City Council / Local Redevelopment Authority / Public Financing Authority
March 28, 2023

Any documents that are not privileged or part of a Closed Session provided to a majority of the City Council/LRA Board after distribution of the agenda packet, regarding any item on this agenda, will be made available for public inspection at the City Clerk’s Office 6707 Third St., Suite A, Riverbank. Page 1 of 5
AGEND
TUESDAY, MARCH 28, 2023 – 6:00 P.M.
(THE AGENDA PACKET IS ONLINE AT HTTP://WWW.RIVERBANK.ORG/AGENDACENTER)

1. CALL TO ORDER

2. FLAG SALUTE

3. INVOCATION

4. ROLL CALL

5. AGENDA CHANGES

6. CONFLICT OF INTEREST
Any Council/Authority Member or Staff who has a direct Conflict of Interest on any scheduled agenda item to be considered is to declare their conflict at this time.

7. PRESENTATIONS (Informational only)
Item: 7.1 Presentation by Stanislaus Regional Transit Authority (StanRTA)- It is recommended that City Council receive a presentation from Mr. Adam Barth, StanRTA CEO.

8. PUBLIC COMMENTS (No action can be taken)
At this time, members of the public may comment on any item not appearing on the agenda, and within the subject matter jurisdiction of the City Council/LRA Board. Individual comments will be limited to a maximum of 3 minutes (or as stated by the presiding Officer) and time cannot be yielded to another person. Under State Law, matters presented during the public comment period cannot be discussed or acted upon.

Refer to the last page of this agenda for the Public Comment Procedures via ZOOM.

9. CONSENT CALENDAR
All items listed on the Consent Calendar are to be acted upon by a single action of the City Council/LRA Board unless requested by an individual Council/Authority Member or member of the public for special consideration. Otherwise, the recommendation of staff will be accepted and acted upon by motion of the City Council/LRA Board.

Item 9.1 Waive Readings. All Readings of ordinances and resolutions, except by title, are waived.

CITY OF RIVERBANK
Regular City Council and
Local Redevelopment Authority
Board Meetings
Council Chambers, 6707 Third St.

Suite B
Riverbank, CA 95367

CITY COUNCIL / LRA BOARD
Mayor/Chair
Richard D. O’Brien
Council/Authority Members
District 1 - Luis Uribe
District 2 - Rachel Hernandez
District 3 - Leanne Jones Cruz
District 4 - Darlene Barber-Martinez
City Council and LRA Board Meetings Agenda March 28, 2023 Next City Council Resolution: 2023-021 Next Ordinance: 2023-004 Next Local Redevelopment Authority Board Resolution 2023-002 Any documents that are not privileged or part of a Closed Session provided to a majority of the City Council/LRA Board after distribution of the agenda packet, regarding any item on this agenda, will be made available for public inspection at the City Clerk’s Office 6707 Third St., Suite A, Riverbank. Page 2 of 5
Item 9.2 Approval of the City Council and Local Redevelopment Authority Board Minutes for March 14, 2023.

Item 9.3 Resolution Opposing Initiative No. 21-0042A1, The Taxpayer Protection and Government Accountability Act.

Item 9.4 Resolution Awarding a Contract for budgeting and transparency software to ClearGov, Inc. and Authorizing the Assistant City Manager Execute said Contract.

Item 9.5 Resolution Authorizing the Addition of the Senior Planner Job Classification and Salary Range; and Amending the City of Riverbank Compensation Plan.

Item 9.6 Resolution to Approve and Adopt the 2023 City of Riverbank Measure L Expenditure Plan Project List.

Item 9.7 Resolution Adopting a List of Projects for Fiscal Year 2023-2024 Funded by SB 1: The Road Repair and Accountability Act of 2017.

Item 9.8 Resolution of the City of Riverbank Declaring Its Intention to Annex Territory to a Community Facilities District and to Authorize the Levy of Special Taxes Therein, the City of Riverbank Community Facilities District No. 2016-1 (Public Services) Annexation No. 2.

Item 9.9 Resolution to Approve a Subdivision Improvement Agreement for Diamond Bar East with LGI Homes - California LLC and Authorizing the City Manager to Execute the Agreement.

Item 9.10 Resolution adopting the Final Map 03-2022 Diamond Bar East – APN:
062-020-010.

Item 9.11 Resolution Accepting the Annual Financial Report for Fiscal Year 2020- 2021.

Item 9.12 Authorization for Out of State Travel Request for Mayor Richard D.

O’Brien and City Manager Marisela H. Garcia to Travel to Washington D.C. for Meetings with the U.S. Army and Federal Regulators.

10. PUBLIC HEARING – No Items Scheduled

11. NEW BUSINESS
Item 11.1 2022 General Plan and Housing Element Annual Progress Reports. A Resolution Adopting the 2022 General Plan and Housing Element City Council and LRA Board Meetings Agenda March 28, 2023 Next City Council Resolution: 2023-021 Next Ordinance: 2023-004 Next Local Redevelopment Authority Board Resolution 2023-002 Any documents that are not privileged or part of a Closed Session provided to a majority of the City Council/LRA Board after distribution of the agenda packet, regarding any item on this agenda, will be made available for public inspection at the City Clerk’s Office 6707 Third St., Suite A, Riverbank. Page 3 of 5
Annual Progress Reports (APRs) and Authorizing Staff to Submit said Reports to the California Office of Planning and Research and the California Department of Housing and Community Development. - Staff recommends City Council approve the 2022 General Plan and Housing Element Annual Progress Reports (APR) and authorize Staff to submit said reports to the California Office of Planning and Research (OPR) and the California Department of Housing and Community Development (HCD).

12. COMMENTS/REPORTS
A brief report on notable attendance of a meeting or conference or other notable topics of City business shall be made.

The Brown Act does not allow for discussion or action of items by the City Council/LRA Board during this time.

Item 12.1 Staff
Item 12.2 Council/Authority Member
Item 12.3 Mayor/Chair

13. CLOSED SESSION
The public will have a limit of 3 minutes to comment on Closed Session item(s) as set forth on the agenda prior to the City Council/LRA Board recessing to Closed Session.

Item 13.1 CONFERENCE WITH LABOR NEGOTIATORS (Pursuant to Government Code § 54957.6)
Agency Representative: Marisela H. Garcia, City Manager Unrepresented Employee: Director of Parks & Recreation

14. REPORT FROM CLOSED SESSION
Item 14.1 Report from Clossed Session Item 13.1
CONFERENCE WITH LABOR NEGOTIATORS (Pursuant to
Government Code § 54957.6)
Agency Representative: Marisela H. Garcia, City Manager Unrepresented Employee: Director of Parks & Recreation

15. ADJOURNMENT
• The next regular City Council meeting will be on April 11th, 2023 at 6:00 p.m.

AFFIDAVIT OF POSTING
I hereby certify under penalty of perjury, under the laws of the State of California that the foregoing agenda was posted at the meeting location, on the North City Hall public exterior bulletin board, South City Hall public exterior Bulletin, Riverbank Community Center exterior bulletin, and the City’s website 72 hours prior to the meeting in accordance to the California Ralph M. Brown Act.

Posted this 23rd Day of March, 2023
/s/Gabriela Hernandez, City Clerk
City Council and LRA Board Meetings Agenda March 28, 2023 Next City Council Resolution: 2023-021 Next Ordinance: 2023-004 Next Local Redevelopment Authority Board Resolution 2023-002 Any documents that are not privileged or part of a Closed Session provided to a majority of the City Council/LRA Board after distribution of the agenda packet, regarding any item on this agenda, will be made available for public inspection at the City Clerk’s Office 6707 Third St., Suite A, Riverbank. Page 4 of 5

ADA COMPLIANCE STATEMENT
In compliance with the Americans with Disabilities Act, and the Governor’s Executive Order N-29-20, the City will make every effort to make reasonable modifications or accommodations from individuals with disabilities. Contact the Administration Dept. at (209) 863-7122 or the City Clerk at [email protected] at least (48) hours prior to the meeting to enable the City to make reasonable arrangements for accessibility.

NOTICE REGARDING NON-ENGLISH SPEAKERS
Pursuant to California Constitution Article III, Section IV, establishing English as the official language for the State of California, and in accordance with California Code of Civil Procedures Section 185, which requires proceedings before any State Court to be in English, notice is hereby given that all proceedings before the City of Riverbank City Council/LRA Board shall be in English and anyone wishing to address the Council is required to have a translator present who will take an oath to make an accurate translation from any language not English into the English language.

PUBLIC “LIVE” VIEWING
• Government Channels: Charter– 2 and AT&T U-VERSE – 99 • YouTube Live – City of Riverbank
• Via ZOOM Platform (See instructions below)

SUBMITTING PUBLIC COMMENTS FOR THE RECORD

Written comments must be received before 4:00 p.m. on the date of the meeting in order for them to be distributed to the Council prior to consideration of the matter. Written comments will not be read aloud at the meeting, but will be reported as received for the record. If you do not receive an acknowledgement of receipt within an hour of submission or by 5:00 pm, please call the City Clerk’s Office at (209) 863-7198 or the Administration Dept. at (209) 863-7122.

ACCEPTABLE METHODS OF SUBMITTING COMMENTS BEFORE THE 4:00 PM DEADLINE ● Via Mail Service: Mail comments to City of Riverbank, Attn. City Clerk, 6707 Third Street, Suite A, Riverbank, CA 95367. (Call 209-863-7198 / 209-863-7122 to ensure they were received.) ● Via Email: Mail to [email protected] (Note: This technology is not a guaranteed method.) • Indicate Agenda Item # in the subject line. (Call 209-863-7198 /209-863-7122 to ensure receipt) ● Oral Comments In-Person: The Mayor will ask the public if anyone wishes to comment, at that time you may approach the podium.
● Oral Comments Via Zoom: The Mayor will announce when public comments may be made for a limit of 3 minutes on the agenda item being considered, at which time you will:
(please make sure the volume on your video device or any nearby device is turned down.) o Using a computer – click on the “raise hand” feature in the webinar controls. This will alert staff that you wish to speak, and you will be unmuted.
o Using a Phone – press *9 to “raise the hand”. This will alert staff that you wish to speak, and you will be unmuted.

Teleconference Phone Number (This system is a backup for ZOOM technical difficulties only when providing oral comments.) If there are technical difficulties or disconnection with ZOOM while making oral comments, please immediately call the teleconference phone number (209) 863-7151 so that Council may receive your comments. Council will be waiting for your call. Thank you

JOIN THE MEETING VIA ZOOM PLATFORM
Join by this link: https://us02web.zoom.us/j/89374006966 • Join by accessing website: https://zoom.us/join , enter Webinar ID: 893 7400 6966 • Join by telephone:1 669 444 9171 OR 1 669 900 9128, plus Webinar ID: 893 7400 6966 Learn about using ZOOM - Visit https://zoom.us/j/94943925973?status=success for a free account or to download the app.

TELECONFERENCE/VIRUAL PLATFORM PUBLIC PARTICIPATION

COMMENT PROCEDURES FOR CITY COUNCIL MEETING HELD IN

CONFORMANCE WITH THE BROWN ACT

Item 7.1– CC/LRA 3/28/2023

RIVERBANK CITY COUNCIL / LOCAL REDEVELOPMENT AUTHORITY
AGENDA ITEM NO. 7.1
SECTION 7: PRESENTATIONS
Meeting Date: March 28, 2023
Subject: Presentation Stanislaus Regional Transit Authority (StanRTA) From: Marisela H. Garcia, City Manager
Submitted by: Gabriela Hernandez, City Clerk/LRA Recorder

RECOMMENDATION
It is recommended that the City Council receive a presentation from Adam Barth, CEO with Stanislaus Regional Transit Authority (StanRTA).

SUMMARY:

On January 26, 2021 the Modesto City Council and the Stanislaus County Board of Supervisors each approved the merger of Modesto Area Express (MAX) and Stanislaus Regional Transit (StaRT) forming the new Stanislaus Regional Transit Authority. The merger was recommended after a county-wide Transit Efficiency and Innovations Study was conducted in late 2019. The StanRTA was formed in July 2021 as a result of a joint powers agreement between MAX and StaRT.

StanRTA provides fixed route and demand response (ADA Paratransit, Dial-A-Ride, Shuttle and Medivan) services throughout Stanislaus County, as well as commuter service to the Amtrak station in Modesto, ACE station in Lathrop, Manteca Transit Center, Stockton Transit Center and Dublin/Pleasanton BART station. StanRTA is the primary provider of mass transportation in the suburban, rural and metropolitan areas of Stanislaus County, California. Fixed route service includes 27 routes that serve Ceres, Crows Landing, Escalon, Grayson, Gustine, Hickman, Hughson, Modesto, Newman, Oakdale, Patterson, Riverbank, Turlock, Waterford, and Westley.

In November 2021, StanRTA rebranded the combined system to "The S" with the slogan "Ride The S". A new simplified fare structure went into effect January 1, 2022 that streamlined the previous MAX and StaRT fares into uniform fares valid on all StanRTA routes and services.

As part of a Comprehensive Operational Analysis that was performed in 2022, StanRTA launched a systemwide service change as of March 5, 2023, which includes:

Item 7.1– CC/LRA 3/28/2023
• Added Sunday bus service
• Added 60-minute service frequency
• Bidirectional routes to improve on-time performance
• Three new routes (including Route 24 in Riverbank)

FINANCIAL IMPACT
There is no financial impact with the report.

Item 9.1 – CC/LRA – 03/28/2023

RIVERBANK CITY COUNCIL / LOCAL REDEVELOPMENT AUTHORITY
AGENDA ITEM NO. 9.1
SECTION 9: CONSENT CALENDAR
Meeting Date: March 28, 2023
Subject: Waiver of Readings
From: Marisela H. Garcia, City Manager
Submitted by: Gabriela Hernandez, City Clerk/LRA Secretary

RECOMMENDATION
It is recommended that the City Council / LRA Board approve the waiver of readings of any proposed ordinances and resolutions for consideration, except by title.

SUMMARY
In lieu of reading the entire text of a proposed ordinance or resolution that is introduced for consideration for adoption and approval, by majority vote, the City Council/LRA Board may waive the reading of the text and introduce the ordinance or resolution by title only for the record.

The full text of the proposed ordinances and resolutions, and any related documents that are part of the agenda packet, are available for review by the public on the City’s website and in the City Clerk’s office at City Hall (North) upon distribution to a majority of the City Council/LRA Board; typically 72 hours prior to the scheduled date and time of the meeting.

FINANCIAL IMPACT
There is no financial impact to this item.

ATTACHMENTS
There are no attachments to this report.

Item 9.2 – CC/LRA – 03/28/2023

RIVERBANK CITY COUNCIL / LOCAL REDEVELPOMENT AUTHORITY
AGENDA ITEM NO. 9.2
SECTION 9: CONSENT CALENDAR
Meeting Date: March 28, 2023
Subject: Approval of the March 14, 2023 City Council and Local Redevelopment Authority Board Minutes.

From: Marisela H. Garcia, City Manager
Submitted by: Gabriela Hernandez, City Clerk/LRA Secretary

RECOMMENDATION
It is recommended that the City Council / LRA Board approve the City Council/ Local Redevelopment Authority Board approve the City Council/LRA Meeting Minutes of as presented.

SUMMARY
The Draft Minutes of the City Council and the Local Redevelopment Authority Board meeting have been prepared for review and approval.

FINANCIAL IMPACT
There is no financial impact to this item.

ATTACHMENTS

1. The March 14, 2023 City Council and Local Redevelopment Authority Board Minutes.

CC / LRA Minutes – 3/14/2023

MINUTES
TUESDAY, MARCH 14, 2023 – 6:00 P.M.
(THE AGENDA PACKET IS ONLINE AT HTTP://WWW.RIVERBANK.ORG/AGENDACENTER)

1. CALL TO ORDER - Mayor / Chair Richard D. O’Brien called the meeting to order at 6:00 P.M.

2. FLAG SALUTE - Mayor / Chair Richard D. O’Brien led the pledge of allegiance.

3. INVOCATION – Reverend Randy Richardson provided the invocation.

4. ROLL CALL – A Roll Call of councilmembers was done by the City Clerk.

Members of the City Council / Local Redevelopment Authority Board present in the Chamber:

Council Member / Authority Member District 1 Luis Uribe Council Member / Authority Member District 3 Leanne Jones Cruz Council Member / Authority Member District 4 Darlene Barber-Martinez Vice Mayor / Vice Chair (CM-D2) Rachel Hernandez
Mayor / Chair Richard D. O’Brien

5. AGENDA CHANGES
No Changes to the Agenda.

6. CONFLICT OF INTEREST
Any Council/Authority Member or Staff who has a direct Conflict of Interest on any scheduled agenda item to be considered is to declare their conflict at this time.

7. PRESENTATIONS (Informational only)
No Presentations Scheduled.

8. PUBLIC COMMENTS (No action can be taken)
At this time, members of the public may comment on any item not appearing on the agenda, and within the subject matter jurisdiction of the City Council/LRA Board. Individual comments will be limited to a maximum of 3 minutes (or as stated by the presiding Officer) and time cannot be yielded to another person. Under State Law, matters presented during the public comment period cannot be discussed or acted upon.

CITY OF RIVERBANK
Regular City Council and
Local Redevelopment Authority
Board Meetings
Council Chambers, 6707 Third St
Suite B
Riverbank, CA 95367

CITY COUNCIL / LRA BOARD
Mayor/Chair
Richard D. O’Brien
Vice Mayor/ Chair (CM-D2) Rachel Hernandez
Council/Authority Members:

District 1 -Luis Uribe
District 3- Leanne Jones Cruz
District 4 -Darlene Barber-Martinez

CC / LRA Minutes – 3/14/2023
Mayor O’Brien Opened Public Comment at 6:05 P.M.

Karen Conrotto, Modesto Resident spoke in opposition of the Riverwalk Project.

Charles Neal (Pastor) Thanked the City for how it is being run.

There being no further public comments, Mayor O’Brien closed the Public Comment period at 6:06 P.M.

9. CONSENT CALENDAR
All items listed on the Consent Calendar are to be acted upon by a single action of the City Council/LRA Board unless requested by an individual Council/Authority Member or member of the public for special consideration. Otherwise, the recommendation of staff will be accepted and acted upon by motion of the City Council/LRA Board.

Item 9.1 Waive Readings. All Readings of ordinances and resolutions, except by title, are waived.

Item 9.2 Approval of the City Council and Local Redevelopment Authority Board Minutes for:

9.2A - February 14, 2023

9.2B - February 28, 2023
Item 9.3 Adopt a Resolution 2023-015 to Award Bid for the Castleberg Park Trail Project to Consolidated Engineering Inc., Authorize Execution of Future Change Orders, and Authorizing a Budget Amendment for an Additional $102,688 from Fund 156 – Assessment District Fund.

Item 9.4 A Resolution 2023-016 Authorizing the Execution of a Performance Agreement between the City of Riverbank and SMA Entertainment for the Coordination of the 2023 Cheese & Wine Festival.

Item 9.5 A Resolution 2023-017 Authorizing the Mayor to Execute a Lease with SMA Entertainment for the Area Associated with the Riverbank Cheese and Wine Festival.

Item 9.6 A Resolution 2023-018 to Approve a Subdivision Improvement Agreement for Ward Villas with Ammo Plant Management, Inc. and Authorizing the City Manager to Execute the Agreement.

Item 9.7 A Resolution 2023-019 to approve the Final Map 03-2021 Ward Villas – APN: 132-036-003.

Mayor O’Brien opened up for Public Comment at 6:07 P.M.

Assistant City Manager (Interim Clerk) Alcantor, stated there was a correction to the Draft Minutes for February 14th, Public Comment should reflect Dan Whetstone as the name for the Riverwalk Opposition not Floyd Koebel.

CC / LRA Minutes – 3/14/2023
ACTION: By motion moved and seconded (_Uribe_/_Barber-Martinez_5/0) to approve the consent calendar as amended.

Motion carried by unanimous City Council and LRA Board roll call vote:

AYES: Uribe, Hernandez, Jones Cruz, Barber-Martinez, and Mayor O’Brien NAYS: None / ABSENT: None / ABSTAINED: None

10. PUBLIC HEARINGS
No Public Hearing Items Scheduled.

11. NEW BUSINESS
Item 11.1 A Resolution to Nominate a Councilmember from a “Large” City within Stanislaus County that has applied to serve on the San Joaquin Valley Air Pollution District Governing Board, or reject all candidates- It is recommended that the City council by roll call vote; 1) Consider adoption of the resolution to nominate candidate Councilmember David Wright, City of Modesto, or Councilmember Rosa Escutia-Braaton,City of Modesto to fill the vacant seat on the District Governing Board; or 2) Reject both candidates.

City Manager, Garcia gave a comprehensive staff report on the San Joaquin Valley Air Pollution District Governing Board candidates and the consideration of adopting a resolution to approve or reject the candidate. SJVAPD Staff advised one of the two candidates had decided to withdraw his candidacy. City of Modesto Councilmember David Wright, withdrew, leaving one candidate for consideration or rejection, City of Modesto Councilmember Rosa Escutia-Braaton.

City Council discussed item with Staff.

There being no public comments, Mayor O’Brien brought the item back to the City Council.

ACTION: By motion moved and seconded (_Barber-Martinez_/_Jones Cruz_5/0) to adopt Resolution 2023-020 nominating City of Modesto Councilmember, Rosa Escutia-Braaton to the San Joaquin Valley Air Pollution District Governing Board.

Motion carried by unanimous vote City Council and LRA Board roll call vote:

AYES: Uribe, Hernandez, Jones Cruz, Barber-Martinez, and Mayor O’Brien NAYS: None / ABSENT: None / ABSTAINED: None

12. COMMENTS/REPORTS
A brief report on notable attendance of a meeting or conference or other notable topics of City business shall be made. The Brown Act does not allow for discussion or action of items by the City Council/LRA Board during this time.

CC / LRA Minutes – 3/14/2023
Item 12.1 Staff
City Manager Garcia advised the City Council and the public on the following items:
• Shutoff’s for the January billing are currently underway, if any residents have questions regarding their bill please contact the finance department for information on how to get your services restored, this is for those who had delinquent January billing.
• Founder’s Day Carnival is coming up on Saturday, April, 29th the city is looking for volunteers to be able to assist in various games, please contact the Parks & Recreation Department if interested in volunteering.
• The City has opened a second round of funding availability for our non-profit support program, the City Council allocated $140,000 from the first round of funding, of applications we received we were able to award $80,000. We do have a remaining $60,000 that we will be able to have additional non-profits to apply.

We will be accepting applications through April 13th.
• A message from our Building Department they are working with Stanislaus County Health Services Agency on a pool safety program. The program includes sending out information to pool owners, who we have noted via some drone footage and google maps footage of those who may have removed their required pool fencing, that is required by state law for the safety of children. They will be receiving some educational materials they’ll also work closely with our planning department when they come in to pull additional permits.

Item 12.2 Council/Authority Member
Councilmember Jones Cruz reported on the following:
• Sandbags and sand are still available at our Public Works Yard at 2901 High Street. We do ask residents bring their own shovels.
• We have a new business opening this Friday, Black Sheep. Hope to see a lot of you down there.

Councilmember Uribe reported on the following:
• Sat in this morning with Marisela on the Emergency Operating Center, gave us some local updates on the winter storm. Very neat to see the organization in emergency cases and how it is all structured and handled. Kudos to the EOC and our city staff, and everyone for how they handled things. • This Friday will be attending the second Revenue & Taxation Subcommittee, receiving legislative updates, hearing from CalPERS Rep Michael Cohan, will be an interesting topic.

CC / LRA Minutes – 3/14/2023
• Will also be joining for the grand opening of Black Sheep. They will be having a St.

Patty’s theme from 1pm to 1am.
• Sister City Committee will be meeting Thursday, March 22nd at 6:00 p.m. here in the Council Chambers, for those that are interested in reestablishing the relationship with our Sister City in Mexico, Tamazula, and would like to join us.

Councilmember Barber-Martinez reported on the following:
• Attended the Stanislaus Homeless Alliance Committee Meeting (SHA) talked about what the county is doing for shelter availability for those that are homeless, trying to reach out the homeless if they want to come to the open shelters, sheriffs are offering rides to shelters for those who want it, there is limited availability but there are shelters.
• Looking forward to our Public Safety Policy Committee meeting this coming Thursday.
• Everyone try to stay dry with all the rain.

Vice Mayor Hernandez reported on the following:
• Is stepping in as the alternate for the Stanislaus Council of Government (StanCOG) it is very fruitful, was able to go to the Capitol and speak to our state legislatures and let them know we are working together with the rest of the county and advocating for the City of Riverbank.
• Attended the Riverbank Language Academy Career Day, borrowed the Mayor’s gavel and was able to try and impress the students in the fun aspects of public service.
• Cal Cities Community Services Committee meeting this Friday, will be going over some policy that we will be advocating on behalf of the city and the state.

Item 13.3 Mayor/Chair
Mayor O’Brien reported on the following:
• Looking forward to next meeting the Downtown Absentee Landlord Resolution. • Was not pointing out any certain group on nimbyism, it’s across the board. Whether it’s a tiny home village or any of the others, do believe as a council we should look and discuss how we treat the homeless, drugs, and mental illness. That is one hundred percent of the homeless population dealing with drugs or mental illness, how do we deal with that as a city and how do we deal with other cities and being complacent. How do we want to handle it?

CC / LRA Minutes – 3/14/2023

14. CLOSED SESSION
The public will have a limit of 3 minutes to comment on Closed Session item(s) as set forth on the agenda prior to the City Council/LRA Board recessing to Closed Session.

No Closed Session Items Scheduled.

15. ADJOURNMENT OF THE REGULAR MEETING
There being no further business, Mayor / Chair O’Brien adjourned the regular meeting at 6:17 P.M. to the next regular scheduled City Council / LRA Meeting of March 28, 2023 at 6:00 P.M.

ATTEST: (Adopted 3/28/2023) APPROVED:

Gabriela Hernandez Richard D. O’Brien
City Clerk / LRA Recorder Mayor/ Chair

Item 9.3 – CC/LRA – 3/28/2023

RIVERBANK CITY COUNCIL / LOCAL REDEVELOPMENT AUTHORITY
AGENDA ITEM NO. 9.3
SECTION 9: CONSENT CALENDAR
Meeting Date: March 28, 2023
Subject: Resolution Opposing Initiative No. 21-0042A1, The Taxpayer Protection and Government Accountability Act
From: Marisela H. Garcia, City Manager

RECOMMENDATION
It is recommended that the City Council consider adopting a resolution in opposition of Initiative No. 21-0042A1, the Taxpayer Protection and Government Accountability Act.

SUMMARY
On February 22, 2023 the City Council adopted Resolution 2022-018 which opposed this proposed Act which had yet to qualify for the 2024 ballot. The Act has now garnered sufficient signatures to be placed on the ballot and the League of California Cities has requested that cities renew their opposition to this act which will impact local government control over their revenues.

The Taxpayer Protection and Government Accountability Act would amend the California Constitution with provisions that limit voters’ authority and input, adopt new and stricter rules for raising taxes and fees, and may make it more difficult to impose fines and penalties for violation of state and local laws.

The measure puts billions of local government tax and fee revenues at risk statewide with related core public service impacts.

The measure would have significant negative impacts on the City of Riverbank operations and core service delivery.

The proposed constitutional initiative is sponsored by the California Business Roundtable.

BACKGROUND

Item 9.3 – CC/LRA – 3/28/2023
On Jan. 4, 2022, the California Business Roundtable filed the “Taxpayer Protection and Government Accountability Act” or AG# 21-0042A1. On Feb. 1, 2023, the measure qualified for the November 2024 ballot.

The League of California Cities, along with a broad coalition of local governments, labor and public safety leaders, infrastructure advocates, and businesses, strongly opposes this initiative.

Local government revenue-raising authority is currently substantially restricted by state statute and constitutional provisions, including the voter approved provisions of Proposition 13 of 1978, Proposition 218 of 1996, and Proposition 26 of 2010. The Taxpayer Protection and Government Accountability Act adds and expands restrictions on voters and local government tax and fee authority.

MAJOR PROVISIONS OF THE ACT
Fees and Charges:
• Except for licensing and other regulatory fees, fees and charges may not exceed the “actual cost” of providing the product or service for which the fee is charged. “Actual cost” is the “minimum amount necessary.” The burden to prove the fee or charge does not exceed “actual cost” is changed to “clear and convincing” evidence.
• Requires fees and charges paid for the use of local and state government property and the amount paid to purchase or rent government property to be “reasonable.” These fees and charges are currently allowed to be market-based. Whether the amount is “reasonable” (introducing a new legal standard aiming to force below market fee and charge amounts) must be proved by “clear and convincing evidence.” The standard may significantly reduce the amount large companies (e.g., oil, utilities, gas, railroads, garbage/refuse, cable, and other corporations) will pay for the use of local public property.
• Prohibits fees on new development based on vehicle miles traveled.

Taxes:
• Taxes and fees adopted after Jan. 1, 2022, that do not comply with the new rules, are void unless reenacted.
• Invalidates Upland decision that allows a majority of local voters to pass special taxes. The measure specifies that taxes proposed by the initiative are subject to the same rules as taxes placed on the ballot by a city council. • Expressly prohibits local advisory measures which allow local voters to express a preference for how local general tax dollars should be spent. • Requires voter approval to expand existing taxes (e.g., Utility, Transient Occupancy) to new territory (e.g., annexations) or to expand the tax base (e.g., new utility service)

Item 9.3 – CC/LRA – 3/28/2023
• New taxes can only be imposed for a specific time period. • City charters may not be amended to include a tax or fee. • All state taxes require majority voter approval.

Fines and Penalties:
• May require voter approval of fines, penalties, and levies for corporations and property owners that violate state and local laws unless a new, undefined adjudicatory process is used to impose the fines and penalties.

ADDITIONAL BACKGROUND
Local governments levy a variety of fees and other charges to provide core public services. Major examples of affected fees and charges are:
• Nuisance abatement charges, such as for weed, rubbish, and general nuisance abatement to fund community safety, code enforcement, and neighborhood cleanup programs.
• Commercial franchise fees.
• Emergency response fees, such as in connection with DUI. • Advanced Life Support (ALS) transport charges.
• Document processing and duplication fees.
• Transit fees, tolls, parking fees, and public airport and harbor use fees. • Facility use charges, fees for parks and recreation services, garbage disposal tipping fees.

Virtually every city, county, and special district must regularly (e.g., annually) adopt increases to fee rates and charges and revise rate schedules to accommodate new users and activities. Most of these would be subject to new standards and limitations under threat of legal challenge. Based on the current volume of fees and charges imposed by local agencies, including council-adopted increases to simply accommodate inflation, Cal Cities estimates the amount of local government fee and charge revenue at risk is approximately $2 billion per year including those adopted since Jan. 1, 2022. Over ten years, $20 billion of local government fee and charge revenues will be at heightened legal peril.

Examples of Riverbank’s affected fees and charges include:
• Recreation Fees including, but not limited to, program fees and park/facility rental fees, and parking fees at Jacob Myers Park.
• Code Enforcement Administrative Fines, including fines for non-compliance, fireworks citation fees, etc.
• Document processing and duplication fees for records requests.

Hundreds of local tax measures were approved in 2022 that likely do not comply with the provisions of the initiative. Nearly $2 billion of annual revenues from these voter-approved measures will cease a year after the effective date of the measure, reducing the local

Item 9.3 – CC/LRA – 3/28/2023
public services funded by these measures, unless the tax is re-submitted for voter approval.

Reductions on local government tax revenues have impacts on core services and infrastructure including fire and emergency response, law enforcement, streets and roads, drinking water, sewer sanitation, parks, libraries, public schools, affordable housing, homelessness prevention, and mental health services.

Under existing law, cities are required to provide due process before imposing a penalty or fine for violation of its municipal code:

1. A local agency must adopt administrative procedures that govern imposing fines and penalties, including providing a reasonable period of time for a person responsible for a continuing violation to correct or remedy the violation [Gov't Code 53069.4].

2. Notice must be given to the violating party before imposing the penalty; and give the party an opportunity to be heard and present any facts or arguments [Merco Construction Engineers v. Los Angeles Unified School District (1969) 274 CA 2d 154, 166].

3. The fine may not be "excessive" [U.S. Constitution amendments VIII and XIV].

The initiative converts administratively-imposed fines and penalties into taxes unless a new, undefined, and ambiguous “adjudicatory due process” is followed. This provision may put at risk authority to impose fines and penalties for violations of state and local law.

STRATEGIC PLAN
This item is directly related to the City Council’s Strategic Plan goal to “Ensure Financial Stability”. The City’s ability to have local control over the adoption of new fees, within the confines of existing law, directly translates to its ability to provide services to residents.

FINANCIAL IMPACT
There is no financial impact associated with the adoption of this Resolution. Any proposal which limits the City’s ability to have local control over revenues will impact it’s ability to provide local services.

ATTACHMENTS

1. Resolution 2023-

2. Fiscal and Program Effects of Initiative 21-0042A1 on Local Governments

CC/LRA – 3/28/2023
CC Resolution 2023-

CITY OF RIVERBANK
RESOLUTION 2023-

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF RIVERBANK, CALIFORNIA
OPPOSING INITIATIVE 21-0042A1 THE TAXPAYER PROTECTION AND

GOVERNMENT ACCOUNTABILITY ACT

THE CITY OF RIVERBANK CITY COUNCIL (HEREAFTER REFERRED TO AS THE “CITY COUNCIL”) DOES HEREBY RESOLVE THAT:

WHEREAS, an association representing California’s wealthiest corporations and developers is spending millions to push a deceptive proposition aimed for the November 2024 statewide ballot; and
WHEREAS, the measure includes undemocratic provisions that would make it more difficult for local voters to pass measures needed to fund local services and infrastructure, and would limit voter input by prohibiting local advisory measures where voters provide direction on how they want their local tax dollars spent; and WHEREAS, the measure creates new constitutional loopholes that allow corporations to pay far less than their fair share for the impacts they have on our communities, including local infrastructure and our environment; and WHEREAS, the measure may make it much more difficult for state and local regulators to issue fines and levies on corporations that violate laws intended to protect our environment, public health and safety, and our neighborhoods; and WHEREAS, the measure puts billions of dollars currently dedicated to local services at risk and could force cuts to fire and emergency response, law enforcement, public health, parks, libraries, affordable housing, services to support homeless residents, mental health services, and more.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Riverbank does hereby oppose Initiative 21-0042A1, and
NOW, THEREFORE, BE IT FURTHER RESOLVED that the City Council of the City of Riverbank does hereby join the No on Initiative 21-0042A1 coalition, a growing coalition of public safety, education, labor, local government, and infrastructure groups throughout the state.

PASSED AND ADOPTED by the City Council of the City of Riverbank at a regular meeting held on the 28th day of March, 2023; motioned by Councilmember __________, ATTACHMENT 1

CC/LRA – 3/28/2023
CC Resolution 2023-
seconded by Councilmember __________, and upon roll call was carried by the following City Council vote of ______:

AYES:

NAYS:

ABSENT:

ABSTAINED:

ATTEST: APPROVED:
________________________________ __________________________ Gabriela Hernandez Richard D. O’Brien
City Clerk Mayor
CaliforniaCityFinance.Com
Fiscal and Program Effects of
Initiative 21-0042A1 on Local Governments
If Initiative 21-0042A1 is placed on the ballot and passed by voters, it will result in:
 Over $20 billion of local government fee and charge revenues over 10 years placed at heightened legal peril. Related public service reductions across virtually every aspect of city, county, special district, and school services especially for drinking water, sewer sanitation, and public health and safety.  About $2 billion of revenues each year from fees and charges adopted after January 1, 2021 subject to legal peril.
1  Over $2 billion dollars of annual revenues from dozens of tax measures approved by voters between January 1, 2022 and the effective date of the act2 subject to additional voter approval if not in compliance with the initiative.
 Indeterminable legal and administrative burdens and costs on local government from new and more empowered legal challenges, and bureaucratic cost tracking requirements.  The delay and deterrence of municipal annexations.
 Substantially higher legal and administrative cost of public infrastructure financing which will delay and deter new residential and commercial development.
 Service and infrastructure declines including in fire and emergency response, law enforcement, public health, drinking water, sewer sanitation, parks, libraries, public schools, affordable housing, homelessness prevention and mental health services.

1. Local Government Taxes and Services Threatened
With regard to taxes, Initiative 21-0042A1:
 Prohibits advisory, non-binding measures as to use of tax proceeds on the same ballot. o Voters may be less informed and more likely to vote against measures.  Eliminates the ability of special tax measures proposed by citizen initiative to be enacted by majority voter approval (Upland).3
o Because the case law regarding citizen initiative special taxes approved by majority vote (Upland) is so recent, it is unknown how common these sorts of measures might be in the future. This initiative would prohibit such measures after the effective date of the initiative. Any such measures adopted after January 1, 2022 through the effective date of the Act should it pass would be void a year after the effective date of the initiative.  Requires that tax measures include a specific duration of time that the tax will be imposed. This seems to require that all tax increases or extensions contain a sunset (end date). o This would require additional tax measures to extend previously approved taxes.  A city charter may not be amended to impose, extend, or increase a tax might interfere with the ability of cities that do not already have such authority in their charters to adopt Property Transfer Taxes. o There are no more than a few of these every few years, but it is a valuable tax for those that adopt it.
1 Assumes fee increases since January 1, 2022 would be subject to possible legal challenge if not adopted in compliance with the Initiative.
2 The effective date of the initiative would be sometime in December 2024, the date the California Secretary of State certifies the election results of the November 5, 2024 election.
3 Unlike the initiative 17-0050, this initiative does not eliminate that ability of cities and counties to adopt general taxes by majority voter approval.
2217 Isle Royale Lane • Davis, CA • 95616-6616
Phone: 530.758.3952 • Fax: 530.758.3952
ATTACHMENT 2
Rev. January 14, 2023
– 2 – rev January 14, 2023
CaliforniaCityFinance.com
 Requires that a tax measure adopted after January 1, 2022 and before the effective date of the initiative that was not adopted in accordance with the measure be readopted in compliance with the measure or will be void twelve months after the effective date of the initiative. o If past election patterns and elections in 2022 are an indication, over 200 tax measures approving more than $2 billion annual revenues to support local public services would not be in compliance and would be subject to reenactment. Most will be taxes without a specific end date and special taxes (including parcel taxes). Because there is no regularly scheduled election within the 12 months following the effective date of the initiative, the measures would each require declaration of emergency and unanimous vote of the governing board to be placed on a special election ballot within a year for approval or the tax will be void after that date. I would expect most to succeed, but some will not, in particular citizen initiative majority vote special taxes which would have to meet a higher voter approval threshold to continue.  Requires voter approval to expand an existing tax to new territory (annexations). This would require additional tax measures and would deter annexations and land development in cities. o If a tax is "extended" to an annexed area without a vote after January 1, 2022, it will be void 12 months later until brought into compliance. Because there is no regularly scheduled election within the 12 months following the effective date of the initiative, such extensions would each require unanimous vote of the agency board to be placed on a special election ballot or would be void a year later.

1.a. Number of Measures and Value of Local Taxes at Risk4 Over a hundred local measures were approved in 2022 that likely do not comply with the provisions of Initiative 21-0042A1. Nearly $2 billion of annual revenues from these voter approved measures will cease a year after the effective date of the measure, reducing the local public services funded by these measures. We can expect a similar volume of measures in 2024 and a similar volume of non-compliance. So the combined total of annual local funding directly affected by Initiative 21-0042A1 due to its retroactivity provision is about $4 billion.

Citizen Initiative Special Taxes in 2022.

Special taxes placed on the ballot by citizen initiative and approved after January 1, 2022 by a majority but less than two-thirds of the voters are out of compliance with Initiative 21-0042A1.

On June 7, 2022, there were three local special tax measures placed on the ballot by citizen initiative. Two failed to get majority voter approval. A one percent transactions and use tax (sales tax) for the John C. Fremont Healthcare District in Mariposa County received 69.6 percent approval, over the two thirds needed for any special tax under California Constitution Article XIIIC. So this measure was passed in compliance with Initiative 21- 0042A1.

On November 8, 2022, there were 14 local special taxes placed on the ballot by citizen initiative. Seven of these 4 Source: Compilation and summary of data from County elections offices.

June 2022 Initiative Special Taxes - majority voter approval Agency Name County Tax/Fee Rate
Estimated
Annual Revenue Use Sunset YES%
John C. Fremont
Healthcare District Mariposa Measure N Transactions & Use Tax 1 cent $ 150,000 hospital 40yrs 69.6% PASS County of Kings Kings Measure F Transactions
& Use Tax 1/2 cent $ 11,700,000 fire none 37.6% FAIL
Manhattan Beach
USD Los Angeles Measure A School Parcel Tax $1095/yr $ 12,000,000 schools 12yrs 31.2% FAIL – 3 – rev January 14, 2023
CaliforniaCityFinance.com
measures failed with less than majority voter approval. The other seven measures received majority, but less than two-thirds, voter approval. These measures passed under current law but are out of compliance with Initiative 21- 0042A1. Taken together these seven taxes will provide estimated annual revenues of from $900,000 to $1.4 billion in support of parks and recreation, zoo, library, affordable housing, transportation, homelessness prevention, and schools in these communities.

Non-Specific Tax Durations in 2022
Voters approved 106 measures in June 2022 (10) and November 2022 (96) that do not provide a specific duration of time that the tax will be imposed (end date). Typically, the ballot titles for these measures state that the tax would be imposed “until ended by voters.” Four of these measures also did not include any estimate of the annual revenues that the tax would generate, another violation of initiative 21-0042A1. Taken together, these approved local measures generate $561 million per year that will expire a year after the effective date of the initiative if Initiative 21-0042A1 passes.

November 2022 Initiative Special Taxes - majority voter approval Agency Name County Tax/Fee Rate
Estimated
Annual Revenue Use Sunset YES%
Crockett Community
Services District Contra Costa Measure L Parcel Tax $50/parcel $ 60,000 parks/recr none 62.8% PASS Oakland Alameda Measure Y Parcel Tax $68/parcel $ 12,000,000 zoo 20yrs 62.5% PASS County of Mendocino Measure O Transactions
& Use Tax
1/8 cent then 1/4
cent in 2027 $ 4,000,000 library none 60.8% PASS
Los Angeles Los Angeles Measure ULA Property
Transfer Tax
4% if >$5m, 5.5%
if >$10m $600 m to $1.1 b affordable housing none 57.3% PASS County of Sacramento Measure A Transactions
& Use Tax same 1/2 cent $ 212,512,500 transportati
on
40yrs 55.3% PASS
San Francisco Proposition M Business
Operations Tax
$2500-$5000/
vacant resid unit $ 20,000,000 housing 30yrs 54.5% PASS Santa Monica Los Angeles Measure GS Property
Transfer Tax
$56/$1000 if
>$8m $ 50,000,000
schools,
homelessne
ss, afford.
housing
none 53.3% PASS
Total $900,000 to
$1.4 billion
Agency Name County Tax/Fee Rate
Estimated
Annual Revenue Use Sunset YES%
County of Calaveras Measure A Transactions
& Use Tax 1 cent $ 5,000,000 fire none 49.4% FAIL
South San Francisco
(for Schools) San Mateo Measure DD School Parcel Tax $2.50/sf $ 55,900,000 schools none 47.2% FAIL County of Fresno (for CSU ) Measure E Transactions
& Use Tax
1/5 ct,
1/40 ct (Reedley) $ 36,000,000 Calif State Univ 20yrs 46.9% FAIL Santa Cruz Santa Cruz Measure N Parcel Tax $6k/vacant SFU xxx vacant property
xxx 44.2% FAIL
County of Monterey Measure Q Parcel Tax $49/parcel $ 5,500,000 childcare 10yrs 41.1% FAIL San Francisco City
College
San
Francisco Measure O School Parcel Tax $150/sfu $ 37,000,000 schools 10yrs 36.7% FAIL Morro Bay San Luis
Obispo Measure B Parcel Tax $120+/parcel $ 680,000 harbor none 36.0% FAIL Inverness Public
Utility District Marin Measure O Parcel Tax $0.20/sf, $150/vacant $ 276,000 fire none 27.0% FAIL – 4 – rev January 14, 2023
CaliforniaCityFinance.com
Measures in 2022 with Non-Specific Durations
Agency Name County Tax/Fee Rate
Annual
Revenue Use Sunset YES%
Oakland Alameda Measure T Business Tax
General various $ 20,900,000 none 71.4% PASS
Culver City Los Angeles Measure BL Business Tax
General various $ 10,000,000 none 60.5% PASS
El Segundo Los Angeles Measure BT Business Tax
General various $ 3,000,000 none 51.2% PASS
Pico Rivera Los Angeles Measure AB Business Tax
General various $ 5,800,000 none 75.5% PASS
Santa Ana Orange Measure W Business Tax
General various neutral none 64.8% PASS
Tracy San Joaquin Measure B Business Tax
General various $ 3,200,000 none 72.6% PASS
Burlingame San Mateo Measure X Business Tax
General various $ 2,500,000 none 75.1% PASS
Los Gatos Santa Clara Measure J Business Tax
General various $ 1,100,000 none 53.4% PASS
Santa Clara Santa Clara Measure H Business Tax
General
$45/employee,
$15/rental unit $ 6,000,000 none 59.5% PASS
Brisbane San Mateo Measure O Business Tax
lodging busn $2.50/rm/day $ 250,000 none 69.2% PASS
East Palo Alto San Mateo Measure L Business Tax
resid. rentals

2.5%
grossRcpts $ 1,480,000 none 69.9% PASS
County of Santa Cruz Unincorporated Measure C Busn Tax - disp cups 12.5cents/cup $ 700,000 none 68.2% PASS
South Lake Tahoe El Dorado Measure G Busn Tax
Cannabis
6% retail,
manufacturing $ 950,000 none 62.9% PASS
McFarland Kern Measure O Busn Tax
Cannabis
8% of gross
receipts retail, $ 1,800,000 none 63.5% PASS
Avenal Kings Measure C Busn Tax
Cannabis
$25+/sf or
15% gr rcpts $ 600,000 none 61.8% PASS
Baldwin Park Los Angeles Measure CB Busn Tax
Cannabis
4%
grossRcpts $ 300,000 none 51.3% PASS
Claremont Los Angeles Measure CT Busn Tax
Cannabis
4%-7% gr
rcpts, $1- $ 500,000 none 61.1% PASS
County of Los Angeles Unincorporated Measure C Busn Tax Cannabis
4% gross
receipts retail, $ 15,170,000 none 60.1% PASS
Cudahy Los Angeles Measure BA Busn Tax
Cannabis
15%
grossRcpts $ 3,600,000 none 54.0% PASS
El Segundo Los Angeles Measure Y Busn Tax
Cannabis
10%
GrossRcpt, $ 1,500,000 none 72.8% PASS
Hermosa Beach Los Angeles Measure T Busn Tax
Cannabis
10%
GrossRcpt, $ 1,500,000 none 67.6% PASS
Lynwood Los Angeles Measure TR Busn Tax
Cannabis 5%to10% $ 3,000,000 none 66.4% PASS
Santa Monica Los Angeles Measure HM Busn Tax
Cannabis
10% gross
Rcpts $ 5,000,000 none 66.4% PASS
South El Monte Los Angeles Measure CM Busn Tax
Cannabis
6% special
excise tax on $ 126,000 none 53.7% PASS
Monterey Monterey Measure J Busn Tax
Cannabis 6% grossRcpt $ 1,300,000 none 65.2% PASS
Pacific Grove Monterey Measure N Busn Tax
Cannabis 6% grossRcpt $ 300,000 none 70.8% PASS
Huntington Beach Orange Measure O Busn Tax
Cannabis
6% retail, 1%
other $ 600,000 none 54.7% PASS
– 5 – rev January 14, 2023
CaliforniaCityFinance.com
Notes
?= Ballot measure title did not include an estimate of annual revenues, also not in compliance with Initiative 21-0042A1. n/a*= Arcadia Measure SW passed but sports betting remains illegal after the failure of Propositions 26 and 27 on the November statewide ballot.

Measures in 2022 with Non-Specific Durations
Agency Name County Tax/Fee Rate
Annual
Revenue Use Sunset YES%
Laguna Woods Orange Measure T Busn Tax
Cannabis
4%-10% of
gross receipts $ 750,000 none 61.1% PASS
Corona Riverside Measure G Busn Tax
Cannabis
9% of gross
receipts for $ 5,000,000 none 61.6% PASS
Montclair San Bernardino Measure R Busn Tax
Cannabis
7%
grossRcpts $ 3,500,000 none 70.3% PASS
County of San Diego Unincorporated Measure A Busn Tax
Cannabis
6% retail, 3%
distribution, $ 5,600,000 none 57.4% PASS
Encinitas San Diego Measure L Busn Tax
Cannabis
4% to 7% of
gross receipts $ 1,400,000 none 65.1% PASS
Healdsburg Sonoma Measure M Busn Tax
Cannabis 8% grossRcpt $ 500,000 none 72.7% PASS
Exeter Tulare Measure B Busn Tax
Cannabis
10% retail and
other, $10/sf ? none 66.5% PASS
Tulare Tulare Measure Y Busn Tax
Cannabis
10% retail and
other, $10/sf ? none 65.2% PASS
Woodland Yolo Measure K Busn Tax
Cannabis
10%
grossRcpts
? none 66.2% PASS
Redlands San Bernardino Measure J Busn Tax
Distrib centers
from $0.047/sf
to $0.105/sf $ 530,000 none 53.5% PASS
Arcadia Los Angeles Measure SW Busn Tax
Sports Betting
5%
grossRcpts
n/a* none 63.9% PASS
Albany Alameda Measure K ParcelTax $0.074+/sf $ 1,950,000 fire/EMS none 76.0% PASS Cameron Park Airport
District El Dorado Measure J ParcelTax by $600 to $900/parcel $ 117,900 airport/ streets none 78.2% PASS Highlands Village
Lighting Benefit Zone El Dorado Measure L ParcelTax $140+/parcel $ 10,920 streets none 86.3% PASS Knolls Property
Owners CSD El Dorado Measure P ParcelTax by $300+ to $600+/parcel $ 8,400 streets none 75.5% PASS Sundance Trail Zone of
Benefit El Dorado Measure C ParcelTax $600+/yr $ 24,000 roads none 73.2% PASS South Pasadena Los Angeles Measure LL ParcelTax xxx ? library none 86.2% PASS River Delta Fire District Sacramento Measure H ParcelTax $90/yr $ 130,000 fire none 72.1% PASS Emeryville Alameda Measure O PropTransfTax $15/$1000 if $1m-$2m, $ 5,000,000 none 71.6% PASS
San Mateo San Mateo Measure CC PropTransfTax by 1% to 1.5% if >$10m $ 4,800,000 none 71.8% PASS
Alameda Alameda Measure F TOT by 4% to 14% $ 910,000 none 59.2% PASS Clovis Fresno Measure B TOT by 2% to 12% $ 500,000 none 69.7% PASS Kerman Fresno Measure G TOT 10% $ 40,000 none 62.3% PASS Trinidad Humboldt Measure P TOT by 4% to 12% $ 65,000 none 77.6% PASS Imperial Imperial Measure G TOT by 4% to 12% $ 600,000 none 56.2% PASS Arcadia Los Angeles Measure HT TOT by 2% to 12% $ 730,000 none 54.1% PASS Santa Monica Los Angeles Measure CS TOT by 1%, 3%
home shares $ 4,100,000 none 73.7% PASS
– 6 – rev January 14, 2023
CaliforniaCityFinance.com
Measures in 2022 with Non-Specific Durations
Agency Name County Tax/Fee Rate
Annual
Revenue Use Sunset YES%
Anaheim Orange Measure J TOT online travel
companies $ 3,000,000 none 59.2% PASS
La Palma Orange Measure P TOT by 4% to 12% $ 200,000 none 71.1% PASS Colfax Placer Measure B TOT by 2% to10% $ 29,000 none 73.5% PASS Rocklin Placer Measure F TOT by 2% to 10% $ 300,000 none 59.8% PASS Roseville Placer Measure C TOT by 4% to 10% $ 3,000,000 none 73.0% PASS Big Bear Lake San Bernardino Measure P TOT by 2% to 10% $ 1,300,000 none 54.4% PASS Grand Terrace San Bernardino Measure M TOT new 10% $ 250,000 none 51.9% PASS Yucca Valley San Bernardino Measure K TOT by 5% to 12% $ 1,300,000 none 71.9% PASS Imperial Beach San Diego Measure R TOT by 4% to 14% $ 400,000 none 67.4% PASS El Paso de Robles San Luis ObispoMeasure F TOT by 1% to 11% $ 750,000 none 61.2% PASS Belmont San Mateo Measure K TOT by 2% to 14% $ 600,000 none 79.3% PASS Millbrae San Mateo Measure N TOT by 2% to 14% $ 1,500,000 none 75.8% PASS County of Humboldt Unincorporated Measure J TOT by 2% to 12% $ 3,080,000 none 63.3% PASS County of Placer -
North Tahoe TOT Area Measure A TOT by 2% to 10% $ 4,000,000 none 90.0% PASS County of Santa Cruz Unincorporated Measure B TOT by 1% to 12% $ 2,300,000 none 69.2% PASS County of El Dorado -
East Slope Tahoe Measure S TOT 2/3 by 4% to 14% $ 2,500,000 none 81.8% PASS Chico Butte Measure H TrUT 1 cent $ 24,000,000 none 52.4% PASS Mendota Fresno Measure H TrUT 1.25 cent $ 493,498 none 57.2% PASS Blue Lake Humboldt Measure R TrUT 1 cent $ 30,000 none 55.4% PASS Rio Dell Humboldt Measure O TrUT 3/4cent $ 400,000 none 53.3% PASS County of Kern unincorporated areas Measure K TrUT 1 cent $ 54,000,000 none 50.8% PASS McFarland Kern Measure M TrUT 1 cent $ 579,662 none 62.2% PASS Tehachapi Kern Measure S TrUT 1 cent $ 4,000,000 none 57.2% PASS Avenal Kings Measure A TrUT 1 cent $ 500,000 none 72.5% PASS Susanville Lassen Measure P TrUT 1 cent $ 1,750,000 none 54.7% PASS Baldwin Park Los Angeles Measure BP TrUT 3/4 cent $ 6,000,000 none 58.1% PASS Malibu Los Angeles Measure MC TrUT 1/2 cent $ 3,000,000 none 52.6% PASS Monterey Park Los Angeles Measure MP TrUT 3/4 cent $ 6,000,000 none 58.5% PASS Torrance Los Angeles Measure SST TrUT 1/2 cent $ 18,000,000 none 55.0% PASS Larkspur Marin Measure G TrUT 1/4 cent $ 700,000 none 59.4% PASS Sand City Monterey Measure L TrUT by 1/2cent to

1.5cents $ 1,400,000 none 68.7% PASS
Hemet Riverside Measure H TrUT same 1 cent $ 15,000,000 none 58.0% PASS Elk Grove Sacramento Measure E TrUT 1 cent $ 21,000,000 none 54.1% PASS Galt Sacramento Measure Q TrUT 1 cent $ 3,600,000 none 52.4% PASS Colton San Bernardino Measure S TrUT 1 cent $ 9,500,000 none 66.8% PASS Ontario San Bernardino Measure Q TrUT 1 cent $ 95,000,000 none 53.2% PASS Solana Beach San Diego Measure S TrUT 1 cent $ 3,000,000 none 66.7% PASS Brisbane San Mateo Measure U TrUT 1/2 cent $ 2,000,000 none 63.9% PASS Goleta Santa Barbara Measure B TrUT 1 cent $ 10,600,000 none 64.7% PASS Solvang Santa Barbara Measure U TrUT 1 cent $ 1,600,000 none 63.1% PASS – 7 – rev January 14, 2023
CaliforniaCityFinance.com
Co-temporal Advisory Measures in 2022
At the November 2022 election, there was just one local general tax measure that was accompanied by an advisory measure as to the use of funds. The City of Santa Monica’s Measure DT property transfer tax failed with just 34 percent approval as voters instead chose the citizen initiative Measure GS.

There was also just one such tax use advisory measure on the June 2022 election. Susanville’s voters passed Measure P, a 1 percent transactions and use (sales) tax that generates $1.75 million per year5 for general city services. The measure was accompanied by advisory Measure Q, accompanied the city’s It asked, “If Measure P passes, should the revenues be used to balance the budget to maintain and enhance existing public safety services (police and fire), and provide funding to support street infrastructure improvements and provide funding to support economic development efforts designed to increase businesses, jobs and visitors to Susanville?” Both measures passed. Under Initiative 21-0042A1, the tax will expire a year after the effective date of the initiative (i.e., in December 2025).

1.b. Additional Costs and Public Service Effects of the Tax Provisions Assuming a similar volume of local measures through 2024 as we saw in 2022, there will be over 200 local measures that will need to be redrafted to comply with the Initiative and placed back on the ballot for the taxes to continue after December 2025. The costs of re-drafting, re-placing and re-voting on these measures, previously legally approved by voters, will be in the tens of millions in total statewide.

2. “Exempt Charges” (fees and charges that are not taxes) and Services Threatened With regard to fees and charges adopted after January 1, 2022, Initiative 21-0042A1:
 Subjects new fees and charges for a product or service to a new "actual and reasonable test."  Subjects fees and charges for entrance to local government property; and rental and sale of local government property to a new, undefined, “reasonable” test.  Allows legal challenge to any tax adopted before the effective date of the initiative and after January 1, 5 The Susanville measure also did not include a specific end date and so is included in the list and totals of those measures.

Measures in 2022 with Non-Specific Durations
Agency Name County Tax/Fee Rate
Annual
Revenue Use Sunset YES%
Watsonville Santa Cruz Measure R TrUT 1/2 cent $ 5,000,000 none 64.4% PASS Vallejo Solano Measure P TrUT 7/8 cent $ 18,000,000 none 54.7% PASS Modesto Stanislaus Measure H TrUT 1 cent $ 39,000,000 none 62.8% PASS County of Colusa Measure A TrUT 2/3 1/2 cent $ 2,400,000 EMS none 69.4% PASS Atwater Merced Measure B TrUT 2/3 same 1 cent $ 4,000,000 police/fire none 73.7% PASS Truckee Nevada Measure U TrUT 2/3 by 1/4 cent to
1/2 cent $ 3,000,000 open space / trails none 76.4% PASS Palo Alto Santa Clara Measure L UtilityTransfer 18% gas $ 7,000,000 none 77.7% PASS Santa Clara Santa Clara Measure G UtilityTransfer 5 % $ 30,000,000 none 84.2% PASS Hercules Contra Costa Measure N UUT 8% $ 3,600,000 none 69.3% PASS Carson Los Angeles Measure UU UUT 2% electr, gas $ 8,000,000 none 78.4% PASS Sebastopol Sonoma Measure N UUT 3.75% (same) $ 700,000 none 83.5% PASS – 8 – rev January 14, 2023
CaliforniaCityFinance.com
2022. Such a lawsuit could enjoin (stop) the enactment of the tax pending the outcome of the legal challenge.
 Subjects a challenged fee to new, higher burdens of proof if legally challenged.

2.a. Value on New Local Government Fees and Charges at Risk6 Virtually every city, county, and special district must regularly (e.g., annually) adopt increases to fee rates and charges and revise rate schedules to accommodate new users and activities. Most of these would be subject to new standards and limitations under threat of legal challenge. Based on the current volume of fees and charges imposed by local agencies and increases in those fees simply to accommodate inflation, the amount of local government fee and charge revenue placed at risk is about $2 billion per year including those adopted since January 1, 2022. Of $2 billion, about $900 million (45 percent) is for special districts, $800 million (40 percent) is cities, and $300 million (15 percent) is counties.7 Major examples of affected fees and charges are:

1. Certain water, sanitary sewer, wastewater, garbage, electric, gas service fees.

2. Nuisance abatement charges - such as for weed, rubbish and general nuisance abatement to fund community safety, code enforcement, and neighborhood cleanup programs.

3. Emergency response fees - such as in connection with DUI.

4. Advanced Life Support (ALS) transport charges.

5. Business improvement district charges.

6. Fees for processing of land use and development applications such as plan check fees, use permits, design review, environmental assessment, plan amendment, subdivision map changes.

7. Document processing and duplication fees.

8. Facility use charges, parking fees, tolls.

9. Fines, penalties.

10. Fees for parks and recreation services.

2.b. Additional Costs and Public Service Effects of the Fee/Charge Provisions In addition to service delays and disruptions due to fee and charge revenues placed at greater legal risk, there would be substantial additional costs for legal defense. The risk to fees and charges will make infrastructure financing more difficult and will deter new residential and commercial development. ***********
mc
6 Source: California State Controller Annual Reports of Financial Transactions concerning cities, counties and special districts, summarized with an assumed growth due to fee rate increases (not population) of 2 percent annually. 7 School fees are also affected but the amount is negligible by comparison.

Item 9.4 – CC/LRA – 03/28/2023

RIVERBANK CITY COUNCIL / LOCAL REDEVELOPMENT AUTHORITY
AGENDA ITEM NO. 9.4
SECTION 9: CONSENT CALENDAR
Meeting Date: March 28, 2023
Subject: Resolution Awarding a Contract for Budgeting and Transparency Software to ClearGov, Inc. and Authorizing the Assistant City Manager Execute said Contract.

From: Marisela H. Garcia, City Manager
Submitted By: Tammy Alcantor, Assistant City Manager / Administrative Services Director

RECOMMENDATION
It is recommended that the City Council consider adopting a resolution that authorizes the following:

1. Award a contract for budgeting and transparency software to ClearGov, Inc., and

2. Authorize the Assistant City Manager to finalize & execute said contract.

SUMMARY
The 2022-23 Budget includes the allocation of $30,000 for budgeting software. Staff solicited demonstrations from four different software companies over the last several months. After evaluation of the demonstrations, the cost of each software, and input from users of each of the software staff feels that ClearGov Inc. will meet the City’s current and future needs.

BACKGROUND
Accurate and timely preparation of the Budget and other financial reports and analysis of related non-financial data is critical to successful City operations. Currently, the budget preparation and financial reporting process are cumbersome and time-consuming for staff. The largely manual budget process requires the Finance Department to spend several hundred hours each year on preparing, formatting, reviewing, re-formatting, and re-working related to the budget and other various reports.

Item 9.4 – CC/LRA – 03/28/2023
Currently, the staff relies on using a combination of Microsoft Excel and other products from the Microsoft Office Suite to tell the full story of the City’s finances. These tools have limitations in their ability to work collaboratively and dynamically with other departments and team members. The current setup does not easily compare or link financial data to performance metrics; the current process lacks quick & flexible filtering; it is sometimes difficult to aggregate data from different sources; and staff spends multiple hours formatting and reformatting data instead of using the time to analyze the data.

After participating in multiple demonstrations, staff has determined ClearGov best meets the City’s current and future needs in the areas of operating budget preparation, capital improvement program planning, personnel budgeting & negotiations, financial forecasting, and financial reporting with transparency. ClearGov also has a partnership with our current financial software, Caselle.

The ClearGov platform will allow staff to interact simultaneously by entering and modifying data in one centralized location, rather than the utilization of Excel spreadsheets. The platform will be linked directly to the City’s financial management system, providing timely and accurate access to critical financial data. Most importantly, this streamlined process minimizes the potential for human error.

STRATEGIC PLAN
This item is directly related to the City Council’s Mission “… provide transparency in all activities related to municipal finance and ensure that financial records are accurate, reliable and timely.”

FINANCIAL IMPACT
The software will be funded through the General Fund. For fiscal year 22-23 the cost for the software and implementation will be $12,000 with an annual cost of $26,400 for fiscal year 23-24. Future years will have a rate increase of 3% then 6%. The contract allows for cancelation in advance of a renewal period should funds not be appropriated. An allocation of $30,000 from the General Fund Reserves was appropriated in the 2022-23 Budget.

ATTACHMENTS

1. Draft City Council Resolution 2023-

2. Service Agreement

CC/LRA – 03/28/2023
CC Resolution 2023

CITY OF RIVERBANK
RESOLUTION 2023-

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF RIVERBANK, CALIFORNIA

AWARDING A CONTRACT FOR BUDGETING AND TRANSPARENCY SOFTWARE SERVICES TO CLEARGOV INC., AUTHORIZING THE ASSISTANT CITY MANAGER

TO FINALIZE & EXECUTE SAID CONTRACT

THE CITY OF RIVERBANK CITY COUNCIL (HEREAFTER REFERRED TO AS THE “CITY COUNCIL”) DOES HEREBY RESOLVE THAT:

WHEREAS, the City of Riverbank desires to purchase annual support and license services for its budget process and presentation; and
WHEREAS, the Assistant City Manager has determined that the services require personal confidence; and
WHEREAS, the Assistant City Manager has solicited a proposal for the services from four providers: Clear Gov Inc., Open Gov, Questica and Caselle Advantage; and WHEREAS, the Assistant City Manager has reviewed and received demonstrations from each of the software companies; and WHEREAS, city staff evaluated the proposals received and has selected ClearGov Inc. as the software most qualified to assist the City in budgeting and transparency financial reports; and
WHEREAS, it is the City Council’s desire to award a contract to ClearGov Inc., with cost for the current fiscal year 2022-23 of $12,000, the next fiscal year 2023-24 with an annual cost of $26,400 and inflator for future years.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Riverbank does hereby:
1) Award a contract to ClearGov Inc. budgeting and transparency services, 2) Authorize the Assistant City Manager to finalize & execute a contract for these services.

PASSED AND ADOPTED by the City Council of the City of Riverbank at a regular meeting held on the 28th day of March, 2023; motioned by Councilmember , seconded by Councilmember , and upon roll call was carried by the following City Council vote of :

ATTACHMENT 1

CC/LRA – 07/26/2022
CC Resolution 2022-104
AYES:

NAYS:

ABSENT:

ABSTAIN:

ATTEST: APPROVED:
________________________________ __________________________ Gabriela Hernandez Richard D. O’Brien
City Clerk Mayor
Attachment: Service Agreement
Service Order
2 Mill & Main; Suite 630; Maynard, MA 01754
Created by Ryan Wilson Order Date Mar 3, 2023
Contact Phone (901) 937-9735
Contact Email [email protected]
Order valid if signed by Mar 31, 2023
Customer Information
Customer City of Riverbank Contact Tammy Alcantor Billing Contact Tammy Alcantor Address 6707 3rd Street Title Assistant City Manager Title Assistant City Manager City, St, Zip Riverbank, CA 95357 Email [email protected] Email [email protected] Phone 209-869-7101 PO # (If any)
The Services you will receive and the Fees for those Services are...

Set up Services Tier/Rate Service Fees
ClearGov Setup: Includes activation, onboarding and training for ClearGov solutions Tier 2 ($ 9,000.00) ClearGov Setup Bundle Discount: Discount for bundled solutions Tier 2 ($ (3,600.00) Total ClearGov Setup Service Fee - Billed ONE-TIME ($ 5,400.00) Subscription Services Tier Service Fees
ClearGov Operational Budgeting - Civic Edition Tier 2 ($ 12,700.00) ClearGov Personnel Budgeting - Civic Edition Tier 2 ($ 12,100.00) ClearGov Capital Budgeting - Civic Edition Tier 2 ($ 8,500.00) ClearGov Digital Budget Book - Civic Edition Tier 2 ($ 7,750.00) ClearGov Transparency - Civic Edition Tier 2 ($ 6,950.00) ClearGov Budget Cycle Management Bundle Discount: Discount for bundled solutions Tier 2 ($ (21,600.00) Total ClearGov Subscription Service Fee - Billed ANNUALLY IN ADVANCE ($ 26,400.00) ClearGov will provide your Services according to this schedule...

Period Start Date End Date Description
Setup Apr 1, 2023 Apr 1, 2023 ClearGov Setup Services
Pro-Rata Apr 1, 2023 Jun 30, 2023 ClearGov Subscription Services Initial Jul 1, 2023 Jun 30, 2026 ClearGov Subscription Services To be clear, you will be billed as follows...

Billing Date(s) Amount(s) Notes
Apr 1, 2023 ($ 5,400.00) One Time Setup Fee
Apr 1, 2023 ($ 6,600.00) 3 Month Pro-Rata Subscription Fee Jul 1, 2023 ($ 26,400.00) Annual Subscription Fee
Additional subscription years and/or renewals will be billed annually in accordance with pricing and terms set forth herein.

Billing Terms and Conditions
Valid Until Mar 31, 2023 Pricing set forth herein is valid only if ClearGov Service Order is executed on or before this date.

Payment Net 30 All invoices are due Net 30 days from the date of invoice.

Initial Period
Rate Increase 3% per annum During the Initial Service Period, the Annual Subscription Service Fee shall automatically increase by this amount.

Rate Increase 6% per annum After the Initial Service Period, the Annual Subscription Service Fee shall automatically increase by this amount.

ATTACHMENT 2
General Terms & Conditions
Cancellation Option
This ClearGov Service Order is subject to the approval of the Riverbank City Council (the "Board") as set forth herein.

In the event that the Board does not approve this Service Order at its March 28, 2023 meeting, Customer shall have the option to terminate this Service Order immediately by providing written notice. In the event that Customer exercises this option, Customer shall have no payment obligation under this Service Order.

Appropriations Customer shall have the option to terminate this ClearGov Service Order in advance of any annual renewal in the event that the applicable appropriating body does not appropriate funds for such upcoming renewal period.

Customer Satisfaction
Guarantee
During the first thirty (30) days of the Service, Customer shall have the option to terminate the Service, by providing written notice. In the event that Customer exercises this customer satisfaction guarantee option, such termination shall become effective immediately and Customer shall be eligible for a full refund of the applicable Service Fees.

Statement of Work ClearGov and Customer mutually agree to the ClearGov Service activation and onboarding process set forth in the attached Statement of Work.

Taxes
The Service Fees and Billing amounts set forth above in this ClearGov Service Order DO NOT include applicable taxes.

In accordance with the laws of the applicable state, in the event that sales, use or other taxes apply to this transaction, ClearGov shall include such taxes on applicable invoices and Customer is solely responsible for such taxes, unless documentation is provided to ClearGov demonstrating Customer's exemption from such taxes.

Term & Termination
Subject to the termination rights and obligations set forth in the ClearGov Service Agreement, this ClearGov Service Order commences upon the Order Date set forth herein and shall continue until the completion of the Service Period (s) for the Service(s) set forth herein. Each Service shall commence upon the Start Date set forth herein and shall continue until the completion of the applicable Service Period. To be clear, Customer shall have the option to Terminate this Service Order on an annual basis by providing notice at least sixty (60) days prior to the end of the then current Annual Term.

Auto-Renewal
After the Initial Period, the Service Period for any ClearGov Annual Subscription Services shall automatically renew for successive annual periods (each an "Annual Term”), unless either Party provides written notice of its desire not to renew at least sixty (60) days prior to the end of the then current Annual Term.

Agreement
This ClearGov Service Order shall become binding upon execution by both Parties. The signature herein affirms your commitment to pay for the Service(s) ordered in accordance with the terms set forth in this ClearGov Service Order and also acknowledges that you have read and agree to the terms and conditions set forth in the ClearGov BCM Service Agreement found at the following URL: http://www.ClearGov.com/terms-and-conditions. This Service Order incorporates by reference the terms of such ClearGov BCM Service Agreement.

Customer ClearGov, Inc.

Signature Signature
Name Tammy Alcantor Name Bryan A. Burdick
Title Assistant City Manager Title President
Please e-mail signed Service Order to [email protected] or Fax to (774) 759-3045 Customer Upgrades (ClearGov internal use only)
This Service Order is a Customer
Upgrade No If Yes: Original Service Order Date
Statement of Work
This Statement of Work outlines the roles and responsibilities by both ClearGov and Customer required for the activation and onboarding of the ClearGov Service. ClearGov will begin this onboarding process upon execution of this Service Order. All onboarding services and communications will be provided through remote methods - email, phone, and web conferencing.

ClearGov Responsibilities
- ClearGov will activate ClearGov Service subscription(s) as of the applicable Start Date(s). ClearGov will create the initial Admin User account, and the Customer Admin User will be responsible for creating additional User accounts. - ClearGov will assign an Implementation Manager (IM) responsible for managing the activation and onboarding process. ClearGov IM will coordinate with other ClearGov resources, as necessary.
- ClearGov IM will provide a Kickoff Call scheduling link to the Customer’s Primary Contact. Customer should schedule Kickoff Call within two weeks after the Service Order has been executed.
- ClearGov IM will provide a Data Discovery Call scheduling link to the Customer’s Primary Contact. Customer should schedule Data Discovery Call based on the availability of Customer’s staff.
- ClearGov will provide Customer with financial data requirements and instructions, based on the ClearGov Service subscription(s). - ClearGov will review financial data files and confirm that data is complete, or request additional information, if necessary. Once complete financial data files have been received, ClearGov will format the data, upload it to the ClearGov platform and complete an initial mapping of the data. - After initial mapping, ClearGov will schedule a Data Review call with a ClearGov Data Onboarding Consultant (DOC), who will present how the data was mapped, ask for feedback, and address open questions. Depending upon Customer feedback and the complexity of data mapping requests, there may be additional follow-up calls or emails required to complete the data onboarding process. - ClearGov will inform Customer of all training, learning, and support options. ClearGov recommends all Users attend ClearGov Academy training sessions and/or read Support Center articles before using the ClearGov Service to ensure a quick ramp and success. As needed, ClearGov will design and deliver customized remote training and configuration workshops for Admins and one for End Users - via video conference - and these sessions will be recorded for future reference.
- ClearGov will make commercially reasonable efforts to complete the onboarding process in a timely fashion, provided Customer submits financial data files and responds to review and approval requests by ClearGov in a similarly timely fashion. Any delay by Customer in meeting these deliverable requirements may result in a delayed data onboarding process. Any such delay shall not affect or change the Service Period(s) as set forth in the applicable Service Order.

Customer Responsibilities
- Customer's Primary Contact will coordinate the necessary personnel to attend the Kickoff and Data Discovery Calls within two weeks after the Service Order has been executed. If Customer needs to change the date/time of either of these calls, the Primary Contact will notify the ClearGov IM at least one business day in advance.
- Customer will provide a complete set of requested financial data files (revenue, expense, chart of accounts, etc.) to ClearGov in accordance with the requirements provided by ClearGov.
- Customer's Primary Contact will coordinate the necessary personnel to attend the Data Discovery and Data Review calls. It is recommended that all stakeholders with input on how data should be mapped should attend. Based on these calls and any subsequent internal review, Customer shall provide a detailed list of data mapping requirements and requested changes to data mapping drafts in a timely manner, and Customer will approve the final data mapping, once completed to Customer’s satisfaction.
- Customer will complete recommended on-demand training modules in advance of customized training & configuration workshops. - Customer shall be solely responsible for importing and/or inputting applicable text narrative, custom graphics, performance metrics, capital requests, personnel data, and other such information for capital budget, personnel budget, budget books, projects, dashboards, etc.

Item 9.5 – CC/LRA – 3/28/2023

RIVERBANK CITY COUNCIL / LOCAL REDEVELOPMENT AUTHORITY
AGENDA ITEM NO. 9.5
SECTION 9: CONSENT CALENDAR
Meeting Date: March 28, 2023
Subject: Resolution Authorizing the Addition of the Senior Planner Job Classification and Salary Range; and Amending the City of Riverbank Compensation Plan
From: Marisela H. Garcia, City Manager
Submitted by: Cheryl Stefani, Human Resources Analyst

RECOMMENDATION
It is recommended the City Council consider adopting a Resolution to authorize the Senior Planner Classification and Salary Range; and consider amending the City of Riverbank Compensation Plan for the addition of the classification and salary range.

SUMMARY
With continued development and growth in the City of Riverbank, the workload of the Planning and Building Department is near exceeding the amount of personnel available to address it. The new Senior Planner classification in the Mid-Management bargaining group is a strategic effort to: 1) provide succession planning in the Planning and Building Department in Development Services; 2) remain competitive in the recruitment of qualified planning personnel and 3) provide responsible staff assistance to the Planning and Building Manager.

BACKGROUND
In April 2022, the City ran an employment recruitment for an open Assistant-Associate Planner position in the Planning and Building Department, Development Services Department. After a 4-week open recruitment period, a total of five applications were received. Three applicants met the minimum qualifications for the position while one of the applicants possessed a strong background with extensive experience. However, after further review of the compensation range for the position, that applicant decided to withdraw their application to seek a higher salary.

Item 9.5 – CC/LRA – 3/28/2023
Due to the demands of the department, coupled with the lack of time available to train a new employee with less experience, the recruitment was cancelled with no interviews held, and it was determined the work in the Planning and Building Department would be temporarily contracted out. It was also realized that other municipalities and private agencies in the Planning field were experiencing a deficit of interested applicants for planning positions.

In order to remain competitive against other agencies in the recruiting of experienced planning personnel, the City of Riverbank has created the new position of Senior Planner.

This classification is between the Associate Planner position and the Planning and Building Manager position. The Senior Planner will be a mid-management exempt position responsible for exercising limited responsibility for planning, organizing, and directing the work activities of the City’s Planning and Building Department.

STRATEGIC PLAN
The approval of the Senior Planner job classification coincides with the City Council’s Strategic Plan Goal to: 1) Attract, Develop, and Retain Quality Staff.

FINANCIAL IMPACT
The proposed compensation salary range for the Senior Planner is Range 141 as follows:

Senior Planner
Salary Range Step A Step B Step C Step D Step E
141 - Monthly $6,571.97 $6,900.57 $7,245.60 $7,607.88 $7,988.27

ATTACHMENTS

1. Resolution 2023-

2. Senior Planner Job Description

CC/LRA – 3/28/2023
CC Resolution 2023-

CITY OF RIVERBANK
RESOLUTION 2023-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RIVERBANK,

CALIFORNIA AUTHORIZING THE ADDITION OF THE SENIOR PLANNER JOB CLASSIFICATION AND SALARY RANGE; AND AMENDING THE CITY OF

RIVERBANK COMPENSATION PLAN

THE CITY OF RIVERBANK CITY COUNCIL (HEREAFTER REFERRED TO AS THE “CITY COUNCIL”) DOES HEREBY RESOLVE THAT:

WHEREAS, due to the continued development and growth in the City of Riverbank, the workload of the Planning and Building Department is near exceeding the amount of personnel available to complete it; and
WHEREAS, the new Senior Planner classification in the Mid-Management bargaining group is a strategic effort to: 1) provide succession planning in the Planning and Building Department in Development Services; 2) remain competitive in the recruitment of qualified planning personnel and 3) provide responsible staff assistance to the Planning and Building Manager; and
WHEREAS, in order to remain competitive against other agencies in the recruiting of experienced planning personnel, the City of Riverbank has created the new position of Senior Planner; and
WHEREAS, the proposed compensation salary range for the Senior Planner is Range 141 as follows:

Senior Planner
Salary Range Step A Step B Step C Step D Step E
141 - Monthly $6,571.97 $6,900.57 $7,245.60 $7,607.88 $7,988.27 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Riverbank does hereby authorize the addition of the Senior Planner job classification and salary range to the City’s compensation plan.

PASSED AND ADOPTED by the City Council of the City of Riverbank at a regular meeting held on the 28th day of March, 2023; motioned by Councilmember __________, seconded by Councilmember __________, and upon roll call was carried by the following City Council vote of ______:

ATTACHMENT 1

CC/LRA – __/__/____
CC Resolution 2022-
AYES:

NAYS:

ABSENT:

ABSTAIN:

ATTEST: APPROVED:
________________________________ __________________________ Gabriela Hernandez Richard D. O’Brien
City Clerk Mayor

CITY OF RIVERBANK

SENIOR PLANNER
DEFINITION:

To organize, assign, and review the work of assigned personnel engaged in professional planning; to perform advanced level professional work pertinent to current and/or advance planning; and to provide responsible staff assistance to the Planning and Building Manager.

DISTINGUISHING CHARACTERISTICS:

The Senior Planner is the mid-management level position that exercises limited responsibility for planning, organizing, and directing the work activities of the City’s Planning and Building Division.

This classification is distinguished from the next higher classification of Planning and Building Manager in that the latter has limited management responsibility for the City’s Community Development Department.

SUPERVISION RECEIVED/EXERCISED:

Receives direction from the Planning and Building Manager. May exercise direct supervision over assigned technical and administrative support staff.

ESSENTIAL FUNCTIONS: (include but are not limited to the following) • Plan, prioritize, and review the work of staff assigned to a variety of technical and professional planning duties.
• Develop schedules and methods to accomplish assignments, ensuring that work is completed in a timely and efficient manner.
• Participate in evaluating the activities of staff, recommending improvements and modifications. • Provide and coordinate staff training; work with employees to correct deficiencies. • Develop and present recommendations on various development proposals and applications; prepare appropriate planning, statistical, financial, and narrative reports. Prepare state-required yearly reports on topics such as MWELO and the General Plan and Housing Element. • May act as project manager or program leader for general plan amendments, CEQA documents, specific plans, and other special planning studies involving utilization of planning disciplines such as transportation, urban design, capital facilities, environmental analysis, growth management, zoning, and land use regulation.

Class specifications are only intended to present a descriptive summary of the range of duties and responsibilities associated with specified positions. Therefore, specifications may not include all duties performed by individuals within a classification.

In addition, specifications are intended to outline the minimum qualifications necessary for entry into the class and do not necessarily convey the qualifications of incumbents within the position.

ATTACHMENT 2

SENIOR PLANNER

• Research, review, and analyze economic, social, and physical data affecting land use and community development. Maintain vacant land inventory.
• Confer with engineers, developers, architects, a variety of agencies, and the general public in acquiring information and coordinating planning and zoning matters; provide information regarding City development requirements.
• Interpret and apply environmental quality laws and regulations to ensure that development proposals, City projects, and municipal code amendments comply with federal and state laws. • Prepare general plan amendments; make recommendations concerning long-range planning projects, including annexations, specific plans, specific plan amendments, development plans, or complex subdivision projects.
• Perform extensive research regarding implementation of policies established by the general plan, zoning ordinance, or other land use and development ordinances. • Provide staff support to a variety of boards and commissions; attend and participate in professional groups and committees such as a downtown business group or an economic development group. • Provide information to the public regarding zoning, land use, and the general plan; monitor the plan check activities of Department staff; participate in public meetings and make presentations, as necessary.
• Provide direction, assistance, and/or supervision to assigned planning staff; participate in the selection of staff.
• Assist in preparing request for proposals; coordinate consultant selection and contract preparation/administration activities. Assist in grant writing opportunities. • May assist in preparing the departmental budget; participate in the forecast of additional funds needed for staffing, equipment, materials, and supplies; monitor and track project fees, deposits, and refunds.
• Build and maintain positive working relationships with co-workers, other City employees, and the public using principles of good customer service.
• Observe and maintain a safe working environment in compliance with established safety programs and procedures.
• Perform related duties as assigned.

PHYSICAL, MENTAL, AND ENVIRONMENTAL WORKING CONDITIONS:

Mobility: frequent use of keyboard; frequent sitting for long periods of time; occasional bending or squatting. Lifting: frequently up to 10 pounds; occasionally up to 25 pounds. Vision: constant use of overall vision; frequent reading and close-up work; occasional color and depth vision. Dexterity:
frequent repetitive motion; frequent writing; frequent grasping, holding, and reaching. Hearing/Talking:

SENIOR PLANNER

frequent hearing and talking, in person and on the phone. Emotional/Psychological: frequent decisionmaking and concentration; frequent public and/or coworker contact; occasional working alone. Environmental:
frequent exposure to noise.

Work is performed in a typical temperature-controlled office environment subject to typical office noise and environment. Some positions may be assigned to remote locations. Occasional holiday/weekend work or travel is rare and normally limited to conferences and trainings.

Some of these requirements may be accommodated for otherwise qualified individuals requiring and requesting such accommodations.

QUALIFICATIONS: (The following are minimal qualifications necessary for entry into the classification.)
Education and/or Experience:

Any combination of education and experience that has provided the knowledge, skills, and abilities necessary for a Senior Planner. A typical way of obtaining the required qualifications is to possess two years of experience comparable to that of an Associate Planner with the City of Riverbank to include:

The equivalent of a bachelor’s degree from an accredited college or university with major course work in urban or regional planning, geography, or a related field; one year of professional planning experience; and supervisory experience.

License/Certificate:

Possession of, or the ability to obtain, a valid California driver's license.

Possession of Certification from the American Institute of Certified Planners (AICP) is desirable.

KNOWLEDGE/ABILITIES/SKILLS: (The following are a representative sample of the KAS’s necessary to perform essential duties of the position. The level and scope of the knowledge and abilities listed below vary between the Assistant and Associate levels.) Knowledge of:

Principles and practices of technical and functional supervision and training. Advanced principles and practices of urban planning and development. Advanced methods and techniques of technical report preparation and presentation. Advanced research methods and sources of information related to urban growth and development. Recent developments, current literature, and sources of information related to municipal planning and administration. Pertinent federal, state, and local laws, codes, and regulations, including the California Environmental Quality Act (CEQA), National Environmental Policy Act (NEPA), State Planning and Zoning Law, State Subdivision Map Act, and Cortese-Knox-Hertzberg Local Government Reorganization Act.

Office procedures, methods, and equipment including computers and applicable software applications such as word processing, spreadsheets, and databases. Update the Planning web page.

SENIOR PLANNER

Ability to:

Provide technical and functional supervision over assigned staff; effectively train staff. Perform complex duties related to current and/or advance planning. Intermittently analyze work papers, reports, and special projects; identify and interpret technical and numerical information. Observe and problem solve operational and technical policy and procedure issues. Analyze complex site design, terrain constraints, circulation, land use compatibility, utilities, and other urban services.

Ensure project compliance with federal, state and local laws, codes, rules, and regulations.

Interpret, explain, and apply City and department policies, procedures, rules, and regulations.

Collect, analyze, interpret, and apply data to various planning projects. Coordinate, organize, and conduct research studies such as parking surveys and illegal sign surveys; prepare concise technical reports; prepare maps, charts, and other graphic material for effective presentations; present items to the Planning Commission and City Council. Prepare and analyze complex technical and administrative reports, statements, and correspondence. Establish and maintain effective working relationships with those contacted in the course of work. Communicate clearly and concisely, both orally and in writing.

Skill to:

Operate office equipment including computers and supporting word processing, spreadsheet, and database applications.

Prepared 2023-02-28;

Item 9.6 – CC/LRA – 3/28/2023

RIVERBANK CITY COUNCIL/ LOCAL REDEVELOPMENT AUTHORITY
AGENDA ITEM NO. 9.6
SECTION 9: CONSENT CALENDAR
Meeting Date: March 28, 2023
Subject: Resolution to Approve and Adopt the 2023 City of Riverbank Measure L Expenditure Plan Project List
From: Marisela H. Garcia, City Manager
Submitted By: Kathleen Cleek, Development Services Administration Manager

RECOMMENDATION
It is recommended that the City Council consider adopting the proposed 2023 City of Riverbank Measure L Expenditure Plan Project List for local streets and roads, traffic management, and bike and pedestrian improvement projects.

SUMMARY
On November 8, 2016 the Stanislaus County voters approved a ½ cent sales tax measure to fund local and regional transportation projects and programs. The tax is expected to generate approximately $39 million dollars a year over a 25- year period for Stanislaus County.

The City of Riverbank entered into a Master Funding Agreement with the Stanislaus Council of Governments (StanCOG) and within that agreement the City agrees to provide StanCOG with a detailed project list for local streets and roads, traffic management and bicycle/pedestrian projects that are scheduled to be constructed with Measure L Funding. The projects identified on the Expenditure Plan Project List detail a comprehensive list of infrastructure improvements that the City has identified as priority projects. The last update to the list was approved by the City Council at the April 12, 2022 meeting. At that meeting it was stated that the project list would be reviewed annually and any changes or adjustments to the List would be brought before the City Council for approval. Also, all improvements or projects on this List will require City Council review and approval prior to construction.

Item 9.6 – CC/LRA – 3/28/2023

LOCAL STREETS AND ROADS
Recognizing that streets are the backbone of our transportation system, the Plan provides funds to local cities and Stanislaus County, distributed primarily based on 2015 population to support local roads. These funds are used exclusively for repair and maintenance – no new road construction will be funded. These funds must be used to augment current transportation spending and cannot be used to replace a local agency’s general fund expenditures.

The City currently has approximately $1,937,980 in Measure L funding and an additional $1.2 Million expected through the end of the year for a total of $3,137,980.

Projects slated for this year utilizing these funds:

Overlay Project – Patterson Road – Claus to Eighth Street & First Street – Santa Fe Bridge to Atchison $ 839,566
Roselle Avenue Sidewalk – Match Monies $ 100,000
Signal at Patterson & Roselle – Revise Plans per BNSF $ 60,000 Pavement Restoration 2023 – Construction $ 740,000
Signal at Patterson & Snedigar – PE $ 60,000
Claribel Road Overlay – PE $ 30,000
Claribel Road Overlay – Construction $ 470,000
Riverside Drive between 3rd Street & 4th Street - PE $ 35,000 Oakdale Road Overlay – Patterson Road to Silver Rock $ 550,000 Howard Avenue Widening & Overlay – Patterson Road to Ward Ave. $ 45,000 TOTAL: $2,929,566
This will leave a reserve of approximately $208,414.

TRAFFIC MANAGEMENT
Traffic management projects can include upgrades to local intersections, road widening, signalization, bridge replacements and/or traffic calming methods.

The City currently has approximately $702,631 in Measure L funding and an additional $192,000 expected through the end of the year for a total of $894,631.

The project slated for this year utilizing these funds are as follows:

Callendar Avenue Pedestrian Project (Phase I) $ 430,217 Roselle & S. Rosebrook Intersection Improvements - PE $ 35,000 Roselle & S. Rosebrook Intersection Improvements – Construction $ 350,000 TOTAL: $ 815,217
This will leave a reserve of approximately $79,414

Item 9.6 – CC/LRA – 3/28/2023

BIKE AND PEDESTRIAN IMPROVEMENTS
Bike and pedestrian improvements can include connectivity between communities, local schools, trails and recreation facilities.

The City currently has approximately $184,663 in Measure L funding and an additional $90,000 expected through the end of the year for a total of $274,663.

The projects slated for this year utilizing these funds are as follows:

Claus Road Sidewalk Project $ 180,587
Patterson Road Sidewalks between Hwy 108 & Roselle Avenue – PE $ 42,500 Squire Wells & Homewood – Street Light $ 15,000
Roselle Avenue Sidewalk (Westgate to Rosebrook over MID Canal) $ 35,000 TOTAL: $ 273,087
This will leave a reserve of approximately $1,576.

FISCAL IMPACT THROUGH THE END OF 2023:

Measure L – Streets & Roads: $2,929,566
Measure L – Traffic Management $ 815,217
Measure L – Bike & Pedestrian $ 273,087

ATTACHMENTS

1. Resolution 2023

2. 2023 City of Riverbank Expenditure Plan Project List

CC/LRA -3/28/203
CC RESOLUTION 2023-

CITY OF RIVERBANK
RESOLUTION 2023-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RIVERBANK APPROVING AND ADOPTING THE 2023 CITY OF RIVERBANK MEASURE L

EXPENDITURE PLAN PROJECT LIST

THE CITY OF RIVERBANK CITY COUNCIL (HEREAFTER REFERRED TO AS THE “CITY COUNCIL”) DOES HEREBY RESOLVE THAT:

WHEREAS, The Riverbank City Council has reviewed the 2023 City of Riverbank Measure L Expenditure Plan Project List presented by staff; and WHEREAS, the ½ cent sales tax measure approved by the voters to fund local and regional transportation projects and programs is expected to generate approximately $1,200,000 for the City of Riverbank’s local streets and roads; and WHEREAS, the ½ cent sales tax measure approved by the voters to fund local and regional transportation projects and programs is expected to generate approximately $192,000 for the City of Riverbank’s traffic management projects; and WHEREAS, the ½ cent sales tax measure approved by the voters to fund local and regional transportation projects and programs is expected to generate approximately $90,000 for the City of Riverbank’s bicycle/pedestrian projects; and WHEREAS, each project on the 2023 City of Riverbank Measure L Expenditure Plan Project List attached, will require City Council review and approval prior to construction; and
WHEREAS, each year a comprehensive review of the proposed Measure L Project List will be conducted, and any changes presented to Council.

NOW, THEREFORE, BE IT RESOLVBED that the City Council of the City of Riverbank hereby approves the City of Riverbank’s 2023 City of Riverbank Measure L Expenditure Plan Project List.

PASSED AND ADOPTED by the City Council of the City of Riverbank at a regular meeting held on the 28th day of March, 2023; motioned by Councilmember , seconded by Councilmember , and upon roll call was carried by the following City Council vote of :

AYES:

ATTACHMENT 1

CC/LRA -3/28/203
CC RESOLUTION 2023-
NAYS:

ABSENT:

ABSTAIN:

ATTEST: APPROVED:
__________________________ __________________________
Gabriela Hernandez Richard D. O’Brien
City Clerk Mayor
Attachment: Exhibit A – 2023 City of Riverbank Measure L Expenditure Plan Project List
Type Projects Description Shared Cost
Measure L
Funds
Planned
Start
Planned
Completion
Local Streets and Roads (50%)
Overlay (PE & Construction) Patterson Road Overlay & First Street Overlay Patterson Road Overlay (Eighth to Claus)
First Street Overlay (Atchison to bridge)
Full Design &
Construction Cost $839,566 FY 2021 FY 2023
Sidewalk Project Roselle Avenue Sidewalks Roselle Avenue Sidewalks Match Monies $100,000 FY 2021 FY 2023 Signal Project Signal At Patterson & Roselle Revised Plans Per BNSF Design Costs $60,000 FY 2022 FY 2023 Pavement Restoration 2023 (CON) Micro Slurry Seal Various Streets Micro Slurry Seal Various Streets Full Design Cost $740,000 FY 2023 FY 2023 Signal Project Signal at Patterson & Snedigar Signal design Full Design Cost $60,000 FY 2023 FY 2023 Overlay (PE) Claribel Road Overlay - PE Claribel Road Overlay Roselle to Squire Wells Full Design Cost $30,000 FY 2023 FY 2023 Overlay (CON) Claribel Road Overlay - CON Claribel Road Overlay Roselle to Squire Wells Constructon Cost $470,000 FY 2023 FY 2023 Overlay (PE) Riverside Drive Overlay - PE Riverside Drive Overlay 3rd to 4th St. - PE Full Design Cost $35,000 FY 2023 FY 2023 Overlay (PE) Oakdale Road Overlay - PE
Oakdale Road Overlay - Patterson to Silver
Rock - PE Full Design Cost $50,000 FY 2023 FY 2023
Overlay (CON) Oakdale Road Overlay - CON
Oakdale Road Overlay - Patterson to Silver
Rock - CON Constructon Cost $500,000 FY 2023 FY 2024
Overlay & Widening (PE) Howard Avenue Widening & Overlay - PE Howard Avenue Widening & Overlay -
Patterson Road to Ward Ave. - PE Full Design Cost $45,000 FY 2023 FY 2023 Traffic Management (10%)
Pedestrian & Road Improvements (Matching
Funds) Callander Avenue Pedestrian Project (Phase I)
ROW & Construction - Complete Street
Improvements - Calendar Avenue between
Topeka & Santa Fe Streets Shared Cost $430,217 FY 2021 FY 2024 Intersection Improvements
Roselle & S. Rosebrook Intersection
Improvements - PE
Roselle & S. Rosebrook Intersection
Improvements - PE Full Design Cost $35,000 FY 2023 FY 2023 Intersection Improvements
Roselle & S. Rosebrook Intersection
Improvements - CON
Roselle & S. Rosebrook Intersection
Improvements - CON Constructon Cost $350,000 FY 2023 FY 2023 Bike/Ped (5%)
Pedestrian Sidewalk Project Claus Road Sidewalk Project Claus Road (RR Tracks to Sierra Street) Full Design &
Construction Cost $180,587 FY 2022 FY 2023
Pedestrian Sidewalk Project Patterson Road Sidewalk Project Patterson Road Sidewalks - Hwy 108 to Roselle
Avenue - PE Full Design Cost $42,500 FY 2022 FY 2023
Street Lighting Squire Wells & Homewood Squire Wells & Homewood Street Light $15,000 FY 2023 FY 2023 Pedestrian Sidewalk Project Roselle Avenue Sidewalk Project Roselle Avenue Sidewalks - Westgate to
Rosebrook over MID Canal Full Design Cost $35,000 FY 2023 FY 2023 2023 City of Riverbank Measure L Expenditure Plan Project List ATTACHMENT 2

Item 9.7– CC/LRA – 3/28/2023

RIVERBANK CITY COUNCIL / LOCAL REDEVELOPMENT AUTHORITY
AGENDA ITEM NO. 9.7
SECTION 9: CONSENT CALENDAR
Meeting Date: March 28, 2023
Subject: Resolution Adopting a List of Projects for Fiscal Year 2023-2024 Funded by SB 1: The Road Repair and Accountability Act of 2017 From: Marisela H. Garcia, City Manager
Submitted by: Kathleen Cleek, Development Services Administration Manager

RECOMMENDATION
It is recommended that the City Council approve a Resolution adopting a list of projects for fiscal Year 2023-2024 funded by SB 1: The Road Repair and Accountability Act of 2017.

SUMMARY
On April 28, 2017, Governor Brown signed Senate Bill (SB) 1, which is known as the Road Repair and Accountability Act of 2017. The primary focus of the Bill is to address basic road maintenance, rehabilitation, and critical safety needs on both the state highways and local streets and roads system. Prior to receiving new Fiscal Year apportionments of Road Maintenance and Rehabilitation Account (RMRA) funds from the California State Controller, the city must adopt a list of projects proposed to be funded with these funds by resolution and submitted to the State by July 1 of each year.

The City is projected to receive $550,000 in RMRA funding for Fiscal Year 2023-2024 from SB 1. The City’s approximate balance at the end of Fiscal Year 2022-2023 will be $824,389 of which $520,694 is set aside for the Topeka Street Overlay Project (Callander – Jackson Avenue) and $157,180 for the Valley Gutter/ADA Improvements at Stanislaus and Seventh Street. The total amount the City will have available for projects is $1,374,389.

For Fiscal Year 2023-2024 we are purchasing some equipment that will allow Public Works City staff to crack seal and maintain our own roads instead of going out to bid and hiring a contractor. This will allow us to better utilize our funds and assist with our maintenance of effort requirements.

Item 9.7– CC/LRA – 3/28/2023
The projects and equipment the City has scheduled for this year are as follows:

Topeka Street Overlay – Callander to Jackson FY 2022-23 $ 520,694 Valley Gutter/ADA Improvements – Stanislaus & Seventh FY 2022-23 $ 157,180 Crack Seal Machine - FY 2023-2024 $ 100,000
Bobcat Attachments for Planer, Drum & Sweeper Bucket FY 2023-24 $ 30,000 Road & Storm Improvements – Palmer & Patterson and Sierra FY 2023-24 $ 300,000 Road & Storm Improvements – Patterson @ Ross Alley FY 2023-24 $ 160,000 Total $1,267,874

FINANCIAL IMPACT
SB-1 Streets & Roads funded projects totaling approximately $1,267,874.

The RMRA funds do require a Maintenance of Effort (MOE) from the City based on General Fund spending for street, road and highway purposes. City staff is continuing to work with the State to comply with the MOE requirements.

STRATEGIC PLAN
Recommendation for approval of the Fiscal Year 2023-2024 list of roads to be maintained is in line with the 2020-2025 Riverbank Strategic Plan goal to Improve Public Safety by maintaining safe and well-lit streets and roads.

RECOMMENDATION
It is recommended that the City Council approve a Resolution accepting the Fiscal Year 2023-2024 list of projects to be funded with Senate Bill (SB) 1 “The Road Repair and Accounting Act of 2017”.

ATTACHMENT

1. Resolution 2023-

2. Exhibit “A” – SB-1 Project List FY 2023/2024 Funding

CC/LRA – 3/28/2023
CC Resolution 2023-

CITY OF RIVERBANK
RESOLUTION 2023-

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF RIVERBANK, CALIFORNIA
ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2023-24 FUNDED BY SB 1:

THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017

THE CITY OF RIVERBANK CITY COUNCIL (HEREAFTER REFERRED TO AS THE “CITY COUNCIL”) DOES HEREBY RESOLVE THAT:

WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and
WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of the City of Riverbank are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and
WHEREAS, the City of Riverbank must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and
WHEREAS, the City of Riverbank, will receive an estimated $550,000 in RMRA funding in Fiscal Year 2023-2024 from SB 1; and
WHEREAS, this is the 5th year in which the City of Riverbank is receiving SB 1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and
WHEREAS, the City has undergone a robust public process to ensure public input into our community’s transportation priorities/the project list; and ATTACHMENT 1

CC/LRA – 3/28/2023
CC Resolution 2023-
WHEREAS, the City used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high-priority and costeffective projects that also meet the community’s priorities for transportation investment; and
WHEREAS, the funding from SB 1 will help the City rehabilitate two roads and improve a valley gutter and ADA corners at an intersection this year and continue to crack seal and slurry seal roads into the future; and
WHEREAS, the 2018 California Statewide Local Streets and Roads Needs Assessment found that the City’s streets and roads are in good condition and this revenue will help us increase the overall quality of our road system and over the next decade will bring our streets and roads into excellent condition; and WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and practices, will have significant positive co-benefits statewide.

NOW, THEREFORE IT IS HEREBY RESOLVED, ORDERED AND FOUND that the City Council of the City of Riverbank, State of California, hereby orders and declares as follows:

1. The foregoing recitals are true and correct.

2. The following list of newly proposed projects will be funded in-part or solely with Fiscal Year 2023-2024 Road Maintenance and Rehabilitation Account revenues:

Crack Seal Machine – FY 2023-2024 Funds $100,000, Start FY 2023, Complete FY 2023, Estimated Useful Life Minimum 7 Years, Estimated Useful Life Maximum 10 Years.

Bobcat Attachments for Planer, Drum & Sweeper Bucket – FY 2023-2024 Funds $30,000, Start FY 2023, Complete FY 2023, Estimated Useful Life Minimum 7 Years, Estimated Useful Life Maximum 10 Years.

Road & Storm Improvements – Palmer & Patterson and Palmer & Sierra – FY 2023-2024 Funds $300,000, Start FY 2023, Complete FY 2024, Estimated Useful Life Minimum 15 Years, Estimated Useful Life Maximum 20 Years.

CC/LRA – 3/28/2023
CC Resolution 2023-
Road & Storm Improvements – Patterson & Ross Alley – FY 2023-2024 Funds $160,000, Start FY 2023, Complete FY 2024, Estimated Useful Life Minimum 15 Years, Estimated Useful Life Maximum 20 Years.

PASSED AND ADOPTED by the City Council of the City of Riverbank at a regular meeting held on the 28th day of March 2023; motioned by Councilmember District________, seconded by Councilmember District ________, and upon roll call was carried by the following City Council vote of _____.

AYES:

NAYS:

ABSENT:

ABSTAIN:

ATTEST: APPROVED:
________________________ _________________________
Gabriela Hernandez Richard D. O’Brien
City Clerk Mayor
Attachment: Exhibit A – City of Riverbank SB-1 Project List FY 2023/2024 Funding Type Projects Description Budget Started Completed
Estimated
Useful Life
Minimum
Estimated
Useful Life
Maximum
Local Streets and Roads
Overlay Topeka Street Overlay (Callander to Jackson) Overlay/Sidewalk/ADA Improvements $157,180 FY2022 FY2023 15 Years 20 Years Valley Gutter/ADA Improvements Stanislaus Street @ Seventh Street Valley Gutter/ADA Improvements $96,820 FY2022 FY2022 15 Years 20 Years Equipment Equipment for Road Repairs & Maintenance Crack Seal Machine $100,000 FY2023 FY2023 7 Years 10 Years Equipment Equipment for Road Repairs & Maintenance
Bobcat Attachments for Planer, Drum &
Sweeper Bucket $30,000 FY2023 FY2023 7 Years 10 Years
Road & Storm Improvements
Improvements at Intersections of Palmer
Road & Patterson and Palmer Road & Sierra
Improvements to Road and Storm Drain
Systems $300,000 FY2023 FY2024 15 years 20 Years
Road & Storm Improvements
Improvements at Intersection of Patterson
Road & Ross Alley Improvements to Road and Storm Drain System $160,000 FY2023 FY2024 15 Years 20 Years Exhibit "A" City of Riverbank SB-1 Project List FY 2023/2024 Funding ATTACHMENT 2

Item 9.8 – CC/LRA – 3/28/2023

RIVERBANK CITY COUNCIL / LOCAL REDEVELOPMENT AUTHORITY
AGENDA ITEM NO. 9.8
SECTION 9: CONSENT CALENDAR
Meeting Date: March 28, 2023
Subject/ Title: Resolution of the City Council of the City of Riverbank Declaring Its Intention to Annex Territory to a Community Facilities District and to Authorize the Levy of Special Taxes Therein, the City of Riverbank Community Facilities District No. 2016-1 (Public Services) Annexation No. 2
From: Marisela H. Garcia, City Manager
Submitted by: Kathleen Cleek, Development Services Administration Manager RECOMMENDATION:

It is recommended that the City Council adopt a Resolution declaring its intention to annex territory to a City of Riverbank Community Facilities District 2016-1 (Public Services) and to authorize the levy of a special tax therein to finance certain City services.

STRATEGIC GOAL:

The attached resolution will begin the proceedings for the annexation into Community Facilities District 2016-1 (Public Services) (“CFD 2016-1”). The conditions of approval for this project require it to annex into CFD 2016-1, which was established as an annexable district to provide financing for police services, street maintenance, parks, storm drainage, and landscaping.

SUMMARY:

By Resolution No. 2016-028, the City Council established CFD 2016-1, a Mello-Roos Community Facilities District with the intention that future development within the City of Riverbank (the “City”) would annex into this district. The special taxes collected from the property owners within the district are to be used for the funding of police services, landscape maintenance, park maintenance, drainage maintenance, and street maintenance.

Item 9.8 – CC/LRA – 3/28/2023
The parcels proposed for annexation are generally located west of Central Avenue, east of Claus Road, and north of Patterson Road as well as generally located west of Central Avenue, east of Claus Road, and north of Kentucky Avenue. The boundary of the annexation includes the area within assessor’s parcel numbers 062-020-033-000, 062- 020-034-000, 062-022-026-000, and 062-022-027-000 as depicted on Exhibit A.

Development of these properties change the characteristics of undeveloped land. Once developed, this project will have intensified the use of the property, creating a need for more services under this CFD.

As part of the annexation process, the City contracts with Willdan Financial Services for the preparation of the necessary resolutions and balloting procedures for the annexation.

The Resolution of Intention is the first step in the process of annexing new developments into CFD 2016-1. This will be the 2
nd annexation into the district. The resolution also
establishes May 9, 2023 as the public hearing date for the final consideration of the annexation of the property into CFD 2016-1. Once the annexation is complete, the property owners of the annexed parcels will be required to pay annual special taxes for CFD 2016-1, beginning in Fiscal Year 2023/2024 as itemized on their property tax bill in accordance with the rate set forth in the Rate and Method of Apportionment of Special Tax.

The CFD 2016-1 Rate and Method of Apportionment was established as part of the formation of the district and fixed Fiscal Year 2016-2017 as the base year for the annual special tax rate as shown in Exhibit B. Since the formation, assessments have increased based on a cost inflator allowed in the original formation documents. The current special tax rate for the district is as shown in Exhibit C.

FISCAL IMPACT:

All costs associated with the annexation shall be paid by the party or parties requesting to be annexed into CFD 2016-1.

ATTACHMENTS:
1) Resolution 2023-
2) Exhibit A - City of Riverbank Community Facilities District No. 2016-1 (Public Services) Boundary Map – Annexation No. 2
3) Exhibit B - City of Riverbank Community Facilities District No. 2016-1 (Public Services) Rate and Method of Apportionment
4) Exhibit C - City of Riverbank Community Facilities District No. 2016-1 (Public Services) FY 23-24 Maximum Special Tax Rates

CC/LRA- 3/25/2023
CC RESOLUTION 2023-

CITY OF RIVERBANK
RESOLUTION 2023 -

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RIVERBANK

DECLARING ITS INTENTION TO ANNEX TERRITORY TO A COMMUNITY

FACILITIES DISTRICT AND TO AUTHORIZE THE LEVY OF SPECIAL TAXES THEREIN, THE CITY OF RIVERBANK COMMUNITY FACILITIES DISTRICT NO. 2016-1 (PUBLIC SERVICES) ANNEXATION NO. 2

THE CITY OF RIVERBANK CITY COUNCIL (HEREAFTER REFERRED TO AS THE “CITY COUNCIL”) DOES HEREBY RESOLVE THAT:

WHEREAS, the CITY COUNCIL of the CITY OF RIVERBANK, CALIFORNIA (the “City Council”) has conducted proceedings to establish Community Facilities District No. 2016-1 (Public Safety Services) (the “CFD”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”), Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing at Section 53311, of the California Government Code; and WHEREAS, under the Act, the City Council, as the legislative body for the CFD, is empowered with the authority to annex territory to the CFD, and now desires to undertake proceedings to annex territory to the CFD.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RIVERBANK, HEREBY RESOLVES:

SECTION 1. The City Council hereby finds and determines that public convenience and necessity require that territory be added to the CFD.

SECTION 2. The name of the existing CFD is “Community Facilities District No. 2016-1 (Public Services)”.

SECTION 3. The territory included in the existing CFD is as shown on the map thereof filed in Book 5 of Maps of Assessment and Community Facilities Districts at Page 45, as well as the map for Annexation No. 1 filed in Book 6 of Maps and Assessment and Community Facilities Districts at Page 30, in the office of the County Recorder for the County of Stanislaus, State of California, to which maps reference is hereby made.

The territory now proposed to be annexed to the CFD is as shown on the Annexation Map No. 2 to the CFD, on file with the City Clerk, a copy of which is attached hereto as Exhibit A and made a part hereof, the boundaries of which territory are hereby preliminarily approved.

The City Clerk is hereby directed to cause the recordation of said Annexation Map No. 2 to the CFD, showing the territory to be annexed, in the Office of the County Recorder of the County of Stanislaus within fifteen days of the date of adoption of this resolution.

ATTACHMENT 1

CC/LRA- 3/25/2023
CC RESOLUTION 2023-
SECTION 4. The types of public services financed by the CFD and pursuant to the Act consist of those services (the “Services”) described in Exhibit A to Resolution No. 2016-028 adopted by the Council on the 24
th day of May, 2016, (the “Resolution of
Formation”). It is presently intended that the Services will be shared, without preference or priority, by the existing territory in the CFD and the territory proposed to be annexed to the CFD. It has been determined that this project will intensify the use of the property, creating a need for more services under this CFD.

SECTION 5. Except to the extent that funds are otherwise available to the CFD to pay for the Services and/or the principal and interest as it becomes due on bonds of the CFD issued to finance the Services, a special tax sufficient to pay the costs thereof is intended to be levied annually within the CFD and collected in the same manner as ordinary ad valorem property taxes. The proposed rate and method of apportionment of the special tax among the parcels of real property within the CFD, as now in existence and following the annexation proposed herein, and in sufficient detail to allow each landowner within the territory proposed to be annexed to the CFD to estimate the maximum amount such owner will have to pay, is described in Exhibit B, which is hereby incorporated by this reference.

SECTION 6. Notice is given that on May 9, 2023, at 6:00 p.m., in the regular meeting place of this Council, being the City Council Chambers, located at 6707 3rd Street Suite B, Riverbank, California, the City Council, as legislative body for the CFD, will conduct a public hearing on the annexation of territory to the CFD and consider and finally determine whether the public interest, convenience and necessity require said annexation of territory to the CFD and the levy of said special tax therein.

SECTION 7. The City Clerk is hereby directed to cause notice of said public hearing to be given by publication one time in a newspaper of general circulation in the area of the CFD. The publication of said notice shall be completed at least seven days before the date herein set for said hearing. Said notice shall be substantially in the form specified in Section 53339.4 of the Act. The City Clerk shall also cause a copy of the Resolution of Annexation, or a notice thereof, to be mailed to each landowner (and to each registered voter, if any) within the territory proposed to be annexed, which resolution or notice shall be mailed at least fifteen days before the date of said hearing.

PASSED AND ADOPTED by the City Council of the City of Riverbank at a regular meeting held on the 28th day of March, 2023; motioned by _______________, seconded by ____________________, and upon roll call was carried by the following City Council vote of ____:

AYES:

NAYS:

ABSENT:

CC/LRA- 3/25/2023
CC RESOLUTION 2023-
ABSTAIN:

ATTEST: APPROVED:
_______________________ _________________________
Gabriela Hernandez Richard D. O’Brien
City Clerk Mayor
Attachments:

EXHIBIT A – City of Riverbank Community Facilities District No. 2016-1 Boundary Map-Annexation No. 2
EXHIBIT B - City of Riverbank- Community Facilities District No. 2016-1(Public Services) Rate and Method of Apportionment
EXHIBIT C- Maximum Special Tax for Developed Property Community Facilities District No. 2016-1 Fiscal Year 2023-24
A-1

EXHIBIT A
City of Riverbank Community Facilities District No. 2016-1 (Public Services)
Boundary Map-Annexation No. 2
B-1

EXHIBIT B
City of Riverbank
Community Facilities District No. 2016-1
(Public Services)
Rate and Method of Apportionment
A Special Tax of City of Riverbank Community Facilities District No. 2016-1 (Public Services) (“CFD”) shall be levied on all Assessor's Parcels within the CFD and collected each Fiscal Year commencing in Fiscal Year 2016-17 in an amount determined by the Special Tax Administrator through the application of the rate and method of apportionment of the Special Tax set forth below. All of the real property in the CFD, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Act” means the Mello-Roos Community Facilities Act of 1982, being Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California, as amended.
“Administrative Expenses” means the following actual or reasonably estimated costs incurred by the City as administrator of the CFD, provided that such costs are directly related to administration of the CFD: costs to determine, levy and collect the Special Taxes, including an allocable share of the salaries and benefits of City employees, the fees of consultants, and legal counsel; the costs of collecting installments of the Special Taxes upon the general tax rolls, including any charges levied by County departments; and the preparation of required reports and any other costs required to administer the CFD in accordance with the Act, as determined by the City.
“Annual Escalation Factor” means the greater of (i) two percent (2%) or (ii) the annual percentage increase in the Consumer Price Index for All Urban Consumers for the San Francisco-Oakland-San Jose area as determined by the Bureau of Labor Statistics for the twelve months ending the previous December. “Assessor's Parcel” means a parcel of land shown on an Assessor's Parcel Map with a parcel number assigned by the Assessor of the County that corresponds to a number shown on the County Assessor’s roll.
“Assessor's Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor's Parcel number.

B-2
“Attached Residential” means an Assessor’s Parcel within the CFD for which a Building Permit has been issued for purposes of constructing a residential structure or structures sharing common walls consisting of two or more Dwelling Units, including, but not limited to duplexes, triplexes, and apartment units, as of April 1 st
preceding the Fiscal Year in which the Special Tax is being levied. “Base Year” means Fiscal Year ending June 30, 2017.
"Building Floor Area" means the sum of the gross horizontal areas of several floors of the building, excluding areas used for accessory garage purposes, and such basement and cellar areas as are devoted exclusively to uses accessory to the operations of the building. All horizontal dimensions shall be taken from the exterior faces of walls including walls or other enclosures or enclosed porches, as obtained from the applicable Building Permit.
“Building Permit” means a permit issued for new construction of a residential or non-residential structure. For purposes of this definition, “Building Permit” shall not include permits issued solely for grading, utility improvements, or other such improvements that are constructed and installed and are not intended for human occupancy.
“CFD” means City of Riverbank Community Facilities District No. 2016-1 (Public Services).
“City” means the City of Riverbank.
“City Clerk” means the City Clerk for the City or his or her designee. “City Engineer” means the City Engineer for the City or his or her designee. “Commercial Property” means an Assessor's Parcel of Developed Property for which a building permit(s) has been issued for purposes of constructing nonresidential property for any non-residential use located in a commercial zoning district and all other property considered commercial, including hotels, motels, and private schools, as coded by the County’s assessor or as determined by the City, as of April 1st preceding the Fiscal Year in which the Special Tax is being levied. “Council” means the City Council of the City, acting as the legislative body of the CFD.
“County” means the County of Stanislaus, California.
“Detached Residential” means an Assessors’ Parcel within the CFD for which a Building Permit has been issued for purposes of constructing a residential structure B-3
consisting of one single-family detached Dwelling Unit, including Mobile Homes, as of April 1st preceding the Fiscal Year in which the Special Tax is being levied. “Developed Property” means an Assessor’s Parcel within the CFD for which a Building Permit was issued on or prior to April 1st preceding the Fiscal Year in which the Special Tax is being levied, based on the number of Dwelling Units or the amount of Office, Commercial, or Industrial/Agricultural Building Floor Area in each Building Permit for that Assessor’s Parcel.
“Drainage Maintenance” means the labor, material, testing, reporting, remediation, permitting, general administration, personnel, equipment and utilities necessary to maintain drainage improvements for the CFD, including drain inlets, filters, detention basin, storm drain pipeline, and associated appurtenant facilities located within, or associated with, the CFD.
“Drainage Maintenance Requirement” means, for any Fiscal Year in which Special Taxes are levied, the amount equal to the budgeted costs for Drainage Maintenance applicable to the CFD for such Fiscal Year. “Dwelling Unit” means each separate residential unit that comprises an independent facility capable of conveyance or rental separate from adjacent residential units, in which a person or persons may live, which comprises an independent facility and is not considered to be for non-residential use only, and as defined in the City of Riverbank's Municipal Code.
“Exempt Property” means for each Fiscal Year, an Assessor's Parcel within the CFD not subject to the Special Tax. Exempt Property includes: (i) Public Property, (ii) Property Owner Association Property, (iii) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement such as railroad parcels, roads and landscape lots, (iv) Undeveloped Property and (v) property reasonably designated by the City or Special Tax Administrator as Exempt Property due to deed restrictions, conservation easement, or similar factors that may make development of such property impractical for human occupancy.
“Fiscal Year” means the period starting July 1 and ending on the following June 30.
“Industrial/Business Park/Agricultural Processing Property” means an Assessor's Parcel of Developed Property for which a building permit(s) has been issued for purposes of constructing non-residential property for any allowable use in an industrial or agricultural zoning district, which is not an office or financial institution, and all other property considered industrial or agricultural as coded by the County’s assessor or as determined by the City, as of April 1 st preceding the
Fiscal Year in which the Special Tax is being levied.

B-4
“Landscaping Maintenance” means the labor, material, administration, personnel, equipment and utilities (i.e., water and power) necessary to maintain landscaping improvements within the CFD, including trees, turf, ground cover, shrubs, weed removal, irrigation systems, sidewalk, drainage facilities, lighting, signs, monuments, graffiti removal, walkways, and associated appurtenant facilities located within, or associated with, the CFD. “Landscaping Maintenance Requirement” means, for any Fiscal Year in which Special Taxes are levied, the amount equal to the budgeted costs for Landscaping Maintenance applicable to the CFD for such Fiscal Year. “Land Use Class” means any of the classes listed in Table 1 and defined herein. “Maximum Special Tax” means the maximum Special Tax, determined in accordance with Section C below, that can be levied by the CFD in any Fiscal Year on any Assessor’s Parcel.
“Mixed-Use Property” means an Assessor’s Parcel of Developed Property containing or planned for containing a structure or structures that consists of one or more Dwelling Units, but also has dedicated space for Non-Residential use. "Mobile Home" means a vehicle designed and equipped for human habitation as defined by the California Health & Safety Code § 18008. “Non-Residential” means an Assessors’ Parcel of Taxable Property within the CFD for which a Building Permit has been issued for a non-residential use, including Office Property, Commercial Property, and Industrial/Business Park/Agricultural Processing Property.
“Office Property” means an Assessor's Parcel of Developed Property for which a building permit(s) has been issued for purposes of constructing non-residential property for any non-residential use located in an industrial, office, or commercial zoning district and all other property considered office property, including hospitals and convalescent homes, savings and loans property, medical and dental property, and other office buildings, as determined by the City, as of April 1st preceding the Fiscal Year in which the Special Tax is being levied. “Park” means a public park, open space, trail, dog park dedicated to and/or managed by the City of Riverbank.
“Park Maintenance” means the estimated and reasonable costs of providing park maintenance, including but not limited to (i) the costs of contracting for park maintenance services, including trees, plant material, restrooms, irrigation systems, sidewalks, drainage facilities, weed control, lighting, and parking lot B-5
maintenance, (ii) the salaries and benefits of City staff, including maintenance staff, that directly provide park maintenance services, (iii) the expense related to equipment, apparatus, and supplies related to these services and authorized by the Act, (iv) utility costs such as water, sewer, lighting and power and (v) City overhead costs associated with providing such services within the CFD. “Park Maintenance Requirement” means, for any Fiscal Year in which Special Taxes are levied, the amount equal to the budgeted costs for Park Maintenance applicable to the CFD for such Fiscal Year.
“Police Services” means the estimated and reasonable costs of providing police services, including but not limited to (i) the costs of contracting for police, (ii) the salaries and benefits of City staff, if the City directly provides police services, (iii) the expense related to equipment, apparatus, and supplies related to these services and authorized by the Act, and (iv) City overhead costs associated with providing such services within the CFD.
“Police Services Requirement” means, for any Fiscal Year in which Special Taxes are levied, the amount equal to the budgeted costs for Police Services applicable to the CFD for such Fiscal Year.
“Property Owner Association Property” means for each Fiscal Year any property within the CFD that is owned by, or irrevocably dedicated as indicated in an instrument recorded with the County Recorder, to a property owner association, including any master or sub-association, which consists of property owned in common by owners of surrounding properties and it is intended for use for community purposes.
“Proportionately” means, for Taxable Property, that the ratio of the actual Special Tax levied per Assessor's Parcel of Taxable Property to the Maximum Special Tax per Assessor's Parcel of Taxable Property is equal for all Assessor’s Parcels of Taxable Property.
“Public Property” means for each Fiscal Year any property within the CFD that is, or is expected to be, used for rights-of-way, parks, public schools or any other public purpose determined by the Special Tax Administrator or is owned by or irrevocably offered for dedication to the federal government, the State, the County, the City or any other public agency.
“Reserve Fund” means a fund that shall be created and maintained for the CFD for each Fiscal Year to provide necessary cash flow to cover maintenance and repair cost overruns, and delinquencies in the payment of Special Taxes.

B-6
“Special Tax” means the Special Tax to be levied in each Fiscal Year on each Assessor's Parcel of Taxable Property to fund the Special Tax Requirement, and shall include Special Taxes levied or to be levied under Sections C and D, below. “Special Tax Administrator” means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes.
“Special Tax Requirement” means that amount required in any Fiscal Year for the CFD to pay for: (i) the Police Services Requirement; (ii) the Drainage Maintenance Requirement; (iii) the Landscaping Maintenance Requirement, (iv) the Park Maintenance Requirement; (v) the Street Maintenance Requirement, (vi) reasonable Administrative Expenses; and (vii) and any amounts required to establish or replenish a reserve fund for that Fiscal Year; less any surplus of funds available from the previous Fiscal Year’s Special Tax levy. “State” means the State of California.
“Street Maintenance” means the labor, material, administration, personnel, equipment and utilities necessary to maintain streets, streetlights and associated appurtenant facilities within, and associated with, the CFD, including City overhead costs associated with providing such services within the CFD. “Street Maintenance Requirement” means, for any Fiscal Year in which Special Taxes are levied, the amount equal to the budgeted costs for Street Maintenance applicable to the CFD for such Fiscal Year.
“Taxable Property” means all Assessor's Parcels of Developed Property within the CFD that are not Exempt from the Special Tax pursuant to law or as defined herein.
“Undeveloped Property” means, for each Fiscal Year, an Assessor’s Parcel within the CFD for which a Building Permit has not been issued on or prior to April 1 st preceding the Fiscal Year in which the Special Tax is being levied and is not classified as Property Owner Association Property or Public Property, including an Assessor’s Parcel that is designated as a remainder parcel by any final documents and/or maps available to the Special Tax Administrator.

B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, commencing with Fiscal Year 2016-17, using the definitions above, each Assessor’s Parcel within the CFD shall be classified as Taxable Property or Exempt Property. In addition, each Fiscal Year, beginning with Fiscal Year 2016-17, Taxable Property shall be further classified as Attached Residential, Detached Residential, Mixed-Use Property, Office Property, Commercial Property, or Industrial/Business Park/Agricultural Processing Property.

B-7
C. MAXIMUM SPECIAL TAX RATE

1. Developed Property
Table 1
Maximum Special Tax for Developed Property
Community Facilities District No. 2016-1
Fiscal Year 2016-17
Land Use
Class Description Maximum Special Tax
1 Detached Residential $580.00 per Dwelling Unit
2 Attached Residential $348.00 per Dwelling Unit
3 Mixed-Use Property Sum of Maximum Special Tax for each applicable Land Use Class
4 Office $0.369 per square foot of Building Floor Area
5 Commercial $0.211 per square foot of Building Floor Area 6 Industrial/Business
Park/Agricultural Processing $0.148 per square foot of Building Floor Area On each July 1st following the Base Year, the Maximum Special Tax rates in Table 1 shall be increased by the Annual Escalation Factor. A different Maximum Special Tax may be added to the CFD as a result of future annexations or if future annexations involve a new Land Use Class.

2. Exempt Property
No Special Tax shall be levied on Exempt Property as defined in Section A.

For each Fiscal Year, if the use or ownership of an Assessor's Parcel of Exempt Property changes so that such Assessor's Parcel is no longer classified as one of the uses set forth in Section A, therefore making such Assessor's Parcel no longer eligible to be classified as Exempt Property, such Assessor's Parcel shall be deemed to be Taxable Property and shall be taxed pursuant to the provisions of Section C.1.

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2016-17, and for each subsequent Fiscal Year, the Special Tax Administrator shall calculate the Special Tax Requirement based on the definitions in Section A and levy the Special Tax as follows until the amount of the Special Tax levied equals the Special Tax Requirement:

The Special Tax shall be Proportionately levied each Fiscal Year on each Assessor’s Parcel of Developed Property up to 100% of the applicable Maximum Special Tax. The applicable Maximum Special Tax shall be based on the B-8
Developed Property’s classification as Detached Residential, Attached Residential, Mixed-Use Property, Office, Commercial, or Industrial/Business Park/Agricultural Processing Property.

E. APPEALS
Any landowner who pays the Special Tax and believes that the amount of the Special Tax levied on their Assessor’s Parcel is in error shall first consult with the Special Tax Administrator regarding such error. If following such consultation, the Special Tax Administrator determines that an error has occurred, the Special Tax Administrator may amend the amount of the Special Tax levied on such Assessor’s Parcel. If following such consultation and action, if any, the landowner believes such error still exists, such person may file a written notice with the City Clerk of the City appealing the amount of the Special Tax levied on such Assessor’s Parcel.

Upon the receipt of any such written notice, the City Clerk shall forward a copy of such notice to the City Engineer, who shall either (1) refer the matter to the City’s existing hearing board for administrative appeals; or (2) establish as part of the proceedings and administration of the CFD, a special three-member Review/Appeal Committee. The Review/Appeal Committee may establish such procedures, as it deems necessary to undertake the review of any such appeal.

The hearing board or Review/Appeal Committee shall interpret this Rate and Method of Apportionment and make determinations relative to the annual administration of the Special Tax and any landowner appeals, as herein specified.

The decision of the hearing board or Review/Appeal Committee shall be final and binding as to all persons.

F. MANNER OF COLLECTION
Special Taxes levied pursuant to Section D above shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided however that (i) the CFD may directly bill the Special Tax, and (ii) the CFD may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of the CFD or as otherwise determined appropriate by the City Council.

G. TERM OF SPECIAL TAX
Taxable Property in the CFD shall remain subject to the Special Tax in perpetuity or until the City Council takes appropriate actions to terminate the Special Tax pursuant to the Act.

C-1

EXHIBIT C
Maximum Special Tax for Developed Property
Community Facilities District No. 2016-1
Fiscal Year 2023-24
Land Use
Class Description Maximum Special Tax
1 Detached Residential $738.06 per Dwelling Unit
2 Attached Residential $442.84 per Dwelling Unit
3 Mixed-Use Property Sum of Maximum Special Tax for each applicable Land Use Class
4 Office $0.470 per square foot of Building Floor Area
5 Commercial $0.269 per square foot of Building Floor Area 6 Industrial/Business
Park/Agricultural Processing $0.188 per square foot of Building Floor Area On each July 1st following the Base Year, the Maximum Special Tax rates in Table 1 shall be increased by the Annual Escalation Factor. A different Maximum Special Tax may be added to the CFD as a result of future annexations or if future annexations involve a new Land Use Class.

1. Exempt Property
No Special Tax shall be levied on Exempt Property as defined in Section A.

For each Fiscal Year, if the use or ownership of an Assessor's Parcel of Exempt Property changes so that such Assessor's Parcel is no longer classified as one of the uses set forth in Section A, therefore making such Assessor's Parcel no longer eligible to be classified as Exempt Property, such Assessor's Parcel shall be deemed to be Taxable Property and shall be taxed pursuant to the provisions of Section C.1.

Item 9.9– CC/LRA 3/28/23

RIVERBANK CITY COUNCIL/ LOCAL REDEVELOPMENT AUTHORITY
AGENDA ITEM NO. 9.9
SECTION 9: CONSENT CALENDAR
Meeting Date: March 28, 2023
Subject: Resolution of the City Council of the City of Riverbank, California, to Approve a Subdivision Improvement Agreement for Diamond Bar East with LGI Homes - California LLC and Authorizing the City Manager to Execute the Agreement
From: Marisela H. Garcia, City Manager
Submitted by: Donna M. Kenney, Planning and Building Manager

RECOMMENDATION
It is recommended that the City Council consider the attached resolution approving the Subdivision Improvement Agreement with LGI Homes – California LLC for Diamond Bar East and directing the City Manager to execute the agreement.

SUMMARY
On March 24, 2015, the City Council adopted Resolution No. 2015-017, approving a general plan amendment to redesignate the 17.9 acres of Diamond Bar East to low density residential (LDR), which allows for a net density of zero to eight (0-8) dwelling units per acre.

On March 24, 2015, the City Council adopted Resolution No. 2015-018 which approved tentative subdivision map 02-2014 (the “Diamond Bar East Tentative Map”) and related conditions of approval, which sets forth the infrastructure obligations and conditions related to the development and build out of approximately 17.9 acres.

On March 24, 2015, the City Council adopted Ordinance No. 2015-007 to approve a rezone of 17.9 acres to Planned Development (PD), allowing for a net density of zero to eight (0-8) dwelling units per acre.

On March 24, 2015, the City Council approved an Initial Study/Mitigated Negative Declaration in connection with its adoption of Ordinance No. 2015-017, which approved the Rezone for Diamond Bar East.

Item 9.9– CC/LRA 3/28/23
On April 28, 2020, the City Council with Ordinance No. 2020-007 adopted a Development Agreement with McRoy Wilbur Communities, Inc. to list and memorialize the developer’s and the City’s rights and responsibilities.

On January 26, 2022, LGI Homes – California, LLC entered into an Assumption and Assignment Agreement with McRoy Wilbur Communities, Inc. to assume the Diamond Bar East Development Agreement.

One of the last steps in the subdivision map process is the approval of a final map which subdivides the parcel into the individual lots planned for homes, streets, utilities, and parkland or other public areas. Commonly, there are two ways to achieve a final map. The first way is for the developer to install all required infrastructure improvements (roads, street lighting, water/sewer lines, etc.) in advance of requesting the final map.

The second way is to enter into a Subdivision Improvement Agreement (“SIA”) and submit bonds, which provide security for the City that the improvements will be completed as required by the tentative map conditions of approval. In the past, the City has used both methods depending on the individual needs and timelines of each project.

LGI Homes - California LLC has been working to install infrastructure improvements but they are not complete. They have requested that Council consider approving their final map (also agendized for this Council meeting). As such, the Riverbank Municipal Code (“RMC”) requires that a Subdivision Improvement Agreement be approved in advance of the approval of a final map.

Exhibit A is a standard Subdivision Improvement Agreement that lays out many of the bonding and insurance requirements set forth in the Riverbank Municipal Code. Specific items in the agreement have been tailored to fit the circumstances of Diamond Bar East.

Approval of this document will allow the developer to request final map consideration by Council.

The estimated cost of the required infrastructure improvements for Diamond Bar East are approximately $2,235,285.00. This estimate has been reviewed and approved by the City Engineer. RMC §152.076 requires that two specific improvement securities be filed with the City: the first security (bond) shall secure faithful performance of the agreement in an amount equal to 100% of the estimated cost of the improvements and the second security shall secure the obligations set forth in Cal Govt. Code §66499.3(b) of payment of the contractor, his subcontractors and to persons renting equipment or furnishing labor or materials to them for the improvements, and shall be in an amount equal to 50% of the total estimated cost of the improvements. The Municipal Code provides a variety of options for developers to provide these securities, including the provision of bonds to the City Clerk. The City Attorney reviews these documents as to form. On March 6, 2023, the developer submitted both bonds to the City.

Item 9.9– CC/LRA 3/28/23

FINANCIAL IMPACT
There is no direct financial impact as a result of the Subdivision Improvement Agreement. However, approval of the SIA will allow the review and approval of the Final Map and facilitate the development of single-family residential units and associated amenities.

ATTACHMENTS

1. Draft City Council Resolution 2023 -xxx
(A) Exhibit A - Subdivision Improvement Agreement between the City of Riverbank and LGI Homes - California LLC for Diamond Bar East a. Exhibit A to the Subdivision Improvement Agreement
b. Exhibit B to the Subdivision Improvement Agreement

CC/LRA – 3/28/2023
CC Resolution 2023-

CITY OF RIVERBANK
RESOLUTION 2023-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RIVERBANK

APPROVING A SUBDIVISION IMPROVEMENT AGREEMENT FOR DIAMOND BAR EAST WITH LGI HOMES – CALIFORNIA LLC AND AUTHORIZING THE

CITY MANAGER TO EXECUTE THE AGREEMENT

THE CITY OF RIVERBANK CITY COUNCIL (HEREAFTER REFERRED TO AS THE “CITY COUNCIL”) DOES HEREBY RESOLVE THAT:

WHEREAS, LGI Homes – California LLC is the property owner of Diamond Bar East, a proposed 83 lot subdivision on approximately 17.9 acres; and WHEREAS, on March 24, 2015, the City Council adopted Resolution No. 2015- 018 which approved tentative subdivision map 02-2014 (the “Diamond Bar East Tentative Map”) and related conditions of approval, which sets forth the infrastructure obligations and conditions related to the development and build out of approximately 17.9 acres; and WHEREAS, significant infrastructure improvements are needed in order to serve the area for future growth; and
WHEREAS, LGI Homes – California LLC is working on the infrastructure for Diamond Bar East but has not yet completed it; and
WHEREAS, LGI Homes – California LLC will be requesting that Council consider approval of a final map for Diamond Bar East at tonight’s City Council meeting; and WHEREAS, the Riverbank Municipal Code requires that if improvements are not complete when the final map is considered for approval, a subdivision improvement agreement be entered into; and
WHEREAS, the Subdivision Improvement Agreement has been developed in cooperation with LGI Homes – California LLC and City of Riverbank staff.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Riverbank hereby declares the following:

1. The City Council approves the Subdivision Improvement Agreement as presented (Exhibit A); and

2. The City Council directs the City Manager to execute the attached Subdivision Improvement Agreement subject to verification and receipt of the securities ATTACHMENT 1

CC/LRA – 3/28/2023
CC Resolution 2023-
required within the agreement and any other requirements as set forth by the agreement.

PASSED AND ADOPTED by the City Council of the City of Riverbank at a regular meeting held on the 28th day of March 2023; motioned by Councilmember ______, seconded by Councilmember ______, and upon roll call was carried by the following vote of ___:

AYES:

NAYS:

ABSENT:

ABSTAIN:

ATTEST: APPROVED:
________________________ ________________________
Gabriela Hernandez Richard D. O’Brien
City Clerk Mayor
Attachment: Exhibit A – Subdivision Improvement Agreement

SUBDIVISION IMPROVEMENT AGREEMENT
City of Riverbank & LGI Homes – California LLC

SUBDIVISION IMPROVEMENT AGREEMENT
FOR THE DIAMOND BAR EAST SUBDIVISION (APNs 062-020-010 and 062-020-025) This SUBDIVISION IMPROVEMENT AGREEMENT (“Agreement”) is made and entered into this ______ day of ____________, 20__, by and between the City of Riverbank, a California municipal corporation (“City”) and LGI Homes – California, LLC (“Subdivider”). City and Subdivider may herein be referred to individually as a “Party” and collectively as the “Parties”.

There are no other parties to this Agreement. This Agreement is made with reference to the following:

RECITALS
A. Subdivider is possessed of a tract of land consisting of approximately 17.9 gross acres, lying in the City of Riverbank, County of Stanislaus, California, known as “Diamond Bar East” (the “Subdivision”).

B. On March 24, 2015, the City Council adopted Resolution No. 2015-017, approving a general plan amendment to redesignate the 17.9 acres of Diamond Bar East to low density residential (LDR), which allows for a net density of zero to eight (0-8) dwelling units per acre.

C. On March 24, 2015, the City Council adopted Resolution No. 2015-018 which approved tentative subdivision map 02-2014 (the “Diamond Bar East Tentative Map”) and related conditions of approval, which sets forth the infrastructure obligations and conditions related to the development and build out of approximately 17.9 acres. Resolution No. 2015-018 and Tentative Map 02-2014 are attached hereto as Exhibit A and incorporated herein by this reference (the “Resolution of Approval”). Final Map 03-2022 is attached as Exhibit B.

D. On March 24, 2015, the City Council adopted Ordinance No. 2015-007 to approve a rezone of 17.9 acres to Planned Development (PD), allowing for a net density of zero to eight (0-8) dwelling units per acre.

E. On March 24, 2015, the City Council approved an Initial Study/Mitigated Negative Declaration in connection with its adoption of Ordinance No. 2015-017, which approved the Rezone for Diamond Bar East.

RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:

City of Riverbank
6707 Third Street
Riverbank, CA 95367
Attn: City Clerk
Exempt from recording fees
(Gov. Code §§ 6103 and 27383)
(Space above this line for Recorder’s use)

EXHIBIT A

SUBDIVISION IMPROVEMENT AGREEMENT
City of Riverbank & LGI Homes – California LLC

F. On April 28, 2020, the City Council with Ordinance No. 2020-007 adopted a Development Agreement with McRoy Wilbur Communities, Inc. to list and memorialize the developer and City’s rights and responsibilities.

G. On January 26, 2022, LGI Homes – California, LLC entered into an Assumption and Assignment Agreement with McRoy Wilbur Communities, Inc. to assume the Diamond Bar East Development Agreement.

H. The Vesting Tentative Map is subject to the Subdivision Map Act (Gov. Code § 66410 et seq.) and the City’s ordinances and regulations related to the filing, approval, and recordation of subdivision maps (together, the “Subdivision Laws”) and the requirements and conditions contained in the Resolution of Approval.

I. Complete improvement plans for the construction, installation, and completion of the improvements (“Improvement Plans”) have been prepared by Subdivider and approved by the City of Riverbank City Engineer (“Engineer”) and Community Development Director or their designee (“Director”).

J. Subdivider will present to the City a proposed final map (“Final Map”) for the Subdivision, pursuant to the provisions of the Subdivision Laws for approval and recordation.

K. In order for the City to approve and record a Final Map for the Subdivision, the Subdivider must either complete all of the improvements required by the Subdivision Laws, Resolution of Approval, Improvement Plans and Vesting Tentative Map (“Improvements”), or execute an agreement with the City to complete the Improvements within a specified period of time.

L. In order for the City to approve and record a Final Map for the Subdivision, Subdivider desires to enter into this Agreement, whereby Subdivider promises to install and complete, at Subdivider’s sole cost, expense and risk, all of the Improvements required in connection with the Subdivision, including but not limited to grading work, constructing and installing the Improvements, and all labor that is required to complete these tasks to the satisfaction of the City (“Improvement Work”).

M. Subdivider has secured this Agreement by depositing security with the City consisting of a cash deposit, bond, or letter of credit in form acceptable to the City to secure a oneyear warranty of workmanship in accordance with the terms provided herein (the “Securities”).

NOW THEREFORE, in consideration of the foregoing and other good and valuable consideration, the Parties agree as follows:

AGREEMENT

1. Recitals. The recitals above (“Recitals”) are true and correct and are hereby incorporated into and made part of this Agreement. In the event of any inconsistency between the Recitals and Sections 1 through 23 of this Agreement, Sections 1 through 23 shall prevail.

SUBDIVISION IMPROVEMENT AGREEMENT
City of Riverbank & LGI Homes – California LLC

2. Effective Date and Term. This Agreement shall only become effective on the date that both Subdivider and the City have executed this Agreement (the “Effective Date”), and shall terminate only after the release of all Securities, unless this Agreement is terminated in writing signed by both Parties.

3. Dedication. Except as otherwise provided in this Agreement or in the action of the City Council approving the Final Map, the City hereby rejects all lands, rights-of-way and easements offered for dedication on the Subdivision Map or by separate instrument. Such offers, however, shall remain open and constitute irrevocable offers of dedication in accordance with Government Code section 66477.2. All such offers of dedication may be accepted by the City in its sole discretion at any later date without any further notice to the Subdivider.

4. Installation of Required Improvements. Subdivider agrees to furnish, construct and install at Subdivider’s own expense the Improvements, as shown on the Improvement Plans, which are to be installed to the sole satisfaction of the Director and will be on file in the Development Services Department. The Improvement Plans may only be modified by the Subdivider subject to prior written approval by the Director.

5. Subdivider’s Obligations. Subdivider shall perform each of the following, at all times, throughout the term of this Agreement:

A. Complete, at Subdivider’s sole cost and expense in a good and workmanlike manner, all of the Improvements in conformance with the Resolution of Approval (and any amendments thereto), the Subdivision Laws, and all applicable standards under City codes and ordinances and the City’s general plan related to the Improvements (collectively, the “Improvement Standards”).

B. Commence construction of the Improvements within three (3) months from the Effective Date of this Agreement. Subdivider shall notify the Director in writing three days before the commencement of construction of the Improvements.

C. Complete all Improvements within twelve (12) months from the Effective Date of this Agreement, unless otherwise approved or extended in writing by the City Manager for good cause, after written application by Subdivider. Such application shall state fully the grounds and facts showing good cause for such extension to be grated. In granting any extension of time, the City may require a new or amended subdivision improvement agreement to reflect increases in the costs of constructing the Improvements or other conditions related to the extension of time.

D. Furnish and pay for all necessary equipment, labor and materials to complete the Improvements in conformity with the Improvement Standards.

E. Replace or repair all public improvements, private property, public utility facilities, and surveying or subdivision monuments that are destroyed or damaged in the performance of any work related to this Agreement. Subdivider shall bear the entire cost of replacement or repairs of any and all public or private property damaged or destroyed in the performance of any work related to this Agreement. Any repair or replacement work shall be to the satisfaction, and subject to the approval, of the Director.

SUBDIVISION IMPROVEMENT AGREEMENT
City of Riverbank & LGI Homes – California LLC

F. Provide safe access for inspection by the City to the Improvements.

G. Give good and adequate warning to the public of each and every dangerous condition existing on or near the Improvements, and take reasonable action to protect the public from any such dangerous condition.

H. Perform all construction work related to installing the Improvements between 6:00 a.m. and 6:30 p.m. on weekdays and between 8:00 a.m. and 5:00 p.m. on weekends and legal holidays, unless otherwise approved in writing by the Director.

I. Require each contractor and subcontractor to have a competent foreman on the job at all times when that contractor or subcontractor, or any employee or agent thereof, is performing any work related to the Improvements. Subdivider shall maintain an office with a telephone and Subdivider or a person authorized to make decisions and act for Subdivider in Subdivider’s absence shall be available at the site of any Improvements within three (3) hours of being called at such office by the City at any time when construction work is being performed on the Improvements.

J. Assume all costs for utility and cable television undergrounding or relocation which is not the responsibility of the cable television, gas, electric, telephone or other utility company under the terms of any franchises with the City or otherwise imposed upon the utility companies by law.

K. Obtain and comply with all necessary permits and licenses for the construction and installation of the Improvements, give all necessary notices, and pay all fees and taxes required by law.

6. Estimated Cost of Improvements. The total estimated cost of the Improvements, as provided by Subdivider and reviewed and confirmed by the Engineer and Director, is two million two hundred thirty-five thousand two hundred and eighty-five dollars ($2,235,285.00).

7. Title to Improvements. The City shall not accept any property to be dedicated or the Improvements unless they are constructed in conformity with the Improvement Plans and Improvement Standards, to the satisfaction of the Engineer and Director. Subdivider shall retain title to, shall be responsible for, and shall bear the risk of loss to, any of the Improvements constructed or installed, until such time as the Improvements are accepted by the City. Title to and ownership of the Improvements and any real property to be dedicated shall vest absolutely in the City upon completion and acceptance of such Improvements by the City Council. The City shall not accept the Improvements unless title to the Improvements is entirely free from all liens.

Prior to acceptance, at City’s request, Subdivider shall supply the City with appropriate lien releases, at no cost to and in a form acceptable to the City.

8. Acquisition and Dedication of Easements or Rights-of-Way. If any of the Improvements are to be constructed or installed on land not within the Subdivision or an already existing public right-of-way, no construction or installation shall commence before:

SUBDIVISION IMPROVEMENT AGREEMENT
City of Riverbank & LGI Homes – California LLC

A. The irrevocable offer of dedication or conveyance to City of appropriate rights-of-way, easements or other interests in real property, and appropriate authorization from the property owner to allow construction or installation of the Improvements; or B. The issuance of an order of possession by a court of competent jurisdiction pursuant to the State Eminent Domain Law (Cal. Code Civ. Proc. § 1230.010 et seq.). Subdivider shall comply in all respects with any such order of possession.

9. Final Acceptance of Work. Acceptance of the Improvement Work on behalf of the City shall be made by the City Council upon recommendation of the Engineer and Director, after satisfactory completion and inspection of all Improvements. Such acceptance shall not constitute a waiver by the City of any defects or deficiencies in the Improvements.

10. Repair of Defective Work. If, however, within a period of one (1) year after final acceptance by the City Council of the Improvements, any portion of the Improvements or any work done under this Agreement fails to fulfill any of the requirements of this Agreement, the Improvement Plans or the Improvement Standards, Subdivider shall without delay and without any cost to City, repair, replace or reconstruct any defective or otherwise unsatisfactory part or parts of the Improvements or work. If the Subdivider fails to act promptly in accordance with this requirement, or if the exigencies of the situation require repairs or replacements to be made before Subdivider can be notified or correct the situation, then the City may, at its option, make the necessary repairs or replacements or perform the necessary work, and Subdivider shall pay to City the actual cost of such repairs plus fifteen percent (15%) within thirty (30) days of the date of billing for such work by City.

11. Securities. Prior to approval by City of the Final Map, Subdivider shall furnish to the City the following improvement Securities in the amounts set forth in Exhibit C. Improvement security shall be of the type as provided for in Government Code Section 66499. Bonds shall be by one or more duly authorized corporate sureties licensed to do business in California:

A. Performance Security. The total amount of performance security (“Performance Security”) shall equal 100% of the final Cost Estimate. The Performance Security shall be in the form of a bond naming the City as oblige, or a certificate of deposit made payable only to the City, or cash.

B. Payment Security. The total amount of payment security (“Payment Security”) shall equal 50% of the final Cost Estimate to secure payment to all contractors and subcontractors performing work on said Improvements and all persons furnishing labor, materials, or equipment to them for said Improvements. Payment Security shall be in the form of a bond naming the City as oblige, or a certificate of deposit made payable only to the City, or cash.

C. Partial Acceptance and Reduction of Performance Security.

Performance Security may be reduced as work progresses only for the work satisfactorily completed and accepted by the City Engineer. Upon written request from the Subdivider, the City Engineer with the concurrence of the Director of Public Works shall determine the value of work completed satisfactorily and may authorize release of a portion of the security. In no event shall such security be reduced by more than 90% of the value of the work completed. Upon final

SUBDIVISION IMPROVEMENT AGREEMENT
City of Riverbank & LGI Homes – California LLC

completion and acceptance of work as determined by the City Engineer and Director of Public Works, a notice of acceptance shall be filed with the Stanislaus County Recorder. 10% of such security shall be retained for 35 days after the filing of such notice or longer period if required by law.

D. Guarantee and Warranty Security. Securities to guarantee workmanship shall be in the amount of ten percent (10%) of the estimated cost of the Improvements, as stated in Section 6 above, to guarantee and warrant the Improvements for a period of one (1) year following their completion and acceptance against any defective work or labor done, or defective materials.

E. Bonds. Any bonds submitted as Securities shall be executed by a surety company authorized to conduct a surety business in California and shall be in a form as specified by the Subdivision Laws and approved by the City. All Securities deposited as bonds under this Agreement shall be irrevocable, shall not be limited as to time (except as to the guarantee and warranty period), and shall provide that they may be released, in whole or part, only upon the written approval of the Director, as provided under the Subdivision Laws and in Section 12 below.

All Securities shall expressly obligate the surety for any extension of time authorized by the City for Subdivider’s completion of the Improvements, whether or not the surety is given notice of such an extension by the City. No change, alteration or addition to the terms of this Agreement or the plans and specifications incorporated herein shall in any manner affect the obligation of the sureties, except as required by the Subdivision Laws.

F. Records. Evidence of the Securities required by this Agreement shall be kept on file with the City Clerk. If the City Council gives specific, written approval to replace the Securities by another approved security, such replacement Securities shall be filed with the City Clerk and, upon filing, shall be deemed to be incorporated into this Agreement. Upon filing of replacement Securities with the City Clerk, the replaced Securities may be released.

12. Release of Securities. The Securities required by this Agreement shall be released in accordance with the Subdivision Laws and the following provisions:

A. Faithful Performance Securities. Performance Securities may be reduced as work progresses only for the work satisfactorily completed and accepted by the City Engineer.

Upon written request from the Subdivider, the City Engineer, with the concurrence of the Director of Public Works shall determine the value of the work completed satisfactorily and may authorize release of a portion of the value of the work completed. In no event shall such security be reduced by more than 90% of the value of the work completes. Upon final completion, and acceptance of the work as determined by the City Engineer and Director of Public Works, a notice of acceptance shall be files with the Stanislaus County Recorder.

B. Payment Security. Payment Security shall be released upon City’s final acceptance of the improvements.

C. Guarantee and Warranty Securities. The Securities provided for guarantee and warranty of workmanship shall be released after one (1) year following the completion and acceptance of the Improvements, and inspection thereof by the City’s Construction Inspector and approved by the Engineer. If, however, the Engineer and Director determine there

SUBDIVISION IMPROVEMENT AGREEMENT
City of Riverbank & LGI Homes – California LLC

are defects in the Improvements that require correction pursuant to Section 10 above, the Director shall utilize the Securities to make all necessary corrections, including payment of reasonable expenses and fees and attorney’s fees.

13. Inspections.

A. The City reserves the right to inspect all Improvements at any time.

Subdivider shall at all times maintain safe access for inspection of the Improvements.

B. Upon completion of the Improvements the Subdivider may request a final inspection by the City’s Construction Inspector. If the Construction Inspector determines that the Improvements have been completed in accordance with all Improvement Standards and Subdivision Laws, then the Director shall certify the completion of the Improvements to the City Council, to accept or reject in their sole discretion. The City bears no liability for any costs or expenses resulting from delays in inspections.

C. Subdivider shall bear all costs of inspection and certification, including but not limited to the direct costs of all third-party inspection agencies and City inspection consultants.

14. Default of Subdivider.

A. Default of Subdivider. Events of default by (“Default”) by Subdivider may include, but shall not be limited to, any of the following:
i. Subdivider’s failure to timely complete construction of the Improvements;
ii. Subdivider’s failure to timely cure any defect in the Improvements to the satisfaction of the Director;
iii. Subdivider’s failure to timely deposit additional Securities as may be required by this Agreement;
iv. Subdivider’s insolvency, appointment of a receiver, or the filing of any petition in bankruptcy either voluntary or involuntary which Subdivider fails to discharge within thirty (30) days;
v. the commencement of a foreclosure action against the Subdivision or a portion thereof, or any conveyance in-lieu or in avoidance of foreclosure; or vi. Subdivider’s failure to perform any material obligation under this Agreement.

B. Notice of Default. In the event of Subdivider’s default, Subdivider shall be deemed to be in breach of this Agreement and the City may serve written notice upon Subdivider and Subdivider’s surety, if any, of the breach of this Agreement. Subdivider shall have fifteen (15) days from receipt of written notice by City to cure any default.

SUBDIVISION IMPROVEMENT AGREEMENT
City of Riverbank & LGI Homes – California LLC

C. Remedies; Performance by City.
i. In the event of Subdivider’s default under this Agreement, and the applicable cure period set forth in this Paragraph has expired without such default having been cured, the City may thereafter deliver a notice of breach to Subdivider and Subdivider’s surety, if any. If the default remains uncured within fifteen (15) days from receipt of the written notice of breach, Subdivider authorizes the City to complete all work on the Improvements at the sole expense of Subdivider, and Subdivider authorizes to utilize the Securities to complete all work on the Improvements and to pay all labor costs of contractors, subcontractors and workers related to the Improvements. The City may take over the Improvements and prosecute the same to completion, by contract or by any other method the City may deem advisable, for the account and at the expense of Subdivider, and Subdivider shall be liable to City for any excess cost or damages incurred by the City thereby. In the event the City takes over the Improvements or prosecutes the same to completion, the City, without liability for so doing, may take possession of, and utilize such materials, appliances, equipment, plant and other property belonging to Subdivider as may be necessary for completion of the Improvements.
ii. The City reserves to itself all remedies available to it at law or in equity for breach of Subdivider’s obligations under this Agreement. The right of the City to draw upon or utilize the Securities is additional to and not in lieu of any other remedy available to the City.
iii. Failure of Subdivider to comply with the terms of this Agreement shall constitute consent to the filing by the City of a notice of violation against all the lots in the Subdivision, or to rescind the approval or otherwise revert the Subdivision to acreage. The remedy provided by this Subsection is in addition to and not in lieu of other remedies available to the City, and is not required to implement other available remedies. Subdivider agrees that the choice of remedy or remedies for Subdivider’s default shall be at the discretion of the City. iv. In the event that Subdivider fails to perform any obligation hereunder, Subdivider agrees to pay all costs and expenses incurred by the City in securing performance of such obligations, including but not limited to costs of suit and attorney’s fees, costs of Improvements in the event of failure of performance, and all administrative costs. Such costs and fees shall be a proper charge against the Securities of Subdivider. v. The failure of the City to take an enforcement action with respect to a default or breach, or to declare a default or breach, shall not be construed as a waiver of that default or breach or any subsequent default or breach of Subdivider.

D. Lien. In accordance with the Subdivision Laws (Gov. Code § 66499), the recordation of this Agreement creates a lien attached to the property underlying the Subdivision and has the priority of a judgment lien in the amount necessary to complete the Improvements.

SUBDIVISION IMPROVEMENT AGREEMENT
City of Riverbank & LGI Homes – California LLC

15. Environmental Warranty.

A. For purposes of this Agreement, the terms below have the following meanings:
i. “Environmental Laws” shall mean any federal, state, or local law, rule, regulation administrative or court order, ordinance, regulatory guidance document, standard, or requirements of any government authority regulating, relating to, or imposing liability standards of conduct concerning Hazardous Substances, or that pertains to the protection of human health or the environment, including, but not limited to, the Comprehensive Environmental Response, Conservation and Liability Act of 1980 (42 U.S.C. §§ 9601 et seq.); the Resource Conservation and Recovery Act of 1976 (42 U.S.C. §§6901 et seq.); the Clean Water Act (33 U.S.C. §§1251 et seq.); the Toxic Substances Control Act (15 U.S.C. §§ 2601 et seq.); the Hazardous Materials Transportation Act (29049 U.S.C. §§ 1801 et seq.); the Insecticide, Fungicide and Rodenticide Act (7 U.S.C. §§ 136 et seq.); the Superfund Amendments and Reauthorization Act (42 U.S.C. §§ 6901 et seq.); the Clean Air Act (42 U.S.C. §§ 7401 et seq.); the Safe Drinking Water Act (42 U.S.C. §§ 300f et seq.); the Solid Waste Disposal Act (42 U.S.C. §§ 6901 et seq.); the Surface Mining Control and Reclamation Act (30 U.S.C. §§ 1201 et seq.); the Occupational Safety and Health Act (29 U.S.C. §§ 655, 657); the California Underground Storage of Hazardous Substances Act (Health and Safety Code §§ 25280 et seq.); the California Hazardous Waste Control Act (Health and Safety Code §§ 25100 et seq.); the California Safe Drinking Water and Toxic Enforcement Act (Health and Safety Code §§ 24249.5 et seq.); and the Porter-Cologne Water Quality Control Act (Water Code §§ 13000 et seq.); together with any amendments of or regulations promulgated under the statutes cited above.
ii. “Hazardous Substances” or “Hazardous Substance” shall include any hazardous, toxic or dangerous waste, substance or material, pollutant or contaminant, as so defined under any Environmental Laws or any substance which is toxic, explosive, corrosive, flammable, infectious, radioactive, carcinogenic, mutagenic or otherwise hazardous, or any substance which contains gasoline, diesel fuel or other petroleum hydrocarbons, polychlorinated biphenyls (PCBs), radon gas, urea formaldehyde, asbestos, lead, or electromagnetic waves.

Hazardous Substances include any hazardous or toxic substance, material or waste which is regulated by the State of California, the United States government, or any other governmental authority with jurisdiction over the Property. Hazardous Materials include asbestos 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 Property which substance causes the Property (or any part thereof) to be in material violation of Environmental Laws.

B. Prior to acceptance of any Improvements by the City, Subdivider shall provide the City with a written warranty that:
i. Subdivider and the property being dedicated are in compliance with all Environmental Laws and are not subject to any existing, pending or threatened investigation by a federal, state, or local governmental authority regarding violations of Environmental Laws.

SUBDIVISION IMPROVEMENT AGREEMENT
City of Riverbank & LGI Homes – California LLC

ii. Subdivider and its third party agents, contractors and subcontractors have not used, generated, manufactured, produced, discharged, or released on, under, or about the property to be dedicated, any Hazardous Substance except in accordance with all applicable Environmental Laws.
iii. Subdivider has not caused or permitted the release or discharge of, and has no knowledge of the release, discharge, or presence of Hazardous Substances on the property to be dedicated or the migration of any Hazardous Substances from or to any other property adjacent to, or in the vicinity of, the property to be dedicated.

C. Throughout the term of this Agreement, Subdivider shall give written notice within fifteen (15) days to the City of:
i. Any proceeding or investigation by any federal, California, or local governmental authority regarding the presence of Hazardous Substances on the property to be dedicated or the migration thereof from or to any other property adjacent to, or in the vicinity of, the property to be dedicated;
ii. Any claims made or threatened by any third party against the City or property to be dedicated regarding any loss or injury resulting from any Hazardous Substances; and
iii. Subdivider’s discovery of any occurrence or condition on any property to be dedicated or any property adjacent to, or in the vicinity of the property to be dedicated that could cause the property to be dedicated or any part thereof to be subject to any restrictions on its ownership, occupancy, use for the purpose for which it is intended, transferability, or suit under any Environmental Law.

16. Design or Construction Defect.

A. After acceptance of the Improvements, the Subdivider shall remain obligated to eliminate any defect in design or dangerous condition caused by a latent design or construction defect.

B. Provisions of this section shall remain in full force and effect for ten (10) years following the acceptance of the Improvements by the City.

C. It is the intent of this section that Subdivider shall be responsible for all liability for design and construction of the Improvements and that the City shall not be liable for any negligence, nonfeasance, misfeasance, or malfeasance in approving, reviewing, checking, or correcting any plans or specifications or in approving, reviewing or inspecting any Improvement Work. The Securities shall not be required to cover the provisions of this paragraph.

17. No Agency Relationship. Neither Subdivider nor any of Subdivider’s agents or contractors are or shall be considered to be agents of the City in connection with the performance of Subdivider’s obligations under this Agreement. City elected and appointed councils, commissions, officers, agents, employees and representatives (“City Agents”) shall not, be liable

SUBDIVISION IMPROVEMENT AGREEMENT
City of Riverbank & LGI Homes – California LLC

or responsible for any accident, loss or damage, regardless of the cause, happening or occurring to the Improvement Work or Improvements specified in this Agreement prior to the completion and acceptance of the Improvement Work or Improvements. All such risks shall be the responsibility of and are hereby expressly assumed by Subdivider.

18. Other Agreements. Nothing contained in this Agreement shall preclude the City from expending monies pursuant to agreements concurrently or previously executed between the Parties, or from entering into agreements with other subdividers for the apportionment of costs of water and sewer mains, or other improvements, pursuant to the provisions of the City ordinances providing therefore, nor shall anything in this Agreement commit the City to any such apportionment.

19. Indemnity/Hold Harmless.

A. The City and City Agents shall not be liable and Developer agrees to indemnify, hold harmless and defend the City and City Agents from any and all claims, costs, and liability for claims of damage, for any property damage or personal injury, including death, which may arise as a result of any negligent acts or omissions by Developer or Developer’s contractors, subcontractors, agents, or employees in connection with the construction, improvement, or operation, of the Improvements, including all claims, demands, causes of action, liability, or loss because of, or arising out of, in whole or in part, the design or construction of the Improvements.

This indemnification and agreement to hold harmless shall extend to injuries to persons and damages or taking of property resulting from the design or construction of the Subdivision and the Improvements as provided herein, and in addition, to injuries to adjacent property owners as a consequence of the diversion of waters from the design or construction of public drainage systems, streets and other Improvements.

B. Acceptance by the City of the Improvements shall not constitute an assumption by the City of any responsibility for any damage or taking covered by this Section.

C. Provisions of this paragraph shall remain in full force and effect for ten (10) years following the acceptance by the City of the Improvements. It is the intent of this section that Subdivider shall be responsible for all liability for design and construction of the Improvements installed or Improvement Work done pursuant to this Agreement and that City shall not be liable for any negligence, nonfeasance, misfeasance, or malfeasance in approving, reviewing, checking, or correcting any plans or specifications or in approving, reviewing or inspecting any Improvement Work. The Security shall not be required to cover the provisions of this section.

D. City shall not be liable for approving, reviewing, checking, or correcting any plans or specifications or for approving, reviewing or inspecting any Improvement Work.

Nothing contained in this section is intended to, or shall be deemed to, limit or waive any protections or immunities afforded by law to the City or City Agents for the approval of the plan or design of the Improvements, including but not limited to the protections and immunities afforded by Government Code section 830.6. Subdivider shall defend, indemnify, and hold harmless the City and City’s Agents from any claim, action, or proceeding against City or City Agents to attack, set aside, void, or annul an approval of the City or City Agents concerning the Subdivision.

SUBDIVISION IMPROVEMENT AGREEMENT
City of Riverbank & LGI Homes – California LLC

20. Insurance. Without limiting Subdivider’s duty to indemnify the City, Subdivider shall maintain in effect throughout this Agreement a policy or policies of insurance with the specifications and limits of liability specified herein.

A. Proof of Insurance.
i. Subdivider shall provide to the City a properly executed certificate of insurance, in a form satisfactory to the City Attorney for commercial general liability coverage; automobile liability, worker’s compensation insurance, professional liability insurance, and course of construction coverage from an insurance provider approved by the City and licensed by the California Department of Insurance (“Certificates”).
ii. Each Certificate shall provide that such insurance will not be cancelled, reduced in coverage, or allowed to expire without thirty (30) days’ prior written notice to the City.

B. Minimum insurance limits. Contractor shall maintain limits no less than:
i. General Liability. Subdivider shall maintain such commercial general liability insurance with an insurance company admitted in California with an AM Best Rating of not less than A+, as shall protect the City, the City’s Agents, Subdivider, contractors, and subcontractors from claims for damages for personal injury, including death, as well as from claims of property damage which may arise from acts or omissions from Subdivider, contractors, or subcontractors for in relation to this Agreement. The amount of such insurance shall not be less than two million dollars ($2,000,000.00) per occurrence with umbrella liability coverage of not less than two million dollars ($2,000,000.00). Such insurance shall also:

1. Name the City and the City Agents as insured by
endorsement with respect to performance of this Agreement. The coverage shall contain no special limitation on the scope of its protection afforded to the above-listed additional insured; and

2. Be primary with respect to any insurance or self-insurance programs covering the City and City Agents.
ii. Automotive Liability Insurance. Subdivider shall maintain automotive liability insurance covering all motor vehicles, including owned, leased, non-owned, and hired vehicles, used in providing services or performing work under this Agreement for bodily injury and property damage with a limit of not less than one million dollars ($1,000,000.00) for each occurrence. Such insurance shall also:

1. Name City and City Agents as insured by endorsement with respect to performance of this Agreement. The coverage shall contain no special limitation on the scope of its protection afforded to the above-listed additional insured; and

2. Be primary with respect to any insurance or self-insurance programs covering the City and City Agents.

SUBDIVISION IMPROVEMENT AGREEMENT
City of Riverbank & LGI Homes – California LLC

iii. Worker’s Compensation Insurance.

1. Subdivider shall maintain worker’s compensation insurance in accordance with California Labor Code Section 3700, and with a limit of not less than one million dollars ($1,000,000.00) per occurrence for employer’s liability.

2. In the event any work is sublet, Subdivider shall require any contractor or subcontractor to provide worker’s compensation insurance for all contractor’s employees or subcontractor’s employees, unless such employees are covered by the protection afforded by Subdivider.

C. Course of Construction. Subdivider shall maintain course of construction insurance for a value of not less than the completed value of the Subdivision and the Improvements.

D. Professional Liability Insurance. Subdivider shall maintain professional liability insurance, as applicable, in the amount of not less than two million dollars ($2,000,000.00) per claim and three million dollars ($3,000,000.00) in the aggregate, to cover liability for malpractice or errors or omissions made in the course of rendering professional services.

21. No Vesting of Rights. Performance of this Agreement shall not be construed to vest Subdivider’s rights with respect to any change in any zoning or building law or ordinance.

22. Notices. Any notice or communication required hereunder between City and Subdivider 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 delivery. If personally delivered, a notice shall be deemed to have been given when delivered to the Party to whom it is addressed. If given by registered or certified mail, such notice or communication 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, or (b) 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 may at any time, by giving ten (10) days written notice to the other Party, 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 their addresses set forth below:

If to City: City of Riverbank
6707 Third Street
Riverbank, CA 95367
Attn: Marisela H. Garcia, City Manager
With copies to: City of Riverbank
6707 Third Street

SUBDIVISION IMPROVEMENT AGREEMENT
City of Riverbank & LGI Homes – California LLC

Riverbank, CA 95367
Attn: Community Development Director
and Brenner White, LLP
1414 K Street, 3
rd Floor
Sacramento, California 95814
Attn: Douglas L. White, Esq.

If to Subdivider: LGI Homes – California, LLC
2251 Douglas Blvd. Ste 12A
Roseville, CA 95661
Attn: President
and

23. General Provisions:

A. Governing Law. The validity, interpretation and performance of this Agreement shall be controlled by and construed pursuant to the laws of the State of California.

B. Compliance with Laws. Subdivider, its agents, employees, contractors, and subcontractors shall comply with all federal, state and local laws in the performance of the work required by this Agreement, including but not limited to all Improvement Standards or any other applicable land use approvals. Subdivider shall be responsible for obtaining all applicable licenses and permits.

C. Venue. Venue for any legal proceedings initiated in connection with this Agreement shall be in the Superior Court for the County of Stanislaus.

D. Severability. The provisions of this Agreement are severable. If any provision of this Agreement is held invalid by a court of competent jurisdiction, or if any provision of this Agreement is rendered invalid or unenforceable according to the terms of any federal or state statute, which becomes effective after the Effective Date of this Agreement, the remaining provisions shall continue in full force and effect and shall be construed to give effect to the intent of this Agreement.

E. Waiver. The waiver by either Party of a breach by the other of any provision of this Agreement shall not constitute a continuing waiver or a waiver of any subsequent breach of the same or a different provision of this Agreement. No Party shall be deemed to have made any such waiver unless it is in writing and signed by the Party so waiving.

F. Approvals by the City. Any approval or consent that is to be given by the City under this Agreement shall be in writing, and any approval or consent that is not in writing shall not be binding on the City.

SUBDIVISION IMPROVEMENT AGREEMENT
City of Riverbank & LGI Homes – California LLC

G. Integration. This Agreement, together with its specific references, attachments and Exhibits, constitute all of the agreements, understandings, representations, conditions, warranties and covenants made by and between the Parties with respect to the subject matter of this Agreement. Neither Party shall be liable for any representations made, express or implied, not specifically set forth herein. It is the intention of the Parties that this Agreement shall supersede any prior agreements, discussions, commitments, representations or agreements, written, electronic or oral, between the Parties with respect to the subject matter of this Agreement.

H. Captions. The captions of this Agreement are for convenience and reference only and the words contained therein shall in no way be held to explain, modify, amplify or aid in the interpretation, construction or meaning of the provisions of this Agreement.

I. Mandatory and Permissive. “Shall” and “will” and “agrees” are mandatory. “May” or “can” are permissive.

J. Successors and Assigns – Covenant Running with the Land. Subdivider shall not assign any of its obligations under this Agreement without the prior written consent of the City. Notwithstanding the above, all representations, covenants and warranties specifically set forth in this Agreement, by or on behalf of or for the benefit of any or all of the Parties, shall be binding upon and inure to the benefit of such Party, its successors and assigns. This Agreement, however, shall not be binding on any lot that has been conveyed to an individual homebuyer and for which a Certificate of Occupancy has been issued by the City.

K. Counterparts. This Agreement may be executed simultaneously or in several counterparts, each of which shall be deemed an original, but which together shall constitute one and the same instrument.

L. Other Documents. Parties agree that they shall cooperate in good faith to accomplish the objectives of this Agreement and to that end, agree to execute and deliver such other instruments or documents as may be necessary and convenient to fulfill the purposes and intentions of this Agreement.

M. Time is of the Essence. Time is of the essence in this Agreement in each covenant and term and condition herein.

N. Authority. The Parties 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 this Agreement have been fully complied with.

O. Construction and Interpretation. It is agreed and acknowledged by Subdivider that the provisions of this Agreement have been arrived at through negotiation, and that Subdivider has had a full and fair opportunity to revise the provisions of this Agreement and to have such provisions reviewed by legal counsel. Therefore, the normal rule of construction that any ambiguities are to be resolved against the drafting Party shall not apply in construing or interpreting this Agreement.

SUBDIVISION IMPROVEMENT AGREEMENT
City of Riverbank & LGI Homes – California LLC

P. Advice of Legal Counsel. Each Party acknowledges that it has reviewed this Agreement with its own legal counsel, and based upon the advice of that counsel, freely entered into this Agreement.

Q. Attorney Fees and Costs. If any action at law or in equity, including action for declaratory relief, is brought to enforce or interpret any provision of this Agreement, the prevailing Party shall be entitled to an award of reasonable attorney fees and costs, which may be set by the court in the same action or in a separate action brought for that purpose, in addition to any other relief to which such Party may be entitled.

R. No Monetary Damages Against the City. In the event of the City’s default under this Agreement, Subdivider agrees that Subdivider may not seek, and shall forever waive any right to, monetary damages against the City.

S. Modification. This Agreement may be amended only by a written instrument signed by the Parties. Subdivider shall bear all costs of amendments to this Agreement that are requested by Subdivider.

T. Exhibits. All exhibits attached hereto are incorporated into this Agreement:

Exhibit A - Resolution No. 2015-018 and Tentative Map 02-2014 Exhibit B - Final Map 03-2022
[Signatures on following page]

SUBDIVISION IMPROVEMENT AGREEMENT
City of Riverbank & LGI Homes – California LLC

IN WITNESS WHEREOF, this Agreement has been entered into by and between Subdivider and City as of the day and year first above written.

SUBDIVIDER:

LGI Homes – California, LLC
By:
___________________, President
Date: ______________________________
CITY:

CITY OF RIVERBANK, a California
municipal corporation:

By:

Marisela H. Garcia, City Manager
Date:

ATTEST:

By:

Gabriela Hernandez, City Clerk
APPROVED AS TO FORM:

By:

Tom Hallinan, City Attorney
California All-Purpose Acknowledgment
State of California )
)
County of Stanislaus )
On , before me , a Notary Public, personally
appeared ____________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

Witness my hand and official seal.
(Signature)
(Seal)
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

California All-Purpose Acknowledgment
State of California )
)
County of Stanislaus )
On , before me , a Notary Public, personally
appeared ______________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

Witness my hand and official seal.
(Signature)
(Seal)
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

EXHIBIT A
Tentative Map Resolution of Approval
Tentative Map 02-2014

EXHIBIT B
Final Map 03-2022

VICINITY MAP

NOT TO SCALE
N

EXHIBIT B
N
100 50 0 100 200
SCALE: 1" = 100'

SANTA FE STREET
B.N. & S.F. RAILROAD

PATTERSON ROAD CENTRAL AVENUE
18-RS-32
PARCEL 1 54-PM-29
PARCEL 2 54-PM-29
18-RS-32
D.N. 2002-0003882-00

SNEDIGAR ROAD
SEE SHEET 3 CLAUS ROAD CLAUS ROAD

SANTA FE STREET

SNEDIGAR ROAD
B.N. & S.F. RAILROAD JACKPOT PLACE GALLOP LANE

SIERRA AVENUE ARENA WAY

AMBLE LANE

FOAL ROAD
N
80 40 0 80 160
SCALE: 1" = 80'
18-RS-32
PARCEL 1 54-PM-29
D.N. 2002-0003882-00
18-RS-32
SEE SHEET 5 SEE SHEET 4
SEE SHEET 6

SANTA FE STREET JACKPOT PLACEGALLOP LANE

SIERRA AVENUE

AMBLE LANE

FOAL ROAD
PARCEL 1 54-PM-29
18-S-32
N
50 25 0 50 100
SCALE: 1" = 50' SEE SHEET 6
SEE SHEET 7
D.N. 2002-0003882
N
50 25 0 50 100
SCALE: 1" = 50'

SANTA FE STREET

SIERRA AVENUE ARENA WAY

AMBLE LANE
SNEDIGAR ROAD SEE SHEET 5
SEE SHEET 7
D.N. 2002-0003882
N
50 25 0 50 100
SCALE: 1" = 50' ARENA WAY

SIERRA AVENUE

SNEDIGAR ROAD
SEE SHEET 6
B.N. & S.F. RAILROAD
271.79

Item 9.10 – CC/LRA – 03/28/2023

RIVERBANK CITY COUNCIL/ LOCAL REDEVELOPMENT AUTHORITY
AGENDA ITEM NO. 9.10
SECTION 9: CONSENT CALENDAR
Meeting Date: March 28, 2023
Subject/ Title: Resolution adopting the Final Map 03-2022 Diamond Bar East – APNs: 062-020-010 and 062-020-025
From: Marisela H. Garcia, City Manager
Submitted by: Donna M. Kenney, Planning and Building Manager

RECOMMENDATION
Approve the Final Map (“FM”) for LGI Homes - California LLC and Diamond Bar East based on the required finding that the map is in conformity with the provisions of subdivision law and city code.

BACKGROUND
On March 24, 2015, the City Council adopted Resolution No. 2015-017, approving a general plan amendment to redesignate the 17.9 acres of Diamond Bar East to low density residential (LDR), which allows for a net density of zero to eight (0-8) dwelling units per acre.

On March 24, 2015, the City Council adopted Resolution No. 2015-018 which approved tentative subdivision map 02-2014 (the “Diamond Bar East Tentative Map”) and related conditions of approval, which sets forth the infrastructure obligations and conditions related to the development and build out of approximately 17.9 acres.

On March 24, 2015, the City Council adopted Ordinance No. 2015-007 to approve a rezone of 17.9 acres to Planned Development (PD), allowing for a net density of zero to eight (0-8) dwelling units per acre.

Item 9.10 – CC/LRA – 03/28/2023
On March 24, 2015, the City Council approved an Initial Study/Mitigated Negative Declaration in connection with its adoption of Ordinance No. 2015-017, which approved the Rezone for Diamond Bar East.

On April 28, 2020, the City Council with Ordinance No. 2020-007 adopted a Development Agreement with McRoy Wilbur Communities, Inc. to list and memorialize the developer’s and the City’s rights and responsibilities.

On January 26, 2022, LGI Homes – California, LLC entered into an Assumption and Assignment Agreement with McRoy Wilbur Communities, Inc. to assume the Diamond Bar East Development Agreement.

Pursuant to Riverbank Municipal Code Section §152.074 (C)(2), the City Council shall, at the meeting at which it receives the map or at its next regular meeting after the meeting at which it receives the map, approve the map if it is determined to be in conformity with the provisions of law and of this chapter. The Council shall disapprove the map if it is determined not to be in conformity with the provisions of law and of this chapter and shall advise the subdivider of its disapproval, and the reason or reasons thereof.

The City Engineer and Planning and Building Manager have reviewed the final map (Exhibit A) and have determined that the plans are in substantial compliance with city standards and with the conditions placed upon the tentative map.

FISCAL IMPACT
None.

ATTACHMENTS

1. Draft City Council Resolution 2023-xxx
Exhibit A - Final Map

2. Tentative Map

CC/LRA – 3/28/2023
CC Resolution 2023-

CITY OF RIVERBANK
RESOLUTION 2023-

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF RIVERBANK, CALIFORNIA
APPROVING FINAL MAP 03-2022 FOR LGI HOMES – CALIFORNIA LLC FOR DIAMOND BAR EAST (APNS 062-020-010 and 062-020-025)

THE CITY OF RIVERBANK CITY COUNCIL (HEREAFTER REFERRED TO AS THE “CITY COUNCIL”) DOES HEREBY RESOLVE THAT:

WHEREAS, LGI Homes – California LLC is the property owner and applicant for the Diamond Bar East Final Map 03-2022; and
WHEREAS, on March 24, 2015, the City Council adopted Resolution No. 2015- 017, approving a general plan amendment to redesignate the 17.9 acres of Diamond Bar East to low density residential (LDR); and
WHEREAS, on March 24, 2015, the City Council adopted Resolution No. 2015- 018 which approved tentative subdivision map 02-2014 (the “Diamond Bar East Tentative Map”) and related conditions of approval, which sets forth the infrastructure obligations and conditions related to the development and build out of approximately 17.9 acres; and WHEREAS, on February 23, 2016, the City Council adopted Ordinance No. 2016- 010 approving Rezone 01-2015. This action rezoned the property to Planned Development (PD) and allows for a density of eight to sixteen (8-16) dwelling units per net acre; and
WHEREAS, on March 24, 2015, the City Council adopted Ordinance No. 2015- 007 to approve a rezone of 17.9 acres to Planned Development (PD), allowing for a net density of zero to eight (0-8) dwelling units per acre; and WHEREAS, on March 24, 2015, the City Council approved an Initial Study/Mitigated Negative Declaration in connection with its adoption of Ordinance No. 2015-017, which approved the Rezone for Diamond Bar East; and WHEREAS, on April 28, 2020, the City Council with Ordinance No. 2020-007 adopted a Development Agreement with McRoy Wilbur Communities, Inc. to list and memorialize the developer’s and the City’s rights and responsibilities; and ATTACHMENT 1

CC/LRA – 3/28/2023
CC Resolution 2023-
WHEREAS, on January 26, 2022, LGI Homes – California, LLC entered into an Assumption and Assignment Agreement with McRoy Wilbur Communities, Inc. to assume the Diamond Bar East Development Agreement; and
WHEREAS, the City has now received a Final Map application to subdivide the approximately 17.9 acre site into eighty-five (85) lots at APNs 062-020-010 and 062-020- 025; and
WHEREAS, the City Engineer and Planning and Building Manager have reviewed the final map and have determined that the plans are in substantial compliance with city standards and with the conditions placed upon the tentative parcel map; and WHEREAS, pursuant to Riverbank Municipal Code Section §152.074 (C)(2), the City Council shall, at the meeting at which it receives the map or at its next regular meeting after the meeting at which it receives the map, approve the map if it is determined to be in conformity with the provisions of law and of this chapter.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Riverbank hereby authorizes the City Engineer to record Final Map 03-2022 (Exhibit A) for Diamond Bar East and LGI Homes – California LLC upon determination that the map is in conformity with the provisions of state law.

PASSED AND ADOPTED by the City Council of the City of Riverbank at a regular meeting held on the 28th day of March 2023; motioned by Councilmember ______, seconded by Councilmember ______, and upon roll call was carried by the following vote of ___:

AYES:

NAYS:

ABSENT:

ABSTAINED:

ATTEST: APPROVED:
________________________ ________________________
Gabriela Hernandez Richard D. O’Brien
City Clerk Mayor

VICINITY MAP

NOT TO SCALE
N

EXHIBIT A
N
100 50 0 100 200
SCALE: 1" = 100'

SANTA FE STREET
B.N. & S.F. RAILROAD

PATTERSON ROAD CENTRAL AVENUE
18-RS-32
PARCEL 1 54-PM-29
PARCEL 2 54-PM-29
18-RS-32
D.N. 2002-0003882-00

SNEDIGAR ROAD
SEE SHEET 3 CLAUS ROAD CLAUS ROAD

SANTA FE STREET

SNEDIGAR ROAD
B.N. & S.F. RAILROAD JACKPOT PLACE GALLOP LANE

SIERRA AVENUE ARENA WAY

AMBLE LANE

FOAL ROAD
N
80 40 0 80 160
SCALE: 1" = 80'
18-RS-32
PARCEL 1 54-PM-29
D.N. 2002-0003882-00
18-RS-32
SEE SHEET 5 SEE SHEET 4
SEE SHEET 6

SANTA FE STREET JACKPOT PLACEGALLOP LANE

SIERRA AVENUE

AMBLE LANE

FOAL ROAD
PARCEL 1 54-PM-29
18-S-32
N
50 25 0 50 100
SCALE: 1" = 50' SEE SHEET 6
SEE SHEET 7
D.N. 2002-0003882
N
50 25 0 50 100
SCALE: 1" = 50'

SANTA FE STREET

SIERRA AVENUE ARENA WAY

AMBLE LANE
SNEDIGAR ROAD SEE SHEET 5
SEE SHEET 7
D.N. 2002-0003882
N
50 25 0 50 100
SCALE: 1" = 50' ARENA WAY

SIERRA AVENUE

SNEDIGAR ROAD
SEE SHEET 6
B.N. & S.F. RAILROAD
271.79

EXHIBIT B

Item 9.11– CC/LRA – 3/28/2023

RIVERBANK CITY COUNCIL / LOCAL REDEVELOPMENT AUTHORITY
AGENDA ITEM NO. 9.11
SECTION 9: CONSENT CALENDAR
Meeting Date: March 28, 2023
Subject: Adopt a Resolution Accepting the Annual Financial Report for Fiscal Year 2020-2021
From: Marisela H. Garcia, City Manager
Submitted By: Tammy Alcantor, Assistant City Manager-Administrative Services Director

RECOMMENDATION
It is recommended that the City Council consider adopting a Resolution accepting the Annual Financial Report for Fiscal Year 2020-2021.

SUMMARY
On an annual basis, all cities are required to perform a financial audit performed by an independent accounting firm. Due to the transition in financial software in 2015, the financial audit for Fiscal Year 2020-2021 was delayed for the completion of prior years.

The firm of Gallagher Gatewood (formerly Clendenin Bird & Company) has completed this financial audit and is being presented to the City Council for acceptance.

BACKGROUND
Government Auditing Standards issued by the Comptroller General of the United States, require that all entities of local government, including special districts, undergo an annual review (audit) of their financial records. The purpose of this review is to obtain reasonable assurance about whether the financial statements for these entities are free from material mistakes. These audits involve performing procedures to obtain evidence about the amounts and disclosures included in the financial statements. The audit firm makes an assessment of the risks that these statements include material misstatements, whether they are due to fraud or errors. The auditors make an assessment about whether the City has sufficient internal controls in place to ensure that there are no instances of fraud and to limit the opportunity for errors in the financial records.

Item 9.11– CC/LRA – 3/28/2023
For Fiscal Year 2020-2021 the City received an Unqualified Opinion, which states that the auditor feels the City followed all accounting rules appropriately and that the financial reports are an accurate representation of the City’s financial condition.

The Annual Financial Reports begin with a Management Discussion & Analysis (MD&A) prepared by City staff which highlights important details included in the Financial Statements. In reviewing the Annual Financial Report, this MD&A provides the general public with an overview of the financial status of the City, including those factors that may have contributed to positive or negative changes to the City’s financial position.

The Governmental Accounting Standards Board (GASB), which is the body that oversees all accounting standards for governmental agencies, requires that financial statements be presented in 2 different ways:

1. Government-Wide Financial Statements which reports information about the City as a whole, and provides viewers with a broad overview of the City’s finances.

These reports are similar to those issued by a private company, and

2. Fund Financial Statements which provide detailed information about the City’s most significant funds and not the City as a whole.

In reviewing and evaluating the financial status of the City, the Statement of Net Position (a government-wide financial statement) on page 13 of each report will serve as a useful indicator as to whether the City’s financial position is improving or deteriorating. This Statement of Net Position is divided into two categories:

1. Governmental Activities, which includes police, public works, community development, grants and special programs, and general government. Taxes and intergovernmental revenues such as sales tax, property tax, vehicle license fees, user fees, franchise fees, and federal and state grants primarily finance these activities, and

2. Proprietary Activities, which include the City’s water and sewer systems, in addition to the City’s Community Center and the LRA. Fees and rents are charged to customers to help cover the cost of the services it provides.

Under the Fund Financial Statements, major funds are grouped together based on specific activities, all other funds are shown under “Other Funds.” Page 16 of the report provides information regarding the major fund groups of the City, including the General Fund, CDBG (Federal & State Grants), Successor RDA LMI Housing, and System Development Fees.

As stated before, major funds are grouped together under one heading. For example, the “General Fund” groups together Fund 101 (General Fund), Fund 201 (Benefit Liabilities Fund), Fund 119 (Fleet Services) and Fund 134 (Recreation Fund).

OVERALL NET POSITION
Overall, the City’s Net Position increased by 2.3% over the 2019-2020 fiscal year. This was primarily due to the increase in Sales Tax, Property Tax, and Charges for services

Item 9.11– CC/LRA – 3/28/2023
related to Public Works. Revenues for the City’s Governmental and Proprietary Funds exceeded expenditures for the fiscal year by approximately $7,300,000 (as noted on Page 15 of the report thereby increasing unrestricted funds available. The City’s General Fund ended with an increase of 51% in “unassigned” fund balance.

STRATEGIC PLAN
This report is in alignment with the City Council’s Strategic Plan Goal to “Ensure Financial Stability.”

FINANCIAL IMPACT
There is no financial impact associated with the acceptance of these reports.

ATTACHMENTS

1. Resolution 2023-

2. Annual Financial Report Year Ended June 30, 2021

CC/LRA – 3/28/2023
CC Resolution 2023-

CITY OF RIVERBANK
RESOLUTION 2023-

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF RIVERBANK, CALIFORNIA

ACCEPTING THE ANNUAL FINANCIAL REPORT FOR
FISCAL YEAR 2020-2021

THE CITY OF RIVERBANK CITY COUNCIL (HEREAFTER REFERRED TO AS THE “CITY COUNCIL”) DOES HEREBY RESOLVE THAT:

WHEREAS, the Comptroller General of the United States has issued Government Auditing Standards which must be met by the City; and
WHEREAS, on an annual basis the City of Riverbank is required to undergo a financial review (audit) which includes procedures to obtain evidence about the amounts and disclosures included in the Annual Financial Report; and WHEREAS, the annual audit is required to be performed by an independent accounting firm; and
WHEREAS, the firm of Gallagher Gatewood has completed the audit of Fiscal Year 2020-2021; and
WHEREAS, Clendenin Bird & Company has issued an Unqualified Opinion for Fiscal Year 2020-2021 which states that in their opinion the financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the aggregate discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Riverbank.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Riverbank hereby accepts the Annual Financial Report for Fiscal Year 2020-2021.

PASSED AND ADOPTED by the City Council of the City of Riverbank at a regular meeting held on the 28th day of March, 2023; motioned by Councilmember , seconded by Councilmember , and upon roll call was carried by the following City Council vote of :

AYES:

NAYS:

ABSENT:

ATTACHMENT 1

CC/LRA – 3/28/2023
CC Resolution 2023-
ABSTAIN:

ATTEST: APPROVED:
________________________________ __________________________ Gabriela Hernandez Richard D. O’Brien
City Clerk Mayor
Attachment: Annual Financial Report Year Ended June 30, 2021

CITY OF RIVERBANK

ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2021
ATTACHMENT 2

CITY OF RIVERBANK, CALIFORNIA
Table of Contents
Page

FINANCIAL SECTION
Independent Auditor’s Report 1-2
Management’s Discussion And Analysis (unaudited) 3-12
Basic Financial Statements:

Government-wide Financial Statements:

Statement Of Net Position 13
Statement Of Activities 14-15
Fund Financial Statements:

Balance Sheet – Governmental Funds 16-17
Reconciliation Of The Governmental Funds Balance Sheet
To Statement Of Net Position 18
Statement Of Revenues, Expenditures, And Changes In
Fund Balances – Governmental Funds 19-20
Reconciliation Of The Statement Of Revenues, Expenditures, And Changes In Fund Balances Of Governmental Funds To
The Statement Of Activities 21
Statement Of Revenues, Expenses, And Changes In Fund
Balances – Budget And Actual – General Fund 22-23
Statement Of Revenues, Expenses, And Changes In Fund
Balances – Budget And Actual – CDBG Fund 24
Statement Of Revenues, Expenses, And Changes In Fund
Balances – Budget And Actual – System Development Fund 25 Statement Of Revenues, Expenses, And Changes In Fund
Balances – Budget And Actual – Successor RDA LMI Housing Fund 26 Statement Of Net Position – Proprietary Funds 27
Statement Of Revenues, Expenses, And Changes In Net
Position – Proprietary Funds 28
Statement Of Cash Flows – Proprietary Funds 29-30
Statement Of Fiduciary Net Position –
Agency Funds 31
Notes To The Basic Financial Statements 32-60

REQUIRED SUPPLEMENTAL FINANCIAL DATA
Schedule of Proportionate Share of the Net Pension Liability – Miscellaneous 61 Schedule of Proportionate Share of the Net Pension Liability – Safety 62 Schedule of Contributions – Miscellaneous 63
Schedule of Contributions – Safety 64

CITY OF RIVERBANK, CALIFORNIA
Table of Contents
Page
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES:

Definitions 65-66
Combining Balance Sheet – Nonmajor Governmental Funds 67-70 Combining Statement Of Revenues, Expenditures And Changes In Fund Balances – Nonmajor Governmental Funds 71-74

OTHER REPORTS
Schedule Of Federal Expenditures 75
Schedule Of Findings And Questioned Costs 76
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 77-78
Independent Auditor’s Report On Compliance With Requirements That Could Have A Direct And Material Effect On
Each Major Program And On Internal Control Over
Compliance In Accordance With OMB Circular A-133. 79-80 Report On Compliance With Laws And Regulations Based On An Examination Of General-Purpose Financial Statements
Performed In Accordance With The California
Transportation Development Act 81

1 INDEPENDENT AUDITOR’S REPORT
To The City Council
City Of Riverbank
State of California
We have audited the accompanying financial statements of the governmental activities, the aggregate discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Riverbank, State of California, as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

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

Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
2 Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the aggregate discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Riverbank, State of California as of June 30, 2021, and the respective changes in financial position thereof for the year then ended, in accordance with accounting principles generally accepted in the United States of America.

Other Matters
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison information on pages 3 through 12 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.

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Riverbank, State of California’s basic financial statements. The introductory section, combining and individual non-major fund financial statements are presented for purposes of additional analysis and are not a required part of the financial statements.

The combining and individual non-major fund financial statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

The introductory section has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on it.

Gallagher Gatewood

GALLAGHER GATEWOOD, A PROFESSIONAL ACCOUNTANCY CORPORATION Modesto, California
October 25, 2022

CITY OF RIVERBANK
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
(UNAUDITED)
3 This discussion and analysis of the City of Riverbank’s financial performance provides an overview of the City’s financial activities for the fiscal year ended June 30, 2020. The City’s financial statements for the fiscal year ended June 30, 2021 are presented in accordance with GASB 34. Please read Management’s Discussion and Analysis in conjunction with the City’s financial statements, notes, and supplementary schedules.

FINANCIAL HIGHLIGHTS
 The City’s governmental activities total assets exceeded liabilities (net position) at the close of the fiscal year by $83,704,724. Of this amount, $3,887,151 is in unrestricted net position, which is available to meet the City’s ongoing financial obligations. The total assets of the businesstype activities exceeded its liabilities (net position) by $34,338,721. Of this amount, $13,290,748 was unrestricted.
 Governmental revenues exceeded General and program expenses by $1,961,428. City program expenses totaled $15,761,104 for the fiscal year 2020-2021, an increase of 1% over the 2019-20 Fiscal Year. Public Works costs comprised $5,665,116 or 36% of the total expenses, whereas Public Safety comprised 35% of expenditures.
 In the City’s business-type activities (which include the Water, Sewer, Community Center and Local Redevelopment Funds), revenues exceeded expenses by $5,352,574.  The City’s General Fund ended the year with a fund balance of $9,379,318. This is an increase of 20.6% from the year ending June 30, 2020.

OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report consists of a series of financial statements. These statements include all activities of the City of Riverbank using the integrated approach as prescribed by GASB Statement No. 34. The government-wide Statement of Net position and Statement of Activities provide information about the activities of the City as a whole and present a long-term view of the City’s finances. Fund financial statements show how City services are financed in the short term as well as what remains for future spending. Fund financial statements also report the City’s operations in more detail than the governmentwide statements by providing information about the City’s most significant funds.

REPORTING THE CITY AS A WHOLE
Government-wide Financial Statements. The government-wide financial statements report information about the City as a whole, providing readers with a broad overview of the City’s finances.

These statements include all assets and liabilities of the City using the accrual basis of accounting, which is similar to the accounting method used by most private sector companies. All the current year’s revenues and expenses are taken into account in the statement of activities regardless of when cash is received or paid.

CITY OF RIVERBANK
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
(UNAUDITED)
4 The statement of net position presents information on all the City’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator as to whether the City’s financial position is improving or deteriorating.

The statement of changes in net position presents information showing how the City’s net position changed in the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported on this statement for some items that will result in cash flows in future fiscal periods (e.g., uncollected taxes, and earned but unused vacation leave).  Over time, increases or decreases in the City’s net position can be an indicator of whether its financial health is improving or deteriorating, respectively.  To assess the overall health of the City you need to consider additional non-financial factors such as changes in the City’s property tax base and the condition of the City’s roads.

The government-wide financial statements of the City are divided into two categories:
 Governmental Activities: Includes police, public works, community development (building and planning), grants and special programs, and general government. Taxes and intergovernmental revenues such as sales tax, property tax, vehicle license fees, user fees, franchise fees, and federal and state grants primarily finance these activities.  Business-type activities include the City’s water and sewer systems, in addition to the City’s Community Center and the Local Redevelopment Authority (LRA). Fees are charged to customers, including lease revenue, to help cover the costs of the services it provides.

REPORTING THE CITY’S MOST SIGNIFICANT FUNDS
Fund Financial Statements. The fund financial statements provide detailed information about the City’s most significant funds – not the City as a whole. 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.

Some funds are required to be established by State law or by bond covenants. Management establishes other funds to control and manage money for particular purposes or to show the City is meeting legal responsibilities for the use of certain taxes, grants, and other resources. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental funds – Most of the City’s basic services are reported in governmental funds, which focuses on how money flows in and out of those funds and the balances left at year-end that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial resources that can readily be converted to cash. The governmental fund statements provide a detailed, short-term view of the City’s general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs.

CITY OF RIVERBANK
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
(UNAUDITED)
5 Because the focus of the governmental funds is narrower than that of the governmental-wide financial statements, it is useful to compare the information presented for the governmental funds with similar information presented for governmental activities in the government-wide financial statements. The differences in results in the governmental funds financial statements to those in the government-wide financial statement are shown in reconciliations following the governmental funds financial statements.

Fiduciary funds—Fiduciary funds are used to account for resources held for the benefit of parties outside the City. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes. Fiduciary funds are not reflected in the City’s government-wide financial statements because the City cannot use these assets to finance its operations.

Proprietary funds – Services for which the City charges customers a fee are generally reported in proprietary funds. Proprietary funds, like government-wide statements, provide both long and shortterm financial information. The City’s proprietary funds are the same as its business-type activities, but provide more detail and additional information, such as cash flows.

GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net position. As noted earlier, net position may serve over time as a useful indicator of the City’s financial position. Below is a table showing the City’s net position as of June 30, 2021, compared to the City’s net position as of June 30, 2020.

City of Riverbank
Net Position
For the Year Ended June 30, 2021
2021 2020 2021 2020 2021 2020
Assets
Cash and Investments $23,872,353 $20,259,747 $14,700,214 $7,973,786 $38,572,567 $28,233,533 Other Assets 15,835,463 16,310,784 2,177,519 3,885,304 $18,012,982 20,196,088 Capital Assets 51,612,582 52,854,999 25,996,145 26,602,156 $77,608,727 79,457,155 Total Assets 91,320,398 89,425,530 42,873,878 38,461,246 134,194,276 127,886,776 Current Pension Plan Cont. 912,579 943,630 297,196 304,738 1,209,775 1,248,368 Liabilities
Current Liabilities 1,845,518 2,188,201 1,880,734 2,269,203 3,726,252 4,457,404 Compensated Absences 277,989 244,523 81,003 76,467 358,992 320,990 Net Pension Liability 5,672,550 5,163,927 1,727,848 1,604,307 7,400,398 6,768,234 Long-Term Liabilities 0 0 4,948,172 5,575,148 4,948,172 5,575,148 Total Liabilities 7,796,057 7,596,651 8,637,757 9,525,125 16,433,814 17,121,776 Deferral of Pension Expense 732,196 979,713 194,596 254,712 926,792 1,234,425 Net Assets
Invested in Capital Assets,
Net of Related Debt 51,612,582 52,854,999 21,047,973 20,919,458 72,660,555 73,774,457 Restricted 28,204,991 26,357,332 0 0 28,204,991 26,357,332 Unrestricted 3,887,151 2,580,465 13,290,748 8,066,688 17,177,899 10,647,153 Total Net Assets $83,704,724 $81,792,796 $34,338,721 $28,986,146 $118,043,445 $110,778,942 Governmental Activities Proprietary Activities Total

CITY OF RIVERBANK
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
(UNAUDITED)
6 Of the total net position for both the Governmental and Business-type activities, $72,660,555 or 61.6% reflects the City’s investment in capital assets (e.g. land, buildings and improvements, vehicles and equipment, infrastructure) less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to its citizens; and consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is 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.

Restricted net position amounts to $28,204,991 or 24% of the total. Restricted net positions are those resources that are subject to external restrictions on how they may be used. These restrictions are established by bond covenants or restrictions on the use of funds established by state or federal regulations.

Unrestricted net position is those resources that may be used to meet the City’s ongoing commitments to citizens and creditors. Government-wide unrestricted net position is $17,177,899 or 14.6% of the total net position.

Changes in Net Position. Total revenues for the year exceeded expenditures by $7,314,002. Below is a table showing the Governmental and Proprietary Activities of the City for the year ending June 30, 2021, as compared to the year ending June 30, 2020.

City of Riverbank
Changes in Net Position
For Year Ended June 30, 2021
2021 2020 2021 2020 2021 2020
Revenues
Program Revenues:

Charges for Services 5,080,813 4,308,750 15,879,453 11,895,620 20,960,266 16,204,370 Operating Grants and Contributions 232,820 303,275 0 0 232,820 303,275 Capital Grants and Contributions 1,164,179 183,940 0 0 1,164,179 183,940 General Revenues:

Property Tax 3,499,581 3,402,995 0 0 3,499,581 3,402,995 Sales Tax 4,440,844 3,304,671 0 0 4,440,844 3,304,671
Motor Vehicle Tax 18,358 20,038 0 0 18,358 20,038
Franchise Tax 629,059 619,007 0 0 629,059 619,007
Other Taxes 1,146,060 1,130,057 0 0 1,146,060 1,130,057 Investment Earnings 65,230 387,486 19,336 141,309 84,566 528,795 Gain on Disposal of Assets 0 0 0 0 0 0
Transfers 1,445,588 1,295,957 (1,445,588) (1,295,957) 0 0 Total Revenues 17,722,532 14,956,176 14,453,201 10,740,972 32,175,733 25,697,148 Expenses
General Government 2,863,484 2,993,062 0 0 2,863,484 2,993,062 Public Safety 5,472,560 4,688,511 0 0 5,472,560 4,688,511 Public Works 5,665,116 6,020,840 3,615,299 4,288,945 9,280,415 10,309,785 Community Development 1,274,197 1,242,171 5,378,332 5,238,852 6,652,529 6,481,023 Culture and Leisure 485,747 646,703 106,996 133,348 592,743 780,051 Total Expenses 15,761,104 15,591,287 9,100,627 9,661,145 24,861,731 25,252,432 Increase (Decrease) in Net Assets 1,961,428 (635,111) 5,352,574 1,079,827 7,314,002 444,716 Net Assets - Beginning 81,792,795 82,427,906 28,986,147 27,906,320 110,778,942 110,334,226 Prior Period Adjustment 0 0 0 0 0 0
Net Assets - Ending $83,754,223 $81,792,795 $34,338,721 $28,986,147 $118,092,944 $110,778,942 Governmental Activities Proprietary Activities Total

CITY OF RIVERBANK
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
(UNAUDITED)
7 Governmental Activities. Total governmental activity revenues for the year were $17,722,532. Sales and property tax revenue, which comprise 45% of the total, experienced an increase of 18.5% from the 2019-20 Fiscal Year. Revenues by source for governmental activities are shown in the graph below.

Total governmental expenses for the year were $15,761,104. Public Works accounted for 36% of the total governmental activities expenses. Expenses by function or program for governmental activities are shown in the graph below.

CITY OF RIVERBANK
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
(UNAUDITED)
8 Business-type Activities
 Revenues of the City’s business-type activities were $14,453,201 a 34.6% increase from Fiscal Year 2019-20 as a result of an increase in revenues received for water & sewer charges to residents/commercial business through the re-implementation of consumption billing.

Expenditures for the year were $9,100,627. Expenditures for the business-type activities decreased by 6% from the prior fiscal year.

FINANCIAL ANALYSIS OF THE CITY’S FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with financerelated legal requirements.

The City’s governmental funds ended the year with a combined fund balance of $37,584,309. Of the total combined fund balance, 1% is classified as Nonspendable, 55% is classified as Restricted, 19% is classified as Assigned, and 25% is Unassigned. Major fund changes from June 30, 2020, to June 30, 2021 are noted below and are also noted on the Statement of Revenues, Expenditures, and Changes in Fund Balances on pages 19-20 of this report:

General Fund
 The City experienced an overall increase of 14% in its General Fund revenues during the 2020- 21 fiscal year. Major factors, contributing to this increase are noted below.  Sales tax for the City experienced an increase of 34%. This was primarily due to the fact that in the prior fiscal year, we were still experiencing the effects of COVID-19.  Revenues from Licenses and Permits increased by 50%. New housing developments in the City have generated additional building permit revenue.  Fines and Forfeiture revenues decreased by 40% as a result of the COVID-19 pandemic.

The City Council waived all penalties and late fees for utility billings for residential and commercial customers which resulted in a loss of revenue.  Service Charges increased by 18% as the city’s programs and parks were closed the prior year due to the Emergency Health Orders issued by the State of California and Stanislaus County to mitigate the spread of COVID-19, and this fiscal year we did see some of those restricts begin to be lifted.
 General Fund expenditures increased by 2.5% during the 2020-21 Fiscal Year. Major factors contributing to this increase in General Fund expenditures include:
 Public Safety Expenditures increased by 5.0% due to contract inflation increases and first full year of the addition of a Community Resource Officer to the staff at Riverbank Police Services. There was also a small remodel project of the facilities.

CITY OF RIVERBANK
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
(UNAUDITED)
9  Capital outlay for the General Fund decreased by 25.2% as in the prior fiscal year there had been additional funds allocated from the Public Benefit Fund to address work at the Riverbank Community Center.

CDBG Fund
The CDBG Fund experienced a decrease in revenues due to a decrease in interest income and the prior fiscal year had homeowners who were able to bring accounts to date that had the reversal of loans receivable that were flagged as a bad debt due to potential foreclosure.

Successor RDA LMI Housing Fund
On December 29, 2011 the California Supreme Court upheld Assembly Bill 1x26 (“the Bill”) that provided for the dissolution of all redevelopment agencies in the State of California effective February 1, 2012. This action impacted the reporting entity of the City of Riverbank that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.

The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. The City elected not to become this successor agency therefore another designated authority, the Riverbank Designated Local Authority, was formed by the State of California to serve as successor agency to the now-dissolved Riverbank Redevelopment Agency.

However, the City did elect to serve as the Housing Successor Agency of the former RDA. As successor agency, the City now holds a loan receivable for a $3.2 million loan provided to Pacific West Associates for the construction of a 65-unit apartment complex completed in 2009. In addition, the City is now entitled to receive annual interest payments and a Payment in Lieu of Taxes from this project.

GASB Statement No. 68
The City of Riverbank has implemented GASB Statement No. 68 as required. With the new reporting change, the City is allocated its proportionate share of the California Public Employees’ Retirement System’s net pension assets, deferred outflows of resources, deferred inflows of resources, and pension expense. Decisions regarding the allocations are made by the administration of the pension plan, not by the City of Riverbank’s management.

General Fund Budgetary Highlights
For the City’s General Fund, actual ending revenues of $9,833,137 were mainly comprised of Sales Tax, Property Taxes, Other Taxes & Franchise Fees, and Service Charges. Net Revenues received were $1,233,337 over budget. Below are some of the major reasons:
 Sales Tax was over budget by $1,340,844, an unanticipated increase while the City was still adjusting to the COVID-19 pandemic and changing the health restrictions.

CITY OF RIVERBANK
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
(UNAUDITED)
10  Licenses and Permit revenues were $102,273 over budget as a result of New housing developments within the City generating additional building permit revenue.

The General Fund’s actual ending expenditures of $10,308,940 were 2.5% higher than the prior fiscal year but were $519,560 under the final budget of $10,828,500.

CAPITAL ASSETS AND DEBT ADMINISTRATION

CAPITAL ASSETS
As of June 30, 2021, the City’s Governmental Funds had $51,612,582 invested in capital assets and the Business-type activities had $25,996,146, net of accumulated depreciation. This total of $77,608,728 is invested in a broad range of capital assets including land, construction in progress, building, equipment and infrastructure (i.e. streets, sidewalks, storm drain, etc.).

City of Riverbank
Capital Assets, Net of Accumulated Depreciation
June 30, 2021
Governmental
Activities
Business-Type
Activities Total
Land $3,957,541 $2,425,076 $6,382,617
Construction in Progress 1,192,313 4,133,352 5,325,665
Infrastructure 30,648,920 0 30,648,920
Land Improvements 11,064,547 0 11,064,547
Equipment and Vehicles 1,464,118 7,724,569 9,188,687
Building and Improvements 3,285,143 11,713,148 14,998,291 Total $51,612,582 $25,996,146 $77,608,728
Major capital asset additions during Fiscal Year 2020-2021 include:

Water Meter AMI Upgrade $4,338,330
Morrill Rd Undergrounding Jackson to Oakdale Rd
Eighth Street Overlay
2020 Pavement Restoration- Cape Seal
2020 Pavement Restoration Slurry Seal
620,728
518,802
247,260
241,814
Santa Fe Street Improvements 136,395

CITY OF RIVERBANK
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
(UNAUDITED)
11 LONG TERM DEBT
At year-end, the City’s governmental activities had $277,989 in compensated absences. Compensated absences consist of vacation time and compensatory time off that has been earned by employees but has not yet been taken. Compensated absences are due and payable to an employee upon separation if any balance exists.

Business-type activities, at year-end, had $5,029,177 in outstanding long-term debt. This long-term debt is comprised of Compensated Absences, Sewer Revenue Bonds, the State Revolving Fund Loan from the State of California for improvements to the Waste Water Treatment Plant, and the Master Lease Agreement with Wells Fargo to fund a city-wide water meter upgrade project. Total debt was reduced during the year by the amount of the current debt principal payments.

City of Riverbank
Long-Term Debt
June 30, 2021
Governmental
Activities
Business-Type
Activities Total
Loans Payable – WWTP $0 $2,555,013 $2,555,013
SRF Loan – Sewer $0 63,887 63,887
Water – Lease Purchase $0 2,329,274 2,329,274
Compensated Absences $277,989 81,003 358,992
Total $277,989 5,029,177 $5,307,166
The City’s long-term liabilities, except for compensated absences, relate to the acquisition and construction/remodel of capital assets. These capital assets are utilized to provide services to citizens and are not available for future spending. The repayment of the debt on these assets must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

ECONOMIC FACTORS AND NEXT YEAR’S GENERAL FUND BUDGET
Due to the economic uncertainty surrounding the State of California’s financial condition, the City’s management has taken a position of conservative revenue projection while maintaining existing departmental spending limits.

In preparing the budget for the 2021-2022 fiscal year, City Management looked at the following factors:

REVENUE
 The City continues to see growth in new housing development. As these properties are sold they are added to the tax rolls which increase the total assessed values. The Certified Assessed Values are the basis on which Property Taxes are calculated. Therefore an increase

CITY OF RIVERBANK
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
(UNAUDITED)
12 in revenue is anticipated for the following Property Tax related revenues: Property Tax Current Secured & Unsecured, Property Tax in Lieu of VLF.

 The City’s sales tax continued to grow despite the challenges presented as part of the COVID19 pandemic. For the 21-22 fiscal year, the City has anticipated growth of 16% over the prior year.
 Overall, General Fund revenues are anticipated to increase by 7.1% during the 2021-22 fiscal year in comparison to the prior fiscal year budget due to increases in revenue sources such as Building Permits, Sales Tax, and Franchise Fees.

EXPENDITURES
 Fiscal Year 20-21 was the final year of the settlement payments due to the litigation regarding the City’s skate park. Therefore, the FY 21-22 Annual Budgets has taken into account the savings of approximately $125,000 per year.
 The City added a Community Resource Deputy to the law enforcement staff to serve the City of Riverbank. In addition, the County performed several staff reclassifications in an effort to retain current Sheriff staffing levels thus increasing contract cost by approximately $585,000.  Increases to salary and benefit costs as a result of the negotiated labor contract with the City’s two labor groups. For the 2021-22 fiscal year, both groups are entitled to a 2% cost of living adjustment.

Total operational and capital budgeted revenues and expenses for all funds for the 2021-2022 Fiscal Year are $20,403,400 and $24,625,600 respectively, excluding Inter-fund Transfers In and Out.

Structural deficits (where expenditures exceed revenues) were anticipated in the following funds:

General Fund, Gas Tax Fund, Weed Abatement Fund, Assessment District Fund, Teen Center Fund, System Development Streets/PW Fund, System Development Storm Drainage Fund, System Development Parks & Recreation Fund, HCD Old Program Income Fund, HCD CDBG Fund, HCD HOME Fund, HCD Cal-Home Fund, LMI Housing Asset Fund, System Development Waste Water Fund, Water Operating Fund, and Water Capital Improvement Fund. The City Council has authorized for the deficits to be paid via ending reserve balances from the 2020-21 fiscal year. Several of these allocations from reserve funds are due to the fact that funds must be spent during a certain time frame.

CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the City of Riverbank’s finances and to demonstrate the City’s accountability for the money it receives. If you have questions about this report or need additional information, contact the Assistant City Manager/Admin Services Director, City of Riverbank, 6707 Third Street, Riverbank, California 95367.

Governmental Proprietary
Activities Activities 2021 2020
ASSETS
Cash And Investments 23,872,353 14,700,214 38,572,567 28,233,533 Cash With Fiscal Agent 0 0 0 0
Accounts Receivable 1,837,446 2,400,144 4,237,590 5,563,700 Note Receivable 0 0 0 5,654
Prepaid Expenses 10,300 6,097 16,397 787,013
Internal Balances 324,322 324,322) ( 0 0
Loans Receivable 13,663,395 0 13,663,395 13,839,721
Capital Assets (Net Of Accumulated
Depreciation):

Land 3,957,541 2,425,076 6,382,617 6,330,825
Land Improvements 11,064,547 0 11,064,547 10,882,092
Construction In Progress 1,192,313 4,133,352 5,325,665 10,258,957 Buildings And Improvements 3,285,143 11,713,148 14,998,291 15,577,540 Equipment And Vehicles 1,464,118 7,724,569 9,188,687 5,160,667 Infrastructure 30,648,920 0 30,648,920 31,139,524
Unamortized Bond Issue Costs 95,600 0 95,600 107,550
Total Assets 42,873,878 91,320,398 134,194,276 127,886,776

DEFERRED OUTFLOWS OF RESOURCES
Current Pension Plan Contribution 297,196 912,579 1,209,775 1,248,368

LIABILITIES
Accounts Payable And Other
Current Liabilities 1,845,518 1,880,734 3,726,252 4,457,404 Compensated Absences 277,989 81,003 358,992 320,990
Net Pension Liability 5,672,550 1,727,848 7,400,398 6,768,234 Long-Term Liabilities:

Due Within One Year 0 913,683 913,683 913,682
Due In More Than One Year 4,034,489 0 4,034,489 4,661,466 Total Liabilities 8,637,757 7,796,057 16,433,814 17,121,776

DEFERRED INFLOWS OF RESOURCES
Deferral Of Pension Expense 194,596 732,196 926,792 1,234,425

NET POSITION
Invested In Capital Assets
Net Of Related Debt 51,612,582 21,047,973 72,660,555 73,774,457 Restricted For
Capital Projects 10,392,171 0 10,392,171 10,210,854
Community Development Projects 14,651,366 0 14,651,366 14,714,973 Other Purposes 3,161,454 0 3,161,454 1,431,505
Unrestricted 13,290,748 3,887,151 17,177,899 10,647,154 Total Net Postion 34,338,721 83,704,724 118,043,445 110,778,943 Totals

CITY OF RIVERBANK

STATEMENTS OF NET POSITION
JUNE 30, 2021
Primary Government RESTATED
WITH COMPARATIVE ACTUAL AMOUNTS FOR JUNE 30, 2020

SEE ACCOMPANYING NOTES TO BASIC FINANCIAL STATEMENTS
13 CITY OF RIVERBANK

STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2021
WITH COMPARATIVE ACTUAL AMOUNTS FOR JUNE 30, 2020
Functions/Programs Expenses
Primary Government:

Governmental Activities:

General Government 2,863,484
Public Safety 5,472,560
Public Works 5,665,116
Community Development 1,274,197
Culture And Leisure 485,747
Total Governmental Activities 15,761,104
Business-Type Activities
Water Services 1,830,433
Sewer Services 1,784,866
Community Center 106,996
Local Redevelopment Authority 5,378,332
Total Business-Type Activities 9,100,627
Total Primary Government 24,861,731

SEE ACCOMPANYING NOTES TO BASIC FINANCIAL STATEMENTS
14 Changes In Net Assets
Fines, Fees And Operating Capital Primary Government RESTATED Charges Grants And Grants And Governmental Proprietary
For Services Contributions Contributions Activities Activities 2021 2020 0 2,124,598 0 738,886) ( 0 738,886) ( 1,428,360) (
232,820 138,235 0 5,101,505) ( 0 5,101,505) ( 4,261,368) ( 0 2,204,869 10,030 3,450,217) ( 0 3,450,217) ( 3,868,473) ( 0 525,745 1,154,149 405,697 0 405,697 656,814) (
0 87,366 0 398,381) ( 0 398,381) ( 580,307) (
232,820 5,080,813 1,164,179 9,283,292) ( 0 9,283,292) ( 10,795,322) ( 0 5,787,054 0 0 3,956,621 3,956,621 505,409
0 4,823,386 0 0 3,038,520 3,038,520 2,733,391
0 79,133 0 0 27,863) ( 27,863) ( 27,195) (
0 5,189,880 0 0 188,452) ( 188,452) ( 977,130) (
0 15,879,453 0 0 6,778,826 6,778,826 2,234,475
232,820 20,960,266 1,164,179 9,283,292) ( 6,778,826 2,504,466) ( 8,560,847) ( General Revenues:

Taxes:

Property Tax 3,499,581 0 3,499,581 3,402,995
Sales Tax 4,440,844 0 4,440,844 3,304,671
Motor Vehicle Tax 18,358 0 18,358 20,038
Franchise Tax 629,059 0 629,059 619,007
Other Taxes 0 1,146,060 1,146,060 1,130,057
Investment Earnings 65,230 19,336 84,566 528,795
(Loss) On Disposal of Assets 0 0 0 0
Transfers 1,445,588 1,445,588) ( 0 0
Total General Revenues And Transfers 11,244,720 1,426,252) ( 9,818,468 9,005,563 Change In Net Position 1,961,428 5,352,574 7,314,002 444,716 Net Position - Beginning 28,986,147 81,792,795 110,778,942 110,354,929 Prior Period Adjustment 0 0 0 20,703) (
Net Position - Ending 34,338,721 83,754,223 118,092,944 110,778,942 Program Revenues
Net (Expense) Revenue And
Totals

SEE ACCOMPANYING NOTES TO BASIC FINANCIAL STATEMENTS
15 WITH COMPARATIVE ACTUAL AMOUNTS FOR JUNE 30, 2020
System
General CDBG Development
Assets
Cash And Investments 9,769,853 891,147 6,119,789
Accounts Receivable 1,433,281 168 1,040
Loans Receivable 0 10,463,395 0
Prepaid Expenses 10,300 0 0
Unamortized Bond Issue Costs 0 0 0
Due From Other Funds 0 0 324,322
Total Assets 11,354,710 11,213,434 6,445,151
Liabilities
Accounts Payable 634,042 679 0
Compensated Absences 254,029 1,945 0
Bonds Payable 0 0 0
Loan Payable 0 0 0
Other Liabilities 946,045 2,222 0
Due To Other Funds 0 0 0
Total Liabilities 4,846 1,834,116 0
Fund Balances
Nonspendable 0 0 324,322
Restricted 0 11,349,864 6,120,829
Committed 0 0 0
Assigned 0 0 0
Unassigned 0 9,379,318 0
Total Fund Balances 11,349,864 9,379,318 6,445,151
Total Liabilities And Fund Balances 11,354,710 11,213,434 6,445,151

CITY OF RIVERBANK

BALANCE SHEET

GOVERNMENTAL FUNDS
JUNE 30, 2021

SEE ACCOMPANYING NOTES TO BASIC FINANCIAL STATEMENTS
16 Successor RDA Other
LMI Housing Funds 2021 2020
6,990,104 101,460 20,259,747 23,872,353
402,915 42 1,759,266 1,837,446
0 3,200,000 13,839,721 13,663,395
0 0 315,797 10,300
0 0 0 0
0 0 324,322 396,000
7,393,019 3,301,502 39,707,816 36,570,531
178,020 0 1,133,351 812,741
22,015 0 244,523 277,989
0 0 0 0
0 0 0 0
84,510 0 1,054,851 1,032,777
0 0 0 0
284,545 0 2,123,507 2,432,725
0 0 324,322 396,000
0 3,301,502 20,772,195 20,437,507
0 0 0 0
7,150,946 0 7,150,946 5,559,876
42,472) 0 ( 9,336,846 7,744,423
7,108,474 3,301,502 37,584,309 34,137,806
7,393,019 3,301,502 39,707,816 36,570,531
Total Governmental Funds

SEE ACCOMPANYING NOTES TO BASIC FINANCIAL STATEMENTS
17 CITY OF RIVERBANK

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET

TO THE STATEMENT OF NET POSITION
JUNE 30, 2021
Total fund balances - governmental funds 37,584,309
Total net position reported for governmental activities in the statement of net position is different because:

Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. Those assets consist of:

Land 3,957,541
Land Improvements net of $5,584,856 accumulated depreciation 11,064,547 Construction in progress 1,192,313
Buildings and Improvements, net of $2,679,220 accumulated depreciation 3,285,143 Equipment and Vehicles, net of $4,971,658 accumulated depreciation 1,464,118 Infrastructure net of $48,900,011 accumulated depreciation 30,648,920 Total capital assets 51,612,582
Deferred Outflow of Resources 912,579
Long-term liabilities applicable to the City's governmental activities are due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities, both current and long-term, are reported in the statement of net position.

Net Pension Liability 5,672,550) (
Deferred Inflows of Resources 732,196) (
Total long-term liabilities 6,404,746) (
Total net position - governmental activities 83,704,724

SEE ACCOMPANYING NOTES TO BASIC FINANCIAL STATEMENTS
18 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES WITH COMPARATIVE ACTUAL AMOUNTS FOR JUNE 30, 2020
System
General CDBG Development
Revenues
Property Tax 3,499,581 0 0
Sales Tax 4,440,844 0 0
Other Tax And Franchises 796,455 0 0
Licenses And Permits 333,473 0 0
Fines And Forfeitures 53,405 0 0
Investment Earnings 15,608 16,424 24,754
Intergovernmental 155,448 10,030 0
Impact Fees 0 399,813 0
Service Charges And Miscellaneous 0 538,323 60,788
Total Revenues 24,754 9,833,137 487,055
Expenditures
Current
General Government 2,211,573 0 0
Public Safety 4,564,790 0 0
Public Works 2,058,945 36,941 0
Community Development 811,408 0 88,653
Culture And Leisure 465,393 0 0
Capital Outlay 0 196,831 99,969
Total Expenditures 88,653 10,308,940 136,910
Excess (Deficiency) Of Revenues
Over Expenditures ( 63,899) 475,803) ( 350,145
Other Financing Sources (Uses)
Operating Transfers In 0 2,833,116 0
Operating Transfers Out ( 758,470) 23,528) 0 (
Total Other Financing Sources (Uses) 0 2,074,646 23,528) ( Net Change In Fund Balances 63,899) 1,598,843 ( 326,617 Fund Balance - Beginning 11,413,763 7,780,475 6,118,534 Fund Balance- Ending 11,349,864 9,379,318 6,445,151

CITY OF RIVERBANK
FOR THE YEAR ENDED JUNE 30, 2021

GOVERNMENTAL FUNDS

SEE ACCOMPANYING NOTES TO BASIC FINANCIAL STATEMENTS
19 Successor RDA Other
LMI Housing Fund Funds 2021 2020
0 0 3,499,581 3,402,995
0 0 4,440,844 3,304,671
0 0 796,455 764,164
0 0 333,473 222,169
0 0 53,405 89,326
8,152 292 65,230 387,486
3,601,666 0 3,767,144 2,685,944
0 0 399,813 277,933
2,321,888 0 2,920,999 2,525,531
292 5,931,706 16,276,944 13,660,219
564,356 0 2,775,929 2,623,356
871,220 0 5,436,010 4,611,119
958,313 0 3,054,199 3,144,698
332,052 0 1,232,113 1,146,921
522 0 465,915 595,517
1,015,063 0 1,311,863 2,250,726
3,741,526 0 14,276,029 14,372,337
292 2,190,180 2,000,915 712,118) (
548,838 0 3,381,954 2,386,032
1,154,368) 0 ( 1,936,366) ( 1,090,075) (
605,530) 0 ( 1,445,588 1,295,957
1,584,650 292 3,446,503 583,839
5,523,824 3,301,210 34,137,877 33,554,038
7,108,474 3,301,502 37,584,380 34,137,877
Total Governmental Funds

SEE ACCOMPANYING NOTES TO BASIC FINANCIAL STATEMENTS
20 CITY OF RIVERBANK

RECONCILIATION OF THE STATEMENT OF REVENUES,

EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL

FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2021
Net change in fund balances - total governmental funds 3,446,503 The changes in net position reported for governmental activities in the statement of activities is different because:

Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which depreciation ($2,504,781) exceeded capital outlays ($1,318,821) in the current period. 1,192,918) (
The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins and contributions) is to increase net assets. 0 The net change in pension expense either contributed to pension plan in current fiscal year not included on statement of activities; or expenses reported in statement of activities that do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. 292,157) ( Changes in net position of governmental activities 1,961,428

SEE ACCOMPANYING NOTES TO BASIC FINANCIAL STATEMENTS
21 STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2021
Variance
With Final
Budget
Over 2020
Original Final Actual (Under) Actual

REVENUES
Property Tax 3,508,100 3,433,600 3,499,581 8,519) ( 3,400,829 Sales Tax 3,100,000 3,100,000 4,440,844 1,340,844 3,304,671 Other Tax And Franchise Fees 739,300 739,300 796,455 57,155 764,164 Licenses And Permits 231,200 191,200 333,473 102,273 222,169 Intergovernmental 138,500 138,500 155,448 16,948 236,741 Fines And Forfeitures 94,200 94,200 53,405 40,795) ( 89,326 Investment Earnings 58,100 58,100 15,608 42,492) ( 169,115 Service Charges And Miscellaneous 730,400 733,800 538,323 192,077) ( 455,908 Total Revenues 8,599,800 8,488,700 9,833,137 1,233,337 8,642,923

EXPENDITURES
General Government 2,447,100 2,584,800 2,211,573 235,527) ( 2,112,758 Public Safety 4,706,800 4,787,900 4,564,790 142,010) ( 4,346,393 Public Works 2,340,500 2,272,200 2,058,945 281,555) ( 2,048,380 Community Development 842,800 839,000 811,408 31,392) ( 786,918 Recreation And Leisure 491,300 576,800 465,393 25,907) ( 498,365 Capital Outlay 0 0 196,831 196,831 261,455
Total Expenditures 10,828,500 11,060,700 10,308,940 519,560) ( 10,054,269 Excess (Deficiency) Of Revenues
Over Expenditures ( 2,228,700) 2,572,000) ( 475,803) ( 1,752,897 1,411,346) (

OTHER FINANCING SOURCES (USES)
Transfers In 2,506,300 2,414,700 2,833,116 326,816 1,988,602 Transfers Out ( 739,100) 506,800) ( 758,470) ( 19,370) ( 622,218) ( Total Other Financing Sources And (Uses) 1,767,200 1,907,900 2,074,646 307,446 1,366,384 Net Change In Fund Balance ( 461,500) 664,100) ( 1,598,843 2,060,343 44,922) ( Fund Balance - Beginning 7,780,475 7,780,475 7,780,475 0 7,825,397 Fund Balance - Ending 7,318,975 7,116,375 9,379,318 2,060,343 7,780,475 11,106,100 10,903,400 12,666,253
Budgeted Amounts

CITY OF RIVERBANK

GENERAL FUND
WITH COMPARATIVE ACTUAL AMOUNTS FOR JUNE 30, 2020

SEE ACCOMPANYING NOTES TO BASIC FINANCIAL STATEMENTS
22 STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2021
Variance
With Final
Budget
Over 2020
Original Final Actual (Under) Actual
General Government
City Council 242,700 111,700 92,940 ( 18,760) 103,280
City Manager 280,100 279,700 239,804 ( 39,896) 219,836
Admin Services 744,200 751,900 678,175 ( 73,725) 676,972 Finance And Treasurer 992,900 958,900 881,016 ( 77,884) 873,333 City Attorney 324,900 344,900 328,964 ( 15,936) 282,110 Total General Government 2,584,800 2,447,100 2,220,899 ( 226,201) 2,155,531 Public Safety
Police 4,460,000 4,476,800 4,355,941 ( 120,859) 4,154,034 Animal Control 327,900 230,000 229,283 ( 192,359 717)
Total Public Safety 4,787,900 4,706,800 4,585,224 ( 121,576) 4,346,393 Public Works
Building Maintenance 239,700 240,400 241,170 770 334,975 Development Services 1,197,000 1,210,300 1,061,539 ( 148,761) 1,025,691 Stormwater Maintenance 85,500 86,000 73,695 ( 12,305) 95,436 Parks Maintenance 750,000 803,800 835,876 32,076 751,257 Total Public Works 2,272,200 2,340,500 2,212,280 ( 128,220) 2,207,359 Community Development
Planning 478,800 482,900 459,546 ( 23,354) 443,018
Building Department 350,200 349,900 355,598 5,698 393,603 Economic Development 10,000 10,000 10,000 0 10,000
Engineering 0 0 0 0 0
Total Community Development 839,000 842,800 825,144 ( 17,656) 846,621 Recreation And Leisure
Recreation 576,800 491,300 465,393 ( 25,907) 498,365
Total Culture And Leisure 576,800 491,300 465,393 ( 25,907) 498,365 Total General Fund 11,060,700 10,828,500 10,308,940 ( 519,560) 10,054,269 Budgeted Amounts

CITY OF RIVERBANK

GENERAL FUND
WITH COMPARATIVE ACTUAL AMOUNTS FOR JUNE 30, 2020

SEE ACCOMPANYING NOTES TO BASIC FINANCIAL STATEMENTS
23 CDBG SPECIAL REVENUE FUND

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2021
Variance
With Final
Budget
Over 2020
Original Final Actual (Under) Actual

REVENUES
Interest Income 15,000 5,000 24,754 9,754 49,077
Intergovernmental 0 0 0 0 0
Miscellaneous 58,600 58,600 0 58,600) ( 100,000
Total Revenues 73,600 63,600 24,754 48,846) ( 149,077

EXPENDITURES
Salaries And Benefits 40,000 40,000 84,936 44,936 73,159 Supplies And Services 895,100 895,100 3,717 891,383) ( 10,019 Bad Debt 0 0 0 0 0
Capital Outlays 0 0 0 0 0
Total Expenditures 935,100 935,100 88,653 846,447) ( 83,178 Excess (Deficiency) Of Revenues
Over Expenditures ( 861,500) 871,500) ( 63,899) ( 797,601 65,899

OTHER FINANCING SOURCES (USES)
Transfers In 0 0 0 0 0
Transfers Out 0 0 0 0 25,630) (
Total Other Financing Sources And (Uses) 0 0 0 0 25,630) ( Net Change In Fund Balance ( 861,500) 871,500) ( 63,899) ( 797,601 40,269 Fund Balance - Beginning 11,413,763 11,413,763 0 11,413,763 11,373,494 Fund Balance - Ending 10,542,263 10,552,263 797,601 11,349,864 11,413,763

CITY OF RIVERBANK
WITH COMPARATIVE ACTUAL AMOUNTS FOR JUNE 30, 2020
Budgeted Amounts

SEE ACCOMPANYING NOTES TO BASIC FINANCIAL STATEMENTS
24 SYSTEM DEVELOPMENT CAPITAL PROJECTS FUND

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2021
Variance
With Final
Budget
Over 2020
Original Final Actual (Under) Actual

REVENUES
Investment Earnings 48,700 48,700 16,424 32,276) ( 104,545 Intergovernmental 0 0 10,030 10,030 183,940
Impact Fees 246,200 56,200 399,813 153,613 277,933
Service Charges And Miscellaneous 34,300 7,800 60,788 26,488 23,763 Total Revenues 329,200 112,700 487,055 157,855 590,181

EXPENDITURES
Salaries And Benefits 0 0 0 0 0
Supplies And Services 153,400 153,400 36,941 116,459) ( 210,450 Capital Outlays 1,525,304 1,176,900 99,969 1,425,335) ( 486,202 Total Expenditures 1,678,704 1,330,300 136,910 1,541,794) ( 696,652 Excess (Deficiency) Of Revenues
Over Expenditures ( 1,349,504) 1,217,600) ( 350,145 1,699,649 106,471) (

OTHER FINANCING SOURCES (USES)
Transfers In 75,000 75,000 0 75,000) ( 0
Transfers Out 0 0 23,528) ( 23,528) ( 29,228) (
Total Other Financing Sources And (Uses) 75,000 75,000 23,528) ( 98,528) ( ( 29,228) Net Change In Fund Balance ( 1,274,504) 1,142,600) ( 326,617 1,601,121 135,699) ( Fund Balance - Beginning 6,118,534 6,118,534 6,118,534 0 6,254,233 Fund Balance - Ending 4,975,934 4,844,030 6,445,151 1,601,121 6,118,534

CITY OF RIVERBANK
WITH COMPARATIVE ACTUAL AMOUNTS FOR JUNE 30, 2020
Budgeted Amounts

SEE ACCOMPANYING NOTES TO BASIC FINANCIAL STATEMENTS
25 SUCCESSOR REDEVELOPMENT AGENCY LMI HOUSING

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
JUNE 30, 2021
Variance
With Final
Budget
Budgeted Amounts Over 2020
Original Final Actual (Under) Actual

REVENUES
Property Tax 0 0 0 0 2,166
Investment Earnings 1,000 1,000 292 708) ( 1,294
Intergovernmental 0 0 0 0 0
Service Charges And Miscellaneous 0 0 0 0 0
Total Revenues 1,000 1,000 292 708) ( 3,460

EXPENDITURES
Salaries And Benefits 0 0 0 0 0
Supplies And Services 98,000 98,000 0 98,000) ( 0
Interest 0 0 0 0 0
Capital Outlay 0 0 0 0 0
Total Expenditures 98,000 98,000 0 98,000) ( 0
Excess (Deficiency) Of Revenues
Over Expenditures ( 97,000) 97,000) ( 292 97,292 3,460

OTHER FINANCING SOURCES (USES)
Transfers In 0 0 0 0 0
Transfers Out 0 0 0 0 0
Total Other Financing Sources And (Uses) 0 0 0 0 0
Net Change In Fund Balance 97,000) ( 97,000) ( 292 97,292 3,460 Fund Balance - Beginning 3,301,210 3,301,210 3,301,210 0 3,297,750 Fund Balance - Ending 3,204,210 3,204,210 3,301,502 97,292 3,301,210

CITY OF RIVERBANK
WITH COMPARATIVE ACTUAL AMOUNTS FOR JUNE 30, 2020

SEE ACCOMPANYING NOTES TO BASIC FINANCIAL STATEMENTS
26 STATEMENT OF NET POSITION
Community Local RESTATED
Sewer Water Center Redevelop.

Fund Fund Fund Authority 2021 2020
Assets
Cash And Investments 5,630,781 8,747,977 30,994 290,462 7,973,786 14,700,214 Cash With Fiscal Agent 0 0 0 0 0 0
Accounts Receivable 679,553 1,449,632 0 270,959 2,400,144 3,804,434 Notes Receivable 0 0 0 0 0 5,654
Prepaids 3,048 3,049 0 0 6,097 471,216
Fixed Assets 16,861,756 762,988 16,740,972 3,182,842 37,548,558 33,037,214 Accumulated Depreciation ( 7,007,262) 7,623,291) ( 479,281) ( 575,931) ( 15,685,765) ( 14,821,975) ( Construction In Progress 0 4,133,352 0 0 4,133,352 8,279,367 Unamortized Bond Issue Costs 0 95,600 0 0 95,600 107,550 Total Assets 16,167,876 23,547,291 3,168,332 314,701 43,198,200 38,857,246

DEFERRED OUTFLOWS OF RESOURCES
Current Pension Plan Contribution 127,389 93,138 4,812 71,857 297,196 304,738 Liabilities
Accounts Payable 123,777 337,290 15,410 1,182,839 2,028,008 1,659,316 Customer Deposits 110,098 0 12,307 99,013 241,195 221,418 Compensated Absences 41,409 36,412 0 3,182 76,467 81,003 Due to Other Funds 0 324,322 0 0 324,322 396,000
Net Pension Liability 702,181 567,520 5,818 452,329 1,727,848 1,604,307 Loan Payable 0 2,618,897 0 0 2,618,897 2,916,397
Bond Payable 0 2,329,275 0 0 2,329,275 2,658,751
Total Liabilities 3,306,740 3,884,441 33,535 1,737,363 8,962,079 9,921,125

DEFERRED INFLOWS OF RESOURCES
Deferral Of Pension Expense 65,967 64,489 2,920) ( 67,060 194,596 254,712 Net Position
Invested In Capital Assets,
Net Of Related Debt 7,525,219 10,632,136 283,707 2,606,911 20,919,458 21,047,973 Restricted For Debt Service 0 0 0 0 0 0
Unrestricted 9,059,363 5,397,339 5,191 ( 1,171,145) 8,066,689 13,290,748 Total Net Position 12,922,558 19,691,499 1,435,766 288,898 34,338,721 28,986,147

CITY OF RIVERBANK

PROPRIETARY FUNDS
JUNE 30, 2021
Totals
WITH COMPARATIVE ACTUAL AMOUNTS FOR JUNE 30, 2020
Business-Type Activities-Enterprise Funds

SEE ACCOMPANYING NOTES TO BASIC FINANCIAL STATEMENTS
27 CITY OF RIVERBANK
WITH COMPARATIVE ACTUAL AMOUNTS FOR JUNE 30, 2020
Community Local RESTATED
Sewer Water Center Redevelop.

Fund Fund Fund Authority 2021 2020
Operating Revenues
Intergovernmental 0 0 0 3,330,121 3,330,121 2,887,133
Service Charges 4,701,088 3,148,279 75,397 1,698,656 9,623,420 8,854,092 Miscellaneous Revenues 2,456,698 20,229 3,736 161,103 37,940 2,641,766 Total Operating Revenues 5,604,977 4,721,317 79,133 5,189,880 15,595,307 11,779,165 Operating Expenses
Employee Services 583,082 651,746 5,514 226,487 1,456,433 1,466,829 Supplies And Services 681,389 796,768 99,372 5,018,845 7,110,944 6,596,374 Depreciation 324,456 404,224 2,110 133,000 898,957 863,790 Total Operating Expenses 1,772,970 1,668,695 106,996 5,378,332 9,466,334 8,926,993 Operating Income (Loss) 3,832,007 3,052,622 27,863) ( 188,452) ( 6,668,314 2,312,831 Nonoperating Revenues (Expenses)
Investment Earnings 7,894 10,395 0 1,047 141,309 19,336 Connection Fees 16,510 18,850 0 0 15,385 35,360
Development Fees 85,559 163,227 0 0 101,070 248,786
Gain (Loss) on Fixed Assets 0 0 0 0 0 0
Interest Expense 104,221) ( 57,463) ( 0 0 ( 182,861) 161,684) ( Amortization Of Bond Issue Costs ( 0 11,950) 0 0 ( 11,950) 11,950) ( Total Nonoperating Revenues (Expenses) ( 135,009 6,208) 0 1,047 62,953 129,848 Income Before Transfers
And Contributed Capital 3,967,016 3,046,414 27,863) ( 187,405) ( 6,798,162 2,375,784 Contributed Capital 0 0 0 0 0 0
Operating Transfer In 840,572 55,864 15,748 2,919 1,418,839 915,103 Operating Transfer Out ( 774,388) 1,586,303) ( 0 0 ( 2,360,691) 2,714,796) ( Total Other Financing Sources (Uses) ( 718,524) 745,731) ( 15,748 2,919 1,445,588) ( 1,295,957) ( Change In Net Position 2,300,683 3,248,492 12,115) ( 184,486) ( 5,352,574 1,079,827 Total Net Position - Beginning 17,390,816 9,674,066 301,013 1,620,252 28,986,147 27,927,023 Prior Period Adjustment 0 0 0 0 0 20,703) (
Adjusted Net Position - Beginning 9,674,066 17,390,816 301,013 1,620,252 28,986,147 27,906,320 Total Net Position - Ending 12,922,558 19,691,499 1,435,766 288,898 34,338,721 28,986,147

PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
Totals
Business-Type Activities-Enterprise Funds

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN NET POSITION

SEE ACCOMPANYING NOTES TO BASIC FINANCIAL STATEMENTS
28 STATEMENT OF CASH FLOWS
Community Local
Sewer Water Center Redevelop.

Fund Fund Fund Authority 2021 2020

CASH FLOWS FROM OPERATING

ACTIVITIES
Receipts From Customers And Users 5,532,322 4,634,008 83,283 6,735,861 16,985,474 9,995,658 Receipts From Interfund Services Provided 0 0 0 0 0 0
Payments To Suppliers ( 501,815) 857,813) ( 98,246) ( 5,042,069) ( 6,499,943) ( 7,599,303) ( Payments To Employees ( 620,609) 549,886) ( 5,514) ( 215,323) ( 1,391,332) ( 1,352,367) ( Payments For Interfund Services Used ( 71,678) 0 0 0 ( 71,320) 71,678) ( Net Cash Provided By Operating Activities 3,154,631 4,409,898 ( 20,477) 1,478,469 9,022,521 972,668

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Transfer In 55,864 840,572 15,748 2,919 915,103 1,418,839 Transfer Out ( 774,388) 1,586,303) ( 0 0 2,360,691) ( 2,714,796) ( Net Cash Provided (Used) By Capital
And Related Financing Activities ( 745,731) ( 718,524) 15,748 2,919 ( 1,445,588) ( 1,295,957)

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Connection Fees 18,850 16,510 0 0 35,360 15,385
Development Fees 163,227 85,559 0 0 248,786 101,070
Purchase Of Capital Assets ( 47,614) 246,915) ( 0 70,799) ( 365,328) ( 536,926) ( Funds Provides On New Lease 0 0 0 0 0 0
Funding Costs On New Loan 0 0 0 0 0 0
Loss on Disposal Of Capital Assets 0 0 0 0 0 0
Principal Paid On Capital Debt ( 2,658,751) 297,500) ( 0 0 2,956,251) ( 913,681) ( Interest Paid On Capital Debt ( 104,221) 57,462) ( 0 0 161,683) ( 182,861) ( Net Cash Provided (Used) By Capital
And Related Financing Activities ( 546,567) ( 2,581,750) 0 ( 70,799) ( 3,199,116) ( 1,517,013)

CASH FLOWS FROM INVESTING

ACTIVITIES
Interest Received 10,395 7,894 0 1,047 19,336 141,309
Net Cash Provided By Investing Activities 10,395 7,894 0 1,047 19,336 141,309 Net Increase In Cash And Cash Equivalents 1,120,019 1,870,227 4,729) ( 1,411,636 4,397,153 1,698,993) ( Cash And Equivalents, July 1 6,877,750 2,181,487 35,723 ( 1,121,174) 7,973,786 9,672,779 Cash And Equivalents, June 30 3,301,506 8,747,977 30,994 290,462 12,370,939 7,973,786

CITY OF RIVERBANK

PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
Totals
Business-Type Activities-Enterprise Funds
WITH COMPARATIVE ACTUAL AMOUNTS FOR JUNE 30, 2020

SEE ACCOMPANYING NOTES TO BASIC FINANCIAL STATEMENTS
29 Reconciliation Of Operating Income To Community Local Net Cash Provided (Used) By Operating Sewer Water Center Redevelop.

Activities Fund Fund Fund Authority 2021 2020
Operating Income 3,832,007 3,052,622 27,863) ( 188,452) ( 6,668,314 2,312,831 Adjustments To Reconcile Operating Income
To Net Cash Provided (Used) By Operating
Activities
Depreciation Expense 324,456 404,224 2,110 133,000 863,790 898,957 (Increase) Decrease In
Deferred Outflows of Resources 2,958 3,297 0 1,286 7,541 15,460 Accounts Receivable ( 87,309) ( 64,639) 0 1,556,238 1,404,290 ( 1,816,644) Prepaids 232,559 232,559 0 ( 20,704) 444,414 ( 465,120) Notes Receivable 5,655 5,655 6,216
Due From Other Funds 0 0 0 0 0 0
Increase (Decrease) In
Accounts Payable ( 62,393 408,984) 1,126 2,523) ( 347,988) ( 23,239) ( Compensated Absences 117 5,360 0 941) ( 4,536 6,069
Deferred Inflows of Resources ( 26,279) 23,583) ( 0 10,255) ( 60,117) ( 13,180 Net Pension Liability 54,003 48,462 0 21,076 123,541 69,357 Customer Deposits 8,016) 0 ( 4,150 15,911) ( 19,777) ( 26,921 Due To Other Funds ( 71,678) 0 0 0 ( 71,320) 71,678) (
Net Cash Provided (Used) By Operating Activities 4,409,898 3,154,631 20,477) ( 1,478,469 9,022,521 972,668 Totals

SEE ACCOMPANYING NOTES TO BASIC FINANCIAL STATEMENTS
30 CITY OF RIVERBANK

STATEMENT OF FIDUCIARY NET POSITION

AGENCY FUNDS
JUNE 30, 2021
WITH COMPARATIVE ACTUAL AMOUNTS FOR YEAR ENDED JUNE 30, 2020 County Assessment
Impact District
Fee 1991 - 1
Fund Fund RDA 2021 2020
Assets
Cash And Investments 39,314 273,508 1,237,969 1,550,791 1,389,613 Accounts Receivable 5 12 0 131 17
Fixed Assets 0 0 0 0
Accumulated Depreciation 0 0 0 0 0
Unamortized Bond Issue Costs 0 0 82,502 103,127 82,502
Due From Other Funds 0 0 0 0 0
Total Assets 273,520 39,319 1,320,471 1,633,310 1,492,871 Liabilities And Fund Balances
Liabilities
Due to Bond Paying Agent 0 0 0 0 0
Due To Other Government 273,520 39,319 1,320,471 1,633,310 1,492,871 Total Liabilities 273,520 39,319 1,320,471 1,633,310 1,492,871 Totals
(Memorandum Only)

SEE ACCOMPANYING NOTES TO BASIC FINANCIAL STATEMENTS
31 CITY OF RIVERBANK

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
32 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Riverbank, California (City) have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP).

The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. In June 1999, the GASB unanimously approved Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments. Certain of the significant changes in the Statement include the following:
 A Management and Discussion and Analysis (MD&A) section providing an analysis of the City’s overall financial position and results of operations.  Financial statements prepared using the full accrual accounting for all of the City’s activities, except for infrastructure (roads, streets, bridges, etc.)  A change in the fund financial statements to focus on the major funds.

These and other changes are reflected in the accompanying financial statements (including notes to financial statements). The more significant of the City’s accounting policies are described below:

A. Financial Reporting Entity
The accompanying basic financial statements present the financial activity of the City of Riverbank (primary government) and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the government’s operations. Discretely presented component units represent other legally separate organizations for which the primary government is financially accountable or for which the nature and significance of their relationship to the primary government are such that exclusion would cause the City’s reporting entity to be misleading or incomplete. The City’s component units are blended; there are no discretely presented component units in the Financial Reporting Entity.

City of Riverbank
The City (primary government) was incorporated in 1922 under the general laws of the State of California. The City provides the full range of municipal services as contemplated by statute.

Services provided include sewer, water, public safety (police), street construction and maintenance, culture-recreation, public improvements, planning and zoning, and general administrative and support services. The City operates under a Council-Manager form of government. The City Council consists of five members elected at large for overlapping four year terms. The City Council appoints a City Administrator and City Attorney.

CITY OF RIVERBANK

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
33 City of Riverbank – continued
In addition to sitting as the governing board of the City, the City Council also acts as the Board of Directors of one blended component unit: the Redevelopment Agency of the City of Riverbank through January 31, 2012. On February 1, 2012 all Redevelopment Agencies (RDA) statewide were dissolved. The City elected to be the Successor Agency for the Low/Moderate Income Housing Fund. The general RDA Fund was transferred to the Riverbank Local Designated Authority, a separate entity created by the State when the City did not elect to be the Successor Agency for that fund. The Successor Agency Fund is now reported as a special revenue on the City’s financial statements.

B. Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of changes in net position) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial. Major individual governmental funds are reported as separate columns in the fund financial statements.

C. Measurement Focus, Basis of Accounting and Basis of Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

CITY OF RIVERBANK

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
34 C. Measurement Focus, Basis of Accounting and Basis of Presentation – continued Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period.

For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, are recorded only when payment is due.

Property taxes and taxpayer-assessed tax revenues (e.g., franchise taxes, sales taxes, motor vehicle fees, etc.) net of estimated refunds and uncollectible amounts, and interest associated with the current fiscal period are all considered susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered measurable and available only when cash is received by the City. The City reports the following major governmental funds:

The General Fund 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.

CDBG Fund - To account for federal grants and other monies received and disbursed under the Housing and Community Development Act, to assist low and moderate income groups in obtaining loans to purchase their first home and rehabilitate or revitalize their homes.

Systems Development Fund - To account for development impact fees collected. These fees are used for infrastructure and capital expenditure resulting from new developments.

Successor RDA LMI Housing Fund – This fund was created when the City elected to assume the housing function previously performed by the Redevelopment Agency. The noncash assets and encumbered cash of the Redevelopment LMI Housing Fund were transferred to this Fund.

The city reports the following major proprietary funds.

The Water Fund accounts for the activities of the City’s water service.

The Sewer Fund accounts for the activities of the City’s sewer service.

The Community Center Fund accounts for the activities of the City’s Community Center service.

CITY OF RIVERBANK

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
35 C. Measurement Focus, Basis of Accounting and Basis of Presentation – continued The Local Redevelopment Authority Fund accounts for the activities of the City’s Ammunition Factory services.

Additionally, the City reports the following fund types:

The County Impact Fee Agency Fund, accounts for impact fees which are collected on behalf of Stanislaus County.

The Assessment District 1991-1 Agency Fund, accounts for the collection of assessments and payment of debt service on behalf of the District.

The Redevelopment Agency Fund, accounts for the collection of property tax revenues used for the administration of the agency and development projects within the designated redevelopment area.

Private-sector standards of accounting and financial reporting issued prior to December 1, 1989 generally are followed in the government-wide financial statements to the extent that those standards do not conflict with or contradict guidance of the GASB.

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements.

Amounts reported as program revenues include 1) charges to customers and applicants, for goods, services or privileges provided, 2) operating grants and contributions and 3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.

Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing goods and services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principle operating revenues of the enterprise and internal service funds are charges for sales and services.

Operating expenses for enterprise funds include salaries and employee benefits, maintenance and operation of systems and facilities, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then unrestricted resources, as they are needed.

CITY OF RIVERBANK

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
36 D. Assets, Liabilities and Equity

1. Cash and Investments
In order to maximize the flexibility of its investment program and to aid in cash budgeting, the City pools the cash of all funds, except for monies deposited with fiscal agents in accordance with related bond indentures. The cash and investments balance in each fund represents that fund’s equity share of the City’s cash and investment pool. As the City places no restrictions on the deposit or withdrawal of a particular fund’s equity in the pool, the pool operates like a demand deposit account for the participating funds.

Interest income earned on pooled cash and investments is allocated quarterly. Interest income on restricted cash and investments with fiscal agents is credited directly to the related fund.

In accordance with the State of California Government Code, the City adopts an investment policy annually that, among other things, authorizes types of investments. Authorized investments include:
 Securities of the U.S. government or its agencies
 Certificates of Deposit (or time deposits) placed with commercial banks and/or savings and loan associations
 Bankers Acceptances
 State Treasurer’s Local Agency Investment Fund (LAIF)  Repurchase Agreements
 Passbook savings account demand deposits
 Mutual Funds
 High Grade Commercial Paper (A-1 and P-1 Rated)
Investments for the City are reported at fair value. LAIF operates in accordance with appropriate state laws and regulations. The reported value of the pool is the same as the fair value of the pool shares.

For purposes of the statement of cash flows, the city has defined cash and cash equivalents to be change and petty cash funds, equity in the City’s cash and investment pool and restricted, nonpooled investment with initial maturities of three months or less.

2. Receivables and Payables
Activity between funds that are representative of lending/borrowing outstanding at the end of the fiscal year are referred to as either "interfund receivables/payables" (i.e. the current portion of interfund loans) or “advances to/from other funds” (i.e. the non-current portion of interfund loans).

All other outstanding balances between funds are reported as “due to/from other funds”.

CITY OF RIVERBANK

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
37 2. Receivables and Payables (continued)
Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources.

All trade and tax receivables are shown net of an allowance for uncollectible accounts and estimated refunds due.

3. Property Taxes
Property taxes are levied on the first day of March by the county assessor, and are payable to the county tax collector in two installments. The first installment is due November 1st, and is delinquent on December 10th, the second installment is due February 1st and is delinquent on April 10th.

Taxes become a lien on the property on March 1st, and on the date of transfer of title, and the date of new construction. The minimum property value which is taxed is $2,000; however, tax bills are prepared for properties valued at less than $2,000 if there is a special assessment to be collected.

Article 13A of the California Constitution states, "The maximum amount of any ad valorem tax on real property shall not exceed one percent (1%) of the full cash value of such property. The one percent tax is to be collected by the counties and apportioned according to law to the districts within the counties."
The City has elected under state law (TEETER) to receive all of the annual property assessments in three installments as follows:

December 55%
April 40%
June 5%
100%

4. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements.

5. Restricted Assets
Certain proceeds of revenue bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants.

CITY OF RIVERBANK

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
38 6. Capital Assets
Capital assets, which include property, plant, equipment and infrastructure assets (e.g. roads, bridges, sidewalks, traffic lights and signals, street lights and similar items), are reported in the applicable governmental columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of $1,000 for property, plant and equipment and $25,000 for infrastructure. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at their estimated fair value at the date of donation. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized.

Major outlay for capital assets and improvements are capitalized as projects are constructed.

Depreciation is recorded in the in amounts sufficient to relate the cost of the depreciable assets to operations over their estimated service life using the straight-line method. Assets are depreciated from 3 to 50 years.

7. Compensated Absences
It is the City’s policy to permit employees to accumulate earned but unused vacation and sick leave benefits. All vacation and sick leave benefits are accrued as earned by employees. All vacation and sick leave pay is accrued when incurred in the government-wide financial statements. A liability for these amounts is reported in the governmental and proprietary funds.

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

9. Long-Term Obligations
In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the statement of net position. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line method.

Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs,

CITY OF RIVERBANK

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
39 9. Long-Term Obligations (continued)
whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

10. Net Position and Fund Equity
In the government-wide financial statements, net position are reported in three categories: net position invested in capital assets, net of related debt; restricted net position and unrestricted net position. Restricted net position represent net position restricted by parties outside the City (such as creditors, grantors, contributors, laws and regulations of other governments) and include unspent proceeds of bonds issued to acquire or construct capital assets. The City’s other restricted net position are temporarily restricted (ultimately expendable assets). All other net position are considered unrestricted.

In the fund financial statements, fund balance is reported in classifications that comprise a hierarchy based on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. The classifications of fund balance are Non-spendable, Restricted, Committed, Assigned, and Unassigned. Non-spendable and Restricted fund balances represent the restricted classifications, and Committed, Assigned, and Unassigned represent the unrestricted classifications.
 Non-spendable fund balance includes amounts that cannot be spent because either 1) it is not in a spendable form, such as inventory or prepaid items or 2) legally or contractually required to be maintained intact.
 Restricted fund balance includes amounts that are constrained for specific purposes which are externally (outside the City) imposed by creditors, grantors, contributors, laws and regulations of other governments, or laws through constitutional provisions or enabling legislation.
 Committed fund balance includes amounts that are constrained for specified purpose that are internally imposed by the government through formal action of the highest level of decision making authority and does not lapse at year-end.
 Assigned fund balance represents limitations imposed by management.  Unassigned fund balance represents the residual net resources in excess of the other classifications. The General Fund is the only fund that can report a positive unassigned fund balance and any governmental fund can report a negative unassigned fund balance.

When both restricted and unrestricted resources are available for specific expenditures, restricted resources are considered spent before unrestricted resources, unless there are legal documents/contracts that prohibit doing this, such as a grant agreement requiring dollar for dollar spending. Within unrestricted resources, committed and assigned are considered spent (if available) before unassigned amounts.

CITY OF RIVERBANK

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
40 10. Net Position and Fund Equity - continued
As of June 30, 2021, the fund balance details by classification are listed below:

Total
Successor System Other Governmental
General CDBG RDA Development Funds Funds
Fund Balances:

Nonspendable: 324,322 324,322
Restricted:

Housing 11,349,864 3,301,502 14,651,366
System Development 6,120,829 6,120,829
Committed To:

Assigned To:

Community Development 2,572,572 2,572,572
Riverbank Donations 4,645 4,645
Landscaping 264,771 264,771
Public Works 1,196,661 1,196,661
Public Safety 193,403 193,403
Self Insurance 589,200 589,200
Other Purposes 2,329,694 2,329,694
Unassigned: 42,472) 9,379,318 ( 9,336,846
Total Fund Balances 11,349,864 9,379,318 3,301,502 6,445,151 7,108,474 37,584,309

11. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principals requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Budgetary Information
The City Council is required to adopt an annual budget resolution by July 1 of each fiscal year for the general fund, and special revenue, capital projects, debt service, and enterprise funds. These budgets are adopted and presented for reporting purposes on a basis consistent with generally accepted accounting principles.

The appropriated budget is prepared by fund, function, and department. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the department level. The council made several supplemental budgetary appropriations throughout the year.

CITY OF RIVERBANK

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
41 B. Excess of Expenditures over Appropriations
For the year ended June 30, 2021, expenditures exceeded appropriations in several department as follows:

General Fund:

Building Maintenance 770
Building Department 5,698

The General funds over-expenditures were funded through the reserves of the General Fund.

III. DETAILED NOTES ON ALL FUNDS
A. Cash And Investments
Cash and investments as of June 30, 2021 are classified in the accompanying financial statements as follows:

Cash on hand 710
Deposits with financial institutions 32,716,624 Investments in LAIF 5,855,233 Total cash and investments 38,572,567
Cash and investments as of June 30, 2021 consist of the following:

Cash and investments 38,572,567
Cash and investments held by bond trustee 0
Total cash and investments 38,572,567

Investments Authorized by the City’s Investment Policy
The City’s investment policy authorizes investment in the local government investment pool administered by the State of California (LAIF). The City’s investment policy also authorizes cash to be invested in Certificates of Deposits, Money Market Mutual Funds, Bankers Acceptances, Repurchase Agreements, Passbook Savings Demand Deposits, and High Grade Commercial Paper.

The City’s investment policy does not contain any specific provisions intended to limit the City’s exposure to interest rate risk, credit risk, and concentration of credit risk.

CITY OF RIVERBANK

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
42 A. Cash And Investments (continued)
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. As of year-end, the weighted average maturity of the investments contained in the LAIF investment pool is approximately 6.16 months.

Maturity Date
State investment pool 5,855,234 9.58 months average 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. LAIF does not have a rating provided by a nationally recognized statistical rating organization.

Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code.

Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) 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. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments.

CITY OF RIVERBANK

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
43 Custodial Credit Risk (continued)
With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government’s indirect investment in securities through the use of mutual funds or government investment pools (such as LAIF).

Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

Cash with Fiscal Agent
The City maintains cash and investments which are restricted under the terms of various debt agreements. The money is included in the City’s pooled cash and investment program. Restricted cash and investments as of June 30, 2021 is $0.00.

Deferred Compensation Plan
The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The City deposits deferred compensation plan assets with the California Public Employees Retirement System (PERS). Federal legislation requires that the assets of such plans be held in trust for the exclusive benefit of the plan participants and their beneficiaries. PERS act as the trustees for the plan assets and the City is considered to have limited fiduciary responsibility for the plan assets. As such, the City does not report the deferred compensation plan assets on its financial statements.

CITY OF RIVERBANK

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
44 B. Accounts Receivable
Receivables at June 30, 2021 for the City’s individual major funds and non-major funds in the aggregate, including applicable allowances for uncollectible accounts, are as follows.

All receivables are expected to be collected within one year.

System
General CDBG Development
Governmental Activities:

Interest 809 168 1,040 Utility Billing 464,436 0 0 Other 968,036 0 0 Total 1,433,281 168 1,040 Successor RDA Nonmajor LMI Housing Governmental Total
Governmental Activities:

Interest 42 1,020 3,079 Utility Billing 0 0 464,436 Other 0 401,895 1,369,931 Total 42 402,915 1,837,446 Local Community Redevelop.

Water Sewer Center Authority Total
Business-Type Activities:

Utility Billings 678,359 954,236 0 0 1,632,595 Interest 1,151 534 0 0 1,685 Other 43 494,862 0 270,959 765,864 Total 679,553 1,449,632 0 270,959 2,400,144 C. Notes Receivable
The City is the recipient of Community Development Block Grant and Home Program Funds. The Funds are provided to use for housing and business loans to qualified recipients at various below market interest rates ranging from 0 to 4%. The terms of the loans range between fifteen and thirty years. All loans are secured by deeds of trust. The amount outstanding as of June 30, 2021 is $10,463,395.

CITY OF RIVERBANK

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
45 D. Interfund Receivables and Payables
Interfund receivable/payable balances at June 30, 2021 consist of the following:
 The Sewer Fund borrowed $396,000 from the Streets/PW System Development Fee Fund in accordance with Resolution 2011-021. The Sewer Fund will reimburse funds from future sewer fees collected. The balance as of June 30, 2022 was $324,322.

E. Capital Assets
Capital asset activity for the year ended June 30, 2021 was as follows:

Beginning Balance Increases Decreases Ending Balance
Governmental Activities
Capital assets not being depreciated:

Land 3,957,541 0 0 3,957,541 Construction in progress 1,979,589 526,340 1,313,616) ( 1,192,313 Total capital assets not being depreciated 526,340 5,937,130 1,313,616) ( 5,149,854 Capital assets being depreciated:

Infrastructure 1,203,452 78,345,469 0 79,548,921
Land Improvements 654,728 15,994,675 0 16,649,403 Equipment And Vehicles 6,247,066 188,710 0 6,435,776 Building And Improvements 5,961,612 0 2,750 5,964,362 Total capital assets being depreciated 106,548,822 2,049,640 0 108,598,462 Less accumulated depreciation for:

Infrastructure ( 1,694,055) 47,205,947) ( 0 48,900,002) ( Land Improvements ( 472,273) 5,112,583) ( 0 5,584,856) ( Equipment And Vehicles 4,819,404) ( 152,252) ( 0 4,971,656) ( Building And Improvements 2,493,019) ( 186,201) ( 0 2,679,220) ( Total accumulated depreciation 59,630,953) ( 2,504,781) ( 0 62,135,734) ( Net capital assets being depreciated 46,917,869 455,141) ( 0 46,462,728 Total net capital assets - Governmental Activities 71,199 52,854,999 1,313,616) ( 51,612,582 Depreciation was charged to functions/programs of the primary government as follows:

Government Activities:

Public Works 2,504,781
Total Depreciation expense – Government activities 2,504,781

CITY OF RIVERBANK

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
46 E. Capital Assets (continued)
Beginning
Balance Increases Decreases
Ending
Balance
Business-type Activities
Capital assets not being depreciated:

Land 2,373,284 0 0 2,373,284 Construction in progress 8,279,366 204,363 4,350,376) ( 4,133,353 Total capital assets not being depreciated 204,363 10,652,650 4,350,376) ( 6,506,637 Capital assets being depreciated:

Equipment And Vehicles 13,433,586 4,395,091 0 17,828,677 Building And Improvements 17,230,343 116,254 0 17,346,597 Total capital assets being
depreciated 4,511,345 30,663,929 0 35,175,274 Less accumulated depreciation for:

Equipment And Vehicles 9,704,781) ( 403,530) ( 0 10,108,311) ( Building And Improvements 5,117,195) ( 460,259) ( 0 5,577,454) ( Total accumulated depreciation 14,821,976) ( 863,789) ( 0 15,685,765) ( Net capital assets being depreciated 15,841,953 3,647,556 0 19,489,509 Total net capital assets - business-type activities 26,494,603 3,851,919 4,350,376) ( 25,996,146 Business- Type Activities:

Water 324,456
Sewer 404,224
Ammo Plant 133,000
Community Center 2,110
Total Depreciation expense – Business-Type Activities 863,790 F. Transfers
Interfund transfers for the year ended June 30, 2021 consisted of the following amounts:

Transfers Transfers
Fund In Out
General Fund 2,833,116 758,470
CDBG 0 0
System Development 0 23,528 Nonmajor Governmental 1,154,368 548,838 Proprietary 915,103 2,360,691 Total 4,297,057 4,297,057

CITY OF RIVERBANK

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
47 G. Payables And Other Liabilities
Payables at June 30, 2021 for the City’s individual major funds and non-major funds in the aggregate are as follows:

System
General CDBG Development
Governmental Activities
Vendors 634,042 679 0 Salaries and Benefits 0 0 0 Total 634,042 679 0 Successor RDA Nonmajor LMI Housing Governmental Total
Governmental Activities
Vendors 0 178,020 812,741 Salaries and Benefits 0 0 0 Total 0 178,020 812,741 Local Community Redevelop.

Water Sewer Center Authority Total
Business-Type Activities
Vendors 110,833 325,993 12,872 1,179,849 1,629,547
Salaries and Benefits 12,944 11,297 2,538 2,990 29,769 Total 123,777 337,290 15,410 1,182,839 1,659,316 H. Long-Term Debt
Business-Type Activities:

On January 23, 2014 the City of Riverbank received a private placement $5,742,715 waste water revenue loan from Municipal Finance Corporation. This loan was obtained for two purposes: (1) $4,031,770 was received in order to provide financing for the acquisition and construction of energy efficient improvements to the City’s existing Wastewater System and includes the removal of existing aerators in ponds T-1 and T-2 to be replaced with three new blowers, and all design, hydrology, engineering and related costs, and (2) $1,710,945 in funds were received in order to fund the redemption prior to maturity of the 2005 Refunding Revenue Bonds, Series A (Wastewater

CITY OF RIVERBANK

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
48 H. Long-Term Debt (continued)
Project) issued on February 3, 2005 in the original principal amount of $4,475,000 and which had currently outstanding principal in the amount of $2,075,000. The amount was paid off in September 10, 2014.

Refinancing of Sewer Bond is due in bi-annual installments of $153,784, interest not more than

2.38% per annum payable on February 1 and August 1 through 2019. Loan proceeds were used to finance the Waste Treatment Construction Project. Loan payable outstanding at June 30, 2021 is $0.00
2013 Sewer Loan is due in bi-annual installments of $167,890, interest not more than 2.38% per annum payable on February 1 and August 1 through 2029. Loan proceeds were used to finance the Waste Treatment Construction Project. Loan payable outstanding at June 30, 2021 is $2,555,013.

The annual debt service requirements to maturity are as follows:

Year Ending
June 30
Principal Interest
2022 243,980 91,800 2023 253,041 82,739
2024 262,439 73,342
2025 272,186 63,595
2026 282,294 53,486
2027-2030 1,241,072 102,050 Total 2,555,013 467,013
Loans Payable
Loan Payable, State of California Water Resources Control Board, is due in annual installments of $65,563, interest at 2.7% per annum payable on October 25 through 2022. Proceeds from the loans were used for the construction and improvement of capital assets for the wastewater treatment plant expansion. Loans payable outstanding on June 30, 2021 is $63,887.

The annual debt service requirements to maturity are as follows:

Year Ending
June 30
Principal Interest
2022 63,887 1,676 Total 63,887 1,676
Loans Payable

CITY OF RIVERBANK

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
49 H. Long-Term Debt (continued)
The City entered into a Master Governmental Lease Purchase agreement with Wells Fargo Banks to update the city’s water meters on December 15, 2015. The agreed finance amount of $4,054,224 is due in 24 semiannual installments of $193,469.62, interest at 2.23% per annum payable in June and December through 2027. Proceeds from the lease are being used for the replacement of the city’s water meters. Lease payable outstanding at June 30, 2021 is $2,329,275.

The annual debt service requirements to maturity are as follows:

Year Ending
June 30
Principal Interest
2022 336,864 50,075 2023 344,418 42,521
2024 352,141 34,798
2025 360,038 26,901
2026 368,111 18,828
2027-2028 567,702 12,706 Total 2,329,275 185,830
Loans Payable
The following is a summary of changes in the City’s long-term debt and other long-term liabilities during the year ended June 30, 2021.

Beginning Ending Due Within
Balance Additions Deductions Balance One Year
Govermental-Type Activities:

Compensated Absences 244,522 33,467 0 277,989 27,799 Long-term liabilities of Govermental-Type Activities: 244,522 33,467 0 277,989 27,799 The following is a summary of changes in the City’s Proprietary Funds long-term debt, including compensated absences, during the year ended June 30, 2021.

CITY OF RIVERBANK

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
50 H. Long-Term Debt (continued)
Beginning Ending Due Within
Balance Additions Deductions Balance One Year
Business-Type Activities:

Loan Payable 2,790,257 0 235,244) ( 2,555,013 243,980 Loan Payable 126,140 0 62,253) ( 63,887 63,887 Water Meter Lease 2,658,750 0 329,476) ( 2,329,274 336,864 Compensated Absences 76,467 4,536 0 81,003 0 Long-term liabilities of Business-Type Activities: 5,651,614 4,536 626,973) ( 5,029,177 644,731 Total long-term liabilities 5,896,136 38,003 626,973) ( 5,307,166 672,530 The annual debt service requirements for the City’s Proprietary Funds to maturity are as follows:

Year Ending
June 30 Total
Principal Interest Debt Service
2022 644,731 143,551 788,282 2023 597,459 125,260 722,719 2024 614,580 108,140 722,720
2025 632,224 90,496 722,720
2026 650,405 72,314 722,719
2027-2030 1,808,774 114,756 1,923,530 Total 4,948,173 654,517 5,602,690 Total
I. Evaluation of Subsequent Events
The City has evaluated subsequent events through October 25, 2022, the date which the financial statements were available to be issued.

CITY OF RIVERBANK

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
51 IV. OTHER INFORMATION
A. Risk Management
The City of Riverbank participates with other public entities in a joint exercise of powers agreement, which establishes the Central San Joaquin Valley Risk Management Authority (CSJVRMA). The relationship between the City and CSJVRMA is such that CSJVRMA is not a component unit of the City for financial reporting purposes.

The City is covered for the first $1,000,000 of each general liability claim and $250,000 of each workers’ compensation claim through the CSJVRMA. The City has the right to receive dividends or the obligation to pay assessments based on a formula which, among other expenses, charges the City’s account for liability losses under $10,000 and workers’ compensation losses under $10,000.

The CSJVRMA participates in an excess pool which provides general liability coverage from $1,000,000 to $10,000,000. The CSJVRMA participates in an excess pool that provides workers’ compensation coverage from $250,000 to $500,000 and purchases excess insurance above the $500,000 to the statutory limit. The CSJVRMA is a consortium of fifty-four (54) cities in San Joaquin Valley, California. It was established under the provisions of California Government Code Section 6500 et seq. The CSJVRMA is governed by a Board of Directors, which meets 3-4 times per year, consisting of one member appointed by each member city. The day-to-day business is handled by a management group employed by the CSJVRMA.

The financial position and results of operations for the CSJVRMA, as of June 30, 2020, are presented below:

Total Assets 140,373,479 Total Liabilities 120,609,137 Total Net Assets 19,764,342 Total Liabilities & Net Assets 140,373,479 Total Revenues for Year 58,244,856 Total Expenses for Year 57,261,330 Net Income(Loss) for Year 983,526 At the termination of the joint powers agreement and after all claims have been settled, any excess deficit will be divided among the cities in accordance with its governing documents.

B. Commitments and Contingencies
The City of Riverbank is a party in various lawsuits. Although the outcome of these lawsuits is not presently determinable, it is the opinion of the City's counsel that resolution of these matters will not have a material adverse effect on the financial condition of the City.

CITY OF RIVERBANK

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
52 C. Employee Retirement Systems and Plans
The City contributes to the California Public Employees’ Retirement System (PERS), an agent multiple-employer public employee defined benefit pension plan. PERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. PERS 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 PERS’ annual financial report may be obtained from their Executive Office – 400 P Street – Sacramento CA 95814.

Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service.

The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

CITY OF RIVERBANK

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
53 C. Employee Retirement Systems and Plans (continued) The Plans’ provisions and benefits in effect as of June 30, 2018, are summarized as follows:

Miscellaneous
Hire date
Prior to April 1,
2011
On or After
April 1, 2011
On or After
January 1, 2013
Benefit formula 2% @ 55 2% @ 60 2% @ 62
Benefit vesting schedule 5 Years 5 Years 5 Years
Benefit payments Monthly for life Monthly for life Monthly for life Retirement age 50 50 52
Monthly benefits, as of % of eligible compensation Up to 2% Up to 2% Up to 2% Required employee contribution rates 7.00% 7.00% 6.25%
Required employer contribution rates 13.578% 8.005% 6.25% Safety
Hire date
Prior to April 1,
2011
On or After
April 1, 2011
On or After
January 1, 2013
Benefit formula 2% @ 55 2% @ 55 N/A
Benefit vesting schedule 5 Years 5 Years N/A
Benefit payments Monthly for life Monthly for life N/A
Retirement age 50 N/A 50
Monthly benefits, as of % of eligible compensation Up to 2% Up to 2% N/A Required employee contribution rates 6.25%
Required employer contribution rates 6.25%
Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contributions rates for all public employees be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS.

The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during that year, with an additional amount to finance any unfunded accrued liability. The Local Government is required to contribute the difference between actuarially determined rate and the contribution rate of employees.

In February 2011, the City Council adopted a new tier which became effective in April 2011.

Effective January 1, 2013, the Public Employees’ Pension Reform Act (PEPRA) implemented new benefit formulas, final compensation period, and new contribution requirements for new employees hired on or after January 1, 2013, who meet the definition of new member as per PEPRA.

Participants are required to contribute 7% (9% for public-safety employees) of their annual covered salary for Tier 1 and Tier 2. The participants that qualify under Tier 3 are required to contribute

6.25% of their annual covered salary. The City makes no required contribution on behalf of the City employees. The contribution requirements of plan members and the City are established and may be amended by PERS. The City is required to contribute at an actuarially determined rate. PERS has determined that because of past funding and investment earnings, current employer contributions are

CITY OF RIVERBANK

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
54 C. Employee Retirement Systems and Plans (continued) not required for the public-safety employees of the City. The current rates are 13.578% (first-tier) and 8.005% (second-tier) for non-safety employees, of annual covered payroll.

For the year ended June 30, 2021, the contribution recognized as part of pension expense for each Plan were as follows:

Miscellaneous
Contributions - employer 336,128 $
Contributions - employee (paid by employer) -
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2021, the Local Government reported net pension liabilities for its proportionate shares of the net pension liability of each Plan as follows:

Proportionate Share
of Net Pension Liability
Miscellaneous 6,352,713 $
Safety 1,047,684 Total Net Pension Liability 7,400,397 $ The Local Government’s net pension liability for each Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plans is measured as of June 30, 2209, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. The Local Government’s proportion of the net pension liability was based on a projection of the Local Government’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined.

The Local Government’s proportionate share of the net pension liability for each Plan as of June 30, 2020 and 2021 was as follows:

Miscellaneous Safety Total
Proportion - June 30, 2020 0.14509% 0.01535% 0.06605%
Proportion - June 30, 2021 0.15061% 0.01573% 0.06802%
Change - Increase/(Decrease) 0.00552% 0.00038% 0.00197%

CITY OF RIVERBANK

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
55 C. Employee Retirement Systems and Plans (continued) At June 30, 2021, the Local Government reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows of Deferred Inflows of
Resources Resources
Changes in assumptions 0 $ 4,800 $
Differences between actual and expected experience 408,617 0 Differences between projected & actual investment earnings 211,488 0 Difference between employer's contribution and
proportionate share of contributions 0 877,992 Changes in employer's proportion 253,542 0 Penstion contributions made subsequent to measurement date 336,128 0 Total 1,209,775 $ 882,792 $
$336,128 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Miscellaneous Safety Total
2022 (187,469) $ (36,325) $ (223,794) $
2023 2,856 (7,256) (4,400) 2024 67,462 5,666 73,128 2025 90,515 11,410 101,925 2026 - - - Thereafter - - - Total (26,636) $ (26,505) $ (53,141) $

CITY OF RIVERBANK

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
56 C. Employee Retirement Systems and Plans (continued) Actuarial Assumptions – The total pension liabilities was determined by rolling forward the total pension liability determined in the June 30, 2019 actuarial accounting valuations to June 30, 2020.

The June 30, 2020, total pension liability was based on the following actuarial methods and assumptions:

Valuation Date
Measurement Date
Acturarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 7.15%
Inflation 2.50%
Salary Increases Varied by Entry Age and Service
Mortality Rate Table Derived using CalPERS' membership data for all funds Post Retirement Benefit Contract COLA up to 2.75% until purchasing power Increase Protection allowance floor on power applies, 2.50% thereafter June 30, 2019
June 30, 2020
The mortality table used was developed based on CalPERS’ specific data. The table includes 15 years of mortality improvements using Society of Actuaries Scale 90% of scale MP 2016. For more details on this table, please refer to the December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015) that can be found on the CalPERS website.

Discount Rate – The discount rate used to measure the total pension liability was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Long-term Expected Rate of Return – The long-term expected rate of return on pension plan investments was determined using a building-block method in which 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, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund (PERF) cash flows.

Using historical returns of all funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ 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 rounded single equivalent expected return that arrived at the same present value of benefits of cash flows as the one calculated using both short-term and long-term returns.

CITY OF RIVERBANK

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
57 E. Employee Retirement Systems and Plans (Continued) The table below reflects the 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 rates of return are net of administrative expenses.

New Strategic Real Return Real Return
Allocation Years 1 - 10 (2) Years 11+ (3)
Global Equity 50.0% 4.90% 5.98%
Global Fixed Income 28.0% 1.00% 2.62%
Inflation Sensitive 0.0% 0.77% 1.81%
Private Equity 8.0% 6.30% 7.23%
Real Estate 13.0% 3.75% 4.93%
Liquidity 1.0% 0.00% -0.92%
(1) In the System's CAFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.
(2) An expected inflation of 2.00% used for this period. (3) An expected inflation of 2.92% used for this period.

Asset Class(1)
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate – The following presents the Local Government’s proportionate share of the net pension liability for each Plan, calculated using the discount rate for each Plan, as well as what the Local Government’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 Rate
Discount
Rate +1%

6.15% 7.15% 8.15%
Employer's Net Pension Liability/(Asset) - Misc 6,352,713 9,669,979 3,611,761 Employer's Net Pension Liability/(Asset) - Safety 1,047,384 1,510,112 668,219 Employer's Net Pension Liability/(Asset) - Total 7,400,097 11,180,091 4,279,980 Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

F. Prior Period Adjustment
The prior period adjustment is to adjust for additional expenditures of $20,703 in the Local Redevelopment Fund.

REQUIRED SUPPLEMENTAL FINANCIAL DATA

CITY OF RIVERBANK

SCHEDULE OF THE LOCAL GOVERNMENT'S PROPORTIONATE

SHARE OF THE NET PENSION LIABILITY - MISCELLANOUS
JUNE 30, 2021
2020 2019 2018 2017 2016 2015 2014
Proportion of the net pension liability 0.0137% 0.1331% 0.1336% 0.1409% 0.1318% 13.0600% 0.1405% Proportion share of the net pension liablity 6,352,713 $ 5,810,091 $ 5,347,133 $ 5,477,093 $ 4,701,278 $ 3,583,450 $ 3,472,625 $ Covered - employee payroll 5,475,230 $ 5,203,105 $ 5,048,535 $ 5,116,284 $ 4,877,064 $ 3,144,373 $ 2,982,150 $ Proportionate share of the net pension liability as 116.03% 111.67% 105.91% 107.05% 96.40% 113.96% 116.45% percentage of covered-employee payroll
Plan's fiduciary net position 18,574,963 $ 18,123,267 $ 17,224,515 $ 17,085,417 $ 15,339,838 $ 15,484,030 $ 15,376,404 $ Plan fiduciary net position as a percentage of the total pension liability 74.52% 75.72% 76.31% 75.72% 76.54% 81.21% 81.58% Notes to Schedule:

Change in assumptions. In 2016, amounts reported as changes in assumptions resulted primarily from adjustments to expected retirement ages of general employees. 58 CITY OF RIVERBANK

SCHEDULE OF THE LOCAL GOVERNMENT'S PROPORTIONATE

SHARE OF THE NET PENSION LIABILITY - SAFETY
JUNE 30, 2021
2020 2019 2018 2017 2016 2015 2014
Proportion of the net pension liability 0.0137% 0.0148% 0.0157% 0.0165% 0.0023% 0.0125% 0.00979% Proportion share of the net pension liablity 1,047,684 $ 958,143 $ 761,383 $ 856,967 $ 733,043 $ 515,698 $ 367,103 $ Covered - employee payroll 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $
Proportionate share of the net pension liability as 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% percentage of covered-employee payroll
Plan's fiduciary net position 2,357,430 $ 2,504,280 $ 2,877,478 $ 2,631,925 $ 2,566,219 $ 2,627,253 $ 2,773,359 $ Plan fiduciary net position as a percentage of the total pension liability 69.23% 72.33% 79.08% 75.44% 77.78% 83.59% 88.31% Notes to Schedule:

Benefit Changes. In 2016, benefit terms were modified to base public safety employee pensions on a final three-year average salary instead of a final five-year average salary.

Change in assumptions. In 2016, amounts reported as changes in assumptions resulted primarily from adjustments to expected retirement ages of general employees. 59 CITY OF RIVERBANK

SCHEDULE OF CONTRIBUTIONS - MISCELLANEOUS
JUNE 30, 2021
2020 2019 2018 2017 2016 2015 2014
Contractually required contribution (actuarially determined) 2,104,228 $ 1,774,700 $ 1,573,919 $ 1,210,008 $ 1,108,137 $ 409,877 $ 340,922 $ Contributions in relation to the actuarially determined contributions (2,104,228) (1,774,700) (1,573,919) (1,210,008) (1,108,137) (409,877) (340,922) Contribution deficiency (excess) (0) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ Covered - employee payroll 5,475,230 $ 5,203,105 $ 5,048,535 $ 5,116,284 $ 4,877,064 $ 3,144,373 $ 2,982,150 $ Contributions as a percentage of covered-employee payroll 38.43% 34.11% 31.18% 23.65% 22.72% 13.04% 11.43% percentage of covered-employee payroll
Notes to Schedule:

Valuation Date: 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 Methods and assumptions used to determine cotnribution rates:

Actuarial Cost Method Entry age
Amortization method Level Percentage of Payroll and Direct Rate Smoothing Asset valuation method Market Value
Inflation 2.63%
Salary increases Varies by Entry Age and Service
Investment rate of return 7.25%, net of pension plan investment and administrative expense, including inflation
60 CITY OF RIVERBANK

SCHEDULE OF CONTRIBUTIONS - SAFETY
JUNE 30, 2021
2020 2019 2018 2017 2016 2015 2014
Contractually required contribution (actuarially determined) 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 241,124 $ Contributions in relation to the actuarially determined contributions 0 0 0 0 0 0 (241,124) Contribution deficiency (excess) 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ Covered - employee payroll 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 789,451 $ Contributions as a percentage of covered-employee payroll 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 30.54% percentage of covered-employee payroll
Notes to Schedule:

Valuation Date: 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 Methods and assumptions used to determine cotnribution rates:

Actuarial Cost Method Entry age
Amortization method Level Percentage of Payroll and Direct Rate Smoothing Asset valuation method Market Value
Inflation 2.63%
Salary increases Varies by Entry Age and Service
Investment rate of return 7.25%, net of pension plan investment and administrative expense, including inflation
61 COMBINING AND INDIVIDUAL FUND

STATEMENTS AND SCHEDULES
62 COMBINING FINANCIAL STATEMENTS

NON-MAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS
Gas Tax Fund - To account for state gas tax revenues based on population. The revenues may be expended only for street and road repair, maintenance, design, construction and traffic signal design and installation.

Local Transportation Fund - To account for the City's allocation of local transportation revenues for streets, roads, and sidewalk improvements.

Asset Forfeiture Fund - To account for monies received from asset seizures in the City’s jurisdiction as well as revenues and expenditures from Office of traffic Safety grants awarded for police services
Weed And Rubbish Abatement - To account for weed and rubbish cleanup in the City.

Self-Insurance Reserve - To account for the City’s workers compensation and liability insurance.

Lighting And Landscaping Districts - To account for lighting and landscaping fees collected and the related costs to operate the city’s various districts.

Neighborhood Improvement Fund – To account for monies received from vehicle abatement fees and code enforcement officer costs.

Public Safety Augmentation Fund - To account for monies received through a special sales tax to be spent to sustain the public safety department.

Riverfest Fund - To account for monies received from community for helping citizens during the flood in 2006 and for revenues and expenditures of the Beyond Earth Day event.

Riverbank Donations Fund - To account for donation revenues for City’s improvements.

Cheese and Wine Fund - To account from the revenues and expenditures of the Cheese and Wine event.

Off Street Parking Fund – To account for parking in lieu Fee paid by business in lieu of providing additional onsite parking.

Public Benefit Fund - To account for revenue received from Cannabis Development Agreements.

Park Grant Fund - To account for grant revenues received for park development. 63 COMBINING FINANCIAL STATEMENTS

NON-MAJOR GOVERNMENTAL FUNDS

CAPITAL PROJECTS FUNDS

CFD 2016-1 - To account for developer’s assessments for Consolidated Fire District Quimby Fees Fund - To account for park impact fees collected to mitigate additional city costs due to new construction.

Railroad Crossing Fund - To account for revenues to upgrade the Terminal and Townsend street railroad crossing.

Crossroads Development Fund – To account for the fees collected from developers for the Crossroads Specific Plan.

Special Building Projects Fund – To account for the building permit revenues designated by Council for future building inspections.

Storm Drain Fund - To account for storm drain revenues.

Facility Improvement Fund - To account for fees collected from facility rentals for future improvements.

Measure L Fund - To account for revenues from the Stanislaus County Measure L transportation Tax initiative.

CITY OF RIVERBANK

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
WITH COMPARATIVE ACTUAL AMOUNTS FOR JUNE 30, 2020
Local Asset Weed And SelfTrans- Cheese Riverbank Forfeit- Rubbish Insurance Gas Tax portation And Wine Donations ture Abatement Reserve Fund Fund Fund Fund Fund Fund Fund
Assets
Cash And Investments 655,357 55,360) ( 1,626 4,645 20,197 52,836 589,590 Accounts Receivable 4,975 21,579 0 0 41 96
Loans Receivable 0 0 0 0 0 0 0
Prepaid Expense 0 0 0 0 0 0 0
Due From Other Funds 0 0 0 0 0 0 0
Total Assets 660,332 33,781) ( 1,626 4,645 20,197 52,877 589,686 Liabilities And Fund Balances
Liabilities
Accounts Payable 36,870 0 30 0 0 0 486
Compensated Absences 20,132 0 0 0 0 0 0
Other Liabilities 11,697 0 0 0 0 0 0
Due To Other Funds 0 0 0 0 0 0 0
Total Liabilities 68,699 0 30 0 0 0 486
Fund Balances
Nonspendable 0 0 0 0 0 0 0
Restricted 0 0 0 0 0 0 0
Committed 0 0 0 0 0 0 0
Assigned 591,633 0 1,596 4,645 20,197 52,877 589,200
Unassigned 33,781) 0 ( 0 0 0 0 0
Total Fund Balances 591,633 33,781) ( 1,596 4,645 20,197 52,877 589,200 Total Liabilities
And Fund Balances 660,332 33,781) ( 1,626 4,645 20,197 52,877 589,686 Special Revenue
64 Lighting Neighbor- Public Non-Major
And Land- Hood Safety Aug- Off-Street Public CARES Special scaping Improvement mentation Parking Riverfest State Benefit ACT Revenue Fund Fund Fund Fund Fund Grants Fund Fund Total
400 236,979 0 55,252 3,703 363) ( 1,637,974 0 3,202,836 0 1,714 11,760 38 0 0 48,000 0 88,203
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
400 238,693 11,760 55,290 3,703 363) ( 1,685,974 0 3,291,039 912 26,799 0 0 0 0 13,048 0 78,145
1,883 0 0 0 0 0 0 0 22,015
2,358 0 0 0 0 0 15,370 0 29,425
0 0 0 0 0 0 0 0 0
5,153 26,799 0 0 0 0 28,418 0 129,585
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 211,894 11,760 55,290 3,703 0 1,657,556 0 3,200,351
4,753) 0 ( 0 0 0 363) ( 0 0 38,897) (
4,753) 211,894 ( 11,760 55,290 3,703 363) ( 1,657,556 0 3,161,454 400 238,693 11,760 55,290 3,703 363) ( 1,685,974 0 3,291,039 Special Revenue
65 CITY OF RIVERBANK

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
WITH COMPARATIVE ACTUAL AMOUNTS FOR JUNE 30, 2020
Facility Railroad CFD
Improvement Park Crossing 2016-1
Fund Fund Fund Fund
Assets
Cash And Investments 2,426 158,963 185,399 195,618
Accounts Receivable 0 0 0 730
Loans Receivable 0 0 0 0
Prepaid Expense 0 0 0 0
Due From Other Funds 0 0 0 0
Total Assets 158,963 2,426 185,399 196,348
Liabilities And Fund Balances
Liabilities
Accounts Payable 150 0 0 2,945
Compensated Absences 0 0 0 0
Other Liabilities 0 0 0 0
Due To Other Funds 0 0 0 0
Total Liabilities 0 150 0 2,945
Fund Balances
Nonspendable 0 0 0 0
Restricted 0 0 0 0
Committed 0 0 0 0
Assigned 2,276 158,963 185,399 193,403
Unassigned 0 0 0 0
Total Fund Balances 158,963 2,276 185,399 193,403
Total Liabilities
And Fund Balances 158,963 2,426 185,399 196,348
Capital Projects
66 Crossroads Non-Major
Measure Devel- Special Storm Capital
L opment Projects Drain ARPA Projects
Fund Fund Fund Fund Fund Total 2021 2020
863,616 2,070,809 122,083 191,929 3,575) ( 3,787,268 6,990,104 2,772,072 66,758 246,816 18 390 0 314,712 402,915 184,980
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 87,773
0 0 0 0 0 0 0 0
930,374 2,317,625 122,101 192,319 3,575) ( 4,101,980 7,393,019 3,044,825 20,657 75,178 0 945 0 99,875 178,020 89,617
0 0 0 0 0 0 22,015 14,952
0 0 55,085 0 0 55,085 84,510 8,126
0 0 0 0 0 0 0 0
20,657 75,178 55,085 945 0 154,960 284,545 112,695
0 0 - 0 0 0 0 0
0 0 0 0 0 0 0 190,837
0 0 0 0 0 0 0 0
909,717 2,242,447 67,016 191,374 0 3,950,595 7,150,946 2,800,604 0 0 0 0 3,575) ( 3,575) ( 42,472) ( 59,311) (
909,717 2,242,447 67,016 191,374 3,575) ( 3,947,020 7,108,474 2,932,130 930,374 2,317,625 122,101 192,319 3,575) ( 4,101,980 7,393,019 3,044,825 Totals
Capital Projects
67 CITY OF RIVERBANK

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCE

NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
WITH COMPARATIVE ACTUAL AMOUNTS FOR JUNE 30, 2020
Local Asset
Trans- Cheese Riverbank ForfeitGas Tax portation And Wine Donations ture Fund Fund Fund Fund Fund
Revenues
Investment Earnings 1,096 1,872 0 0 0
Intergovernmental 997,022 61,684 0 0 0
Other Taxes 0 0 0 0 0
Impact Fees 0 0 0 0 0
Licenses And Permits 0 0 0 0 0
Service Charges And Miscellaneous 0 4,687 2,550 323 7,600 Total Revenues 1,002,805 2,550 63,556 323 7,600
Expenditures
General Government 0 0 0 0 0
Public Safety 0 0 0 0 0
Public Works 864,406 64,178 0 0 0
Community Development 0 0 0 433 0
Culture And Leisure 0 0 522 0 0
Capital Outlay 0 393,165 0 0 0
Total Expenditures 1,257,571 522 64,178 433 0
Excess(Deficiency) Of Revenues
Over Expenditures ( 622) 254,766) ( 2,028 110) ( 7,600
Other Financing Sources (Uses)
Operating Transfers In 330,242 0 0 0 0
Operating Transfers Out ( 0 34,345) 0 0 0
Total Other Financing Sources (Uses) 0 295,897 0 0 0
Net Change In Fund Balances 41,131 622) ( 2,028 110) ( 7,600 Fund Balance - Beginning 33,159) 550,502 ( 432) ( 4,755 12,597 Fund Balance - Ending 33,781) 591,633 ( 1,596 4,645 20,197 Special Revenue
68 Weed And Self- Lighting Neighbor- Public Non-Major
Rubbish Insurance And Land- Hood Safety Aug- Off-Street Special Abatement Reserve scaping Improvement mentation Parking Riverfest State Revenue Fund Fund Fund Fund Fund Fund Fund Grants Total
662 278 1,969 0 0 259 0 0 6,136
0 0 0 22,293 123,182 0 0 0 1,204,181
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
580,096 1,000 378,200 16,847 0 0 0 0 991,303
580,758 1,278 380,169 39,140 123,182 259 0 0 2,201,620
563,993 0 0 0 0 0 0 363 564,356
0 0 0 113,678 0 0 0 0 113,678
0 3,697 0 0 0 0 0 0 932,281
0 0 331,619 0 0 0 0 0 332,052
0 0 0 0 0 0 0 0 522
0 19,292 6,042 0 0 0 0 0 418,499
583,285 3,697 337,661 113,678 0 0 0 363 2,361,388
( 2,419) 2,527) ( 42,508 74,538) ( 123,182 259 0 363) ( 159,768) ( 59,105 0 1,826 60,932 0 0 0 0 452,105
0 0 76,709) ( 0 108,961) ( 0 0 0 220,015) (
0 59,105 74,883) ( 60,932 108,961) ( 0 0 0 232,090
( 56,578 2,419) 32,375) ( 13,606) ( 14,221 259 0 363) ( 72,685 532,622 55,296 244,269 8,853 2,461) ( 55,031 3,703 0 1,431,576 589,200 52,877 211,894 4,753) ( 11,760 55,290 3,703 363) ( 1,504,261 Special Revenue
69 CITY OF RIVERBANK

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCE

NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
CARES Public Facility Railroad
ACT Benefit Improvement Park Crossing
Fund Fund Fund Fund Fund
Revenues
Investment Earnings 0 0 0 11 0
Intergovernmental 1,154,149 0 0 0 0
Other Taxes 0 0 0 0 0
Impact Fees 0 0 0 0 0
Licenses And Permits 0 0 0 0 0
Service Charges And Miscellaneous 1,216,197 0 300) ( 0 0 Total Revenues 1,216,197 1,154,149 300) ( 11 0
Expenditures
General Government 0 0 0 0 0
Public Safety 556,583 192,535 0 0 0
Public Works 0 0 0 0 0
Community Development 0 0 0 0 0
Culture And Leisure 0 0 0 0 0
Capital Outlay 264,754 0 0 0 0
Total Expenditures 457,289 556,583 0 0 0
Excess(Deficiency) Of Revenues
Over Expenditures 758,908 597,566 300) ( 11 0
Other Financing Sources (Uses)
Operating Transfers In 0 0 0 0 95,000
Operating Transfers Out ( 300,000) 597,495) ( 0 0 0
Total Other Financing Sources (Uses) ( 300,000) 597,495) ( 0 0 95,000 Net Change In Fund Balances 71 458,908 300) ( 11 95,000 Fund Balance - Beginning ( 1,198,648 71) 2,576 158,952 90,399 Fund Balance - Ending 1,657,556 0 2,276 158,963 185,399 WITH COMPARATIVE ACTUAL AMOUNTS FOR JUNE 30, 2020
Special Revenue Capital Projects
70 Crossroads Non-Major
CFD Measure Devel- Special Storm Capital
2016-1 L opment Projects Drain ARPA Projects
Fund Fund Fund Fund Fund Fund Total 2021 2020
0 0 1,876 124 5 0 8,152 2,016 63,415
1,243,336 0 0 0 0 0 3,601,666 2,397,485 2,265,263
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 71,000 0 0 43,688 0 2,321,888 1,330,585 1,945,860
1,243,336 71,000 1,876 124 43,693 0 3,730,086 5,931,706 4,274,538 0 0 0 0 0 0 564,356 0 510,598
0 8,424 0 0 0 0 871,220 8,424 264,726
11,681 0 0 0 14,351 0 958,313 26,032 885,868
0 0 0 0 0 0 332,052 0 276,825
0 0 0 0 0 0 522 0 97,152
394,883 0 66,648) ( 0 0 3,575 1,015,063 331,810 1,503,069 406,564 8,424 66,648) ( 0 14,351 3,575 366,266 3,741,526 3,538,238 836,772 62,576 68,524 124 29,342 3,575) ( 2,349,948 2,190,180 736,300 0 0 0 0 1,733 0 548,838 96,733 397,430
0 0 0 0 36,858) ( 0 ( 1,154,368) 934,353) ( 412,999) (
0 0 0 0 35,125) ( 0 837,620) ( 605,530) ( 15,569) (
836,772 62,576 68,524 124 5,783) ( 3,575) ( 1,512,328 1,584,650 720,731 1,405,675 130,827 841,193 66,892 197,157 0 4,092,248 5,523,824 4,803,164 2,242,447 193,403 909,717 67,016 191,374 3,575) ( 5,604,576 7,108,474 5,523,895 Totals
Capital Projects
71 FEDERAL GRANTOR/PASS- Federal Pass-Through
THROUGH GRANTOR/ CFDA Grantor's Federal
PROGRAM TITLE Number Number Expenditures
U.S. Department of Justice
Local Law Enforcement Block Grant 16.710 N/A 187,739
Total U.S. Department of Justice 187,739
U.S. Department of Defense
Passed Through Office of Economic Adjustment
OEA 12.607 CL0610-11-03 209,837
Total U.S. Department of Defense 209,837
U.S. Department of Army
U.S. Army Engineering And Support Center
ESCA 12.599 N/A 2,677,296
Total Expenditures of Federal Awards 3,383,921

CITY OF RIVERBANK

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
JUNE 30, 2021
72 U.S Department of Social Services (DSS)
Conronavirus Relief Fund 21.019 309,049

73 CITY OF RIVERBANK

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2021
SUMMARY OF AUDITOR’S RESULTS

1. Type of report issued on the financial statements – Unmodified

2. Significant deficiencies in internal control disclosed by the audit of the financial statements and any such conditions that are material weaknesses– None

3. Disclosure of any noncompliance which are material to the financial statements - None

4. Disclosure of any significant deficiencies in internal control over major programs and any such conditions that are material weaknesses – None

5. Type of report issued on compliance for major programs – Unmodified

6. Audit findings relative to the major federal programs – None

7. Major programs are as follows: U.S. Department of Army CFDA number 12.599.

8. Expenses in excess of $750,000 was used as the threshold to distinguish between Type A and Type B programs

9. The City of Riverbank was determined to be a low-risk auditee.

FINDINGS - FINANCIAL STATEMENT AUDIT
Findings relating to financial statements which are required to be reported – None

FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARDS
Findings relating to major federal award programs which are required to be reported – None PRIOR YEAR’S FINDINGS - None

OTHER REPORTS
74 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
To The City Council
City of Riverbank
State of 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 aggregate discretely presented component unit, each major fund, and the aggregate remaining fund information of City of Riverbank, State of California, as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City of Riverbank, State of California’s basic financial statements and have issued our report thereon dated October 25, 2022.

Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City of Riverbank, State of California’s internal control over financial reporting (internal control) to determine the 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 City of Riverbank, State of California’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City of Riverbank, State of California’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. 75 Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses.

However, material weaknesses may exist that have not been identified.

Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Riverbank, State of California’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion.

The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Gallagher Gatewood

GALLAGHER GATEWOOD, A PROFESSIONAL ACCOUNTANCY CORPORATION Modesto, California
October 25, 2022
76 INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE

WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND

MATERIAL EFFECT ON EACH MAJOR PROGRAM AND

ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE

WITH UNIFORM GUIDANCE
To The City Council
City of Riverbank
State of California
Report on Compliance for Each Major Federal Program
We have audited City of Riverbank, State of California’s compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of City of Riverbank, State of California’s major federal programs for the year ended June 30, 2021. City of Riverbank, State of California’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

Management’s Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs.

Auditor’s Responsibility
Our responsibility is to express an opinion on each of City of Riverbank, State of California’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about City of Riverbank, State of California’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of City of Riverbank, State of California’s compliance.
77 Opinion on Each Major Federal Program
In our opinion, City of Riverbank, State of California, complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2021.

Report on Internal Control over Compliance
Management of City of Riverbank, State of California, is responsible for establishing and maintaining effective internal control over compliance with the types of compliance referred to above. In planning and performing our audit, we considered City of Riverbank, State of California’s internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of City of Riverbank, State of California’s internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Gallagher Gatewood

GALLAGHER GATEWOOD, A PROFESSIONAL ACCOUNTANCY CORPORATION Modesto, California
October 25, 2022
78 REPORT ON COMPLIANCE WITH LAWS AND REGULATIONS

BASED ON AN EXAMINATION OF GENERAL-PURPOSE

FINANCIAL STATEMENT PERFORMED IN ACCORDANCE

WITH THE CALIFORNIA TRANSPORTATION

DEVELOPMENT ACT
To The City Council
City of Riverbank
State of California
We have audited the general-purpose financial statements of the City of Riverbank, State of California for the year ended June 30, 2021, and have issued our report thereon dated October 25, 2022. Our audit was made in accordance with generally accepted auditing standards and the standards for financial and compliance audits contained in the California Administrative Code Section 6664 of the Transportation Development Act and the allocation instructions of the Stanislaus Area Association of Governments, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.

The management of the City of Riverbank is responsible for the City’s compliance with laws and regulations. In connection with our audit referred to above, we selected and tested transactions and records to determine the City’s compliance with laws and regulations, noncompliance with which could have a material effect on the general-purpose financial statements of the City.

In our opinion the City of Riverbank Transportation Development Act funds were accounted for in conformance with the applicable laws, rules and regulations of the Transportation Development Act and the allocation instructions of the Stanislaus Council of Governments.

Gallagher Gatewood

GALLAGHER GATEWOOD, A PROFESSIONAL ACCOUNTANCY CORPORATION Modesto, California
October 25, 2022