 94596

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND

OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report
To the Honorable Mayor and Members of City Council
of the City of Patterson
Patterson, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Patterson (the “City”), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City's basic financial statements and have issued our report thereon dated February 20, 2026.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

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

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Patterson City CouncilMay 19, 2026

Patterson City Council
May 19, 2026