Agenda — Waterford City Council, January 5, 2023 (part 1 of 2)

AGENDA

WATERFORD CITY COUNCIL - REGULAR MEETING

WATERFORD CITY HALL, CITY COUNCIL
CHAMBERS 101 “E” STREET, WATERFORD, CA

CALL TO ORDER &
FLAG SALUTE: Mayor Goeken
INVOCATION: Invocation
ROLL CALL:

Mayor: Charlie Goeken
Vice Mayor: Jill Kitchens
Council Members: Christine Harris, Jamie Hilton, Elizabeth Talbott ADOPTION OF AGENDA:

A member of the City Council motions to accept the items on the agenda for consideration as presented, or motions for any additions, including emergency items, or items pulled from consideration.

CONFLICT OF INTEREST DECLARATION:

Declaration by City Council members who may have a direct Conflict of Interest on any scheduled agenda item to be considered.

1. 2.

This is the portion of the meeting specifically set aside to invite public comments regarding any matters not appearing on the agenda and within the jurisdiction of the City Council or the Successor Agency. Individual audience participation is limited to a maximum of 5 minutes. We encourage you to share your name and address or submit a speaker card to the City Clerk.

3. All Matters listed under the Consent Calendar are considered routine by the Council and will be adopted by one action of the Council unless any Council Member desires to discuss any item or items separately. In that event, the Mayor will remove that item from the Consent Calendar and action will be considered separately.
3a: MOTION: Waiving all Readings of Ordinances and Resolutions, except by title. 3b: RESOLUTION: Adopting Resolution 2023-01, Approving the Warrant Register in the Amount of $558,453.35 for the Period of December 6 to December 13, 2022. 3c: MOTION: Approving Minutes of the Regular City Council Meetings held December 15, 2022.

WATERFORD CITY COUNCIL REGULAR MEETING – January 5, 2023 - 6:30 PM

COMMUNICATIONS FROM THE AUDIENCE

PRESENTATIONS

ADOPTION OF CONSENT CALENDAR

4. 4.

5. 6.
6a: MOTION: Accept and File the June 30, 2022 Basic Financial Statement for the City of Waterford and the Auditor’s Report on the Financial Statement including the reports on the Abandoned Vehicle Abatement Program, Appropriations Limit Schedule, Transportation Development Act Funds, and the Auditor’s Communication With Those Charged With Governance. (Envia) 6b: MOTION: Nominating and Appointing Regional Appointments to Boards, Committees and Commissions. (Krause)
6c: MOTION: Awarding Bid and Approving an Agreement with Sam Farias Fencing Inc, in the Amount of $9,500.00 for Project No. 2023-01, “Dog Park Fence Repair” as a Minor Contract Project and Authorizing the City Manager to Execute the Agreement. (Statzer) 6d: RESOLUTION: Approving Resolution 2023-02, Accepting Improvements for Project No. 2022-05, “H & I Street Improvement Project” and Authorizing the City Engineer to File a Notice of Completion with the Stanislaus County Recorder’s Office. (Statzer) 6e: RESOLUTION: Approving of the 2023-03, Adopting the Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan update and the City of Waterford Local Hazard Mitigation Plan Annex as an Amendment to the City of Waterford General Plan Safety Element. (Statzer)

7. 8.
8a: City Project List

9. 9a: City Staff
9b: City Council

10. ADJOURNMENT / RECESS

STAFF/COUNCIL COMMENTS AND MEETING REPORTS

INFORMATIONAL ITEMS

SUCCESSOR AGENCY TO THE FORMER WATERFORD REDEVELOPMENT AGENCY

GENERAL BUSINESS

FINAL READINGS

PUBLIC HEARINGS

11. 12.

NOTICE
REPORTS: Copies of the staff reports or other written documentation relating to each item of business referred to on the agenda are on file in the office of the City Clerk. Any writings or documents provided to a majority of the City Council regarding any item on this agenda (other than writings legally exempt from public disclosure) will be made available for public inspection at the front counter at City Hall during normal business hours.

COMMUNICATIONS FROM THE AUDIENCE: If you wish to address the City Council or the Successor Agency on any item not on the printed agenda, prior to the start of the meeting, or prior to addressing the City Council or the Successor Agency, complete and submit a speaker card and deliver it to the City Clerk. (Please note, speaker cards are not required, however completing a speaker card enables staff to better follow up with you later, if necessary and attribute your comments to you in the minutes of the meeting). When the Mayor calls for “Communications from the Audience,” stand or raise your hand and the Mayor will ask you to approach the podium and state your name and city of residence. It is the policy of the City Council that they will not act on any matter not appearing on the posted agenda. The purpose of the discussion is to permit a member of the public to raise an issue or problem and to permit the City Council to ask questions for clarification of the issue or problem, provide information to the public, provide direction of the City Staff, or schedule the matter for a future meeting. Please hold all comments to five (5) minutes.

PUBLIC COMMENTS RELATED TO AN ITEM ON THE PRINTED AGENDA: Members of the public are entitled to directly address the City Council or the Successor Agency concerning any item that is described on the agenda during consideration of that item. If during a public hearing, the Mayor will direct when the hearing has opened for public comment. If you wish to address the City Council or the Successor Agency on any item listed on this agenda, please complete a speaker card and deliver it to the City Clerk prior to discussion of that item. (Please note, speaker cards are not required, however completing a speaker card enables staff to better follow up with you later, if necessary and attribute your comments to you in the minutes of the meeting.) When your name is called proceed to the podium and state your name and city of residence.

WRITTEN MATERIAL INTRODUCED INTO THE RECORD: Citizens wishing to introduce written material into the record at the public hearing on any item are requested to provide a copy of the written material to the City Clerk prior to the public hearing date and/or prior to the opening of the public hearing so that the material may be distributed to the City Council prior to the public hearing.

NOTICE REGARDING CHALLENGES TO DECISIONS: Pursuant to all applicable laws and regulations, including without limitation, California Government Code Section 65009 and or California Public Resources Code Section 21177, if you wish to challenge in court any decisions (regarding planning, zoning and/or environmental decisions), you may be limited to raising only those issues you or someone else raised at the public hearing(s) described in this notice/agenda, or in written correspondence delivered to the City at, or prior to, the public hearing.

LIVE AND ON-DEMAND VIDEO RECORDINGS OF THE CITY COUNCIL/SUCCESSOR AGENCY: The meeting of the Waterford City Council/Successor Agency can be watched live and on-demand from the City’s website at www.cityofwaterford.org.

AMERICANS WITH DISABILITIES ACT (ADA): In compliance with the Americans with Disabilities Act, if you are a disabled person and you need a disabilityrelated modification or accommodation to participate in this meeting, please contact the City Clerk’s Office at (209) 874-2328 ext. 101 or email:
[email protected]. Requests must be made as early as possible and at least two-full business days before the start of the meeting General Information: The Waterford City Council meets on the 1st and 3rd Thursdays of each month at 6:30PM., unless otherwise noticed.

Council Agenda’s: Copies of City Council Agenda and agenda related writings or documents will be made available for public inspection at the front counter at City Hall located at 101 “E” Street, Waterford, CA 72 hours prior to the meeting, or at the time of the scheduled meeting. 12/27/2022
_________________________________________
Patricia Krause, CMC, City Clerk Date

CLOSED SESSION

REPORT OUT OF CLOSED SESSION
Consent Calendar 3a
January 5, 2023
Patricia Krause, City Clerk / Administrative Services Director City Council Staff Report
Motion: Waive Readings of Ordinances and Resolutions, Except by Title.

SUMMARY:

It is recommended that the City Council approve the waiver of readings of Ordinances and Resolutions, except by title.

ANALYSIS:

Pursuant to California Government Code §36934, approval of the waiver of readings will allow Ordinances and Resolutions to be introduced by title only and acted upon without the need to read the entire text of the item into the public record. The documents related to proposed Ordinances and Resolutions are available for review by the public on the City’s website and in the City Clerk’s office at City Hall.

FISCAL IMPACT:

N/A
ENVIRONMENTAL REVIEW:

N/A
ALTERNATIVES:

1. Direct the City Clerk to read the entire text of resolutions and ordinances prior to approval and adoption.

2. Take no action.

ATTACHMENTS:

N/A
Consent Calendar 3b
January 5, 2023
Patricia Krause, City Clerk / Administrative Services Director City Council Staff Report
Resolution: Adopting Resolution 2023-01, Approving the Warrant Register in the Amount of $558,453.35 for the Period of December 6 to December 13, 2022.

SUMMARY:

Consider approving the Warrant Register for the period of December 6 to December 13, 2022.

ANALYSIS:

As per Government Code Section §41004, a listing of all payments the City has made for goods and services need to be approved by City Council on a regular basis. This Warrant Register includes payments and payroll made for the period of December 6 to December 2022.

FISCAL IMPACT:

Payments for this period total $558,453.35.

ENVIRONMENTAL REVIEW:

N/A
ALTERNATIVES:

1. Take no action.

2. Provide staff with further direction.

ATTACHMENTS:
• Resolution #2023-01
• Check Register Report

WATERFORD CITY COUNCIL

DATE TOTAL
PAYROLL 12/12/2022 $ 37,944.68
ACCOUNTS PAYABLE 12/6/2022 $ 100,449.82
12/12/2022 $ 17,461.21
12/13/2022 $ 402,597.64
TOTAL $ 558,453.35
Passed and Adopted by the City Council of Waterford at a regular meeting held on By the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

PATRICIA KRAUSE, CMC, CITY CLERK JOSE M. ALDACO, MAYOR
RESOLUTION 2023-01
RESOLUTION # 2023-01
January 5, 2023
The City of Waterford does hereby reserve, determine and order as follows:

SECTION 1: That in accordance with Section 37202 of the Government Code that the City Manager hereby certifies to the accuracy of the following demands and the availability of funds for the payment thereof.

SECTION 2: That the following claims and demands are subject to audit as required by law, and that the same are hereby set forth.

User:

Printed: 12/12/2022 - 9:28AM
'trish'
Payroll
Include Partial: FALSE
ACH Check Register
Batch: 00012.12.2022
Check Date Check Number Employee No Employee Name Amount 12/12/2022 0 1002 3,438.73
12/12/2022 0 1006 1,379.07
12/12/2022 0 1008 2,018.94
12/12/2022 0 1011 448.18
12/12/2022 0 1017 1,207.88
12/12/2022 0 1018 1,344.83
12/12/2022 0 2004 2,030.68
12/12/2022 0 2005 2,919.21
12/12/2022 0 2006 4,475.64
12/12/2022 0 2007 2,278.20
12/12/2022 0 2010 790.57
12/12/2022 0 2012 2,053.99
12/12/2022 0 2020 3,520.41
12/12/2022 0 2023 2,992.55
12/12/2022 0 2024 1,700.39
12/12/2022 0 2028 1,707.36
12/12/2022 0 2030 1,622.48
12/12/2022 0 2031 1,376.01
12/12/2022 0 3004 134.93
12/12/2022 0 3010 125.58
12/12/2022 0 3011 126.35
12/12/2022 0 3012 126.35
12/12/2022 0 3013 126.35
Total Employees: 23 Total: 37,944.68
PR- ACH Check Register (12/12/2022 - 9:28 AM) Page 1

User:

Printed: 12/14/2022 - 10:06AM
trish
Computer Check Proof List by Vendor
Accounts Payable
Batch: 00012.12.2022
Invoice No Description Amount Payment Date Acct Number Reference Vendor: 105201 BANK OF THE WEST (IRS TAXES) Check Sequence: 1 ACH Enabled: True PR Batch 00012.12.2022 Medicare Employee Portion 748.28 12/12/2022 1010-000-2240 PR Batch 00012.12.2022 Medicare Employee Portion PR Batch 00012.12.2022 Medicare Employer Portion 748.28 12/12/2022 1010-000-2240 PR Batch 00012.12.2022 Medicare Employer Portion PR Batch 00012.12.2022 Federal Income Tax 3,663.21 12/12/2022 1010-000-2220 PR Batch 00012.12.2022 Federal Income Tax PR Batch 00012.12.2022 FICA Employee Portion 120.94 12/12/2022 1010-000-2240 PR Batch 00012.12.2022 FICA Employee Portion PR Batch 00012.12.2022 FICA Employer Portion 120.94 12/12/2022 1010-000-2240 PR Batch 00012.12.2022 FICA Employer Portion Check Total: 5,401.65
Vendor: 108350 CALIFORNIA EMPLOYMENT DEVELOPMENT DEPARTMENT Check Sequence: 2 ACH Enabled: True PR Batch 00012.12.2022 CALIFORNIA SDI 470.73 12/12/2022 1010-000-2260 PR Batch 00012.12.2022 CALIFORNIA SDI PR Batch 00012.12.2022 State Income Tax 1,345.14 12/12/2022 1010-000-2230 PR Batch 00012.12.2022 State Income Tax PR Batch 00012.12.2022 EDD TRAINING TAX 0.70 12/12/2022 1010-000-2260 PR Batch 00012.12.2022 EDD TRAINING TAX PR Batch 00012.12.2022 STATE UNEMPLOYMENT 14.82 12/12/2022 1010-000-2260 PR Batch 00012.12.2022 STATE UNEMPLOYMENT Check Total: 1,831.39
Vendor: 139400 PUBLIC EMPLOYEE RETIREMENT SYSTEM Check Sequence: 3 ACH Enabled: True PR Batch 00012.12.2022 EMPLOYEE PERS CONTRIBUTION 3,245.64 12/12/2022 1010-000-2270 PR Batch 00012.12.2022 EMPLOYEE PERS CONTR PR Batch 00012.12.2022 EMPLOYER PAID PERS 4,287.40 12/12/2022 1010-000-2270 PR Batch 00012.12.2022 EMPLOYER PAID PERS Check Total: 7,533.04
Vendor: 148050 STATIONARY ENGINEERS LOCAL 39 Check Sequence: 4 ACH Enabled: False PR Batch 00012.12.2022 UNION DUES 272.97 12/12/2022 1010-000-2290 PR Batch 00012.12.2022 UNION DUES Check Total: 272.97
Vendor: 154101 VANTGEPOINT TRANSFER AGENTS Check Sequence: 5 ACH Enabled: False PR Batch 00012.12.2022 DEFERRED COMP-457 345.00 12/12/2022 1010-000-2280 PR Batch 00012.12.2022 DEFERRED COMP-457 PR Batch 00012.12.2022 DEFERRED COMP 457 - % 1,577.98 12/12/2022 1010-000-2280 PR Batch 00012.12.2022 DEFERRED COMP 457 - % PR Batch 00012.12.2022 DEFERRED COM-457 - EMPLOYER PD 215.18 12/12/2022 1010-000-2285 PR Batch 00012.12.2022 DEFERRED COM-457 - EM PR Batch 00012.12.2022 457 LOAN REPAY 284.00 12/12/2022 1010-000-2280 PR Batch 00012.12.2022 457 LOAN REPAY AP-Computer Check Proof List by Vendor (12/14/2022 - 10:06 AM) Page 1 Invoice No Description Amount Payment Date Acct Number Reference Check Total: 2,422.16
Total for Check Run:

Total of Number of Checks:
17,461.21
5 AP-Computer Check Proof List by Vendor (12/14/2022 - 10:06 AM) Page 2

Consent Calendar 3c
January 5, 2023
Patricia Krause, City Clerk / Administrative Services Director City Council Staff Report
Motion: Approving Minutes of the Regular City Council Meeting held December 15, 2022.

SUMMARY:

Consider approving minutes from the December 15, 2022 Regular City Council meeting.

ANALYSIS:

Approve Minutes of the Regular City Council Meeting held on December 15, 2022.

FISCAL IMPACT:

N/A
ENVIRONMENTAL REVIEW:

N/A
ALTERNATIVES:

1. Direct the City Clerk to make amendments to the minutes and bring them back for approval at a future City Council meeting.

2. Take no action.

ATTACHMENTS:
• City Council Regular Meeting Minutes of December 15, 2022.

MINUTES

WATERFORD CITY COUNCIL - REGULAR

MEETING WATERFORD CITY HALL, CITY
COUNCIL CHAMBERS 101 “E” STREET,

WATERFORD, CA
MEETING CALLED TO ORDER BY MAYOR ALDACO AT: 6:30 pm
FLAG SALUTE: Mayor Aldaco
ROLL CALL PRESENT:

Mayor Aldaco
Vice Mayor Ewing
Council Member Kitchens
Council Member Talbott
ABSENT: Council Member Hilton
STAFF PRESENT:

Michael Pitcock, City Manager
Corbett Browning, City Attorney
Patricia Krause, City Clerk / Administrative Services Director Lonnie Statzer, Public Works Superintendent
Michael Parker, Police Chief
ADOPTION OF AGENDA:

ACTION: By motion moved and seconded (CM Kitchens / VM Ewing / 4-0) to adopt the Agenda.

AYES: Aldaco, Ewing, Kitchens, Talbott
NAYS: None
ABSENT: Hilton
ABSTAIN: None
Motion passed 4-0.

CONFLICT OF INTEREST DECLARATION:

None.

WATERFORD CITY COUNCIL REGULAR MEETING – December 15, 2022 - 6:30 PM

1. 1a: RESOLUTION: Adopting Resolution 2022-59, Certifying the November 8, 2022, General Municipal Election Returns. (Krause)
ACTION: By motion moved and seconded (CM Talbott / VM Ewing / 4-0) to adopt Resolution 2022-59, Certifying the November 8, 2022, General Municipal Election Returns.

AYES: Aldaco, Ewing, Kitchens, Talbott
NAYS: None
ABSENT: Hilton
ABSTAIN: None
Motion passed 4-0.
1b: Comments from Sitting Council Members
Councilmember Talbott thanked voters for her re-election and is looking forward to working with the other Councilmembers for the next four years.

Councilmember Kitchens welcomed the new Mayor and Councilmember and is looking forward to working together.

Vice Mayor Ewing thanked the Waterford Community for voting for him and giving him the opportunity to serve the City, and that is has been an honor.

Mayor Aldaco thanked everyone present and everyone who has been on his path for the last 15 years. He is proud to have worked hard to be sure the City has been taken care of. 1c: Recognition of Outgoing City Council Members
Supervisor Chiesa recognized Mayor Aldaco and Vice Mayor Ewing on their service to the City of Waterford.

Mayor Aldaco presented a Certificate of Appreciation to Vice Mayor Ewing for his service.

Councilmember Talbott presented an Award of Appreciation to Mayor Aldaco for his 15 years of service to the City of Waterford.
1d: Certificates of Election and Oaths of Office
City Clerk Krause administered the Oaths of Office to the elected Mayor and Councilmembers. 1e: 15 Minute Break/Reception
Meeting recessed at 6:48 pm
Meeting back in session at 7:05 pm
1f: Comments from Newly Elected Council Members
Councilmember Talbott thanked her family for their support.

Councilmember Harris thanked her family for their support and the Citizens of Waterford for voting for her; she is excited to get this journey started.

Mayor Goeken thanked his family for their support. Mayor Goeken thanked Mr. Aldaco for his years of service, stated that he is a great Man and has done so much for the Waterford Community. Mayor Goeken also thanked Mr. Ewing for his service to the Community. Mayor Goeken stated that he is looking forward to working with Council and staff.

PRESENTATION
1g: MOTION: Electing a Mayor Pro Tempore to a Two-Year Term (Krause) ACTION: By motion moved and seconded (Mayor Goeken / CM Harris / 4-0) to elect Councilmember Jill Kitchens as Mayor Pro Tempore for a Two-Year Term.

AYES: Goeken, Harris, Kitchens, Talbott
NAYS: None
ABSENT: Hilton
ABSTAIN: None
Motion passed 4-0.

2. None.

3. 3a: MOTION: Waiving all Readings of Ordinances and Resolutions, except by title. 3b: RESOLUTION: Adopting Resolution 2022-56, Approving the Warrant Register in the Amount of $332,988.31 for the Period of October 17 to November 1, 2022. 3c: MOTION: Approving Minutes of the Regular City Council Meetings held October 20, 2022. 3d: MOTION: Accepting the Treasurer’s Report for the Quarter Ended September 30, 2022.

ACTION: By motion moved and seconded (CM Talbott / CM Harris / 4-0) to Adopt the Consent Calendar.

AYES: Goeken, Harris, Kitchens, Talbott
NAYS: None
ABSENT: Hilton
ABSTAIN: None
Motion passed 4-0

4. 5.

6. 7.

COMMUNICATIONS FROM THE AUDIENCE

SUCCESSOR AGENCY TO THE FORMER WATERFORD REDEVELOPMENT AGENCY

GENERAL BUSINESS

FINAL READINGS

ADOPTION OF CONSENT CALENDAR

PUBLIC HEARINGS

8. 8a: City Project List

9. 9a: City Staff
Public Works Superintendent Statzer congratulated the Mayor and Councilmembers on their election. M.

Statzer thanked Love Waterford and Staff for a successful parade despite the bad weather. Mr. Statzer updated the Council on the flashing crosswalk beacons at Pasadena and the plans to repair them, Chief Parker congratulated the new Mayor and Councilmembers and stated that he looked forward to working together. Chief Parker commented that it was an honor to work with Mayor Aldaco and Vice Mayor Ewing. Chief Parker gave an update on the November crime statistics and informed the Council on the most recent calls of interest.

City Clerk Krause gave an update on the AV Upgrade for the Council Chambers and reminded the Council of the Christmas Social the following evening.

City Attorney Browning thanked the new Members for wanting to serve the community. Mr. Browning stated that he is always available for questions and that he is open to discussions prior to council meetings if there is something on the agenda that have legal questions about. Mr. Browning also commented that he will hold a Brown Act workshop soon.

City Manager Pitcock thanked the Council for serving the City. Mr. Pitcock informed the Council that he will be setting up a Council priorities workshop in the near future. 9b: City Council
Councilmember Harris had no comments.

Councilmember Kitchens congratulated the newly elected members and commented on how proud she was of our City, that even in a storm, citizens showed up to watch the Christmas parade.

Councilmember Talbott had no comments.

Mayor Goeken wished everyone a Merry Christmas and a Happy New Year.

10. ACTION: By motion moved and seconded (CM Talbott / VM Kitchens / 4-0) to adjourn meeting at 7:00 pm.

AYES: Goeken, Harris, Kitchens, Talbott
NAYS: None
ABSENT: Hilton
ABSTAIN: None
Motion passed 4-0

11. CLOSED SESSION

ADJOURNMENT / RECESS

STAFF/COUNCIL COMMENTS AND MEETING REPORTS

INFORMATIONAL ITEMS

12. 12.

PASSED AND ADOPTED by the Waterford City Council at a regular meeting held on January 5, 2023 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

CITY OF WATERFORD:

________________________
Charlie Goeken, Mayor
ATTEST:
_________________________
Patricia Krause, CMC, City Clerk

REPORT OUT OF CLOSED SESSION
General Business 6a
January 5, 2023
Tina Envia, Finance Manager
City Council Staff Report
Motion: Accept and File the June 30, 2022 Basic Financial Statement for the City of Waterford and the Auditor’s Report on the Financial Statement including the reports on the Abandoned Vehicle Abatement Program, Appropriations Limit Schedule, Transportation Development Act Funds, and the Auditor’s Communication With Those Charged With Governance.

SUMMARY:

Accept and file the City of Waterford Basic Financial Statement for the year ended June 30, 2022 including all the related supplementary reports as listed above.

ANALYSIS:

It is recommended that the City accept the financial statements and the Auditor’s Reports on the financial reports.

On December 1, 2022, Badawi & Associates, the City’s Auditor’s, issued their reports on the financial statements of the City of Waterford. The Auditor’s opinion was that the statements were presented fairly in all material respects.

FISCAL IMPACT:
• The General Fund balance as of June 30, 2022 was $3,871,531. The amount representing Advances to other funds of $283,193 is designated “Non-spendable,” thus the balance of $3,588,338 is designated “Unassigned.” • Unspent American Rescue Plan Funds are also held in the General Fund as Unearned Revenue until the amounts are spent.
• The City Impact Fee Fund had a “Restricted” balance of $1,432,907 at June 30, 2022. This fund accounts for the Developer Impact Fees collected by the City through the building permit process. The fees are required to be used according to the Capital Facility Fees Nexus Study. The fees are tracked individually depending on the required use.
• The Measure L Fund had a balance of $363,835 at June 30, 2022. This fund accounts for the capital streets projects funded by the County special roads tax and its fund balance is restricted for those specific uses as specified by the special tax.
• All other Non-major Governmental Funds had a balance of $1,522,344 at June 30, 2022. Activities represented in this fund group include; Gas Tax, Local Transportation Funds, Lighting and Landscaping Districts, Special Business Pilot Program Fund, and the CIP funds for Streets and Roads and Parks. • The Proprietary Funds include the Wastewater Treatment, Water System, and the Public Financing Authority (PFA). The funds ended the year with Unrestricted Net Position as follows; Wastewater $138,442, Water $876,041, and PFA of $366,154.

ALTERNATIVES:

1. Accept and file the June 30, 2022 Audited Basic Financial Statements for the City of Waterford and all related items as listed in the motion.

2. Provide staff with direction as to the modifications desired and request a subsequent modified report.

3. Not accept the audited basic financial statements as presented and give no further direction for changes. This alternative would limit the Auditor’s ability to issue further reports without modifications to their opinion of the statement’s accuracy.

ATTACHMENTS:
• City of Waterford Basic Financial Statements for the Fiscal Year Ended June 30, 2022 • City of Waterford Abandoned Vehicle Abetment Report for Fiscal Year Ended June 30, 2022 • City of Waterford Appropriations Limit Schedule for Fiscal Year Ended June 30, 2022 • City of Waterford Transportation Development Act Funds for Fiscal Year Ended June 30, 2022 • Auditors’ Communication With Those Charged With Governance for Fiscal Year Ended June 30, 2022

CITY OF WATERFORD, CALIFORNIA

BASIC FINANCIAL STATEMENTS

FOR THE FISCAL YEAR ENDED
June 30, 2022
Prepared by:

Tina Envia
Finance Manager
City of Waterford, California
Basic Financial Statements
For the year ended June 30, 2022
Table of Contents
Page

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

Government-Wide Financial Statements:

Statement of Net Position ............................................................................................................................. 21 Statement of Activities ................................................................................................................................... 22 Fund Financial Statements:

Governmental Funds:

Statement of Net Position – Proprietary Funds ...................................................................................... 34 Statement of Revenues, Expenses, and Changes in Fund Net position – Proprietary Funds .................................................................................................................................... 35 Statement of Cash Flows – Proprietary Funds ....................................................................................... 36 Fiduciary Funds:

Statement of Fiduciary Net Position ........................................................................................................ 38 Statement of Changes in Fiduciary Net Position.................................................................................... 39 Notes to Basic Financial Statements ................................................................................................................... 41 Required Supplementary Information:

Budgets and Budgetary Accounting
Budgeting Procedures ...................................................................................................................................... 77 Budgetary Comparison Schedules
General Fund .................................................................................................................................................. 78 Impact Fee Special Revenue Fund ............................................................................................................... 79 Defined Benefit Pension Plan
Schedule of the City’s Proportionate Share of the Net Pension Liability .................................................. 80 Schedule of Contributions ................................................................................................................................ 80 City of Waterford, California
Basic Financial Statements
For the year ended June 30, 2022
Table of Contents
Page
FINANCIAL SECTION, Continued
Other Supplemental Information:

Budgeted Major Governmental Funds Other Than General Fund and Special Revenue Funds:

Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual - CIP Streets Measure L .................................................................................................. 84 Combining and Individual Fund Financial Statements and Schedules:

Nonmajor Governmental Funds:

Combining Balance Sheet ................................................................................................................................. 90 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ............................... 92 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual – Gas Tax Special Revenue Fund .................................................................................. 94 Budget to Actual – Local Transportation Special Revenue Fund ............................................................ 95 Budget to Actual - Community Development Special Revenue Fund ................................................... 96 Budget to Actual – Lighting District Special Revenue Fund .................................................................... 97 Budget to Actual – Abandoned Vehicle Abatement Special Revenue Fund ......................................... 98 Budget to Actual – Lighting and Landscaping Special Revenue Fund .................................................. 99 Budget to Actual – Special Business Pilot Program ................................................................................ 100 Budget to Actual – CFD 2019-1 Maintenance Service Fund ................................................................. 101 Nonmajor Capital Projects Funds:

Combining Balance Sheet ............................................................................................................................... 104 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .......................................................................................................................................... 105 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual – CIP Streets and Roads Capital Projects Fund ......................................................... 106 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual – CIP Parks Capital Projects Fund .............................................................................. 107 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 ........................................................... 109 INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
of the City of Waterford
Waterford, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Waterford (City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise City’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

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

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

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

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

Page 2 ends

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

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

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

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, pension information, and budgetary comparison information on pages 5-16 and 78- 81 be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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 2 To the Honorable Mayor and Members
of the City Council of the City of Waterford
City, California

Page 3 ends

of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements on pages 85-109 are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual nonmajor fund financial statements on pages 85-109 are the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. 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 on pages 85-109 are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 1, 2022 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Badawi and Associates, CPAs
Berkeley, California
December 1, 2022
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4 City of Waterford, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis
This section provides a narrative overview and analysis of the financial activities of the City of Waterford (City) for the fiscal year ended June 30, 2022. It should be read in conjunction with the accompanying transmittal letter and basic financial statements.

FINANCIAL HIGHLIGHTS
 The City's total net position increased by $2,953,186 over the course of this year’s operations after conducting all City operations and programs. The assets of the City exceeded its liabilities by $32,510,657 at the end of the 2022 fiscal year. Of that amount, $4,598,636 (the unrestricted net position) may be used to meet the City's ongoing obligations and operating expenses for the next fiscal year.
 Overall City-wide program revenues from all governmental and business-type activities increased by $364,193 compared to the 2021 fiscal year. The City's total expense for all programs decreased by ($119,918) compared to the 2021 fiscal year.
 The general fund reported a fund balance of $3,871,531, an increase of $673,667 from June 30, 2021.

The unrestricted portion of the General Fund’s fund balances is $3,588,338. The General Fund’s cash and investments, including restricted amounts, at June 30, 2022 was $4,418,234.  The City also ended the fiscal year with $10,428,012 in the proprietary enterprise funds net position.

OVERVIEW OF THE ANNUAL FINANCIAL REPORT
This Annual Financial Report includes the Management’s Discussion and Analysis (this part), the Basic Financial Statements, which include the Government-wide and the Fund Financial Statements along with the notes to these financial statements, the Required Supplementary Information and the Combining and Individual Fund Financial Statements and Schedules.

The Basic Financial Statements
The Basic Financial Statements are comprised of the Government-wide Financial Statements and the Fund Financial Statements; these two sets of financial statements provide two different views of the City’s financial activities and financial position.
5 City of Waterford, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis
OVERVIEW OF THE ANNUAL FINANCIAL REPORT, Continued
Government-wide Financial Statements
The Government-wide Financial Statements provide a broad overview of the City’s activities as a whole and comprise the Statement of Net Position and the Statement of Activities. The Statement of Net Position provides information about the financial position of the City as a whole, including all its capital assets and long-term liabilities on the full accrual basis, similar to that used by corporations. The Statement of Activities provides information about all the City’s revenues and all its expenses, also on the full accrual basis, with the emphasis on measuring net revenues or expenses of each the City’s programs. The Statement of Activities explains in detail the change in Net Position for the year.

All of the City’s activities are grouped into Governmental Activities and Business-type activities, as explained below. All the amounts in the Statement of Net position and the Statement of Activities are separated into Governmental Activities and Business-type Activities in order to provide a summary of these two activities of the City as a whole.
♦ Governmental activities – All of the City’s basic services are considered to be governmental activities, including general government, public ways and facilities, police services, parks and recreation, community development, planning and zoning, and general administrative services.

These services are supported by general City revenues such as taxes and by specific program revenues such as developer fees.
♦ Business-type activities – All the City’s enterprise activities are reported here, including Wastewater Treatment, Water System, and the Public Financing Authority. Unlike governmental services, these services are supported by charges paid by users based on the amount of the service they use.

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

Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the Government-wide Financial Statements. However, unlike the Government-wide Financial Statements, Governmental Fund Financial Statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.
6 City of Waterford, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis
OVERVIEW OF THE ANNUAL FINANCIAL REPORT, Continued
Because the focus of the Governmental Fund Financial Statements is narrower than that of the Government-wide Financial Statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the Governmentwide Financial Statement. By doing so, readers may better understand the long-term impact of the government’s near-term financial decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The Governmental Fund Financial Statements provide detailed information about each of the City’s most significant funds, called major funds. The concept of major funds, and the determination of which are major funds, was established by GASB Statement No. 34 and replaces the concept of combining like funds and presenting them as one total. Instead, each major fund is presented individually, with all nonmajor funds summarized and presented only in a single column. Subordinate schedules present the detail of these nonmajor funds. Major funds present the major activities of the City for the year, and may change from year to year as a result of changes in the pattern of the City’s activities.

For the fiscal year ended June 30, 2022, the City’s major funds are as follows:

GOVERNMENTAL FUNDS:
 General Fund
 Impact Fee Fund
 CIP Streets Measure L Capital Projects Fund
PROPRIETARY FUNDS:
 Wastewater Treatment Enterprise Fund
 Water System Enterprise Fund
 Public Financing Authority Fund
For the fiscal year ended June 30, 2022, the City adopted annual appropriated budgets for all governmental funds.

Proprietary funds. The City maintains Enterprise-type proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the Government-wide Financial Statements. The City uses enterprise funds to account for Water and Wastewater activities. Proprietary funds provide the same type of information as the Government-wide Financial Statements, only in more detail. The proprietary fund financial statements provide separate information for all of these operations.
7 City of Waterford, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis
OVERVIEW OF THE ANNUAL FINANCIAL REPORT, Continued
Notes to the Basic Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the Government-wide and Fund Financial Statements. The notes to the basic financial statements can be found in the details of this report.

Other Information
In addition to the basic financial statements and accompanying notes, this report also presents required supplementary information concerning the City’s pension contributions and proportionate share of the net pension liability. Required supplementary information can be found in the details of this report.

The combining statements referred to earlier in connection with nonmajor governmental funds are presented immediately following the notes to the financial statements.

GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City, assets exceeded liabilities by $32,510,657 as of June 30, 2022. The Summary of Net position as of June 30, 2022, and 2021, follows:

Govern- Business- Govern- Businessmental type mental type Activities Activities Total Activities Activities Total Current and other assets $ 8,600,759 $ 3,648,331 $ 12,249,090 $ 6,723,135 $ 2,423,386 $ 9,146,521 Noncurrent assets 17,449,596 12,054,837 29,504,433 17,298,151 11,444,208 28,742,359 Deferred outflows 267,962 370,912 638,874 291,635 419,912 711,547 Total assets and deferred
outflows 26,318,317 16,074,080 42,392,397 24,312,921 14,287,506 38,600,427 Current and other liabilities 1,498,416 1,589,166 3,087,582 591,226 724,076 1,315,302 Long-term liabilities 2,278,416 3,775,678 6,054,094 3,013,514 4,587,263 7,600,777 Deferred inflows 458,840 281,224 740,064 78,663 48,214 126,877 Total liabilities and deferred
inflows 4,235,672 5,646,068 9,881,740 3,683,403 5,359,553 9,042,956 Net position:

Net Investment in capital
assets 15,545,560 8,616,046 24,161,606 15,222,066 7,585,022 22,807,088 Restricted 3,319,086 431,329 3,750,415 3,095,978 430,963 3,526,941 Unrestricted 3,217,999 1,380,637 4,598,636 2,311,474 911,968 3,223,442 Total net postion $ 22,082,645 $ 10,428,012 $ 32,510,657 $ 20,629,518 $ 8,927,953 $ 29,557,471 2022 2021
Summary of Net Position
8 City of Waterford, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis
GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued
Overall, total net position increased by $2,953,186 of this amount, net position for governmental activities increased by $1,453,127 and net position for business-type activities increased by $1,500,059 Revenues
The City’s total revenues for governmental and business-type activities were $10,092,227 for the fiscal year ended June 30, 2022. Significant revenues for the City for fiscal year 2022 were derived from charges from services (54%), taxes and general revenues (30%), and operating grants and contributions (15%).

The following discusses variances in key revenues from the prior fiscal year:

1. Property Tax. Property taxes increased $39,863 or 9% and are expected to continue to climb as the City currently has over 70 new homes on the assessment roll.

2. Sales Tax. Annual revenues increased $210,272. This represents a 32% increase over the prior fiscal year.

3. State Motor Vehicle In-Lieu Tax. Annual receipts increased by $64,857 or 8%. These revenues will likely see increases in the future as Property Taxes are rising significantly due to homes sales and new development.

The chart on the following page outlines the year over year change in revenues, expenses, and changes in net position.
9 City of Waterford, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis
GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued
The change in net position for the fiscal years ended June 30, 2022 and 2021, follows:

Govern- Business- Govern- BusinessGovernmental Business-type Governmental Business-type Activities Activities Total Activities Activities Total Revenues:

Program revenues:

Charges for services $ 1,447,142 $ 4,050,995 $ 5,498,137 $ 1,127,574 $ 3,991,461 $ 5,119,035 Grants and contributions:

Operating 1,534,343 1,534,343 - 1,549,861 1,549,861 -
Capital 8,634 - 8,634 8,025 - 8,025
General revenues:

Property taxes
and assessments 473,257 - 473,257 433,394 - 433,394
Sales taxes 870,140 - 870,140 659,868 - 659,868
Franchise taxes 152,108 - 152,108 132,889 - 132,889
Utility users tax 599,389 - 599,389 616,559 - 616,559
Other taxes 912,612 - 912,612 847,755 - 847,755
Use of money and property (36,680) (43,461) (80,141) 12,292 (3,354) 8,938 Other general 123,748 - 123,748 137,683 - 137,683
Total revenues 6,084,693 4,007,534 10,092,227 5,525,900 3,988,107 9,514,007 Expenses:

Governmental activities:

General government 133,828 - 133,828 437,999 - 437,999
Public ways and facilities 490,324 - 490,324 1,031,342 1,031,342 - Police services 2,625,770 - 2,625,770 1,902,948 1,902,948 - Parks and recreation 381,708 - 381,708 353,228 - 353,228 Community development 340,012 - 340,012 240,872 - 240,872 Interest and fiscal charges 64,028 - 64,028 58,405 - 58,405 Business-type activities:

Wastewater Treatment 1,104,580 - 1,104,580 1,375,032 - 1,375,032 Water System 1,899,132 - 1,899,132 1,744,613 - 1,744,613 Public Financing Authority - 104,836 104,836 - 119,697 119,697 Total expenses 4,035,670 3,108,548 7,144,218 4,024,794 3,239,342 7,264,136 Excess (Deficiency) of revenues over
expenditures before transfers 2,049,023 898,986 2,948,009 1,501,106 748,765 2,249,871 Transfers (601,073) 601,073 - (65,476) 65,476 -
Change in net position 1,447,950 1,500,059 2,948,009 1,435,630 814,241 2,249,871 Net Positions:

Beginning of year, as restated 20,634,695 8,927,953 29,562,648 19,193,888 8,113,712 27,307,600 End of year $ 10,428,012 22,082,645 $ 32,510,657 $ 20,629,518 $ 8,927,953 $ 29,557,471 $ 2022 2021
Changes in Net Position
10 City of Waterford, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis
GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued
Expenses
Governmental and business-type activity expenses of the City for the year totaled $7,144,218.

Governmental activity expenses totaled $4,035,670 or 56% of total expenses. Business-type activities incurred $3,108,548 of expenses during the fiscal year or 44% of total expenses.

Governmental Activities
The following table shows the cost of each of the City’s major programs and the net cost of the programs. Net cost is the total cost less fees and other direct revenue generated by the activities. The net cost reflects the financial burden that was placed on the City’s taxpayers by each of the programs.

The total cost of services and the net cost of services for the fiscal years ended June 30, 2022 and 2021, are as follows:

Total Cost Net Cost Total Cost Net Cost
of Services of Services of Services of Services
General government 133,828 $ 88,608 $ 437,999 $ 30,180 $ Public ways and facility 1,047,980 884,490 1,031,342 499,770 Police services 2,068,114 (2,331,658) 1,902,948 (1,664,175) Parks and recreation 381,708 (147,014) 353,228 (173,788) Community development 339,612 (33,205) 240,872 27,084
Interest and fiscal charges 64,028 (64,028) 58,405 (58,405) Total 4,035,270 $ (1,602,807) $ 4,024,794 $ (1,339,334) $ 2022 2021
11 City of Waterford, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis
GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued
Revenues by source for the fiscal years ended June 30, 2022 and 2021, are as follows:

Charges for services
$1,447,142 23%
Operating grants
$1,534,343 25%
Capital grants $8,634
Property taxes 0%
$473,257 8%
Sales taxes $870,140
14%
Franchise taxes
$152,108 2%
Utility users tax
$599,389 10%
Other taxes $912,612
15%
Use of money and
property $(80,141) -
1%
Other general
$123,748 2%
Revenues by Source - Governmental Activities
2022
Charges for services
$1,127,574 21%
Operating grants
$1,549,861 28%
Capital grants $8,025
0%
Property taxes
$433,394 8%
Sales taxes $659,868
12%
Franchise taxes
$132,889 2%
Utility users tax
$616,559 11%
Other taxes $847,755
15%
Use of money and
property $12,292 0%
Other general
$137,683 3%
Revenues by Source - Governmental Activities
2021
12 City of Waterford, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis
GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued
Business-type activities. Business-type activities increased the City’s net position by $1,500,059. The City has three business-type activities: Wastewater Treatment, Water System, and Public Financing Authority. The operating revenues and expenses for the business-type activities for the fiscal years ended June 30, 2022, and 2021, are as follows:
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
Wastewater
Treatment
Water System Public
Financing
Authority
Operating revenues
Operating expenses
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
Wastewater
Treatment
Water System Public
Financing
Authority
Operating revenues
Operating expenses
Operating Revenues and Expenses
Business-type Activities
2021
Operating Revenues and Expenses
Business-type Activities
2022
13 City of Waterford, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis
GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued
Financial Analysis of the Government’s Funds
The City of Waterford uses fund accounting to ensure and demonstrate compliance with financerelated legal requirements. The fund financial statements focus on individual parts of the City government, reporting the City’s operations in more detail than the government-wide financial statements.

Governmental funds. The City’s governmental funds provide information on near-term inflows, outflows, and balances of spending resources. At the fiscal year ended June 30, 2022, the City’s governmental funds reported combined fund balances of $7,190,617. This is an increase of $921,829.

The General Fund is the chief operating fund of the City. At the fiscal year ended June 30, 2022, General Fund unassigned fund balance totaled $3,588,338. This is an increase of $673,667 from the prior year.

Proprietary funds. The City’s proprietary funds net position increased by $1,500,059 during the fiscal year ended June 30, 2022.

Capital Assets
The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2022, amount to $29,522,909. This investment in capital assets includes land, construction in progress costs for road and median improvements, buildings and structures, equipment, vehicles, and infrastructure.
2022 2021 2022 2021 2022 2021
Land $ 5,399,530 $ 5,399,530 $ 427,672 $ 427,672 $ 5,827,202 $ 5,827,202 Construction in progress 622,601 419,177 956,611 105,048 1,579,212 524,225 Buildings and structures 5,104,596 5,099,665 962,118 3,042,470 6,066,714 8,142,135 Equipment 2,961,040 2,782,691 4,185,304 4,185,304 7,146,344 6,967,995 Vehicles 763,739 702,058 601,955 440,273 1,365,694 1,142,331 Infrastructure 13,160,058 12,471,168 10,673,111 8,509,024 23,833,169 20,980,192 Less Accum. Deprec. (10,561,968) (9,576,138) (5,733,458) (5,265,583) (16,295,426) (14,841,721) Total $ 17,449,596 $ 17,298,151 $ 12,073,313 $ 11,444,208 $ 29,522,909 $ 28,742,359 Governmental Activities Business-type Activities Totals More detail of the capital assets and current activity can be found in the notes to the financial statements.
14 City of Waterford, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis
GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued
Long Term Debt
The City’s total long-term debt as of June 30, 2022 and 2021 was $6,054,094 ($2,278,416 for Governmental Activities and $3,775,678 for Business-type Activities) and $6,423,104 ($2,076,085 for Governmental Activities and $4,929,500 for Business-type Activities) respectively. More detail of long-term debt and current activity can be found in Note 7. to the financial statements.

Economic Outlook
The City of Waterford is located in California’s Central Valley, approximately 13 miles east of Modesto.

It is the eight largest city in Stanislaus County. The City currently occupies a land area of approximately 1,100 acres and serves a population of approximately 8,944 persons. The City was chartered in 1969 as a municipal corporation and operates under a Council - Manager form of government. Policy-making and legislative authority are vested in a five-member governing council consisting of the Mayor and four Council Members. The City Council is responsible, among other things, for passing ordinances, adopting the budget, approving nominees to commissions and hiring the City Manager, City Attorney, and the Police Chief. The Council is elected on a non-partisan basis. Council Members serve four-year staggered terms, with two Council Members elected every two years. The Mayor is elected and serves a two-year term. The City Manager is responsible for carrying out the policies and ordinances of the City Council, for overseeing the day-to-day operations of the City and for hiring and appointing the heads of the various departments.

Governmental revenues of the City consist of locally established revenue sources including charges for services, franchise fees and utility users taxes, property taxes which have some constitutional protection to prevent “borrowing” by the State, and revenue sources from the State of California and federal government including capital grants, motor vehicle license fees and motor vehicle fuel and sales taxes, which can be affected by the State of the California and national economies and the State budget.

The outlook for fiscal year 2023 is that both the national and state economies will remain in a period of economic uncertainty. The economy is experiencing record high inflation which is creating a high cost of living and financial strain for families and communities. The impacts of the COVID-19 pandemic have leveled off and the City is experiencing record high sales tax. The American Rescue Plan Funds received by the City (total over two years $2,143,900) has been designated for an infrastructure project which will extend the Water and Sewer lines out Tim Bell Road to the City limits allowing for future development of the Lake Pointe area. Fiscal 2022 saw the completion of the Edgewater Subdivision which added 75 homes to the City. The City has not experienced this kind of growth in over 15 years.

Measure L (the local streets and roads tax), SB1, and Gas Taxes brought in over 1 million in funds for streets and roads projects. The City’s Cannabis Program brought in funds of $88,126 to be used to pay off City debt.

The City’s Wastewater and Water Enterprise systems are both experiencing large capital demands as the systems are adjusting to growth and expansion of services. Fiscal 2022 saw the completion of the 15 City of Waterford, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis
waterline across the Hickman Road Bridge creating the necessary infrastructure to finalize the connection of the Waterford and Hickman water systems. Staff is currently working on securing a grant for the consolidation of the Waterford and Hickman systems bringing completion to the integration of the systems. Without the grants the City will have to pursue other methods of financing and paying for the cost of the consolidation. The Wastewater System is currently in need of many system upgrades and enhancements to keep the system operating within standards. The system is currently in year 4 of a 5-year rate adjustment plan to help finance and pay for the capital costs of the system.

Requests for Information
This Annual Financial Report is intended to provide citizens, taxpayers, investors, and creditors with a general overview of the City’s finances. If you have any questions about this report, need additional financial information, or would like to obtain component unit financial statements, contact the City of Waterford Finance Department, 101 E Street, Waterford, CA 95386, or visit the City’s web page at www.cityofwaterford.org.
16 BASIC

FINANCIAL STATEMENTS
17 This page intentionally left blank
18 GOVERNMENT-WIDE

FINANCIAL STATEMENTS
19 This page intentionally left blank
20 City of Waterford
Statement of Net Position
June 30, 2022
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments $ 2,866,259 6,860,446 $ 9,726,705 $ Restricted cash and investments 431,329 - 431,329
Receivables:

Accounts 612,607 350,743 963,350
Loans/Notes receivable - 841,727 841,727
Loans receivable from fiduciary activities 240,000 - 240,000 Due from Successor Agency 24,717 2,786 27,503
Internal balances (283,193) 283,193 -
Capital assets:

Nondepreciable 1,384,283 6,022,131 7,406,414
Depreciable 10,689,030 11,427,465 22,116,495
Total assets 15,703,168 26,050,355 41,753,523

DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding 206,676 - 206,676
Deferred outflows related to pension 267,962 164,236 432,198 Total deferred outflows of resources 267,962 370,912 638,874

LIABILITIES
Accounts payable and accrued liabilities 465,119 946,739 1,411,858 Interest payable 17,351 24,578 41,929
Deposits payable 5,350 156,158 161,508
Unearned revenue 939,673 - 939,673
Current portion of long-term debt 70,923 437,597 508,520 Compensated absences - current portion - 24,094 24,094
Long-term liabilities:

Compensated absences 25,275 36,144 61,419
Long-term debt, due after one year 1,833,113 3,482,098 5,315,211 Net pension liability 420,028 257,436 677,464
Total liabilities 3,776,832 5,364,844 9,141,676

DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pension 458,840 281,224 740,064 Total deferred inflows of resources 458,840 281,224 740,064

NET POSITION
Net investment in capital assets 15,545,560 8,616,046 24,161,606 Restricted 3,319,086 431,329 3,750,415
Unrestricted (deficit) 3,217,999 1,380,637 4,598,636
$ 22,082,645 $ 10,428,012 $ 32,510,657
Primary Government
Total net position
See accompanying Notes to Basic Financial Statements.
21 Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Total Primary Government:

Governmental activities:

General government 133,828 $ 85,045 $ 137,391 $ - $ 222,436 $ Public ways and facilities 772,792 1,047,980 1,151,044 8,634 1,932,470 Police services 55,296 2,068,114 238,816 - 294,112
Parks and recreation 239,694 381,708 (5,000) - 234,694
Community development 294,315 340,012 12,092 - 306,407
Interest and fiscal charges - 64,028 - - -
Total governmental activities 4,035,670 1,447,142 1,534,343 8,634 2,990,119 Business-type activities:

Wastewater 1,104,580 1,461,387 - - 1,461,387
Water 1,899,132 2,498,958 - - 2,498,958
Public Financing Authority 104,836 90,650 - - 90,650
Total business-type activities 3,108,548 4,050,995 - - 4,050,995 Total primary government $ 5,498,137 7,144,218 $ 1,534,343 $ 8,634 $ 7,041,114 $ General Revenues:

Taxes:

Property taxes, levied for general purposes
Sales taxes
Franchise taxes
Utility users taxes
Other taxes
Use of money and property
Other general revenues
Total general revenues
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning of year, as restated
Net position - end of year
City of Waterford
Statement of Activities
For the year ended June 30, 2022
Program Revenues
See accompanying Notes to Basic Financial Statements.
22 Governmental Business-Type
Activities Activities Total
$ - 88,608 $ 88,608 $
- 884,490 884,490
- (1,774,002) (1,774,002)
(147,014) (147,014) -
(33,605) (33,605) -
(64,028) (64,028) -
(1,045,551) (1,045,551) -
356,807 - 356,807
599,826 - 599,826
(14,186) - (14,186)
942,447 - 942,447
(1,045,551) 942,447 (103,104)
473,257 473,257 -
870,140 870,140 -
152,108 152,108 -
599,389 599,389 -
912,612 912,612 -
(36,680) (43,461) (80,141)
123,748 123,748 -
3,094,574 (43,461) 3,051,113
(601,073) 601,073 -
2,493,501 557,612 3,051,113
1,447,950 1,500,059 2,948,009
20,634,695 8,927,953 29,562,648
$ 22,082,645 $ 10,428,012 $ 32,510,657 $ 10,428,012
and Changes in Net Position
Net (Expense) Revenue
Primary Government
23 This page intentionally left blank
24 FUND

FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Funds Financial Statements
25 This page intentionally left blank
26 GOVERNMENTAL FUND FINANCIAL STATEMENTS
General Fund Primary operating fund of the City, accounts for all activities except those legally or administratively required to be accounted for in other funds.

Impact Fee Fund This fund is used to account for capital facility fees collected through building and development activity. Their use is specified in the City's Capital Facility Fee Nexus Study.

CIP Streets Measure L Account for streets and roads projects funded by Stanislaus County Measure L. A 25 year 1/2 cent sales tax measure enacted in 2017-2018 27 City of Waterford
Balance Sheet
Governmental Funds
June 30, 2022
CIP Streets Non-Major
General Impact Measure L Governmental
Fund Fee Capital Projects Funds Totals
ASSETS
Cash and investments 4,418,234 $ 1,433,032 $ 228,551 $ 780,629 $ 6,860,446 $ Receivables:

Account receivables 11,821 - - - 11,821
Intergovernmental 380,546 - 135,284 65,385 581,215
Loans/Notes receivable - - - 841,727 841,727
Other receivable 19,571 - - - 19,571
Due from other funds 54,964 - - - 54,964
Due from Successor Agency 2,786 - - - 2,786
Advances to other funds 283,193 - - - 283,193
Total assets $ 1,433,032 5,171,115 $ 363,835 $ 1,687,741 $ 8,655,723 $

LIABILITIES

AND FUND BALANCES
Liabilities:

Accounts payable and
accrued liabilities $ 125 354,561 $ - $ 110,433 $ 465,119 $ Due to other funds - - - 54,964 54,964
Unearned revenue 939,673 - - - 939,673
Deposits payable 5,350 - - - 5,350
Total liabilities 125 1,299,584 - 165,397 1,465,106
Fund Balances:

Nonspendable - Advances 283,193 - - - 283,193
Restricted - 1,432,907 363,835 1,522,344 3,319,086
Unassigned 3,588,338 - - - 3,588,338
Total fund balances 1,432,907 3,871,531 363,835 1,522,344 7,190,617 Total liabilities, deferred
inflows of resources,
and fund balances $ 1,433,032 5,171,115 $ 363,835 $ 1,687,741 $ 8,655,723 $ Major Funds
See accompanying Notes to Basic Financial Statements.
28 Total Fund Balances - Total Governmental Funds $ 7,190,617

Capital assets used in governmental activities were not current financial resources.

Therefore, they were not reported in the Governmental Funds' Balance Sheet. 17,449,596 Interest payable is not due and payable in the current period and, therefore, are not reported in the governmental funds balance sheet. (17,351) Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds balance sheet.

Compensated absence $ (25,275)
Due within one year (70,923)
Due after one year (1,833,113)
Net pension liability (420,028)
Deferred outflows of resources - pensions 267,962
Deferred inflows of resources - pensions (458,840)
Total long-term liabilities $ (2,540,217) (2,540,217)
Net Position of Governmental Activities $ 22,082,645
Amounts reported for governmental activities in the Statement of Net Position were different because:

City of Waterford
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
June 30, 2022
See accompanying Notes to Basic Financial Statements.
29 Statement of Revenues, Expenditures and Changes in Fund Balances For the year ended June 30, 2022
CIP Streets Non-Major
General Impact Measure L Governmental
Fund Fee Capital Projects Funds Totals
REVENUES:

Taxes and assessments 2,978,419 $ 1,130,357 $ $ 255,390 - $ $ 4,364,166 Licenses and permits 313,663 - - 313,663 -
Intergovernmental 335,453 - 504,553 441,484 1,281,490
Fines and forfeitures 21,139 - - 21,139 -
Charges for services 1,931 - - 1,931 -
Use of money and property (48,949) 7,146 12,927 62 (28,814) Other revenues 42,997 - 88,126 - 131,123
Total revenues 1 3,644,653 ,137,503 504,615 6 797,927 ,084,698 EXPENDITURES:

Current:

General government 178,987 - 1,990 - 180,977
Public ways and facilities 321,721 3,563 74,203 - 399,487 Police services 1,966,764 - 38,936 - 2,005,700
Parks and recreation 237,377 - - 237,377 -
Community development 339,196 - - 339,609 413
Capital outlay 75,397 2,188 677,921 406,788 1,162,294
Debt service:

Principal 161,458 - 10,592 - 172,050
Interest and fiscal charges 57,832 - 6,470 - 64,302
Total expenditures 5 3,338,732 ,751 677,921 4 539,392 ,561,796

REVENUES OVER (UNDER)
EXPENDITURES 1,131,752 305,921 (173,306) 258,535 1,522,902 OTHER FINANCING SOURCES (USES):

Transfers in 480,121 - 181,634 - 661,755
Transfers out (112,375) (772,802) (62,514) (315,137) (1,262,828) Total other financing
sources (uses) 367,746 (772,802) (62,514) (133,503) (601,073) Net change in fund balances 673,667 358,950 (235,820) 125,032 921,829 FUND BALANCES:

Beginning of year, as restated 3,197,864 1,073,957 599,655 1,397,312 6,268,788 End of year $ 3,871,531 $ 1,432,907 $ 363,835 $ 1,522,344 $ 7,190,617 City of Waterford
Governmental Funds
Major Funds
See accompanying Notes to Basic Financial Statements.
30 Net Change in Fund Balances - Total Governmental Funds $ 921,829 Governmental funds report capital outlays as expenditures while governmental activities report depreciation expense to allocate those expenditures over the life of the assets:

Capital asset purchases capitalized $ 1,133,870
Depreciation expense (985,830) 148,040
Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds:

Principal retirement of debt 172,049
Changes in interest payable 273
Change in compensated absences (4,896)
Change in net pension liability and related accounts 211,055 378,481

Change in Net Position of Governmental Activities $ 1,448,350 Amounts reported for governmental activities in the Statement of Activities are different City of Waterford
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities For the year ended June 30, 2022
See accompanying Notes to Basic Financial Statements.
31 This page intentionally left blank
32 PROPRIETARY FUND FINANCIAL STATEMENTS
Wastewater Treatment Fund accounts for all financial transactions relating to the City's wastewater collection and treatment.

Water System Fund all financial transactions relating to the City’s three water systems, River Pointe, Waterford and Hickman.

Public Financing Authority Fund accounts for the accumulation of resources from lease payments and the payment of long-term debt incurred by the Financing Authority. 33 City of Waterford
Statement of Net Position
Proprietary Funds
June 30, 2022
Wastewater
Treatment
Fund
Water
System Fund
Public
Financing
Authority
Fund Totals
ASSETS
Current assets:

Cash and investments $ 318,810 $ 2,205,612 $ 341,837 $ 2,866,259 Restricted cash and investments - 431,329 - 431,329
Receivables:

Account receivables 152,798 197,945 350,743 -
Due from other funds - 36,370 - 36,370
Total current assets 471,608 2,403,557 809,536 3,684,701 Noncurrent assets:

Loan to Successor Agency private purpose trust - 240,000 - 240,000 Other advances - 24,717 - 24,717
Capital assets, net 3,854,284 8,219,029 12,073,313 -
Total noncurrent assets 3,854,284 8,219,029 264,717 12,338,030 Total assets 4,325,892 10,622,586 1,074,253 16,022,731

DEFERRED OUTFLOW OF RESOURCES
Deferred loss on refunding 92,428 114,248 206,676 -
Deferred outflows related to pension 95,084 60,508 8,644 164,236 Total deferred outflows of resources 187,512 60,508 122,892 370,912

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 3,478 943,261 946,739 - Due to other funds 36,370 - 36,370 -
Interest payable 19,804 4,774 - 24,578
Deposits payable 74,005 82,153 156,158 -
Current portion of long-term debt 227,797 204,800 5,000 437,597 Compensated absences - current portion 7,643 15,927 524 24,094 Total current liabilities 332,727 1,287,285 1,625,536 5,524 Noncurrent liabilities:

Compensated absences 11,464 23,892 788 36,144
Long-term debt, due after one year 1,491,898 1,625,200 365,000 3,482,098 Advance from general fund 283,193 - 283,193 -
Net pension liability 94,845 149,042 13,549 257,436
Total noncurrent liabilities 1,652,404 2,027,130 379,337 4,058,871 Total liabilities 1,985,131 3,314,415 384,861 5,684,407

DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pension 103,609 162,814 14,801 281,224 Total deferred inflows of resources 162,814 103,609 14,801 281,224

NET POSITION
Net investment in capital assets 2,227,017 6,389,029 8,616,046 - Restricted - 431,329 - 431,329
Unrestricted (deficit) 876,041 138,442 366,154 1,380,637 Total net position $ 7,265,070 2,365,459 $ 797,483 $ 10,428,012 $ See accompanying Notes to Basic Financial Statements.
34 Wastewater
Treatment
Fund
Water System
Fund
Public
Financing
Authority
Fund Totals
OPERATING REVENUES:

Charges for services 1,461,387 $ 2,498,958 $ 90,650 $ 4,050,995 $ Total operating revenues 2,498,958 1,461,387 90,650 4,050,995 OPERATING EXPENSES:

Salaries and benefits 416,109 719,864 11,529 1,147,502
Maintenance and operations 346,825 611,854 5,597 964,276 Professional fees 28,726 150,857 4,664 184,247
Materials and supplies 11,547 91,708 - 103,255
Depreciation 205,385 262,490 467,875 -
Total direct operating expenses 1,836,773 1,008,592 21,790 2,867,155 OPERATING INCOME (LOSS): 662,185 452,795 68,860 1,183,840 NONOPERATING REVENUES (EXPENSES):

Interest revenue (4,880) (33,602) (4,979) (43,461)
Interest expense (95,988) (62,359) (83,046) (241,393)
Total Nonoperating revenues (expenses) (100,868) (95,961) (88,025) (284,854) NET INCOME (LOSS) BEFORE 566,224 351,927 (19,165) 898,986

TRANSFERS
Transfers in 47,871 562,654 549 611,074
Transfers out (2,500) (7,501) (10,001) -
Total transfers 45,371 555,153 549 601,073
Change in net position 1,121,377 397,298 (18,616) 1,500,059 NET POSITION:

Beginning of year 6,143,693 1,968,161 816,099 8,927,953 End of year $ 2,365,459 $ 7,265,070 $ 797,483 $ 10,428,012 City of Waterford
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the year ended June 30, 2022
See accompanying Notes to Basic Financial Statements.
35 City of Waterford
Statement of Cash Flows
Proprietary Funds
Wastewater
Treatment
Fund
Water
System
Fund
Public
Financing
Authority
Fund Totals
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers/users for services provided 1,416,874 $ 2,462,173 $ 90,650 $ 3,969,697 $ Cash payments to suppliers for goods and services (387,741) (11,577) (10,261) (409,579) Cash payments to employees for services (488,818) (764,969) (18,260) (1,272,047) Net cash provided by operating activities 540,315 1,685,627 62,129 2,288,071 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Cash received from other funds 47,871 562,654 549 611,074 Cash disbursements to other funds (2,500) (7,501) - (10,001) Net cash provided by (used in) noncapital
financing activities 45,371 555,153 549 601,073

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition and construction of capital assets (104,715) (992,265) - (1,096,980) Principal paid on long term debt (218,724) (198,600) (10,000) (427,324) Interest paid on long term debt (85,687) (63,495) (63,960) (213,142) Net cash used in capital and related financing activities (1,254,360) (409,126) (73,960) (1,737,446) CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from Investment in Special Assessment Bonds - - 40,000 40,000 Investment income received (4,880) (33,602) (4,979) (43,461) Net cash provided by (used in) investing activities (33,602) (4,880) 35,021 (3,461)

NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 171,680 952,818 23,739 1,148,237
CASH AND CASH EQUIVALENTS:

Beginning of year 147,130 1,252,794 749,427 2,149,351
End of year 318,810$ $ 773,166 2,205,612 $ $ 3,297,588

PRESENTATION IN STATEMENT OF NET POSITION
Cash and investments 318,810$ $ 341,837 2,205,612 $ $ 2,866,259 Restricted cash and investments - - 431,329 431,329
Total 318,810$ $ 773 2,205,612 ,166$ $ 3,297,588
CASH FLOWS FROM OPERATING ACTIVITIES:

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:

Operating income (loss) 452,795$ 662,185$ 68,860$ 1,183,840 $ Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:

Depreciation 205,385 262,490 - 467,875
Pension plan (74,892) (47,659) (6,809) (129,360)
(Increase) decrease in assets:

Accounts receivable (49,962) (48,270) - (98,232)
Increase (decrease) in liabilities:

Accounts payable 842,842 (643) - 842,199
Deposits payable 5,449 11,485 - 16,934
Compensated absences 2,183 2,554 78 4,815
Net cash provided by (used in) operating activities 540,315$ $ 62,129 1,685,627 $ 2,288,071 $ For the year ended June 30, 2022
See accompanying Notes to Basic Financial Statements.
36 FIDUCIARY FUND FINANCIAL STATEMENTS
Successor Agency - Former Waterford Redevelopment Agency accounts for funds collected and disbursed for the dissolution of the former Waterford Redevelopment Agency related to Administration and Retirement of enforceable obligations
Custodial Funds account for fiduciary activities that are not accounted for in an investment trust, pension (and other employment benefit) trust, or private-purpose trust. 37 Private Purpose
Trust Fund
Agency -
Former
Waterford
Redevelopment
Agency
ASSETS
Current assets:

Cash and investments - $
Total assets -

LIABILITIES
Current liabilities:

Due to others 27,504
Total current liabilities 27,504
Long term obligations:

Loan payable 240,000
Total long-term liabilities 240,000
Total liabilities 267,504

NET POSITION
Net position held in trust for
redevelopment dissolution (267,504)
Total net position (deficit) $ (267,504)
City of Waterford
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2022
See accompanying Notes to Basic Financial Statements.
38 Private Purpose
Trust Fund
Agency -
Former
Waterford
Redevelopment
Agency
ADDITIONS:

Property taxes 63,800 $
Total additions 63,800
DEDUCTIONS:

General government 7,000
Interest and trustee fees 18,200
Total Deductions 25,200
Change in fiduciary net position 38,600
NET POSITION:

Beginning of year, as restated (306,104)
End of year (267,504) $
City of Waterford
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2022
See accompanying Notes to Basic Financial Statements.
39 This page intentionally left blank
40 City of Waterford, California
Notes to Basic Financial Statements
For the year ended June 30, 2022

INDEX TO NOTES TO BASIC FINANCIAL STATEMENTS

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES .......................................................................... 40

2. CASH AND INVESTMENTS .............................................................................................................................. 51

3. ACCOUNTS RECEIVABLE ................................................................................................................................ 56

4. LOANS RECEIVABLE ......................................................................................................................................... 56

5. CAPITAL ASSETS ................................................................................................................................................ 57

6. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES ............................................................................... 59

7. LONG-TERM LIABILITIES ................................................................................................................................. 59

8. NET POSITION/ FUND BALANCES ............................................................................................................... 62

9. INTERFUND TRANSACTIONS ........................................................................................................................ 64

10. RISK MANAGEMENT ........................................................................................................................................ 65

11. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM ............................................................................................. 66

12. COMMITMENTS AND CONTINGENCIES .................................................................................................... 71

13. PRIOR PERIOD ADJUSTMENTS ....................................................................................................................... 71 41 City of Waterford, California
Notes to Basic Financial Statements
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Waterford, California (City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City’s accounting policies are described below.

A. Financial Reporting Entity
The City of Waterford (City) was chartered in 1969, under the laws and regulations of the State of California (State). The City operates under a City Council/Manager form of government and provides the following services: general government, public ways and facilities, police services, parks, community development, wastewater treatment facilities, and water.

The City operates as a self-governing local government unit within the State. It has limited authority to levy taxes and has the authority to determine user fees for the services that it provides. The City’s main funding sources include taxes, other intergovernmental revenue from state and federal sources, user fees, and federal and state financial assistance.

The financial reporting entity consists of (a) the primary government, the City, (b) organizations for which the primary government is financially accountable, and (c) other organizations for which the primary government is not accountable, but for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete. Financial accountability is defined as the appointment of a voting majority of the component unit’s board, and either (a) the City has the ability to impose its will on the organization, or (b) there is a potential for the organization to provide a financial benefit to or impose a financial burden on the City.

As required by GAAP, these financial statements present the government and its component units, entities for which the government is considered to be financially accountable. These component units are reported on a blended basis. Blended component units, although legally separate entities, are, in substance, part of the government’s operations and so data from these units are combined with data of the primary government. The financial statements of the individual component units, if applicable as indicated below, may be obtained by writing to the City of Waterford, Finance Department, 101 E Street, Waterford, CA 95386.

The City’s reporting entity includes the following blended component unit:

The Waterford Public Financing Authority was established to provide for financing of public capital improvements for the City, the Agency and other local agencies. The City Council members serve as the Governing Board of the Authority and all accounting and administrative functions are performed by the City, which records all activity of the Authority in an enterprise fund. Financial statements for the Authority may be obtained from the City's finance department. 42 City of Waterford, California
Notes to Basic Financial Statements
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity with its own self-balancing set of accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues and expenditures or expenses. These funds are established for the purpose of carrying out specific activities or certain objectives in accordance with specific regulations, restrictions or limitations. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Government-Wide Financial Statements
The City’s Government-Wide Financial Statements include a Statement of Net Position and a Statement of Activities. These statements present summaries of Governmental and Business-Type Activities for the City accompanied by a total column.

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

Certain types of transactions reported as program revenues for the City are reported in three categories:
 Charges for services
 Operating grants and contributions
 Capital grants and contributions
Certain eliminations have been made in regards to interfund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:
 Due to/from other funds
 Transfers in/out
The City applies all applicable GASB pronouncements including all NCGA Statements and Interpretations currently in effect.
43 City of Waterford, California
Notes to Basic Financial Statements
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non-major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in net position as presented in these statements to the net position presented in the government-wide financial statements. The City has presented all major funds that meet specific qualifications.

All governmental funds are accounted for on a spending or “current financial resources” measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the balance sheets. The Statement of Revenues, Expenditures and Changes in Fund Balances present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.

The City reports the following funds as major governmental funds of the City:

General Fund accounts for resources traditionally associated with governmental activities that are not required legally or by sound financial management to be accounted for in another fund.

Impact Fees Special Revenue Fund accounts for Development Impact Fees collected and expended.

CIP Streets Measure L Capital Projects Fund accounts for Measure L monies received by the City for local streets and roads construction projects.

The City reports the following funds as non-major governmental funds of the City:

Gas tax Special Revenue Fund accounts for funds received and expended for street maintenance purposes as defined in Sections 2105, 2106, 2107, and 2107.5 of the Streets and Highway Code.

Local Transportation Special Revenue Fund accounts for funds received and expanded for streets and road under the Transportation Development Act.

Community Development Special Revenue Fund accounts for monies received from the US Department of Housing & Urban Development and expanded principally for programs and activities to benefit low-income residents through a first time homebuyers program to produce affordable housing and rehabilitate existing residential units and infrastructure improvements in low/moderate income neighborhoods.

Lighting District Special Revenue Fund accounts for Assessments collected and expended for the City of Waterford Lighting District.

Abandoned Vehicle Abatement Special Revenue Fund accounts for funds received and expended for Abandoned Vehicle Abatement.

Lighting and Landscaping Special Revenue Fund accounts for Assessments collected and expended for the city of Waterford Lighting and Landscaping District. 44 City of Waterford, California
Notes to Basic Financial Statements
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Special Business Pilot Program Special Revenue Fund accounts for cannabis pilot program revenue.

CFD 2019-1 Maintenance Service Fund accounts for the services, administrative expenditures and other maintenance expenditures for the Community Facility District CIP Parks Capital Projects Fund accounts for all parks related construction projects.

CIP Streets and Roads Capital Projects Fund accounts for all streets and roads construction projects.

The City considers all revenues reported in the governmental funds to be available if the revenues are collected within 60 days after year end, with the exception of grant revenues. Grant revenues are considered to be available if collected within 180 days of the end of the current fiscal period.

Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal year.

All other revenue items are considered to be measurable and available only when cash is received by the government. Expenditures (including capital outlay) are recorded when the related fund liability is incurred.

The Reconciliation of the Fund Financial Statements to the Government-Wide Financial Statements is provided.

Proprietary Fund Financial Statements
Proprietary fund financial statements include a Statement of Net Position, a Statement of Revenues, Expenses and Change in Net Position, and a Statement of Cash Flows for all proprietary funds.

Proprietary funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Net Position present increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which a liability is incurred.

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

The City reports the Wastewater Treatment, Water System and Public Financing Authority Funds as proprietary funds of the City.

Wastewater Treatment Fund accounts for all financial transaction relating to the City’s wastewater collection and treatment.

Water System Fund accounts for all the financial transactions relating to the city’s three water systems, River Pointe, Waterford and Hickman.
45 City of Waterford, California
Notes to Basic Financial Statements
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Proprietary Fund Financial Statements, Continued
Public Financing Authority Fund accounts for the accumulation of resources from lease payments and the payment of long-term debt incurred by the financing Authority.

Fiduciary Fund Financial Statements
Fiduciary fund financial statements consist of a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position. The City has two types of fiduciary funds, custodial funds and a private-purpose trust fund. Custodial funds are used to account for fiduciary activities that are not accounted for in an investment trust, pension (and other employment benefit) trust, or private-purpose trust. Private-purpose trust funds account for resources of all other trust arrangements in which principal and income benefit individuals, private organizations, or other governments (i.e. unclaimed property/escheat property). Fiduciary funds are accounted for using the accrual basis of accounting.

The City reports the following fiduciary funds:

Successor Agency-Former Waterford Redevelopment Agency-Trust Fund – accounts for funds collected and disbursed for the dissolution of the former Waterford Redevelopment Agency related to Administration and Retirement of enforceable obligations.

Assessment District Custodial Funds – accounts for assessments made on properties in the respective District to pay for debt issued for infrastructure in the District.

C. Cash, Cash Equivalents, and Investments
The City pools cash resources from all funds in order to facilitate the management of cash. The balance in the pooled cash account is available to meet current operating requirements. Cash in excess of current requirements is invested in various interest-bearing accounts and other investments for varying terms.

In accordance with GASB Statement No. 40, Deposit and Investment Disclosures (Amendment of GASB No. 3), certain disclosure requirements for Deposits and Investment Risks were made in the following areas:
 Interest Rate Risk
 Credit Risk
o Overall
o Custodial Credit Risk
o Concentrations of Credit Risk
In addition, other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end, and other disclosures. 46 City of Waterford, California
Notes to Basic Financial Statements
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C. Cash, Cash Equivalents, and Investments, Continued
In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. The City categorizes the fair value measurements of its investments based on the hierarchy established by generally accepted accounting principles. The fair value hierarchy, which has three levels, is based on the valuation inputs used to measure an asset’s fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.

The City participates in an investment pool managed by the State of California entitled Local Agency Investment Fund (LAIF) which has invested a portion of the pooled funds in Structured Notes and AssetBacked Securities. LAIF’s investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and Asset-Backed Securities are subject to market risk as to the change in interest rates.

Cash equivalents are considered amounts in demand deposits and short-term investments with a maturity date within three months of the date acquired by the City and are presented as “Cash and Investments” in the accompanying Basic Financial Statements.

For the purpose of the statement of cash flows, the City considers all pooled cash and investments (consisting of cash and investments and restricted cash and investments) held by the City as cash and cash equivalents because the pool is used essentially as a demand deposit account from the standpoint of the funds. The City also considers all non-pooled cash and investments (consisting of cash with fiscal agent and restricted cash and investments held by fiscal agent) as cash and cash equivalents because investments meet the criteria for cash equivalents defined above.

D. Restricted Cash and Investments
Certain restricted cash and investments are held by fiscal agents for the redemption of bonded debt, for acquisition and construction of capital projects, and to meet bond indenture debt reserve requirements.

Cash and investments are also restricted for deposits held for others within the enterprise funds.

E. Capital Assets
Capital assets, which include land, buildings, improvements, equipment, furniture, and infrastructure assets (e.g. roads, sidewalks, and similar items), are reported in the applicable governmental or businesstype activities in the Government-Wide Financial Statements. Capital assets are recorded at historical cost or estimated historical cost if actual cost is not available. Donated assets are valued at acquisition value on the date donated.

Prior to July 1, 2003, governmental funds’ infrastructure assets were not capitalized, since then these assets have been valued at estimated historical cost.
47 City of Waterford, California
Notes to Basic Financial Statements
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued E. Capital Assets, Continued
City policy has set the capitalization threshold for reporting capital assets at the following:

The purpose of depreciation is to spread the cost of capital assets equitably among all users over the life of these assets. The amount charged to depreciation expense each year represents that year’s pro rata share of the cost of capital assets. GASB Statement No. 34 requires that all capital assets with limited useful lives be depreciated over their estimated useful lives. Depreciation is provided using the straight line method which means the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated. No depreciation is recorded in the year of acquisition or in the year of disposition.

The City has assigned the useful lives listed below to capital assets.

Buildings and Improvements 15 - 30 years
Equipment and Vehicles 5 – 15 years
Treatment Plant 50 years
Infrastructure – Streets 10 – 40 years
Infrastructure – Parks 10 – 40 years
Public domain (infrastructure) capital assets include roads, bridges, curbs and gutters, streets, sidewalks, drainage systems, and lighting systems.

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

F. Compensated Absences
City employees are granted vacation in varying amounts based on classification and length of service.

Upon termination or retirement, the city pays 100% of the vacation time accrued and normally none of the accrued sick leave. The city’s liability for the compensated absences is recorded in various Governmental funds and Proprietary funds as appropriate. The City’s liability for the compensated absences is determined annually. The short-term liability which will be liquidated with current financial resources is the amount of settlement reached, but unpaid, related to claims and judgments entered.

General Capital Assets $ 5,000
Infrastructure Capital Assets $ 25,000
48 City of Waterford, California
Notes to Basic Financial Statements
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued G. Long Term Debt
Government-Wide Financial Statements – Long-term debt and other long-term obligations are reported as liabilities in the appropriate activities.

Bond premiums and discounts are amortized over the life of the bonds using the effective interest method. Bonds payable is reported net of the applicable bond premium or discount. Bond issuance costs, except any portion related to prepaid insurance costs, are recognized as an expense in the period incurred.

Fund Financial Statements – The governmental fund financial statements do not present long-term debt.

As such, long-term debt is shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position.

Bond premiums and discounts are recognized during the current period as other financing sources or uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Bond proceeds are reported as other financing sources.

Proprietary Fund and Fiduciary Fund Financial Statements use the same principles as those used in the Government-Wide Financial Statements.

H. Property Taxes
Property taxes in the State of California are administered for all local agencies at the county level and consist of secured, unsecured, and utility tax rolls. The following is a summary of major policies and practices relating to property taxes.

Stanislaus County assesses properties and it bills, collects, and distributes property taxes to the City. The County remits the entire amount levied and handles all delinquencies, retaining penalties. Secured and unsecured property taxes are levied on January 1 of the preceding fiscal year.

Secured property tax is due in two installments, on November 1 and February 1, and becomes a lien on those dates. It becomes delinquent on December 10 and April 10, respectively. Unsecured property tax is due on July 1, and becomes delinquent on August 31. Collection of delinquent accounts is the responsibility of the County, which retains all penalties collected.

The term “unsecured” refers to taxes on personal property other than real estate, land and buildings.

These taxes are secured by liens on the property being taxed. Property tax revenues are recognized by the City in the fiscal year they are assessed provided they become available as defined above.

I. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position (balance sheet) will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. 49 City of Waterford, California
Notes to Basic Financial Statements
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued I. Deferred Outflows/Inflows of Resources, Continued
In addition to liabilities, the statement of net position (balance sheet) will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

J. Net Position
Government-Wide Financial Statements
In the Government-Wide Financial Statements, net position are classified in the following categories:

Net Investment in Capital Assets – This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that is attributed to the acquisition, construction, or improvement of the assets.

Restricted – This amount is restricted by external creditors, grantors, contributors, or laws or regulations of governments.

Unrestricted – This amount is all net position that does not meet the definition of “net investment in capital assets” or “restricted net position” as defined above.

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

K. Fund Balances
Fund Financial Statements
In February 2009, the Governmental Accounting Standards Board (GASB) issued Statement 54, Fund Balance Reporting and Governmental Fund Type Definitions (GASB 54). The new classifications of fund balances are listed below:

Non-spendable Fund Balances
These include amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact, e.g., the principal of an endowment fund.

Examples of “not in spendable form” include inventory, prepaid amounts, long-term notes and loans, property held for resale and other items not expected to be converted to cash. However, if the proceeds from the eventual sale or liquidation of the items would be considered restricted, committed or assigned (as defined further on) then these amounts would be included in the restricted, committed or assigned instead of the non-spendable classification. A debt service reserve fund held by a trustee is an example of fund balance in non-spendable form that is classified as restricted instead of non-spendable since the reserve is eventually liquidated to make the final debt service principal payment. 50 City of Waterford, California
Notes to Basic Financial Statements
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued K. Fund Balances, Continued
Restricted Fund Balances
Restricted fund balances have externally enforceable limitations on use. The limitations on use can be imposed by creditors, grantors, or contributors as well as by constitutional provisions, City charter, enabling legislation, laws and government regulations.

Committed Fund Balances
Amounts that can only be used for specific purposes pursuant to constraints imposed by formal action (Resolution) of the City Council are classified as committed fund balances. The formal action that is required to be taken to establish, modify, or rescind the fund balance commitment is resolution.

Assigned Fund Balances
Fund balance amounts for which the City Council has expressed intent for use but not taken formal action to commit are reported as assigned under GASB 54. These include funds encumbered by purchase order in the General Fund for which the authorization has not lapsed, interest accrued to restricted or committed fund balances when such interest is not required to be classified as restricted or committed.

Assigned amounts for a specific purpose are authorized by the City Manager through its fund balance policy.

Unassigned Fund Balance
The residual classification for the General Fund is unassigned fund balance. The General Fund is the only fund that may report a positive unassigned balance.

Hierarchy of Expenditures to Classify Fund Balance Amounts To determine the composition of ending fund balances, the Council established the order in which restricted and unrestricted (committed, assigned and unassigned) funds are to be expended. To this purpose, for expenditures made in any governmental fund, the restricted amounts will be reduced first, followed by committed amounts, assigned amounts, and then unassigned amounts.

L. Pension
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plan (Plan) 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. 51 City of Waterford, California
Notes to Basic Financial Statements
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued M. Use of Estimates
The preparation of the Basic Financial Statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. In addition, estimates affect the reported amounts of revenues and expenses. Actual results could differ from these estimates and assumptions.

N. New Pronouncements
In 2022, the City adopted new accounting standards to confirm to the following Governmental Accounting Standard Board Statements:

GASB Statement No. 87, Leases – The objective of this statement is to recognize in the financial statements certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. The City does not have material leases that are subject to this pronouncement.

GASB Statement 89, Accounting for Interest Cost Incurred before the End of a Construction Period – The objective of this statement is to (1) to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and (2) to simplify accounting for interest cost incurred before the end of a construction period. This statement establishes accounting requirements for interest cost incurred before the end of a construction period. This Statement requires that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus.

As a result, interest cost incurred before the end of a construction period will not be included in the historical cost of a capital asset reported in a business-type activity or enterprise fund. The requirements of this statement did not apply to the City for the current fiscal year.

GASB Statement No. 92, Omnibus 2020 - The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. The requirements of this Statement did not apply to the City for the current fiscal year.

GASB Statement No. 99, Omnibus 2022 – The primary objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The requirements of this Statement did not apply to the City for the current fiscal year. 52 City of Waterford, California
Notes to Basic Financial Statements
For the year ended June 30, 2022

2. CASH AND INVESTMENTS
The City maintains a cash and investment pool for all funds. Certain restricted funds that are held and invested by independent outside custodians through contractual agreements are not pooled. These restricted funds include cash and investment held by trustees.

The following is a summary of cash and investments at June 30, 2022:

A. Summary of Cash and Investments
Cash and investments as of June 30, 2022 consist of the following:

B. Deposits
The carrying amount of the City’s cash deposit was $6,966,758 at June 30, 2022. Bank balances before reconciling items were a positive amount of $7,112,778 at June 30, 2022. The City’s cash deposit was fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The remaining amount was collateralized with securities held by the pledging financial institutions in the City’s name.

Governmental Business-Type Fiduciary
Activities Activities Funds Total
Deposits and investments 6,860,446 $ 2,866,259 $ - $ 9,726,705 $ Restricted cash and investments - 431,329 - 431,329
Total cash and investments $ 3,297,588 6,860,446 $ - $ 10,158,034 $ Government-Wide Statement
Cash on hand $ 626
Deposits with financial institution 6,966,132
Total cash on hand and deposits 6,966,758
Investments 2,759,947
Subtotal City Treasury 9,726,705
Restricted cash and investments 431,329
Total cash and investments $ 10,158,034
53 City of Waterford, California
Notes to Basic Financial Statements
For the year ended June 30, 2022

2. CASH AND INVESTMENTS, Continued
B. Deposits, Continued
The California Government Code (Code) Section 53652 requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. The Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name.

The fair value of pledged securities must equal at least 110% of the City’s cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits.

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

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

C. Investments
Under the provisions of the City’s investment policy, and in accordance with the Code, the following investments are authorized:

Authorized Investment Type
Maximum
Maturity
Maximum
Percentage of
Portfolio
Maximum
Investment in
One Issuer
Bankers' Acceptance 180 days 30% 30%
Negotiable Certificates of Deposit N/A 10% 10%
Commercial Paper 270 days 15%
Lesser of
$3 Million
or 10%
State of California Local Agency Upon Demand $75 Million per entity
N/A
Investment Fund (State Pool) Upon Demand $75 Million
per entity
N/A
Medium Term Notes 5 years 10% None
Money Market Funds N/A Unlimited Unlimited
U.S. Treasury Obligations 10 years Unlimited None
U.S. Government Agency Issues 10 years Unlimited None
Municipal Notes or Bonds N/A 10 None
Repurchase Agreements 1 year Unlimited None
Mutual Funds N/A 20% 10%
54 City of Waterford, California
Notes to Basic Financial Statements
For the year ended June 30, 2022

2. CASH AND INVESTMENTS, Continued
C. Investments, Continued
The City’s portfolio value fluctuates in an inverse relationship to any change in interest rate.

Accordingly, if interest rates rise, the portfolio value will decline. If interest rates fall, the portfolio value will rise. The portfolio for year-end reporting purposes is treated as if it were all sold. Therefore, fund balance must reflect the portfolio’s change in value. These portfolio value changes are unrealized unless sold. Generally the City’s practice is to buy and hold investments until maturity dates. Consequently, the City’s investments are carried at fair value.

The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by Code Section 16429 under the oversight of the Treasurer of the State of California. The City’s investments with LAIF at June 30, 2022, include a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments include the following:

Structured Notes – are debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or have embedded forwards or options.

Asset-Backed Securities – the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables.

As of June 30, 2022, the City had $319,972 invested in LAIF, which had invested 1.88% of the pool investment funds in Structured Notes and Asset-Backed Securities as compared to 2.31% in the previous year. The LAIF fair value factor of 0.987125414 was used to calculate the fair value of the investments in LAIF.

The City is a voluntary participant in the Central San Joaquin Valley Risk Management Authority investment pool. The Authority has established an investment pool to allow its members to participate in the same investments in which the Authority’s excess funds are invested. The pool is meant as a longterm investment tool for the member cities. The minimum contribution to the pool is $100,000. Interest is apportioned quarterly, based on each member’s pool balance. 55 City of Waterford, California
Notes to Basic Financial Statements
For the year ended June 30, 2022

2. CASH AND INVESTMENTS, Continued
D. Risk disclosure
Interest Risk: Interest rate risk is the market value fluctuation due to overall changes in the interest rates.

It is mitigated by limiting the average maturity of the City’s portfolio not to exceed three years.

Investments held in the City Treasury grouped by maturity date at June 30, 2022, are shown below:

Credit Risk: Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real or perceived change in the ability of the issuer to repay its debt. According to the City’s investment policy, no more than 10% of the total portfolio may be invested in securities of any single issuer, other than the US Government, its agencies and instrumentalities, and LAIF. If a security is downgraded by either Moody’ or S&P to a level below the minimum quality required by the City, it shall be the City’s policy to sell that security as soon as practicable.

At June 30, 2022, the City’s deposits and investments were rated as follows:

Investment Type Total
1 year or
Less 1 - 2 years 2- 3 years 3 - 4 years
4 years or
More
Municipal Bonds
Los Agneles County $ 62,710 $ 62,710 -$ -$ -$ -$
Nevada IRR 68,267 68,267 - - - -
Subtotal 130,977 62,710 68,267 - - -
Corporate Bonds:

Alphabet Inc. 166,041 166,041 - - - -
Microsoft Corp. 301,328 99,704 201,624 - - -
Chevron Corp. 99,818 99,818 - - - -
Subtotal 567,187 99,704 467,483 - - -
Insured Deposits 98,245 98,245 - - - -
State Of California Local
Agency Investment Fund 319,972 319,972 - - - -
CSJVRMA Investment Pool 1,643,566 1,643,566 - - - -
Total $ 2,759,947 $ 2,224,197 535,750$ $ - -$ -$
Investment Maturities (in years)
Investment Type Moody's S&P
Municipal Bonds
Los Angeles County Aa2 AA+
Nevada IRR N/A AA+
Corporate Bonds:

Alphabet Inc. Aa2 AA+
Microsoft Corp. Aaa AAA
Chevron Corp. Aa2 AAState Of California Local Agency Investment Not Rated Not Rated Investment Pool Not Rated Not Rated
Credit Quality Ratings
56 City of Waterford, California
Notes to Basic Financial Statements
For the year ended June 30, 2022

2. CASH AND INVESTMENTS, Continued
D. Risk disclosure, Continued
Custodial Credit Risk: For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. None of the City’s investments were subject to custodial credit risk.

E. Investment Valuation
Investments (except for money market accounts, time deposits, and commercial paper) are measured at fair value on a recurring basis. Recurring fair value measurements, are those that Governmental Accounting Standards Board (GASB) Statements require or permit in the statement of net position at the end of each reporting period. Fair value measurements are categorized based on the valuation inputs used to measure an asset’s fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. Investment fair value measurements at June 30, 2022 are described below.

Investments included in restricted cash and investments included money market accounts and guaranteed investment contracts are not subject to fair value measurements.

US Governmental Bonds, Municipal Bonds, and Corporate Bonds categorized as Level 2 are valued based on matrix pricing which use observable market inputs such as yield curves and market indices that are derived principally from or corroborated by observable market data by correlation to other means. Property held for investment was categorized as Level 3 and was valued by a sale comparison appraisal approach, which was derived by using quoted prices of similar assets in active markets adjusted for differences between the City’s investment property and assets for which quotes were obtained.

Investment Type Fair Value Level 1 Level 2 Level 3
Municipal Bonds
Los Agneles County $ 62,710 $ 62,710 - $ $ -
Nevada IRR 68,267 68,267 - -
Subtotal 130,977 130,977 - -
Corporate Bonds:

Alphabet Inc. $ 166,041 -$ 166,041 $ $ -
Microsoft Corp. 301,328 301,328 - -
Chevron Corp. 99,818 99,818 - -
Subtotal 567,187 567,187 - -
Total Investment subject to fair value 698,164 $ 698,164 - $ $ - Investments not subject to levelling disclosure
Insured Deposits 98,245
Investment Pool 1,643,566
Local Agency Investment Fund 319,972
Total Investments $ 2,759,947
Fair Value Measurement Using
57 City of Waterford, California
Notes to Basic Financial Statements
For the year ended June 30, 2022

3. ACCOUNTS RECEIVABLE
Accounts receivable consisted of the following at June 30, 2022:

Amounts do not indicate a significant concentration (greater than 25%) with any single individual, business or agency.

4. LOANS RECEIVABLE
Community Development Block Grant Program Loans – The City participates in a CDBG Revolving loan program. The program is federally funded and provides housing rehabilitation loans to eligible applicants.

The City makes loans to resident homeowners who qualify as low income, some of which are deferred and are not repaid until the title to property changes. The balance of these loans at June 30, 2022 was $841,727.

During the fiscal year, the City did not issue any new loans.

Governmental
Activities
Business-type
Activates Total
Current:

Accounts receivable $ 612,607 $ 350,743 $ 963,350
Total current 612,607 350,743 963,350
Noncurrent:

Loans/notes receivable 841,727 841,727 -
Loans receivable from Private Purpose Trust 240,000 - 240,000 Total noncurrent 841,727 240,000 1,081,727
Total receivables $ 1,454,334 $ 590,743 $ 2,045,077
58 City of Waterford, California
Notes to Basic Financial Statements
For the year ended June 30, 2022

5. CAPITAL ASSETS
Governmental capital asset activity for the year ended June 30, 2022, was as follows:

Balance
7/1/2021,
as restated Additions Deletions Transfers
Balance
6/30/2022
Governmental activities:

Nondepreciable assets:

Land 5,399,530 $ - $ - $ - $ 5,399,530 $
Construction in progress 422,982 220,494 - (20,875) 622,601 Total nondepreciable assets 220,494 5,822,512 - (20,875) 6,022,131 Depreciable assets:

Buildings and structures 5,099,665 4,931 - - 5,104,596
Equipment 2,782,691 157,474 - 20,875 2,961,040
Vehicles 702,058 61,681 - - 763,739
Infrastructure 12,471,168 688,890 - - 13,160,058
Total depreciable assets 912,976 21,055,582 - 20,875 21,989,433 Total 1,133,470 26,878,094 - - 28,011,564
Accumulated depreciation:

Buildings and improvements (1,835,004) (263,346) - - (2,098,350) Equipment (1,952,576) (148,167) - - (2,100,743)
Vehicles (580,153) (19,403) - - (599,556)
Infrastructure (5,208,405) (554,914) - - (5,763,319)
Total accumulated depreciation (985,830) (9,576,138) - - (10,561,968) Net depreciable assets (72,854) 11,479,444 - 20,875 11,427,465 Total net capital assets $ 147,640 17,301,956 $ $ - $ 17,449,596 - $ General government $ 159,014
Public ways and facilities 620,071
Police services 62,415
Parks and recreation 144,330
Total $ 985,830
Depreciation expense for capital assets was charged to functions as follows:
59 City of Waterford, California
Notes to Basic Financial Statements
For the year ended June 30, 2022

5. CAPITAL ASSETS, Continued
Business-type capital asset activity for the year ended June 30, 2022, was as follows:

Balance
7/1/2021,
as restated Additions Deletions Transfers
Balance
6/30/2022
Business-type activities
Nondepreciable assets:

Land $ 427,672 $ - $ - $ 427,672 - $
Construction in progress 105,048 851,563 - 956,611 -
Total nondepreciable assets 532,720 851,563 - 1,384,283 - Depreciable assets:

Buildings and improvements 952,257 9,861 - 962,118 -
Treatment plant 10,599,237 73,874 - 10,673,111 -
Equipment 4,185,304 - 4,185,304 -
Vehicles 440,273 161,682 - 601,955 -
Total depreciable assets 16,177,071 245,417 - 16,422,488 - Total 16,709,791 1,096,980 - 17,806,771 -
Accumulated depreciation:

Buildings and improvements (746,007) (7,465) - (753,472) - Treatment plant (2,507,877) (313,158) - (2,821,035) -
Equipment (1,640,532) (136,878) - (1,777,410) -
Vehicles (371,167) (10,374) - (381,541) -
Total accumulated depreciation (5,265,583) (467,875) - (5,733,458) - Net depreciable assets 10,911,488 (222,458) - 10,689,030 - Total net capital assets $ 11,444,208 $ 629,105 $ - $ 12,073,313 - $ $ 205,385
262,490
Total $ 467,875
Depreciation expense for capital assets was charged to functions as follows:

Wastewater Treatment
Water System
60 City of Waterford, California
Notes to Basic Financial Statements
For the year ended June 30, 2022

6. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Accounts payable and accrued liabilities consisted of the following at June 30, 2022:

Amounts do not indicate a significant concentration (greater than 25%) with any single vendor or employee

7. LONG-TERM LIABILITIES
The following is a summary of changes in long-term liabilities for the year ended June 30, 2022:

Governmental
Activities
Business-type
Activities
Fiduciary
Activities Total
Accounts payable 465,119 $ 946,739 $ - $ 1,411,858 $
Interest payable 17,351 24,578 - 41,929
Due to other - - 27,504 27,504
Deposits payable 5,350 156,158 - 161,508
Total 487,820 $ 1,127,475 $ 27,504 $ 1,642,799 $
Issue Amount
Balance
June 30, 2021 Addition Retirements
Balance
June 30, 2022
Current
Portion
Noncurrent
Portion
Governmental Activity Debt:

Capital Lease
Property purchase, 4.75% due 3/27/23 597,034 $ 105,847 $ -$ (105,847) $ - $ - $ - $ PNC Equipment Finance, LLC Lease Payable 297,678 198,631 - (11,513) 187,118 14,812 172,306 USDA Loan 1,160,727 1,640,565 - (38,875) 1,601,690 40,138 1,561,552 California Energy Commission Loan Payable 220,624 131,042 - (15,814) 115,228 15,973 99,255 Total Governmental Activity Debt $ 2,276,063 $ 2,076,085 $ (172,049) - $ $ 1,904,036 $ 70,923 $ 1,833,113 Business-type Activity Debt:

Wastewater Treatment Facility
Series 2012 Refunding Bonds,
7%, due 9/15/27 (Publicly Placed) $ 1,930,000 $ 1,100,000 $ (130,000) - $ $ 970,000 $ 135,000 $ 835,000 PNC Equipment Finance, LLC Lease Payable 297,678 198,630 (11,513) - 187,117 14,812 172,305 California Energy Commission Loan Payable 1,077,166 639,789 (77,211) - 562,578 77,985 484,593 Total Wastewater Treatment Facility 3,304,844 1,938,419 - (218,724) 1,719,695 227,797 1,491,898 Water System Fund
Water Purchase Loan 3,100,000 2,028,600 - (198,600) 1,830,000 204,800 1,625,200 Total Water System Fund 3,100,000 2,028,600 - (198,600) 1,830,000 204,800 1,625,200 Public Financing Authority
Series 2012 Refunding Bonds,

1.0-4.75%, due 9/15/27 (Publicly Placed) 2,165,000 380,000 (10,000) - 370,000 5,000 365,000 Total Public Financing Authority 2,165,000 380,000 (10,000) - 370,000 5,000 365,000 Total Business-Type Activity Debt $ 8,569,844 $ 4,347,019 $ (427,324) - $ $ 3,919,695 $ 437,597 $ 3,482,098 Total Primary Government $ 6,423,104 10,845,907 $ - $ (599,373) $ 5,823,731 $ 508,520 $ 5,315,211 $ 61 City of Waterford, California
Notes to Basic Financial Statements
For the year ended June 30, 2022

7. LONG-TERM LIABILITIES, Continued
A. Capital Lease - Property Purchase
On January 1, 2008, the City entered into a lease agreement in the amount of $597,034 at 4.75% with Municipal Finance Corporation to Finance the acquisition of certain real property. Semi-annual principal and interest payments of $28,052 are due on March 27 and September 27 beginning on March 27, 2009.

The capital lease was paid off during fiscal year 2022.

B. Capital Lease - PNC Equipment Finance
The City entered into a Lease Agreement with PNC Equipment Finance to fund a portion of the Solar Energy Project. The total amount financed is $595,356. The obligation funded solar energy improvements in the Wastewater Enterprise Fund, the City’s General Fund, and the Special Revenue Funds Lighting District and Lighting and Landscaping District. Amounts due under the lease obligation started in January of 2015. Annual payments ranging from $26,194 to $82,908 will be due each January thereafter until maturity in 2029
C. USDA Loan
In August of 2017 the City of Waterford entered in an agreement with the USDA to provide Certificates of Participation in the amount of $1,750,000. The funds are to be used for the construction of a new police facility. The amount will be paid back over 30 years and accrue interest of 3.25%. The final payment will be due in August of 2047.

D. California Energy Commission Loan Payable
The City entered into a Loan Agreement with the California Energy Commission to fund a portion of the Solar Energy Project. The total amount financed is $1,297,790. The obligation funded solar energy improvements in the Wastewater Enterprise Fund and the City’s General Fund. Bi-annual payments of $50,423 will be due through maturity. The loan is at a stated rate of interest of 1% and matures in 2029.

E. Revenue Bonds
In September 2003 the Public Financing Authority issued Refunding Revenue Bonds in the principal amount of $5,795,000 to refund the aggregate outstanding principal amount of the 1996A and 1997A Revenue Bonds which were called on September 15, 2003. Principal payments were due annually; interest payments were due semi-annually on March 15 and September 15. The 2003 Bonds were refunded in fiscal year 2012 with the 2012 Bonds discussed below, and the 2003 Bonds were called in March 2012.

In February 2012, the Authority issued the 2012 Refunding Revenue Bonds in the principal amount of $4,095,000 to refund the outstanding principal amount of the 2003 Bonds. The refunding reduced total debt service by $211,109, resulting in an economic gain (difference between the present values of the debt service payments on the old and new debt) of $191,639.
62 City of Waterford, California
Notes to Basic Financial Statements
For the year ended June 30, 2022

7. LONG-TERM LIABILITIES, Continued
E. Revenue Bonds, Continued
The 2012 Bonds are repayable from former Redevelopment Agency tax increment revenues, Wastewater Enterprise charges for services, and the revenues received from the special assessment district debt.

However, since the former Redevelopment Agency's portion of the Bonds is now repayable by the Successor Agency, the Public Financing Authority has recorded a receivable from the Successor Agency in the amount of its share of the Bonds, which was $535,000 at June 30, 2012. The balance at June 30, 2022 is $370,000. The 2012 Revenue Bonds have been recorded as liabilities of the enterprise funds from which repayment is expected.

F. Loan Payable - Water Purchase
The City entered into a Loan Agreement with Umpqua Bank to fund the acquisition of the Waterford and Hickman Water Systems. The total amount financed is $2,934,900. Bi-Annual payments of principal interest are due through June 1, 2030. Payments total approximately $259,000 per year and include interest of 3.13%.

G. Debt Service Requirement
Annual debt service requirements are shown below:

Principal Interest Principal Interest Principal Interest 2023 29,625 $ 13,248 $ 40,138 $ 51,402 $ 94,278 $ 6,567 $ 2024 36,695 12,199 41,443 50,077 95,209 5,636
2025 44,261 10,900 42,789 48,709 96,178 4,667
2026 52,353 9,333 44,180 47,295 97,142 3,703
2027 60,997 7,480 45,616 45,836 98,116 2,729
2028-2032 150,304 8,151 251,304 205,577 196,883 2,501
2033-2037 - - 294,884 161,289 - -
2038-2042 - - 346,020 109,323 - -
2043-2047 - - 406,023 48,343 - -
2048 - - 89,293 1,450 - -
Total 374,235 $ 61,311 $ 1,601,690 $ 769,301 $ 677,806 $ 25,803 $ Due within one year 29,625 $ 13,248 $ 40,138 $ 51,402 $ 94,278 $ 6,567 $ Due after one year 344,610 48,063 1,561,552 717,899 583,528 19,236 Total 374,235 $ 61,311 $ 1,601,690 $ 769,301 $ 677,806 $ 25,803 $ Year Ending
June 30,
Capital Lease - PNC Equipment
Finance USDA Loan
California Energy Commission
Loan Payable
63 City of Waterford, California
Notes to Basic Financial Statements
For the year ended June 30, 2022

7. LONG-TERM LIABILITIES, Continued
G. Debt Service Requirement, Continued
H. Compensated Absences
The City records employee absences, such as vacation, illness, and holidays, for which it is expected that employees will be paid as compensated absences within the current year. Compensated absences had a balance of $25,275 for governmental funds and $60,238 for proprietary funds at June 30, 2022.

8. NET POSITION/ FUND BALANCES
A. Net Position
 Restricted balances are for the same purposes as fund balance restrictions because external restriction requirements are the same. See descriptions of the restrictions below.

Principal Interest Principal Interest Principal Interest 2023 140,000 $ 61,160 $ 204,800 $ 56,730 $ 508,841 $ 189,107 $ 2024 145,000 55,210 211,300 50,382 529,647 173,504
2025 150,000 48,975 217,900 43,830 551,128 157,081
2026 160,000 42,375 224,700 37,076 578,375 139,782
2027 170,000 33,175 231,700 30,110 606,429 119,330
2028-2032 575,000 27,313 739,600 46,326 1,913,091 289,868 2033-2037 - - - - 294,884 161,289
2038-2042 - - - - 346,020 109,323
2043-2047 - - - - 406,023 48,343
2048 - - - - 89,293 1,450
Total 1,340,000 $ 268,208 $ 1,830,000 $ 264,454 $ 5,823,731 $ 1,389,077 $ Due within one year 140,000 $ 61,160 $ 204,800 $ 56,730 $ 508,841 $ 189,656 $ Due after one year 1,200,000 207,048 1,625,200 207,724 5,314,890 1,199,970 Total 1,340,000 $ 268,208 $ 1,830,000 $ 264,454 $ 5,823,731 $ 1,389,626 $ Revenue Bonds
Loan Payable -
Year Ending Water Purchase Total
June 30,
Governmental
Activities
Business-type
Activities Total
Net Investment in Capital Assets 15,545,560 $ 8,616,046 $ 24,161,606 $ Restricted 3,319,086 431,329 3,750,415
Unrestricted 3,217,999 1,380,637 4,598,636
Total 22,082,645 $ 10,428,012 $ 32,510,657 $
64 City of Waterford, California
Notes to Basic Financial Statements
For the year ended June 30, 2022

8. NET POSITION/ FUND BALANCES, Continued
B. Fund Balance
Nonspendable, Restricted, Assigned, and Unassigned fund balance consisted of the following at June 30, 2022:

Expenditures in Excess of Appropriations
The following fund had expenditures in excess of budget. Sufficient fund balances were available to fund these expenditures:

Nonspendable:

Advances 283,193 $
Total Nonspendable $ 283,193
Restricted:

Community Development $ 1,112,686
Local Transportation Fund 8,633
Lighting Destrict 98,689
Abandoned Vehicle Abatement 5,887
Lighting and Landscaping 38,782
Impact Fee 1,432,907
CIP Street Measure L 363,835
Special Business Pilot Program 75,606
CFD 2019-1 Maintenance Service (663)
CIP Streets and Roads 132,248
CIP Parks 50,476
Total Restricted $ 3,319,086
Unassigned (deficit):

General Fund $ 3,588,338
Total Unassigned $ 3,588,338
Appropriations
Total Expenditures
and Transfers
Excess over
Appropriations
Governmental Activities
Nonmajor funds:

Abandoned Vehicle Abatement $ 22,750 $ 41,005 $ (18,255) 65 City of Waterford, California
Notes to Basic Financial Statements
For the year ended June 30, 2022

9. INTERFUND TRANSACTIONS
Due to and from balances result from the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made.

Due to and due from other funds consisted of the following as of June 30, 2022:

Due from
Other Funds
Due to
Other Funds
Governmental Funds
Major Funds:

General Fund 54,964 $ - $
Total Major Funds 54,964 -
Nonmajor Funds:

Special Revenue Funds:

Gas Tax - 48,909
Abandoned Vehicle Abatement - 5,392
CFD 2019-1 Maintenance Services - 663
Total Special Revenue Funds - 54,964
Total governmental funds 54,964 54,964
Proprietary Funds
Major Enterprise Funds:

Water System - 36,370
Public Financing Authority 36,370 -
Major Enterprise Funds 36,370 36,370
Total $ 91,334 $ 91,334
66 City of Waterford, California
Notes to Basic Financial Statements
For the year ended June 30, 2022

9. INTERFUND TRANSACTIONS, Continued
Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them, and (2) use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorizations.

10. RISK MANAGEMENT
The City participates with other public entities in a joint venture under a joint powers agreement which established the Central San Joaquin Valley Risk Management Authority (CSJVRMA). The relationship between the City and the CSJVRMA is such that the 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 $500,000 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 the City’s self-insurance retention of $10,000 and workers’ compensation losses under the City’s self-insurance retention of $10,000. The CSJVRMA participates in an excess pool, which provides general liability coverage from $1,000,001 to $29,000,000. The CSJVRMA participates in an excess pool, which provides workers’ compensation coverage from $500,001 to $5,000,000 and also purchases excess insurance above the $5,000,000 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 three to four 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.

Detailed financial information may be obtained from the CSJVRMA.

At the termination of the joint powers agreement and after all claims have been settled, any excess or deficit will be divided among the cities in accordance with the governing documents. There were no excess claims over premiums for any of the City’s risk management programs in fiscal year 2022, and there were no changes to the City’s insurance coverage from the prior year.

Transfers Out:

General
Fund
Non-Major
Gov't Funds
Wastewater
System
Water
System PFA Total
Governmental Funds:

General Fund $ 23,960 - $ $ 29,312 $ 58,554 $ 112,375 549 $ Impact Fee 154,983 95,160 18,559 504,100 - 772,802
CIP Measure L - 62,514 - - - 62,514
Non-Major Governmental
Funds 315,137 - - - - 315,137
Enterprise Funds:

Wastewater System 2,500 - - - - 2,500
Water System 7,501 - - - - 7,501
Total $ 480,121 181,634$ 47,871$ $ 562,654 $ 1,272,829 549 $ Governmental Funds
Transfers In:

Enterprise Fund
67 City of Waterford, California
Notes to Basic Financial Statements
For the year ended June 30, 2022

11. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM
General Information about the Pension Plans
Plan Descriptions – All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS). The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other). Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous risk pools.

Accordingly, rate plans within the safety or miscellaneous risk pools are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The Agency sponsors three rate plans (two miscellaneous and one closed safety). Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions, and membership information that can be found on the CalPERS’ website.

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.

The Plan provisions and benefits in effect at June 30, 2022, are summarized as follows:

On January 1, 2013, the Public Employee Pension Reform Act (PEPRA) went into effect. This State law applies to employees hired after January 1, 2013 who are new to PERS. These employees are termed PEPRA members and employees that were enrolled in PERS (without significant separation) prior to January 1, 2013 are now referred to as classic members. PEPRA miscellaneous members will be enrolled in a 2% at 62 plan and PEPRA safety members will be enrolled in a 2.7% at 57 plan. PEPRA members will be required to pay half the normal cost of their plans.

Safety*
Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
Prior to
January 1, 2013
Benefit formula 2.5% @ 55 2% @ 62 2.5% @ 55
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 - 55 52-67 55
Monthly benefits, as a % of eligible compensation 2.0% to 2.5% 1.0% to 2.5% 0.50% Required employee contribution rates 8.000% 6.750% 0.000% Required employer contribution rates 11.590% 7.590% 0.000% Required payment on Unfunded Liability $116,339 $2,066 $26,372 Miscellaneous
68 City of Waterford, California
Notes to Basic Financial Statements
For the year ended June 30, 2022

11. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
Contributions – Section 20814(c) of the California Public Employees' Retirement Law requires that the employer contribution rates for all public employers 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 the Plan is determined annually on an actuarial basis as of June 30 by CaIPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

The City’s contributions to the Plan for the measurement period ended June 30, 2021 were $246,090.

Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2021, the City reported a net pension liability for its proportionate shares of the net pension liability of the Plan as follows:

The City’s net pension liability for the Plans is measured as the proportionate share of the net pension liability. The net pension liability of the Plans is measured as of June 30, 2021, and the total pension liability for the Plans used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined.

The City’s proportionate share of the net pension liability for the Plan as of measurement dates June 30, 2020 and 2021 was as follows:

Proportionate Share of
Net Pension Liability
Miscellaneous Risk Pool 740,554 $
Safety Risk Pool (63,090)
Total Net Pension Liability 677,464 $
Proportion - June 30, 2020 0.01534%
Proportion - June 30, 2021 0.01253%
Change - Increase (Decrease) -0.00281%
69 City of Waterford, California
Notes to Basic Financial Statements
For the year ended June 30, 2022

11. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
For the year ended June 30, 2022, the City recognized pension income of $89,901. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
$250,572 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, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Deferred Outflows
of Resources
Deferred Inflows of
Resources
Differences between Expected and Actual Experience 72,266 $ - $ Differences between Projected and Actual Investment Earnings - 608,913 Differences between Employer's Contributions and
Proportionate Share of Contributions - 131,151
Change in Employer's Proportion 109,360 -
Pension Contributions Made Subsequent to Measurement Date 250,572 - $ 740,064 432,198 $
Year Ended
June 30
2023 (126,130)
2024 (128,808)
2025 (135,184)
2026 (168,317)
70 City of Waterford, California
Notes to Basic Financial Statements
For the year ended June 30, 2022

11. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
Actuarial Assumptions - The total pension liabilities in the June 30, 2020 actuarial valuations were determined using the following actuarial assumptions:

Discount Rate - Discount Rate – The discount rate used to measure the total pension liability for the Plan 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. A detailed report testing these projections can be obtained from the CalPERS website.

The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and longterm market return expectations as well as the expected pension fund cash flows. Using historical and forecasted information for all the 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 for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

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.

Investment rate of return 7.15%
Inflation 2.50%
Salary increases Varies by Entry Age and Service
Mortality rate table1 Derived using CalPERS' Membership Data for all Funds Contract COLA up to 2.5% until Purchasing Power
Post Retirement Benefit Increase Protection Allowance Floor on Purchasing Power applies 1 The mortality table used was developed baesd 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. 71 City of Waterford, California
Notes to Basic Financial Statements
For the year ended June 30, 2022

11. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, 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. (1) In the System’s Comprehensive Annual Financial Report, 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. (4) Figures are based on previous ALM of 2017.

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

Pension Plan Fiduciary Net Position -Detailed information about the pension plan's fiduciary net position is available in the separately issued CalPERS financial reports.

Payable to the Pension Plan
At June 30, 2022 the City reported a payable of $0 for outstanding amount of contributions to the pension plan required for the year ended June 30, 2022.

Asset Class
New Strategic
Allocation (1)
Real Return
Years 1 - 10 (2)
Real Return
Years 11 (3), (4)
Global Equity 50.00% 4.80% 5.98%
Global Fixed Income 28.00% 1.00% 2.62%
Inflation Sensitive 0.00% 0.77% 1.81%
Private Equity 8.00% 6.30% 7.23%
Real Estate 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
Total 100.00%
1% Decrease
(6.15%)
Current Discount
Rate
(7.15%)
1% Increase
(8.15%)
Net Pension Liability as of
June 30, 2021
Miscellaneous Risk Pool 1,660,763 $ 740,554 $ (20,168) $ Safety Risk Pool 179,293 (63,090) (262,178)
Total 1,840,056 $ 677,464 $ (282,346) $
72 City of Waterford, California
Notes to Basic Financial Statements
For the year ended June 30, 2022

12. COMMITMENTS AND CONTINGENCIES
Litigation
The City is involved in litigation incurred in the normal course of conducting City business. Although the outcome of these lawsuits is not presently determinable, in the opinion of the City’s counsel, the resolution of these matters will not have a material adverse effect on the financial condition of the City.

Commitments
The City had no significant unexpended contractual commitments as of June 30, 2022.

13. PRIOR PERIOD ADJUSTMENTS
The City recorded prior period adjustments to restate the beginning balance of Impact fee fund and the beginning net position of governmental activities, in order to correct immaterial administrative fee and construction in progress balance.

Fund Balance/ Fund Balance/
Net Position, as Construction Net Position, as
Previously Reported Administrative fee in progress Restated at at June 30, 2021 Adjustment Adjustment June 30, 2021
Fund Financial
Impact fee fund $ 1,072,585 $ 1,372 $ - $ 1,073,957
Governmental-Wide Financial
Governmental activities 20,629,518 1,372 3,805 20,634,695 Prior Period Adjustments
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74 REQUIRED

SUPPLEMENTARY INFORMATION
75 This page intentionally left blank
76 City of Waterford, California
Required Supplementary Information
For the year ended June 30, 2022

1. BUDGETS AND BUDGETARY ACCOUNTING
A. Budgeting Procedures
The City Council establishes budgets for the General Fund and all Special Revenue Funds, except for certain Special Revenue Funds for which expenditures are controlled by grant funding or by assessments received. Budgetary control is legally maintained at the fund level for these funds. Department heads submit budget requests to the City Manager. The City Manager prepares an estimate of revenues and prepares recommendations for the next year’s budget. The preliminary budget may or may not be amended by the City Council and is adopted by resolution by the City Council on or before June 30 in accordance with the municipal code.

The City Council may amend the budget by motion during the fiscal year. Only the Council can authorize transfers between funds and approve inter-fund loans. The City Manager is authorized to transfer budgeted amounts within a fund without formal council action or approval. The City Manager is authorized to increase expenditures in relation to revenues in funds receiving assigned revenues without approval by the City Council.

Expenditures may not legally exceed appropriations at the fund level, which is the legal level of control.

Supplemental appropriations, which increase appropriations, may be made during the fiscal year. There were no material supplemental appropriations made for the fiscal year ended June 30, 2022. Budget information is presented for the General and Special Revenue Funds in the fund financial statements.

The budget information is presented on a basis consistent with generally accepted accounting principles.

Appropriations, except open project appropriations, and unexpended grant appropriations, lapse at the end of each fiscal year.
77 City of Waterford, California
Required Supplementary Information
For the year ended June 30, 2022

1. BUDGETS AND BUDGETARY ACCOUNTING, Continued
B. Budgetary Comparison Schedules
Budgetary Comparison Schedule, General Fund
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes and assessments 2,570,941 $ 2,759,962 $ 2,978,419 $ 218,457 $ Licenses and Permits 111,920 196,920 313,663 116,743
fines and forfeitures 18,800 18,800 21,139 2,339
Intergovernmental 172,000 1,243,950 335,453 (908,497)
Use of money and property 30,900 27,900 (48,949) (76,849) Charges for Services 2,900 2,900 1,931 (969)
Other revenues 7,400 7,400 42,997 35,597
Total revenues 4,257,832 2,914,861 3,644,653 (613,179)
EXPENDITURES:

Current:

General Government 164,264 180,642 178,987 1,655
Public safety 2,060,494 2,068,490 1,966,764 101,726
Public ways and facilities 313,344 347,276 321,721 25,555 Community development 330,238 371,829 339,196 32,633
Culture and recreation 185,052 279,224 237,377 41,847
Capital outlay 94,931 152,131 75,397 76,734
Debt service:

Principal 107,293 161,459 161,458 1
Interest and fiscal charges 58,936 57,832 57,832 -
Total expenditures 3,618,883 3,314,552 3,338,732 280,151

REVENUES OVER (UNDER)
EXPENDITURES 638,949 (399,691) 305,921 (333,028)
OTHER FINANCING SOURCES (USES):

Transfers in 422,951 599,915 480,121 (119,794)
Transfers out (50,000) (174,172) (112,375) 61,797
Total other financing sources (uses) 366,981 425,743 367,746 (57,997) Net change in fund balances $ (32,710) $ 1,064,692 673,667 $ (391,025) FUND BALANCES:

Beginning of year 3,197,864
End of year $ 3,871,531
Budget Amounts
78 City of Waterford, California
Required Supplementary Information
For the year ended June 30, 2022

1. BUDGETS AND BUDGETARY ACCOUNTING, Continued
B. Budgetary Comparison Schedules, Continued
Budgetary Comparison Schedule, Impact Fee Special Revenue Fund Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes and assessments $ 464,097 $ 1,165,000 $ 1,130,357 $ (34,643) Use of money and property 3,650 3,650 7,146 3,496
Total revenues 467,747 1,168,650 1,137,503 (31,147)
EXPENDITURES:

Current:

Public ways and facilities - - 3,563 (3,563)
Capital outlay 250,000 250,000 2,188 247,812
Total expenditures 250,000 250,000 5,751 244,249

REVENUES OVER (UNDER)
EXPENDITURES 217,747 918,650 1,131,752 213,102
OTHER FINANCING SOURCES (USES):

Transfers out (169,331) (314,066) (772,802) (458,736)
Total other financing sources (uses) (169,331) (314,066) (772,802) (458,736) Net change in fund balances $ 48,416 $ 604,584 358,950 $ (245,634) FUND BALANCES:

Beginning of year 1,073,957
End of year $ 1,432,907
Budget Amounts
79 City of Waterford, California
Required Supplementary Information
For the year ended June 30, 2022

2. DEFINED BENEFIT PENSION PLANS
C. Schedule of the City’s Proportionate Share of the Net Pension Liability – Last 10 Years D. Schedule of Contributions – Last 10 Years
Fiscal year 2022 2021 2020 2019 2018 2017 2016 2015 *
Measurement date 6/30/2020 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 Plan's Proportion of the Net Pension Liability 0.01253% 0.01534% 0.01482% 0.01420% 0.01410% 0.01363% 0.01253% 0.01123% Plan's Proportionate Share of the Net Pension
Liability 677,465 $ 1,669,249 $ 1,518,686 $ 1,368,310 $ 1,398,481 $ 1,179,354 $ 860,166 $ 699,969 $ Plan's Covered Payroll 1,174,882 $ 1,041,898 $ 1,109,165 $ 1,075,104 $ 1,011,690 $ 958,704 $ 851,746 $ 837,390 $ Plan's Proportionate Share of the Net Pension
Liability as a Percentage of its Covered Payroll 57.66% 160.21% 136.92% 127.27% 138.23% 123.02% 100.99% 83.59% Plan's Proportionate share of the Fiduciary Net
Position as a Percentage of the Plan's Total
Pension Liability 75.10% 75.10% 75.26% 75.26% 73.31% 74.06% 78.40% 79.82% Notes to Schedule
*Fiscal year 2015 was the 1st year of implementation, therefore only seven years are shown.

The CalPERS discount rate was increased from 7.5% to 7.65% in fiscal year 2016, and then decreased from 7.65% to 7.15% in fiscal year 2018.

The CalPERS mortality assumptions were adjusted in fiscal year 2019.

Fiscal year 2022 2021 2020 2019 2018 2017 2016 2015 *
Actuarially determined contribution $ 250,572 246,090$ 201,672$ 186,766$ 154,072$ 138,668$ 124,798$ 114,483$ Contribution in relation to the actuarially
determined contributions 250,572 246,090 201,672 186,766 154,072 138,668 124,798 114,483 Contribution deficiency (excess) $ - -$ -$ -$ -$ -$ -$ -$ Covered payroll $ 1,174,882 $ 1,041,898$ 1,109,165$ 1,075,104 1,045,602 $ 1,011,690 $ 958,704 $ 851,746$ Contributions as a percentage of covered payroll 21.33% 23.54% 19.36% 16.84% 14.33% 13.71% 13.02% 13.44% Notes to Schedule
*Fiscal year 2015 was the 1st year of implementation, therefore only seven years are shown.

Methods and assumptions used to determine contribution rates:

Valuation date (for contractually required contribution): 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 Actuarial cost method: Entry Age Entry Age Entry Age Entry Age Entry Age Entry Age Entry Age Entry Age Amortization method: (1) (1) (1) (1) (1) (1) (1) (1)
Assets valuation method: Market Value Market Value Market Value Market Value Market Value Market Value Market Value 15 Year Smoothed
Market
Method
Inflation: 2.50% 2.50% 2.63% 2.75% 2.75% 2.75% 2.75% 2.75% Salary increases: (2) (2) (2) (2) (2) (2) (2) (2)
Investment rate of return: 7.00% 7.00% 7.25% 7.375% 7.50% 7.50% 7.50% 7.50% Retirement age: (3) (3) (3) (3) (3) (3) (3) (3)
Mortality: (4) (4) (4) (4) (4) (4) (4) (4)
(1) Level percentage of payroll, closed
(2) Depending on age, service, and type of employment
(3) 50 for all plans, with the exception of 52 for Miscellaneous PEPRA 2%@62 (4) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board.
80 SUPPLEMENTARY INFORMATION
81 This page intentionally left blank
82 The CIP Streets Measure L Fund - is used to account for streets and roads projects funded by Stanislaus County Measure L. A 25 year 1/2 cent sales tax measure enacted in 2017-2018.

BUDGETED MAJOR GOVERNMENTAL FUNDS OTHER THAN

GENERAL FUND AND SPECIAL REVENUE FUNDS
83 City of Waterford
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual CIP Streets Measure L Fund
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 415,498 $ 415,498 $ 504,553 $ 89,055 $ Use of money and property - - 62 62
Total revenues 415,498 415,498 504,615 89,117
EXPENDITURES:

Current:

Capital outlay 1,365,010 947,722 677,921 269,801
Total expenditures 947,722 1,365,010 677,921 269,801
REVENUES OVER (UNDER) EXPENDITURES (949,512) (532,224) (173,306) 358,918 OTHER FINANCING SOURCES (USES):

Transfers out (57,689) - (62,514) (4,825)
Total other financing sources (uses) (57,689) - (62,514) (4,825) Net change in fund balances $ (949,512) $ (589,913) (235,820) $ 354,093 FUND BALANCES:

Beginning of year 599,655
End of year $ 363,835
For the year ended June 30, 2022
Budget Amounts
84 Special Revenue accounts for restricted revenues (for specified purposes).

City Capital Projects Fund accounts for construction or acquisition of governmental capital assets (capital outlay).

NON-MAJOR GOVERNMENTAL FUNDS
85 Special Capital Non-Major
Revenue Projects Funds
Funds Funds Total
ASSETS
Cash and investments $ 593,409 $ 187,220 $ 780,629
Receivables:

Intergovernmental - 65,385 65,385
Loan receivable 841,727 - 841,727
Total assets $ 187,220 1,500,521 $ 1,687,741 $

LIABILITIES

AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities 105,937 $ 4,496 $ 110,433 $ Due to other funds 54,964 - 54,964
Total liabilities 4,496 160,901 165,397
Fund Balances:

Restricted 1,339,620 182,724 1,522,344
Total fund balances 182,724 1,339,620 1,522,344
Total liabilities
and fund balances $ 187,220 1,500,521 $ 1,687,741 $
City of Waterford
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2022
Governmental Fund
86 Special Capital Non-Major
Revenue Projects Funds
Funds Funds Total
REVENUES:

Taxes and assessments 108,439 $ 146,951 $ 255,390 $
Intergovernmental 441,484 - 441,484
Use of money and property 12,927 - 12,927
Other revenues 88,126 - 88,126
Total revenues 146,951 650,976 797,927
EXPENDITURES:

Current:

Genreal government 1,990 - 1,990
Public ways and facilities 68,202 6,001 74,203
Police services 38,936 - 38,936
Community Development 413 - 413
Capital outlay 131,578 275,210 406,788
Debt service:

Principal 10,592 - 10,592
Interest and fiscal charges 6,470 - 6,470
Total expenditures 281,211 258,181 539,392
REVENUES OVER (UNDER) EXPENDITURES (134,260) 392,795 258,535 OTHER FINANCING SOURCES (USES):

Transfers in 37,213 343,410 380,623
Transfers out (509,126) (5,000) (514,126)
Total other financing sources (uses) (471,913) 338,410 (133,503) Net change in fund balances (79,118) 204,150 125,032
FUND BALANCES:

Beginning of year 1,418,738 (21,426) 1,397,312
End of year $ 1,339,620 $ 182,724 $ 1,522,344
Governmental Fund
City of Waterford
Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the year ended June 30, 2022
87 This page intentionally left blank
88 NON-MAJOR SPECIAL REVENUE FUNDS
Gas Tax accounts for funds received and expended for street maintenance purposes as defined in Sections 2105, 1206, 2107, and 2107.5 of the Streets and Highways Code.

Local Transportation accounts for funds received and expended for streets and roads under the Transportation Development Act.

Community Development used to account for monies received from the US Department of Housing & Urban Development and expended principally for programs and activities to benefit low-income residents through a first time homebuyers program to produce affordable housing and rehabilitate existing residential units and infrastructure improvements in low/moderate income neighborhoods.

Lighting District Accounts for Assessments collected and expended for the City of Waterford Lighting District.

Abandoned Vehicle accounts for funds received and expended for Abandoned Vehicle Abatement.

Lighting and Landscaping accounts for Assessments collected and expended for the City of Waterford Lighting and Landscaping District.

Special Business Pilot Program accounts for the cannabis pilot program revenue.

CFD 2019-1 Maintenance Service accounts for the services, administratives expenditures and other maintenance exenditures for the Community Facility District 89 Gas Local Community Lighting
Tax Transportation Development District
Fund Fund Fund Fund
ASSETS
Cash and investments $ - $ 8,633 $ 376,896 $ 98,689
Receivables:

Intergovernmental 48,909 - - -
Loan receivable - 841,727 - -
Total assets $ 48,909 $ 8,633 $ 1,218,623 $ 98,689

LIABILITIES

AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities $ - $ 105,937 - $ $ - Due to other funds 48,909 - - -
Total liabilities 48,909 - 105,937 -
Fund Balances:

Restricted - 8,633 1,112,686 98,689
Total fund balances - 8,633 1,112,686 98,689
Total liabilities
and fund balances $ 48,909 $ 8,633 $ 1,218,623 $ 98,689 City of Waterford
Combining Balance Sheet
Non-Major Special Revenue Funds
June 30, 2022
Governmental Fund
90 Abandoned Lighting Special
Vehicle and Business CFD 2019-1
Abatement Landscaping Pilot Program Maintenance
Fund Fund Fund Service Fund Totals
$ 38,782 - $ 70,409 $ - $ 593,409 $
- 11,279 5,197 - 65,385
- - - - 841,727
$ 38,782 11,279 $ 75,606 $ - $ 1,500,521 $
$ - - $ - $ - $ 105,937 $
- 5,392 - 663 54,964
5,392 - - 663 160,901
5,887 38,782 75,606 1,339,620 (663)
5,887 38,782 75,606 (663) 1,339,620
$ 11,279 $ 38,782 $ 75,606 $ 1,500,521 - $
Governmental Fund
91 Gas Local Community
Tax Transportation Development
Fund Fund Fund
REVENUES:

Taxes and assessments $ - $ - $ -
Intergovernmental 396,559 8,639 -
Use of money and property 643 9,994 1,370
Other revenues - - -
Total revenues 397,202 18,633 1,370
EXPENDITURES:

Current:

General government - - -
Public ways and facilities - - -
Police services - - -
Community Development - - 413
Capital outlay - 119,744 -
Debt service:

Principal - - -
Interest and fiscal charges - - -
Total expenditures - 120,157 -
REVENUES OVER (UNDER) EXPENDITURES 397,202 18,633 (118,787) OTHER FINANCING SOURCES (USES):

Transfers in - 18,025 -
Transfers out (397,202) (18,025) -
Total other financing sources (uses) (397,202) (18,025) 18,025 Net change in fund balances - (100,762) 608
FUND BALANCES:

Beginning of year - 8,025 1,213,448
End of year $ - $ 8,633 $ 1,112,686
Governmental Fund
City of Waterford
Non-Major Special Revenue Funds
For the year ended June 30, 2022
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 92 Abandoned Lighting Special
Lighting Vehicle and Business CFD 2019-1
District Abatement Landscaping Pilot Program Maintenance Fund Fund Fund Fund Service Fund Totals
$ - 36,361 $ 66,530 $ - $ 5,548 $ 108,439 $
36,197 89 - - - 441,484
7 311 99 484 19 12,927
- - - 88,126 - 88,126
36,761 36,204 66,629 88,610 5,567 650,976
- - - 1,990 - 1,990
7,537 - 54,435 - 6,230 68,202
- 38,936 - - - 38,936
- - - - - 413
- 2,069 - 9,765 - 131,578
5,296 - 5,296 - - 10,592
3,235 - 3,235 - - 6,470
16,068 41,005 62,966 11,755 6,230 258,181
20,693 (4,801) 3,663 76,855 (663) 392,795
- 17,016 2,172 - - 37,213
- - - (93,899) (509,126) -
- 17,016 2,172 (93,899) (471,913) -
20,693 12,215 5,835 (17,044) (663) (79,118)
77,996 (6,328) 32,947 92,650 1,418,738 -
$ 98,689 $ 5,887 $ 38,782 $ 75,606 $ (663) $ 1,339,620
Governmental Fund
93 City of Waterford
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Gas Tax Special Revenue Fund
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 414,203 $ 422,920 $ 396,559 $ (26,361) $ Use of money and property - - 643 643
Total revenues 422,920 414,203 397,202 (25,718)
OTHER FINANCING SOURCES (USES):

Transfers out (414,203) (422,920) (397,202) 25,718
Total other financing sources (uses) (414,203) (422,920) (397,202) 25,718 Net change in fund balances $ - $ - - $ -
FUND BALANCES:

Beginning of year -
End of year $ -
Budget Amounts
For the year ended June 30, 2022
94 City of Waterford
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Local Transportation Special Revenue Fund
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 10,000 $ 10,000 $ 8,639 $ (1,361) $
Use of money and property - - 9,994 9,994
Total revenues 10,000 10,000 18,633 8,633
EXPENDITURES:

REVENUES OVER (UNDER)
EXPENDITURES 10,000 10,000 18,633 8,633
OTHER FINANCING SOURCES (USES):

Transfers out (10,000) (18,025) (18,025) -
Total other financing sources (uses) (18,025) (10,000) (18,025) - Net change in fund balances $ (8,025) - $ 608 8,633 $
FUND BALANCES:

Beginning of year 8,025
End of year $ 8,633
For the year ended June 30, 2022
Budget Amounts
95 City of Waterford
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Community Development Fund
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 823,363 $ 823,363 $ - $ (823,363) $
Use of money and property 3,800 3,800 1,370 (2,430)
Total revenues 827,163 827,163 1,370 (825,793)
EXPENDITURES:

Current:

Community Develoment 135,758 135,758 413 (135,345)
Capital outlay 756,099 764,319 119,744 644,575
Total expenditures 900,077 891,857 120,157 509,230

REVENUES OVER (UNDER)
EXPENDITURES (72,914) (64,694) (118,787) (316,563)
OTHER FINANCING SOURCES (USES):

Transfers in 36,312 44,337 18,025 (26,312)
Total other financing sources (uses) 44,337 36,312 18,025 (26,312) Net change in fund balances $ (28,577) (28,382) $ (100,762) (342,875) $ FUND BALANCES:

Beginning of year 1,213,448
End of year $ 1,112,686
For the year ended June 30, 2022
Budget Amounts
96 City of Waterford
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Lighting District Special Revenue Fund
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes and assessments 32,300 $ 32,300 $ 36,361 $ 4,061 $ Intergovernmental - - 89 89
Use of money and property 200 200 311 111
Total revenues 32,500 32,500 36,761 4,261
EXPENDITURES:

Current:

Public ways and facilities 12,400 12,400 7,537 4,863
Debt service:

Principal 5,296 5,296 5,296 -
Interest and fiscal charges 3,235 3,235 3,235 -
Total expenditures 20,931 20,931 16,068 4,863

REVENUES OVER (UNDER)
EXPENDITURES 11,569 11,569 20,693 9,124
Net change in fund balances $ 11,569 11,569 $ 20,693 9,124 $ FUND BALANCES:

Beginning of year 77,996
End of year $ 98,689
For the year ended June 30, 2022
Budget Amounts
97 City of Waterford
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Abandoned Vehicle Abatement Special Revenue Fund
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 17,000 $ 17,000 $ 36,197 $ 19,197 $
Use of money and property 500 500 7 (493)
Total revenues 17,500 17,500 36,204 18,704
EXPENDITURES:

Current:

Police services 22,750 22,750 38,936 (16,186)
Capital outlay - - 2,069 (2,069)
Total expenditures 22,750 22,750 41,005 (18,255)
OTHER FINANCING SOURCES (USES):

Transfers in - 17,100 17,016 (84)
Total other financing sources (uses) 17,100 - 17,016 (84) Net change in fund balances $ 11,850 (5,250) $ 12,215 365 $ FUND BALANCES:

Beginning of year (6,328)
End of year $ 5,887
For the year ended June 30, 2022
Budget Amounts
98 City of Waterford
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Lighting and Landscaping Special Revenue Fund
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes and assessments 70,058 $ 70,058 $ 66,530 $ (3,528) $ Use of money and property - - 99 99
Total revenues 70,058 70,058 66,629 (3,429)
EXPENDITURES:

Current:

Public ways and facilities 53,757 56,901 54,435 2,466
Debt service:

Principal 5,296 5,296 5,296 -
Interest and fiscal charges 3,235 3,235 3,235 -
Total expenditures 65,432 62,288 62,966 2,466

REVENUES OVER (UNDER)
EXPENDITURES 4,626 7,770 3,663 (963)
OTHER FINANCING SOURCES (USES):

Transfers in - 2,172 2,172 -
Total other financing sources (uses) 2,172 - 2,172 -
Net change in fund balances $ 6,798 7,770 $ 5,835 (963) $ FUND BALANCES:

Beginning of year 32,947
End of year $ 38,782
For the year ended June 30, 2022
Budget Amounts
99 City of Waterford
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Special Business Pilot Program
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes and assessments - $ - $ - $ - $
Use of money and property 500 500 484 (16)
Other revenues 61,600 61,600 88,126 26,526
Total revenues 62,100 62,100 88,610 26,510
EXPENDITURES:

Current:

General government 10,000 10,000 1,990 8,010
Capital outlay 10,000 10,000 9,765 235
Total expenditures 20,000 20,000 11,755 8,245

REVENUES OVER (UNDER)
EXPENDITURES 42,100 42,100 76,855 34,755
OTHER FINANCING SOURCES (USES):

Transfers out (95,500) (95,500) (93,899) 1,601
Total other financing sources (uses) (95,500) (95,500) (93,899) 1,601 Net change in fund balances $ (53,400) (53,400) $ (17,044) 36,356 $ FUND BALANCES:

Beginning of year 92,650
End of year $ 75,606
For the year ended June 30, 2022
Budget Amounts
100
City of Waterford
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual CFD 2019-1 Maintenance Service Fund
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes and assessments - $ 10,073 $ 5,548 $ (4,525) $
Use of money and property - - 19 19
Total revenues 10,073 - 5,567 (4,506)
EXPENDITURES:

Current:

Public ways and facilities - 10,073 6,230 3,843
Total expenditures 10,073 - 6,230 3,843

REVENUES OVER (UNDER)
EXPENDITURES - - (663) (663)
Net change in fund balances $ - $ - (663) $ (663)
FUND BALANCES:

Beginning of year -
End of year $ (663)
For the year ended June 30, 2022
Budget Amounts
101
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102

NON-MAJOR CAPITAL PROJECTS FUNDS
CIP Parks is used to account for all parks related construction projects.

CIP Streets and Roads is used to account for all streets and roads construction projects. 103
City of Waterford
Combining Balance Sheet
Non-Major Capital Projects Funds
June 30, 2022
CIP
Streets and
Roads
CIP
Parks Totals
ASSETS
Cash and investments 136,744 $ 50,476 $ 187,220 $
Total assets $ 50,476 136,744 $ 187,220 $

LIABILITIES

AND FUND BALANCES
Liabilities:

Accounts payable 4,496 $ - $ 4,496 $
Total liabilities 4,496 - 4,496
Fund Balances:

Restricted 132,248 50,476 182,724
Unassigned - - -
Total fund balances 132,248 50,476 182,724
Total liabilities
and fund balances $ 136,744 $ 50,476 $ 187,220
104
Combining Statement of Revenues, Expenditures and Changes in Fund Balances CIP
Streets and
Roads
CIP
Parks Totals
REVENUES:

Intergovernmental 146,951 $ - $ 146,951 $
Total revenues - 146,951 146 ,951
EXPENDITURES:

Current:

Public ways and facilities 6,001 - 6,001
Capital outlay 259,200 16,010 275,210
Total expenditures 16,010 265,201 281,211
REVENUES OVER (UNDER) EXPENDITURES (118,250) (16,010) (134,260) OTHER FINANCING SOURCES (USES):

Transfers in 276,924 66,486 343,410
Transfers out (5,000) - (5,000)
Total other financing sources (uses) 276,924 61,486 338,410 Net change in fund balances 158,674 45,476 204,150
FUND BALANCES:

Beginning of year (26,426) 5,000 (21,426)
End of year $ 132,248 $ 50,476 $ 182,724
City of Waterford
Non-Major Capital Projects Funds
For the year ended June 30, 2022
105
City of Waterford
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual CIP Streets and Roads Capital Projects Fund
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 108,000 $ 108,000 $ 146,951 $ 38,951 $ Total revenues 108,000 108,000 146,951 38,951
EXPENDITURES:

Current:

Public ways and facilities - - 6,001 (6,001)
Capital outlay 195,829 574,000 259,200 314,800
Total expenditures 574,000 195,829 265,201 308,799
REVENUES OVER (UNDER) EXPENDITURES (466,000) (87,829) (118,250) 347,750 OTHER FINANCING SOURCES (USES):

Transfers in - - 276,924 276,924
Total other financing sources (uses) - - 276,924 276,924 Net change in fund balances $ (466,000) (87,829) $ 158,674 624,674 $ FUND BALANCES:

Beginning of year (26,426)
End of year $ 132,248
For the year ended June 30, 2022
Budget Amounts
106
City of Waterford
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual CIP Parks Capital Projects Fund
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 188,514 $ 188,514 $ - $ (188,514) $
Total revenues 188,514 188,514 (188,514) -
EXPENDITURES:

Capital outlay 250,000 250,000 16,010 233,990
Total expenditures 250,000 250,000 16,010 233,990
REVENUES OVER (UNDER) EXPENDITURES (61,486) (61,486) (16,010) 45,476 OTHER FINANCING SOURCES (USES):

Transfers in 66,486 66,486 66,486 -
Transfers out 5,000 - (5,000) (10,000)
Total other financing sources (uses) 66,486 71,486 61,486 (10,000) Net change in fund balances $ 5,000 $ 10,000 45,476 $ 35,476 FUND BALANCES:

Beginning of year 5,000
End of year $ 50,476
For the year ended June 30, 2022
Budget Amounts
107
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108

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND

OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report
To the Honorable Mayor and Members of the City Council
of the City of Waterford
Waterford, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Waterford, California (City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements and have issued our report thereon dated December 1, 2022.

Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

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

Page 2 ends

Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from 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 financial statements. 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.

Badawi & Associates, CPAs
Berkeley, California
December 1, 2022
110
City of
Waterford
Waterford, California
Abandoned Vehicle Abatement
Program Financial Statements
For The Year Ended June 30, 2022
City of Waterford Abandoned Vehicle Abatement Program
Financial Statements
For the year ended June 30, 2022
Table of Contents
Page
Independent Auditor’s Report ............................................................................................................................... 1 Financial Statements:

Governmental Fund Balance Sheet .................................................................................................................... 7 Statement of Governmental Fund Revenues, Expenditures, and Changes in Fund Balance ................................................................................................................................. 8 Notes to Financial Statements ........................................................................................................................... 11 Supplementary Information ................................................................................................................................. 17 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 ............................................................................................................................................. 19 This page intentionally left blank
To the Honorable Mayor and City Council
Of the City of Waterfor
Waterford, California

Page 1 ends

INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and City Council
of the City of Waterford
Waterford, California
Opinions
We have audited the accompanying financial statements of the Abandoned Vehicle Abatement Program (Program) of the City of Waterford, California, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise Program’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the Program, as of June 30, 2022, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

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

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

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

To the Honorable Mayor and City Council
Of the City of Waterford
Waterford, California

Page 2 ends

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

Such missing 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. Our opinion on the basic financial statements is not affected by this missing information. 2 To the Honorable Mayor and City Council
Of the City of Waterford
Waterford, California

Page 3 ends

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Program’s basic financial statements. The budgetary comparison information on pages 14 are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The budgetary comparison information on pages 14 are the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. 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 budgetary comparison information on pages 14 is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Emphasis of Matter
As discussed in Note 1, the financial statements present only the Program and do not purport to, and do not, present fairly the financial position of the City, as of June 30, 2022, and the changes in its financial position, for the years then ended in conformity with accounting principles generally accepted in the United States of America.

The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority’s internal control over financial reporting and compliance.

Badawi and Associates, CPAs
Berkeley, California
December 1, 2022
This page intentionally left blank
4 FINANCIAL STATEMENTS
5 This page intentionally left blank
6 Special Revenue
Fund
ASSETS
Cash and investments - $
Intergovernmental receivable 11,279
Total Assets 11,279 $

LIABILITIES AND FUND BALANCES
Liabilities:

Due to City of Waterford 5,392 $
Total liabilities 5,392
Fund balances:

Restricted for police service: 5,887
Total fund balances 5,887
Total liabilities and fund balances 11,279 $
City of Waterford Abandoned Vehicle Abatement Program
Governmental Fund Balance Sheet
June 30, 2022
The accompanying notes are an integral part of these financial statements 7 Special Revenue
Fund
REVENUES:

Intergovernmental 36,197 $
Revenue from the City of Waterford 17,016
Use of money and property 7
Total revenues 53,220
EXPENDITURES:

Police services 38,936
Capital outlay 2,069
Total expenditures/expenses 41,005
REVENUES OVER (UNDER) EXPENDITURES 12,215

FUND BALANCE
Beginning of the year (6,328)
End of the year 5,887 $
City of Waterford Abandoned Vehicle Abatement Program
Statement of Governmental Fund Revenues, Expenditures, and Changes in Fund Balance
For the year ended June 30, 2022
The accompanying notes are an integral part of these financial statements 8 NOTES TO FINANCIAL STATEMENTS
9 This page intentionally left blank
10 City of Waterford Abandoned Vehicle Abatement Program Notes to Financial Statements
For the year ended June 30, 2022

1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Abandoned Vehicle Abatement Program (Program) is a statewide program administered by the California Highway Patrol (CHP). The City of Waterford (City) administers and operates the local vehicle abatement program pursuant to Section 22710 of the Vehicle Code, Waterford Municipal City Ordinance Chapter 10.54, and the Stanislaus Council of Governments (StanCOG) Abandoned Vehicle Program and Plan.

Section 9250.7 of the Vehicle Code establishes the funding source for the abatement of abandoned vehicles by a county-based Service Authority (Authority), pursuant to the provisions of Section 22710 of the Vehicle Code.

The Vehicle Code imposes a service fee of one dollar on vehicles registered to an owner with an address in the County that established the Authority. This fee is paid to the Department of Motor Vehicles (DMV) at the time of registration or renewal of registration. The DMV transmits the net amount collected to the State Controller’s Office (SCO) for deposit in the Abandoned Vehicle Trust Fund quarterly. All money in the fund is continuously appropriated to the SCO for allocation to an Authority that has an approved Program pursuant to Section 22710 of the Vehicle Code, and for payment of the administrative costs of the SCO. The Authority established pursuant to Vehicle Code Section 22710, distributes Program funds to participating entities based on the allocations determined in the Vehicle Abatement Services Agreement. The revenues and expenditures/expenses of the Program are included in the Abandoned Vehicle Abatement Special Revenue Fund of the City’s financial statements.

A. Basis of Accounting
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 government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded in the accounting period in which the related liability is incurred.

Intergovernmental revenues and investment earnings are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal year.

B. Financial Statement Presentation
The financial statements present only the financial activities of the Program and are not intended to present fairly the financial position or changes in financial position of the City in accordance with accounting principles generally accepted in the United States of America. 11 City of Waterford Abandoned Vehicle Abatement Program Notes to Financial Statements, Continued
For the year ended June 30, 2022

1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates and assumptions.

D. Budgets
Budgets are prepared on the modified accrual basis of accounting.  The Program follows these procedures in establishing the budgetary data reflected in the financial statements:
 By June 30, management recommends to the Council a proposed operating budget for the year commencing July 1. The operating budget includes proposed expenditures and the means of financing them.
 The budget is legally enacted through passage of a motion during a City Council meeting prior to the commencement of the new fiscal year.
 Formal budgeting is employed as a management control device during the year.  Budgets for the Special Revenue Fund are adopted on a basis consistent with accounting principles generally accepted in the United States (GAAP).

Budgeted amounts are as originally adopted or as amended by the Board.

E. Cash and Investments
For the purposes of the Statement of Net Position, “cash and investments” includes all demand, savings accounts, and certificates of deposits, or short-term investments with an original maturity of three months or less.

The City of Waterford currently maintains a $0 of Program funds in the City’s pooled cash deposits. The City/Program has oversight responsibility for all Program cash and investments.

2. CASH AND INVESTMENTS
A. Cash Deposits
At June 30, 2022, the Program had funds with the City in the amount of $0 as adjusted to fair value. 12 City of Waterford Abandoned Vehicle Abatement Program Notes to Financial Statements, Continued
For the year ended June 30, 2022

3. FUND BALANCE
Fund balance consists of restricted amounts. Restricted fund balance consists of resources that are subject to externally enforceable legal restrictions imposed by parties altogether outside the government. As of June 30, 2022 the Program had a restricted fund balance of $5,887 for police services. 13 This page intentionally left blank
14 SUPPLEMENTARY INFORMATION
15 This page intentionally left blank
16 City of Waterford Abandoned Vehicle Abatement Program Supplementary Information
For the year ended June 30, 2022
Budgetary Comparison Schedule Special Revenue Fund
For the Year Ended June 30, 2022
Original Final Actual
Budgetary fund balance, July 1, 2021 $ 30,410 $ 19,925 $ 21,325 $ 1,400 Resources (inflows):

Intergovernmental 17,000 17,000 36,197 19,197
Revenue from the City of Waterford - - 17,016 17,016
Use of money and property 500 500 7 (493)
Amounts available for appropriation 47,910 37,425 74,545 37,120 Charges to appropriations (outflows):

Police services 22,750 22,750 38,936 (16,186)
Capital outlay - - 2,069 (2,069)
Total charges to appropriations 22,750 22,750 41,005 (18,255) Budgetary fund balance, June 30, 2022 25,160 $ 14,675 $ 33,540 $ 18,865 $ Budgeted Amounts
Variance
w/Final
Positive
(Negative)
17 This page intentionally left blank
18 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE

AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS

PERFORMED IN ACCORDANCE WITH GOVERNMENT

AUDITING STANDARDS
Independent Auditor’s Report
To the Honorable Mayor and City Council
of the City of Waterford
Waterford, California
We have audited, in accordance with the auditing standard 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 Abandoned Vehicle Abatement Program (Program) of the City of Waterford, California as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the Program’s financial statements, and have issued our report thereon dated December 1, 2022.

Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Program’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of internal control of the Program’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Program’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 combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Program’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of the 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 considered to be material weaknesses. However, material weaknesses may exist that we have not identified.

To the Honorable Mayor and City Council
of the City of Waterford
Waterford, California

Page 2 ends

Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Program’s financial statements are free from 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 financial statements. 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 result of that testing, and not to provide an opinion on the effectiveness of the Program’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 Program’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Badawi and Associates, CPAs
Berkeley, California
December 1, 2022
City of
Waterford
Waterford, California
Independent Accountants’ Report
For the year ending June 30, 2023
City of Waterford
Appropriations Limit Schedule
For the year ending June 30, 2022
Table of Contents
Page
Independent Accountants’ Report .......................................................................................................................... 1 Appropriations Limit Schedule .............................................................................................................................. 3 Notes to Appropriations Limit Schedule .............................................................................................................. 4 This page intentionally left blank
INDEPENDENT ACCOUNTANTS’ REPORT
To the Honorable Mayor and City Council
of the City of Waterford
Waterford, California
We have performed the procedures enumerated below on the accompanying Appropriations Limit Schedule of the City of Waterford (City) for the fiscal year ending June 30, 2023. The City’s management is responsible for the accompanying Appropriations Limit Schedule.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of the requirements of Section 1.5 of Article XIII-B of the California Constitution. Additionally, the League of California Cities (as presented in the publication entitled Agreed-upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution) has agreed to and acknowledged that the procedures performed are appropriate for their purposes. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures performed and our findings are described below:

1. We obtained the completed worksheets used by the City to calculate its appropriations limit for the fiscal year ending June 30, 2023, and determined that the limit and annual calculation factors were adopted by resolution of City Council. We also determined that the population and inflation options were selected by a recorded vote of City Council.

Finding: No exceptions were noted as a result of our procedures.

2. For the accompanying Appropriations Limit Schedule, we added the prior year’s limit to the total adjustments, and agreed the resulting amount to the current year’s limit.

Finding: No exceptions were noted as a result of our procedures.

3. We agreed the current year information presented in the accompanying Appropriations Limit Schedule to corresponding information in worksheets used by the City.

Finding: No exceptions were noted as a result of our procedures.

4. We agreed the prior year appropriations limit presented in the accompanying Appropriations Limit Schedule to the prior year appropriations limit adopted by the City Council during the prior year.

Finding: No exceptions were noted as a result of our procedures.

To the Honorable Mayor and Members of City Council
of the City of Waterford
Waterford, California
2 We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the AICPA. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the accompanying Appropriation Limit Schedule. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information and use of the City Council and management of the City and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record, and its distribution is not limited.

Badawi & Associates, CPAs
Berkeley, California
December 1, 2022
City of Waterford
Appropriations Limit Schedule
For the year ending June 30, 2023
Amount Source
A. Appropriations limit for the year ended June 30, 2022 3,065,689 $ Prior year schedule B. Calculation factors:

1. Population increase % 1.0755 State Department of Finance

2. Inflation increase % 0.9959 State Department of Finance

3. Total adjustment factor % 1.0711 B1 * B2
C. Annual adjustment increase 217,941 $ [(B3-1)*A)]
D. Other adjustments:

Loss responsibility (-) - N/A
Transfers to private (-) - N/A
Transfers to fees (-) - N/A
Assumed responsibility (+) - N/A
E. Total adjustments 217,941 (C+D)
F. Appropriations limit for the year ending June 30, 2023 3,283,630 $ (A+E) 3 City of Waterford
Notes to Appropriations Limit Schedule
For the year ending June 30, 2023
4 1. PURPOSE OF LIMITED PROCEDURES REVIEW
Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), California governmental agencies are restricted as to the amount of annual appropriations from proceeds of taxes.

Effective for years beginning on or after July 1, 1990, under Section 1.5 of Article XIIIB, the annual calculation of the appropriations limit is subject to this agreed upon procedures engagement.

2. METHOD OF CALCULATION
Under Section 10.5 of Article XIIIB, for fiscal years beginning on or after July 1990, the appropriations limit is required to be calculated based on the limit for the fiscal year 1986-1987, adjusted for the inflation and population factors discussed in Notes 3 and 4 below.

3. INFLATION FACTORS
A California governmental agency may use as its inflation factor either the annual percentage change in the 4th quarter per capita personal income (which percentage is supplied by the State Department of Finance), or the percentage change in the local assessment roll from the preceding year due to the change of local nonresidential construction. The factor adopted by the City of Waterford for the fiscal year 2022-2023 represents the change in per capita income in the State of California.

4. POPULATION FACTORS
A California governmental agency may use as its population factor either the annual percentage change of the jurisdiction’s own population, or the annual percentage change in population in the County where the jurisdiction is located. The factor adopted by the City of Waterford for fiscal year 2022-2023 represents the percentage change of the jurisdiction’s own population.

5. OTHER ADJUSTMENTS
A California government agency may be required to adjust its appropriations limit when certain events occur, such as the transfer of responsibility for municipal services to, or from, another government agency or private entity. The City had no such adjustments for the fiscal year ending June 30, 2023.

City of
Waterford
Transportation Development
Act Fund
Waterford, California
Financial Statements and
Independent Auditors’ Reports
For the year ended June 30, 2022
This page intentionally left blank
City of Waterford’s Transportation Development Act Fund Financial Statements
For the year ended June 30, 2022
Table of Contents
Page
Independent Auditors’ Report ................................................................................................................................. 1 Financial Statements:

Balance Sheet .......................................................................................................................................................... 5 Statement of Revenues, Expenditures and
Changes in Fund Balances ............................................................................................................................. 6 Notes to Financial Statements ............................................................................................................................. 7 Independent Auditors’ 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 ............................................................. 9 Independent Auditors’ Report on Transportation Development Act Funds Compliance ........................... 11 This page intentionally left blank
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the City Council
of the City of Waterford
Waterford, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the Transportation Development Act Fund (TDA Fund) of the City of Waterford, California, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise TDA Fund’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the TDA Fund, as of June 30, 2022, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Authority and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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

Page 2 ends

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

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

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

Required Supplementary Information
Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required 2 To the Honorable Mayor and Members of the City Council of the City of Waterford
Waterford, California

Page 3 ends

3 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. Our opinion on the basic financial statements is not affected by this missing information.

Emphasis of Matter
As discussed in Note 1, the financial statements present only the TDA Fund and do not purport to, and do not, present fairly the financial position of the City, as of June 30, 2022, and the changes in its financial position, for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 1, 2022 on our consideration of the Authority’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority’s internal control over financial reporting and compliance.

Badawi and Associates, CPAs
Berkeley, California
December 1, 2022
3 This page intentionally left blank
4 City of Waterford
Transportation Development Act Fund
Balance Sheet
June 30, 2022
2022
ASSETS
Cash and investments $ 8,633
Total assets $ 8,633

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCE
Fund Balances:

Unassigned 8,633
Total liabilities, deferred inflows of
resources, and fund balances $ 8,633
See accompanying Notes to Financial Statements.
5 City of Waterford
Transportation Development Act Fund
Statement of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Year Ended June 30, 2022
2021
Revenues:

Intergovernmental $ 8,639
Interest 9,994
Total Revenues 18,633
Other Financing sources (uses):

Transfer out (18,025)
Total Other Financing sources (uses): (18,025)
Net change in fund balances 608
Fund Balances:

Beginning of year 8,025
End of year $ 8,633
See accompanying Notes to Financial Statements.
6 City of Waterford’s Transportation Development Act Fund Notes to Financial Statements
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of Waterford (City) accounts for California Transportation Development (Act) monies in the Local Transportation Special Revenue Fund (Fund). This fund is part of the City and not a separate legal entity. The financial statements are intended to present the TDA Fund, and not the financial position and the changes in fund balances of the City as a whole.

B. Basis of Accounting and Measurement Focus
The accompanying financial statements are prepared on the modified accrual basis of accounting.

Revenues are generally recorded when measurable and available (generally 60 days after year-end), and expenditures are recorded when the related liabilities are incurred.

The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus, wherein only current assets and current liabilities generally are included on the balance sheet.

Operating statements of governmental funds present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets.

C. Cash and Investments
The City pools cash resources from all funds in order to facilitate the management of cash and achieve the goal of obtaining the highest yield with the greatest safety and least risk. The balance in the pooled cash account is available to meet current operating requirements. Cash in excess of current requirements is invested in various interest-bearing accounts and other investments for varying terms.

D. Fund Accounting
The operations of the TDA Fund are accounted for in the City’s LTF Fund. The fund is a separate accounting entity with a set of self-balancing accounts which comprise its assets, liabilities, fund equity, revenues, and expenses.

E. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates. 7 City of Waterford’s Transportation Development Act Fund Notes to Financial Statements
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued F. Fund Balance
The TDA fund balance is restricted by law to be used in accordance with the Transportation Development Act.

2. CASH AND INVESTMENTS
The Fund maintains all of its cash with the City’s cash and investment pool. The pool interest earned is allocated to the funds based on the monthly cash and investment balances in those funds.

The City of Waterford manages credit risk by limiting their investments by category to those that exceed minimum rating organizations in accordance with California State Code. Interest rate risk is managed by purchasing a combination of shorter and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

For additional information, the City of Waterford’s financial statements may be obtained by contacting the City of Waterford Finance Officer, 101 E Street, Waterford, CA 95386. 8 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
To the Honorable Mayor and Members of the City Council
of the City of Waterford
Waterford, 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 Transportation Development Act Fund (TDA Fund) of the City of Waterford, California (City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, and have issued our report thereon dated December 1, 2022.

Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) 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 the City’s internal control.

Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

To the Honorable Mayor and Members of the City Council
of the City of Waterford
Waterford, California
Page Two
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the TDA Fund’s financial statements are free from 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.

Badawi and Associates, CPAs
Berkeley, California
December 1, 2022
10 REPORT ON COMPLIANCE AND ON INTERNAL CONTROL

OVER COMPLIANCE FOR TRANSPORTATION DEVELOPMENT ACT FUNDS Independent Auditor’s Report
To the Honorable Mayor and Members of the City Council
of the City of Waterford
Waterford, California
Report on Compliance for Transportation Development Act Fund Opinion on Compliance for Transportation Development Act Fund We have audited City of Waterford’s (City) compliance with the types of compliance requirements described in the Section 6666 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act) applicable to the City’s Transportation Development Act Fund (TDA Fund) for the year ended June 30, 2022.

In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on its TDA Fund for the year ended June 30, 2022.

Basis for Opinion on TDA Fund
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); and Section 6666 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act). Our responsibilities under those standards and are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for the City’s TDA Fund. Our audit does not provide a legal determination of the TDA Fund compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City’s TDA Fund.

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

Page 2 ends

Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the TDA Fund’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and Section 6666 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act) will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the TDA Fund’s compliance with the requirements of the Section 6666 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act).

In performing an audit in accordance with GAAS, Government Auditing Standards, and Section 6666 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act), we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the TDA Fund’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
 Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Section 6666 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act), but not for the purpose of expressing an opinion on the effectiveness of City’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. 12 To the Honorable Mayor and Members of the City Council of the City of Waterford
Waterford, California

Page 3 ends

Report on Internal Control over Compliance
Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined below. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.

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 the Section 6666 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act) 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 the Section 6666 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act) 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 the Section 6666 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act) 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 audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

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 Section 6666 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act). Accordingly, this report is not suitable for any other purpose.

Badawi and Associates, CPAs
Berkeley, California
December 1, 2022
City of
Waterford
Waterford, California
Auditors’ Communication With Those
Charged With Governance
For the year ended June 30, 2022
To the Honorable Mayor and Members of the City Council
of the City of Waterford
Waterford, California
We have audited the financial statements of the City of Waterford (City) as of and for the years ended June 30, 2022, and have issued our report thereon dated December 1, 2022. Professional standards require that we advise you of the following matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated July 29, 2022, our responsibility, as described by professional standards, is to form and express an opinion(s) about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.

Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing 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 over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process.

However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.

Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.

Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, our firm, and our network firms have complied with all relevant ethical requirements regarding independence.

To the Honorable Mayor and Members of the City Council
of the City of Waterford
Waterford, California
Significant Risks Identified
We have identified the following significant risks:
 Risk of management override of internal controls – A risk of management override of internal controls exists at any entity where management can change or decide not to perform that entity’s internal controls.
 Revenue recognition risk – Errors in revenue recognition can affect bond covenant ratios and the net position of the City.

Qualitative Aspects of the Entity’s Significant Accounting Practices Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements.

There have been no initial selection of accounting policies and no changes in significant accounting policies or their application during the fiscal year ended June 30, 2022. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.

The most sensitive accounting estimates affecting the financial statements are investment valuations, allowance for uncollectible accounts, capital asset depreciation and useful life, and the pension plan assumptions.

Management’s estimate of capital assets depreciation and useful life and the pension plan assumptions are based on historical useful lives of such assets, and actuarial assumptions, respectively. We evaluated the key factors and assumptions used to develop the estimate of capital assets depreciation and useful life, and the pension plan assumptions and determined that they are reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units.

Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City’s financial statements relate to:
 Summary of Significant Accounting Policies
 Cash and Investments
 Capital Assets
 Retirement Plans
To the Honorable Mayor and Members of the City Council
of the City of Waterford
Waterford, California
 Prior Period Adjustment
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.

Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards also require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. Management has corrected all such misstatements. Uncorrected misstatements or matters underlying those uncorrected misstatements could potentially cause futureperiod financial statements to be materially misstated, even though the uncorrected misstatements are immaterial to the financial statements currently under audit.

In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures.

None of the misstatements identified by us as a result of our audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole or applicable opinion units.

Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit.

Representations Requested from Management
We have requested certain written representations from management, which are included in the attached letter dated December 1, 2022.

Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.

To the Honorable Mayor and Members of the City Council
of the City of Waterford
Waterford, California
Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, operating and regulatory conditions affecting the entity, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City’s auditors.

Other Information Included in the Basic Financial Statement We applied certain limited procedures to management’s discussion and analysis, pension plans and budgetary comparison information (for the general fund and major special revenue funds), which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding 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 did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on budgetary comparison information (excluding the general fund and major special revenue funds) and combining schedules, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

Badawi & Associates, CPAs
Berkeley, California
December 1, 2022

General Business 6b
January 5, 2023
Patricia Krause, Administrative Services Director / City Clerk City Council Staff Report
MOTION: Nominating and Appointing Regional Appointments to Boards, Committees and Commissions.

SUMMARY:

Nominate and Appoint individuals to represent the City on regional boards, committees and commissions.

ANALYSIS:

After every municipal election and reorganization of City Council, a review of appointments to regional and city boards, commissions & committees is needed. Committee fact sheets for all boards, commissions and committees are attached.

FISCAL IMPACT:

N/A
ENVIRONMENTAL REVIEW:

N/A
ALTERNATIVES:

1. Do not appoint representatives. This is not recommended as it is in the City’s best interest to participate in meetings that may have an impact on the City’s business.

2. Provide direction to Staff.

ATTACHMENTS:
• List of Current Appointees to Regional Boards, Committees and Commissions • Committee Fact Sheets
Updated 12/6/2022

APPOINTMENTS TO REGIONAL BOARDS, COMMISSIONS & COMMITTEES

COMMITTEE / BOARD APPOINTMENT POSITION
TERM

EXPIRATION MEETING SCHEDULE
StanCOG Policy Board Vacant Waterford Representative 3rd Wed at 6pm Vacant Alternate
StanCOG Management and Finance Committee Mike Pitcock Waterford Representative no term expiration 1st Wed at 3pm StanCOG Technical Advisory Committee Lonnie Statzer Waterford Representative no term expiration 1 st Tue
StanCOG Citizens Advisory Committee Vacant Waterford Citizen Representative 1st Wed at 6pm StanCOG Bicycle/Pedestrian Advisory
Committee (BPAC) Kari Casey Waterford Representative 1st Wed @ 10:00 AM every other month Stanislaus County Hazardous Waste
Management Advisory Committee
Vacant Four City Representatives
f
Stanislaus County Local Task Lonnie Statzer Waterford Representative no term expiration Force on Solid Waste Management Alternate Quarterly. 3rd Thurs 4pm.

Stanislaus County Economic Development Vacant Board Director 3rd Monday every odd month and Workforce Alliance Board (No alternate needed)
Stanislaus County Economic Elizabeth Talbott Waterford Representative no term expiration as needed - 2 mtg annually Development Action Committee Jill Kitchens Alternate
Stanislaus Consolidated Fire District Brandon E. Rivers Waterford Representative December 31, 2023 2nd Thurs @ 6pm Board of Directors
Stanislaus County Travel & Tourism Vacant Waterford Representative no term expiration Quarterly Committee Jamie Hilton Alternate
San Joaquin Valley Air Pollution Control Richard O’Brian 3-year term ending Jan 31, 2022 1st Tues @ 10am - Appointment by District Citizens Advisory Committee (CAC) Vacant Alternate Stan County Special Selection Comm San Joaquin Valley Air Pollution Control Vacant Committee Member as needed - infrequent meetings District Special City Selection Committee Elizabeth Talbott Alternate Committee est. pursuant H&S 40600.5 Local Agency Formation Commission Amy Bublak – Turlock Council M Board Member 4th Wed @ 6pm Richard O’Brian Alternate Board Member as needed
Central Valley Division Executive Committee Elizabeth Talbott City Representative for the League of California Cities Jamie Hilton Alternate City Representative City/County Disaster Council Vacant City Representative Twice annually Vacant Alternate
Animal Control JPA Mike Pitcock Board Member - City Manager no term expiration 3rd Thurs 9am Patricia Krause Alternate Board Member
Measure L Oversight Committee Vacant Waterford Representative Consolidated Emergency Dispatch Agency
Commission
Mike Pitcock – Waterford
Merry Mayhew - Hughson
Small City Rep
Small City Alternate
2-year Term 3rd Wed 1pm
Stan RTA Vacant
Vacant
Board Member
Alternate Board Member
Stanislaus Homeless Alliance Elizabeth Talbott
Mike Pitcock
City Representative
Alternate City Representative
Modesto Subbasin Groundwater Sustainability
Technical Advisory Committee
Mike Pitcock City Representative no term expiration Monthly at various times and locations Turlock Subbasin Groundwater Sustainability
Technical Advisory Committee
Mike Pitcock City Representative no term expiration Monthly at various times and locations Central San Joaquin Risk Management Authority Patricia Krause Board Member NoNo
no term expiration Q Quarterly
Mike Pitcock Alternate Board Member
Updated 12/6/2022
________ Council Member Appointment
________ Community Member Appointment
________ Staff Member Appointment
________ Stanislaus County City Selection Committee Appointment

COMMITTEE FACT SHEET
BOARD NAME: ANIMAL CONTROL JOINT POWERS AUTHORITY EXECUTIVE BOARD A.K.A. – STANISLAUS ANIMAL SERVICES AGENCY BOARD (SASA) BOARD PURPOSE: The purpose of the JPA is to facilitate cooperation among the member agencies for specific purposes, interrelated actions, and for adoption of common policies with respect to issues and problems related to the operation and management of an animal shelter and provision of animal services within each member agency’s jurisdiction.

MEMBER AGENCIES: The Agency shall be composed of the County of Stanislaus and the Cities of Ceres, Hughson, Modesto, Patterson and Waterford. In addition, any city within Stanislaus County that is not a named party or that may hereafter be incorporated, and which desires to participate in the activities of the Agency, may do so provided sufficient capacity will exist at the animal shelter to accommodate the new participant’s needs, and upon approval of two-thirds (2/3) of the Member Agencies, subject also to adoption of a resolution by the new party’s governing body authorizing execution of the JPA, and agreement to fully participate financially in the Agency.

Members of this board are required to file Conflict of Interest Disclosure Statements (File with the Clerk of the Board)
BOARD COMPOSITION: The Agency shall be governed by a Board, the members of which shall be the City Manager of each member agency and the Chief Executive Officer of the County, pursuant to Government Code section 6506. Each member agency shall designate at least one alternate representative.

BOARD MEETINGS: The Animal Control JPA Executive Board meets quarterly (Mar, June, Sept, Dec) on the 3 rd Thursdays at 9:00 a.m. in the Animal Services Conference Room located at 3647 Cornucopia Way, Modesto, CA 95358. Meeting agendas are posted on the SASA website at: http://www.stancounty.com/AnimalServices/agencyboard.shtm BOARD MEMBERS:

Chair Merry Mayhew, Hughson
Ceres Alex Terrazas, Member
Ceres Brent Smith, Alternate
Modesto Ivan Valencia, Member
Modesto Scotty Douglass, Member
Modesto Joseph Lopez, Alternate
Patterson Ken Irwin, Member
Waterford Michael Pitcock
Waterford Patricia Krause, Alternate
Stanislaus County Jody Hayes, Member
Stanislaus County Jewel Warr, Alternate

COMMITTEE FACT SHEET
BOARD NAME: CENTRAL SAN JOAQUIN VALLEY RISK MANAGEMENT AUTHORITY (CSJVRMA) BOARD PURPOSE: The CSJVRMA is a public entity formed on April 1, 1979, by a joint powers agreement in accordance with the California Government Code and currently has 54 members in Central San Joaquin Valley. CSJVRMA provides several self-insured and group purchased programs.

MEMBER AGENCIES: In order to become a member of the CSJVRMA, a member must be an incorporated municipality and meet the following minimum criteria:
• have a population of 75,000 or less;
• be located within the State of California; and
• have professional management as typified by a bona fide council, city manager/administrator form of government.

BOARD MEETINGS: The CSJVRMA Executive Board meets seven (7) times per year, and the Full Board meets three (3) times per year at the Spike & Rail Steakhouse, Selma. Meeting agendas are posted on the CSJVRMA website at: https://www.csjvrma.org/documents/agendasandminutes.

EXECUTIVE BOARD MEMBERS:

President Steve Huntley, Farmersville
1 st Vice President Juliana Burns, Lathrop
2 nd Vice President Maria Alaniz, Dinuba
Past President Lori Shively, Clovis
Treasurer Paul Melikian, Reedley
Northern Region Representative Theresa Roland, Lathrop
Northern Region Representative Patrick Mondragon, Oakdale Northern Region Representative Michael Holland, Newman
Northern Region Representative (Alternate) Sarah Eddy, Turlock Central Region Representative Christina Arias, Selma
Central Region Representative Paul Melikian, Reedley
Central Region Representative Wendy Silva, Madera
Central Region Representative (Alternate) Lori Shively, Clovis Southern Region Representative Rosa Rios, Delano
Southern Region Representative Shonna Oneal, Exeter
Southern Region Representative Lonn Boyer, Taft
Southern Region Representative (Alternate) Noemi Zamudio, Delano

COMMITTEE FACT SHEET
NAME: CITY-COUNTY DISASTER COUNCIL
PURPOSE: The Disaster Council makes recommendations to local governing agencies on matters pertinent to the development of mitigation, disaster preparedness, response and recovery plans, and programs for any potential local emergency. This allows for consistent and uniform standards so that plans do not conflict with one another. Disaster Council meetings provide the communication and coordination between the public and private sectors in the County in analyzing and developing plans, projects, policies, and procedures for emergency operations. Ultimate approval of plans remains with the Board of Supervisors, City Council, or Board of Directors who can rest assured that the plans they are adopting are in compliance with: Incident Command Systems (ICS).

Standardized Emergency Management Systems (SEMS), National Incident Command System (NIMS), and Homeland Security Presidential Directives (HSPD) 5 and 8.

DISASTER COUNCIL MEMBERSHIP: The Disaster Council consists of 12 members, 10 of whom are voting members. A member of the Board of Supervisors is appointed to serve a two (2) year term. Each City appoints a Council member to represent their city on the Disaster Council. The appointed Council member serves a two (2) year term. The Disaster Council members include:
 County Board of Supervisor member
 Director of Emergency Services – Chief Executive Officer of the County (Tie-Breaker vote)  Assistant Director of Emergency Services – County Fire Warden (Non-voting member)  City of Modesto Council member
 City of Turlock Council member
 City of Ceres Council member
 City of Riverbank Council member
 City of Oakdale Council member
 City of Hughson Council member
 City of Patterson Council member
 City of Waterford Council member
 City of Newman Council member
DISASTER COUNCIL MEETINGS: The Disaster Council meets a minimum of twice a year or as often as necessary to transact business. Regular meetings of the Disaster Council are held at the Ray Simon Training Center located at 3805 Cornucopia Way, Building A, Modesto, CA at 1:30 PM.

DISASTER COUNCIL AGENDAS: Disaster Council agendas are posted at 3805 Cornucopia Way, Building A, Modesto, CA 72 hours preceding a meeting. Agendas are also available on the County’s web site at:
http://www.stanoes.com/disaster-council.shtm. Copies of items to be considered by the Disaster Council related to an item on the Agenda are available for public inspection at the Office of Emergency Services, 3705 Oakdale Rd., Modesto, CA during normal business hours. Such documents are also available online, subject to staff’s ability to post the documents before the meeting on the County’s web site.

COMMITTEE FACT SHEET
COMMITTEE NAME: CENTRAL VALLEY DIVISION EXECUTIVE COMMITTEE FOR THE LEAGUE OF

CALIFORNIA CITIES
COMMITTEE PURPOSE: The Central Valley Division includes 25 cities in Calaveras, Merced, Madera, San Joaquin, Stanislaus, and Tuolumne counties and provides members with the opportunity to exchange ideas and information and share the advantages of cooperative advocacy.

COMMITTEE COMPOSITION: The division is guided by an executive committee under the leadership of a division president. Elected city officials and professional city staff attend division meetings throughout the year to share what they are doing and advocate for their interests in Sacramento. Division members also participate in the development of League policy through representation on:
• The League Board of Directors
• Policy Committees
• The Annual Conference Resolution Committee; and
• The Annual Conference Program Committee
CENTRAL VALLEY DIVISION MEETINGS: The Central Valley Division meetings are held quarterly, splitting our meetings between the northern and southern cities. The Central Valley Division annual breakfast meeting takes place at the League of Cities Annual Conference in September.

CENTRAL VALLEY DIVISION OFFICERS:

President - Paul Akinjo, City Council, Lathrop
First Vice President - Rosa Escutia-Braaton, City Council, Modesto Second Vice President - Kimberly Warmsley, City Council, Stockton State Director - Dan Wright, City Council, Stockton
Past President - Dan Wright, City Council, Stockton

COMMITTEE FACT SHEET
NAME: StanCOG BICYCLE/PEDESTRIAN ADVISORY COMMITTEE
COMMITTEE INFO: The Bicycle Pedestrian Advisory Committee (BPAC) is one of the StanCOG Standing Committees. This committee, newly created in 2009, advises the Policy Board on bicycle and pedestrian-related issues. It reviews transportation projects and recommends planning efforts that enhance non-motorized transportation opportunities in the Stanislaus region.

BOARD COMPOSITION: Membership on the StanCOG Bicycle/Pedestrian Advisory Committee is comprised of a resident from each member jurisdiction who are bicycle/pedestrian enthusiasts. Individuals interested in serving on the BPAC can also be referred by their member agency. The Executive Committee appoints BPAC members for a four-year term. No member can serve longer than eight consecutive years.

CITIZEN ADVISORY COMMITTEE MEETINGS: BPAC meetings are typically held the first Wednesday of every other month at 10:00 am in the StanCOG Board Room, 1111 I Street, 3rd floor, in downtown Modesto. These meetings are open to the public and there is an opportunity on every agenda for the public to offer comments.

Applications from the public for membership on the BPAC are solicited and accepted. Meeting agendas and Committee Application forms are available at http://www.stancog.org/bpac-committee.shtm.

CITIZEN ADVISORY COMMITTEE MEMBERS:

Chair Kari Casey, Waterford
Vice Chair Ann Strahm, Turlock
Ceres Vacant
Hughson Minn Thein
Modesto Kyle Fliflet
Newman Vacant
Oakdale Larry White
Patterson Vacant
Riverbank Jim Dosenbach
Stanislaus County Mike Arnerich

COMMITTEE FACT SHEET
NAME: StanCOG CITIZENS ADVISORY COMMITTEE
COMMITTEE COMPOSITION: The Citizens Advisory Committee is one of the StanCOG Standing Committees.

This committee provides recommendations on matters that go before the Policy Board. Its membership is comprised of up to 15 residents of Stanislaus County. Individuals interested in serving on the CAC can also be referred by their member agency. The Executive Committee appoints CAC members for a four-year term. No member can serve longer than eight consecutive years.

CITIZEN ADVISORY COMMITTEE MEETINGS: CAC meetings are typically held the first Wednesday of the month at 6 pm in the StanCOG Board Room, 1111 I Street, 3rd floor, in downtown Modesto. These meetings are open to the public and there is an opportunity on every agenda for the public to offer comments.

Applications from the public for membership on the CAC are solicited and accepted. Meeting agendas and Committee Application forms are available at http://www.stancog.org/cac-committee.shtm.

CITIZEN ADVISORY COMMITTEE MEMBERS:

Chair John Dinan, Riverbank
Vice Chair Lana Moore, Stanislaus County
Ceres Vacant
Hughson Stephen Qualls
Modesto Sue Stevens
Newman Vacant
Oakdale Lee Adams
Patterson Zack Keller
Waterford Vacant
Turlock Vacant

COMMITTEE FACT SHEET
NAME: StanCOG MEASURE L CITIZENS’ OVERSIGHT COMMITTEE
PURPOSE: Measure L is the Transportation Ordinance and Expenditure Plan approved by Stanislaus County voters on November 8, 2016. The measure raised the sales tax in Stanislaus County on April 1, 2017 by one-half cent for a total period of 25 years to improve local streets and roads, improve connectivity and reduce congestion.

Measure L includes strong taxpayer safeguards to ensure that projects and programs approved by voters are funded and delivered. The Measure L Citizens’ Oversight Committee provides an enhanced level of accountability for expenditures made under the Plan to ensure that all voter mandates are carried out and that the financial integrity and performance of the program is maintained.

COMMITTEE COMPOSITION: The Citizens Advisory Committee is one of the StanCOG Standing Committees.

This committee provides recommendations on matters that go before the Policy Board. Its membership consists of one representative appointed by each of the ten (10) jurisdictions in Stanislaus County MEASURE L COMMITTEE MEETINGS: Meetings are held quarterly on the fourth Tuesday of the month at 5:30 pm in the StanCOG Board Room, 1111 I Street, 3rd Floor, in downtown Modesto. These meetings are open to the public and there is an opportunity on every agenda for the public to offer comments. Meeting agendas and Committee Application forms are available at http://www.stancog.org/measure-lcommittee.shtm.

MEASURE L COMMITTEE MEMBERS:

Chair Cary Pope, Riverbank
Vice Chair William Bowker, Oakdale
Ceres Dave Pratt
Hughson Mike Day
Modesto Craig Lewis
Newman Vacant
Patterson Peter La Torre, Jr.

Turlock Vacant
Waterford Vacant
Stanislaus County Paul Van Konynenburg

COMMITTEE FACT SHEET
NAME: StanCOG POLICY BOARD
PURPOSE: The Stanislaus Council of Governments (StanCOG) is governed by a decision-making body called the Policy Board.

BOARD COMPOSITION: The Policy board is comprised of sixteen (16) elected officials from StanCOG member agencies. This includes five (5) representatives from the Stanislaus County Board of Supervisors, three (3) representatives from the Modesto City Council, and one (1) representative from each of the other eight City Councils in Stanislaus County. A California Department of Transportation (Caltrans) representative serves as an exofficio member on the Policy Board.

Members of this board are required to file Conflict of Interest Disclosure Statements (File with StanCOG secretary).

BOARD MEETINGS: The Policy Board meetings are held on the third Wednesday of each month at 6:00 p.m. in the StanCOG Board Room, 1111 I Street, 3rd floor, in downtown Modesto. These meetings are open to the public and there is an opportunity on every agenda for the public to offer comments. Meeting agendas are posted on the StanCOG web site at http://www.stancog.org/policy-board.shtm.

BOARD MEMBERS:

Chairman Terry Withrow, Stanislaus County
Vice Chairman Richard O’Brien, Riverbank
City of Ceres Javier Lopez
City of Modesto Rosa Escutia-Braaton
City of Modesto Sue Zwahglen
City of Modesto Jenny Kenoyer
City of Newman Casey Graham
City of Oakdale Fred Smith
City of Patterson Dennis McCord
City of Hughson George Carr
City of Turlock Pam Franco
City of Waterford Jose Aldaco
Stanislaus County Vito Chiesa
Stanislaus County Chance Condit
Stanislaus County Mani Grewal
Stanislaus County Buck Condit
Stanislaus County Vacant
Caltrans Ex-Officio Dennis T. Agar
FOR CORRECTIONS PLEASE NOTIFY BOARD OF SUPERVISORS, 567-4926 Updated 2/15/2022

COMMITTEE FACT SHEET
NAME: ECONOMIC DEVELOPMENT ACTION COMMITTEE (EDAC)
ESTABLISHED: April 17, 1962
COMPENSATION: None
Members of this board are required to file Conflict of Interest Disclosure Statements LEGAL AUTHORITY: Board of Supervisors Resolution #1129-1 dated April 17, 1962 MEMBERSHIP: The Committee consists of twenty-one (21) members appointed by Board of Supervisors:

QUALIFICATION: 1 County Supervisor
AND RESIDENCY 9 City Representatives (1 per city)
REQUIREMENTS: 4 Representatives of Supervisorial Districts (1 per district for the districts not represented by the Board of Supervisors representative) 7 Community Representatives
Composition should include some combination of representatives of local governments, business, industry, finance, agriculture, the professions, organized labor, utilities, education, community organizations, public health agencies, the unemployed, ethnic minorities, and women. Committee members should also possess knowledge of the business and economic situation of Stanislaus County.

TERM: Committee members are appointed to indefinite terms and serve at the pleasure of the Board of Supervisors.

DUTIES: The Committee functions to develop & implement the Comprehensive Economic Development Strategy for Stanislaus County and its nine incorporated cities. The Committee serves as a liaison between member jurisdictions and the programs offered by the Economic Development Administration that promote permanent employment and economic growth.

MEETINGS: Meetings are held as needed, with a minimum of 2 meetings annually. Special meetings will also be held as needed. Meeting locations shall be stated on the agenda.

CONTACT: Patricia Lord, Management Consultant
Chief Executive Office
1010 Tenth Street Suite 6800
Modesto, CA 95354
Phone: 209-525-6333
Fax: 209-558-4423
Email: [email protected]
Website: www.stancounty.com/CEO/econ-dev/edac.shtm
FILE #: BD18
BYLAWS: Rules & Regulations adopted 1/8/2008, revised 1/13/2009 VERIFICATION REQUESTED: 2/10/2022
VERIFICATION DATE: 2/10/2022 Patricia Lord
FOR CORRECTIONS PLEASE NOTIFY BOARD OF SUPERVISORS, 567-4926 Updated 1/7/2021

COMMITTEE FACT SHEET
NAME: LOCAL AGENCY FORMATION COMMISSION (LAFCO)
ESTABLISHED: September 24, 1963
COMPENSATION: Commission Members receive $75.00 per meeting attended.

Members of this board are required to file Conflict of Interest Disclosure Statements (File with LAFCO)
LEGAL AUTHORITY: Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, California Government Code §56000 et seq.

MEMBERSHIP: The Commission consists of five (5) regular members and three QUALIFICATION: (3) alternate members:

AND RESIDENCY 2 Representatives of the Board of Supervisors and 1 Alternate REQUIREMENTS: Supervisor appointed by Board of Supervisors 2 Representatives of cities and 1 Alternate City Representative appointed by City Selection Committee
1 Public Member-at-Large and 1 Alternate Public Member appointed by the Commission
TERM: 4 Year Term
DUTIES: The Commission considers and evaluates proposals for the formation of new government agencies. Also, the Commission considers proposed annexations of territory to existing governmental agencies and establishes a sphere of influence for each agency.

MEETINGS: Fourth Wednesday of each month except November & December when a combined meeting is held at 6:00 p.m. City/ County Board Chambers, 1010 Tenth Street, Modesto, CA
CONTACT: Jennifer Vieira
Executive Officer
1010 Tenth Street, Third Floor
Modesto, CA 95354
Phone: 525-7660
Fax: 525-7643
Email: [email protected]
Website: www.stanislauslafco.org
FILE #: BD30
BYLAWS: 10/25/2000, 12/5/2001, 4/23/2003 (see www.stanislauslafco.org/info/policy.htm) VERIFICATION REQUESTED: 1/7/2021
VERIFICATION DATE: 1/7/2021 Jennifer

COMMITTEE FACT SHEET
FOR CORRECTIONS PLEASE NOTIFY BOARD OF SUPERVISORS, 567-4926 updated 2/12/2016 NAME: SAN JOAQUIN VALLEY AIR POLLUTION CONTROL DISTRICT

CITIZENS ADVISORY COMMITTEE (CAC)
ESTABLISHED: November 2, 1996
COMPENSATION: None
CONFLICT OF INTEREST: Not required
LEGAL AUTHORITY:

MEMBERSHIP: Each Board of Supervisors of the eight member counties appoints two members QUALIFICATION to the CAC. One member shall represent agriculture or other industry and one AND RESIDENCY shall represent environmental interest groups.

REQUIREMENTS: A City Selection Committee in each County of the Valley shall each appoint one member to represent cities of that County.

Each appointing body shall appoint an alternate member for each primary member appointed.

CAC members and alternates must be bona-fide residents of their County.

TERM: Initial term of members appointed by the City Selection Committee is one year. Initial term of Environmental members is two years; Initial term of Industry/Agricultural members is three years.

All subsequent appointments shall be for terms of three years. CAC members may be re-appointed to successive terms by their respective appointing bodies.

DUTIES: Primary responsibility of the CAC: "The Advisory Committee shall meet no less than semi-annually for the purpose of receiving public comments relating to the actions and decisions of the District and to assist the District in effectuating its purposes"
MEETINGS: Citizens Advisory Committee Meetings are held via video teleconference (VTC) on the first Tuesday of each month, usually at 10:00 a.m., except July and November, at the Central Region Office (Fresno), Governing Board Room, 1990 E. Gettysburg Avenue, with the Northern Region Office (Modesto), 4800 Enterprise Way, VTC Room, and the Southern Region Office (Bakersfield), 2700 M Street, Suite # 275, VTC Room, participating via VTC. CAC meetings are web cast.

CONTACT: Seyed Sadredin, Director/Air Pollution Control Officer (Michelle Franco, Clerk) Central Region Office
1990 East Gettysburg Ave
Fresno CA 93726-0244
Phone:........ 559 230-6038
Fax:............ 559 230-6061
Email: ........ [email protected]
Website:..... www.valleyair.org
FILE #: BD03C
BYLAWS: 11/2/1996
VERIFICATION REQUESTED: 12/20/2011
VERIFICATION DATE: 12/22/2011 Michelle Franco
FOR CORRECTIONS PLEASE NOTIFY BOARD OF SUPERVISORS, 567-4926 Updated 12/30/2020

COMMITTEE FACT SHEET
NAME: STANISLAUS COUNTY LOCAL TASK FORCE ON SOLID WASTE

MANAGEMENT
ESTABLISHED: June 5, 1990
COMPENSATION: None
CONFLICT OF INTEREST: Not required
LEGAL AUTHORITY: Board of Supervisors Resolution #90-829 pursuant to CIWM Act of 1989, amended by Board of Supervisors Resolution #2009-116
MEMBERSHIP: The Task Force consists of sixteen (16) members appointed by Board of Supervisors:

QUALIFICATION: 1 Representative of Stanislaus County
AND RESIDENCY 9 City Representatives
REQUIREMENTS: 3 Representatives of industry
1 Representative of community-based organizations
1 General Public Representative
1 Representative of Stanislaus County Landfill
TERM: 3-Year Term with a two-term limit
DUTIES: The Task Forces serves as the advisory body for both the County all nine incorporated cities relative to Integrated Solid Waste Management. The group assists the jurisdictions in identifying, developing and implementing environmentally sound solid waste management policies, procedures and programs. The Task Force assists, advises and provides technical support relative to meeting the mandates of the California Integrated Waste Management Act of 1989.

MEETINGS: Quarterly beginning with the month of January. Meetings are scheduled for the 3rd Thursday of the month at 4:00 p.m.

Department of Environmental Resources, 2nd Floor Conference Room 3800 Cornucopia Way
Modesto, CA 95358
CONTACT: Will Richards
Department of Environmental Resources
Division of Solid Waste Management
3800 Cornucopia Way Suite C
Modesto, CA 95358
Phone: 525-6788
Fax:

Email:[email protected]
Website: n/a
FILE #: BD61
BYLAWS: -
VERIFICATION REQUESTED: 12/30/2020
VERIFICATION DATE: 12/30/2020 Will
State of California

HEALTH AND SAFETY CODE
Section 40600.5
40600.5. (a) The special city selection committee is hereby created to appoint city council members to the district board. The membership of the special city selection committee shall consist of one member from each city council in each city located within the territory of the unified district, selected by a majority of each city council.

The members of the special city selection committee shall serve without receiving compensation from the unified district, but a member may be compensated by the city that he or she represents.
(b)  If a member of the special city selection committee is unable to attend a meeting of the special city selection committee, he or she shall designate a member of that member’s city council to attend and vote at the meeting in his or her place. (c)  A majority of the total membership of the special city selection committee shall constitute a quorum for the transaction of business. A majority vote of the total membership of the special city selection committee is required for the special city selection committee to take action.
(d)  The special city selection committee shall appoint from among its members a chair, one or more vice chairs, and any other officers that it deems necessary. The chair shall preside over the meetings of the special city selection committee and the vice chair shall preside in the chair’s absence.
(e)  The special city selection committee may adopt rules for the conduct of its activities. These rules may include, but are not limited to, the procedures for nominating and appointing city council members to the district board. (f)  The meetings of the special city selection committee are subject to the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code).
(g)  The unified district’s air pollution control officer shall act as the special city selection committee’s permanent secretary and maintain the records of the actions of the special city selection committee. The minutes of the special city selection committee shall record the aye and no votes taken by its members for all motions and appointments.
(h)  At least two weeks before the date of any meeting of the special city selection committee, the air pollution control officer shall give notice of the meeting to each city that is located within the territory of the unified district. The notice shall contain the time, date, and place of the meeting, along with a brief general description of the business to be transacted or discussed at the meeting. The air pollution control officer shall also give notice to any person who has filed a written request for notice. The air pollution control officer may give notice in any other manner that he or she deems necessary or desirable.
(Added by Stats. 2008, Ch. 622, Sec. 2. Effective January 1, 2009.) FOR CORRECTIONS PLEASE NOTIFY BOARD OF SUPERVISORS, 567-4926 Updated 1/26/2022

COMMITTEE FACT SHEET
NAME: STANISLAUS CONSOLIDATED FIRE PROTECTION DISTRICT
ESTABLISHED: March 3, 1995
COMPENSATION: $100.00 per meeting
Members of this board are required to file Conflict of Interest Disclosure Statements LEGAL AUTHORITY: California Health and Safety Code, Section 13800, know as the Fire Protection District Law of 1987. Reorganization procedures complied with the California Government Code, Section 56001, Cortese-Knox Reorganization Act.

MEMBERSHIP: 5 Directors, comprised of:

QUALIFICATION: 1 Director appointed by City of Riverbank AND RESIDENCY 1 Director appointed by City of Waterford REQUIREMENTS: 3 Public members-at-large (residents of the district) appointed by Board of Supervisors
TERM: 4 Year Term with two term limitation
DUTIES: Fire protection
MEETINGS: Second Thursday of each month at 6:00 p.m.
3324 Topeka St., Riverbank
CONTACT: Chief Eric DeHart
3324 Topeka St.

Riverbank, CA 95367
Phone: 209-869-7470
Fax: 209-869-7475
Email: [email protected]
Website: http://www.scfpd.net
FILE #: DF20
BYLAWS:

VERIFICATION REQUESTED: 1/26/2022
VERIFICATION DATE: 1/26/2022 Betty Hannah
(This district is the consolidation of
Riverbank, Empire, and Waterford-Hickman Fire Protection Districts) General Business 6c
January 5, 2023
Lonnie Statzer Public Works Superintendent
City Council Staff Report
Motion: Awarding Bid and Approving an Agreement with Sam Farias Fencing Inc, in the Amount of $9,500.00 for Project No. 2023-01, “Dog Park Fence Repair” as a Minor Contract Project and Authorizing the City Manager to Execute the Agreement.

SUMMARY:

The City Council is being asked to award bid and approving an agreement with Sam Farias Fencing Inc, as a minor contract project in the amount of $9,500.00 for Project No. 2023-01 “Dog Park Fence Repair” and authorizing the City Manager to execute the agreement.

ANALYSIS:

The location of the Dog Park is in a voided area behind ballfield one, the ends of this area have always been open due to the need of retrieving the baseballs and getting the city mowers back there to mow.

Now that this area is dedicated to the Dog Park the voided areas of the fencing need to be closed in so that residents using the Dog Park don’t have to worry about their dogs getting out of the park and running into traffic or the other side of the Dog Park. In addition, the northern fence along the MID canal has no top rail which reduces the stability of the fence. Staff is recommending the addition of top rail at this time.

The scope of work includes adding approximately 467’ feet of top rail and 22’ feet of chain link fencing.

In November 2022, staff reached out to 8 fencing companies and only one responded:

Bid Company City and State Bid Amount

1. Sam Farias Fencing Inc. Modesto, CA 95350 $9,500.00

FISCAL IMPACT
Funding for this project will come from the Parks CFF (Park Fees) budget number 6580-580-8288 for fiscal year 2022/2023.

The project budget is as follows:

Expenses
Total Project Cost Construction
Contract
Construction
Contingency
Construction
Engineering &
Inspection
Preliminary
Engineering
$11,400.00 $9,500.00 $950.00 $475.00 $475.00
Funding Source:

Fund Title Funding Required Budget Number
Parks CFF $11,400.00 6580-580-8288
Total $11,400.00
ENVIRONMENTAL REVIEW:

This project is categorically exempted according to Title 14, Chapter 3, Article 19 of the Guidelines for Implementation of the California Environmental Quality Act (CEQA), in accordance with Section 15301 “Existing Facilities.”
ALTERNATIVES:

1. The City can choose not to move forward with these improvements at this time and take the risk of resident’s dogs escaping into traffic or other sections of Beard Park.

ATTACHMENTS:
• Location Map
• Notice of Award
• Agreement

Pecan Sewer Repair C-1

A G R E E M E N T
FOR

PUBLIC IMPROVEMENT
PROJECT NO. 2023-01
“Dog Park Fence Repair”
THIS AGREEMENT, is entered between the CITY OF WATERFORD, a Municipal Corporation, herein called "City", and Sam Farias Fencing, Inc. herein called "Contractor", on January 5, 2023.

RECITALS
(a) City hastaken appropriate proceedingsto authorize construction of the publicwork and improvements herein provided, and execution of this Agreement. (b) A notice was duly published for bids for the contract for the improvement hereinafter described.
(c) On January 5, 2023, after notice duly given, the City Council ofsaid City awarded the contract for the construction of the improvements hereinafter described to Contractor, which Contractor said Council found to be the lowest responsible bidder for said improvements.
(d) City and Contractor desire to enter into this Agreement for the construction of said improvements.

IT IS AGREED AS FOLLOWS:

1. Scope of Work:

Contractor shall perform the work described briefly as follows:

All work as specified on the Plans and in the Special Provisions, dated January, 2023, for the project, “Dog Park Fence Repair”.

The aforesaid improvements are further describedin the plans,specifications and technicalrequirementsforsuch project, copies ofwhich are on file in the office of the City Engineer, previously provided to Contractor, and which are incorporated herein by reference as if set forth fully herein.

Pecan Sewer Repair C-2

2. The Contract:

The complete contract consists of the following documents: This Agreement, the notice tocontractors,theContractor's acceptedproposal,generalconditions,special provisions, plans and detailed drawings, faithful performance bond and labor and materials bond and any and all supplemental agreements amending, decreasing, or extending the work contemplated or which may be required to complete the work in a satisfactory and acceptable manner. The Current Edition of the "City of Waterford Standard Specifications and Drawings" is hereby incorporated as a part of the contract.

All rights and obligations of City and Contractor are set forth and described in the contract.

All of the above named documents are intended to cooperate so that any work called for in one and not mentioned in the other, or vice versa, is to be executed the same as if mentioned in all said documents. The documents comprising the complete contract will hereinafter be referred to as the "contract". In case of any dispute, the decision of the City Engineer shall be final.

3. Schedule:

All work shall be performed in accordance with the schedule provided by City Engineer, and under his direction.

4. Equipment & Performance of Work:

Contractor shall furnish all tools, equipment, facilities, labor and materials necessary to perform and complete in good workmanlike manner the work of general construction as called for and in the manner designated in and in strict conformity with the plans and specificationsforsaidwork,whichsaid specifications are entitled, "General Conditions and Special Provisions” for “2023-01, “Dog Park Fence Repair”.

The equipment, apparatus, facilities, labor and material shall be furnished, and said work performed and completed as required in said plans and specifications under the direction and supervision, and subject to the approval, of the City Engineer of said City, or his designated agent.

5. Contract Price:

City shall pay, and Contractor shall accept in full payment for the work above Pecan Sewer Repair C-3

agreed to be done, the sum of: $Nine Thousand, Five Hundred Dollars_ ($9,500.00). Said price is determined by the unit prices contained in Contractor's bid. In the event work is performed or materials furnished in addition to those set forth in Contractor's bid and the specifications herein, said work and materials will be paid for at the unit price therein contained. Said amount shall be paid in installments as hereinafter provided.

6. Time for Performance:

The time fixed for the commencement of such work is ten (10) calendar days after the "Notice to Proceed" has been issued. The work on this project shall be completed on or before thirty (30) calendar days after the date of the "Notice to Proceed".

7. Rights of City to Increase Working Days:

If such work is not completed within such time, the City Council shall have the right to increase the number of working days in the amount it may determine will best serve the interests of the City, and if it desires to increase said number of working days, it shall have the further right to charge the Contractor and deduct from the final payment for the work the actual cost of engineering, inspection, superintendence, and other overhead expenses which are directly chargeable to Contractor, and which accrue during the period of such extension except that the cost ofthe finalservice and preparation ofthe final estimatesshall not be included in such charges; provided, however, that no extension of time for completion of such work shall ever be allowed unless requested by Contractor at least twenty (20) calendar days prior to the time herein fixed for the completion thereof, in writing, with the City Clerk, addressed to the City Council. In this connection, itis understood that the City Clerk shall not transmit any such request to the City Council if not filed within the time herein prescribed.

8. Option of City to Terminate Agreement in Event of Failure to CompleteWork:

If Contractorshall have refused orfailed to prosecute thework, or any severable part thereof, with such diligence aswill insure its completion within the time specified or any extensionsthereof, orshall have failed to complete saidworkwithin such time if Contractor should be adjudged a bankrupt, or if Contractor should make a general assignment for the benefit of Contractor's creditors, or if a receiver should be appointed in the event of Contractor's insolvency, or if Contractor or any subcontractor should violate any of the provisions of this Agreement, the City Engineer or the City Council may give written notice to Contractor and Contractor's sureties of itsintention to terminate this Agreement, and unless within five (5) days after the serving of such notice such violation shall cease and satisfactory Pecan Sewer Repair C-4

arrangementsforthe correction thereofmade,this Agreementmay, atthe option of City, upon the expiration of said time, cease and terminate.

9. Liquidated Damages:

In the event Contractor for any reason shall have failed to perform the work herein specifiedwithin the time herein required and to the satisfaction ofthe City Engineer, City may, in lieu of any other of its rights authorized by paragraph 8 of this Agreement, deduct from payments or credits due Contractor after such breach, a sum equal to one thousand ($1,000) Dollars as liquidated damages for each calendar day beyond the date herein provided for the completion of suchwork.

10. Performance by Sureties:

In the event of any termination as herein‐before provided, City shall immediately givewritten notice thereof to Contractor and Contractor'ssureties, and the sureties shall have the right to take over and perform the Agreement; provided, however, that if the sureties within five (5) days after giving them said notice of termination, do not give the Citywritten notice of their intention to take over the performance of the Agreement and do not commence performance thereofwithin five (5) days after notice to the City of such election, City may take over the work and prosecute the same to completion by contract or by any other method it may deem advisable for the account, and at the expense of Contractor and the Suretiesshall be liable to City for any excess cost or damages occasioned City thereby; and, in such event, Citymay, without liability for so doing, take possession of and utilize in completing the work such materials, appliances, plant and other property belonging to Contractor asmay be on the site of the work and necessary therefore.

11. Disputes Pertaining to Payment for Work:

Should any dispute arise respecting the true value of any work done, of any work omitted, or of any extraworkwhich Contractor may be required to do, orrespecting the size of any payment to contractor during the performance of this contract,such dispute shall be decided by the City Engineer, and the decision of the latter shall be final and conclusive.

12. Permits, Compliance with Law:

Contractor shall, at Contractor's expense, obtain all necessary permits and licenses forthe construction of each improvement, give all necessary notices and pay allfees and taxes required by law.

13. Superintendence by Contractor:

Pecan Sewer Repair C-5

Contractorshall give personalsuperintendence to thework on said improvement or have a competent foreman or superintendent satisfactory to the City Engineer on the work at all times during progress, with authority to act for him.

14. Inspection by City:

Contractor shall at all times maintain proper facilities and provide safe access for inspection by City to all parts of the work and to the shops wherein the work is in preparation.

15. Extra and/or Additional Work and Changes:

Should City at any time during the progress of said work request any alterations, deviations, additions, or omissionsfromsaid specifications or plans or other contract documents, itshall be atliberty to do so, and the same shall in noway affect or make void the contract, butwill be added to or deducted from the amount ofsaid contract price asthe case may be, by fair and reasonable valuation. Request forsuch change must be made in writing signed by the City Engineer,shall be accompanied by plans and specifications for such propose, shall be accepted in writing by Contractor and Contractor's surety.

16. Inspection and Testing of Materials:

Contractor shall notify City a sufficient time in advance of the manufacture of production materials to be supplied by Contractor under this contract in order that Citymay arrange formill orfactory inspection and testing ofsame, asrequired by the City.

Any materialsshipped by Contractorfromfactory priorto having satisfactorily passed such testing and inspection by City's representative or prior to the receipt of notice from such representative that such testing and inspection will not be required shall not be incorporated on the job of said improvement.

Contractor shall also furnish City, in triplicate, certified copies of all factory and mill test reports upon request.

17. Permits and Care of the Work:

Contractor has examined the site of thework and isfamiliarwith itstopography and condition, location of property lines, easements, building lines, and other physical factors and limitations affecting the performance of this Agreement. Contractor, at Contractor's expense, shall obtain any permission necessary for any operations conducted off the property owned or controlled by City. Contractor shall be responsible for the proper care and protection of all materials delivered and work Pecan Sewer Repair C-6

performed until completion and final acceptance.

18. Other Contracts:

City may award other contracts for additional work, and Contractor shall fully cooperate with such other Contractors and carefully fit Contractor's own work to that provided under other contracts as may be directed by the City Engineer.

Contractor shall not commit or permit any act which will interfere with the performance of work by any other Contractor.

19. Payments to Contractor:

Payments are to be made to the Contractor in accordance with the provisions of Section 9 of the General Conditions of said specifications in legally executed and regularly issued warrants of the City, drawn on the appropriate fund or funds as required by law and order of the City Council thereof.

20. Contract Security:

Concurrently with the execution hereof, Contractor shall furnish on the forms provided (1) a surety bond in an amount equal to at least one hundred percent (100%) ofthe contract price assecurity forthe faithful performance ofthis contract; and (2) a separate surety bond in an amount equal to at least one hundred percent (100%) of the contract price as security for the payment of all persons performing labor and furnishing materials in connection with this contract. Sureties on each of said bonds thereof shall be satisfactory to the City Manager.

21. Indemnity:

Contractor shall indemnify and hold harmless City, its officers, employees, agents and volunteers from and against all liability, loss, damage, expense, and cost (including, without limitation, reasonable legal counsel fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with Contractor’s negligence, recklessness, or willful misconduct in the performance of work hereunder, or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage caused by the active negligence, sole negligence or willful misconduct of the City. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement.

22. Contractor's Insurance:
(a) Minimum Limits of Insurance
(1) General Liability
Pecan Sewer Repair C-7

Contractor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than two million dollars ($2,000,000) per occurrence for bodily injury, personal injury, and property damage, including without limitation, blanket contractual liability and coverage for explosion, collapse and underground property damage hazards. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. A combination of a general liability policy and excess liability policies may be utilized to achieve these limits. Contractor’s general liability policies shall be primary and shall not seek contribution from the City’s coverage, and be endorsed using Insurance Services Office form CG 20 10 to provide that City and its officers, officials, employees, and agents shall be additional insureds under such policies. An endorsement providing completed operations to the additional insured, ISO form CG 20 37, is also required.
(2) Auto Liability
Contractor shall provide auto liability coverage for owned, nonowned, and hired autos using ISO Business Auto Coverage form CA 00 01, or the exact equivalent, with a limit of no less than two million dollars ($2,000,000) per accident.
(3) Workers’ Compensation
Contractor shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance with limits of at least one million dollars ($1,000,000). Contractor shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of City, its officers, agents, employees, and volunteers.
(b) Deductibles and Self‐Insured Retention:

Any deductible or self‐insured retention must be declared to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such deductible for self‐insured retention as respects the City, its officers, officials, employees, and volunteers; or the Contractor shall post a security (including but not limited to cash, letter of credit, etc.) guaranteeing payment of losses and related investigations, claim administration, and defense expenses.
(c) Other Insurance Provisions
The policies are to contain, or be endorsed to contain, the following provisions:

Pecan Sewer Repair C-8

(1) General Liability and Automobile Liability Coverage (a) Any failure to complywith reporting provisions ofthe policies shall not affect coverage provided to the City, its officers, officials, employees, or volunteers.
(b) The Contractor's insurance shall apply separately to each insured against whom claim is made for suit is brought, except with respect to the limits of the insurer'sliability. (2) All Coverage:
(a) Each insurance policy required by this section shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City.
(b) The Contractor shall require the subcontractors, if any, to take out and maintain similar Commercial General Liability and Property Damage Insurance.
(c) In case any of the work under this Contract is to be performed on, or at, the site of the project by the
subcontractor, the contractor shall take out and maintain such contractor's Contingent or Protective Insurance as will protect him, the Owner, and the Engineer from damage
claims arising from the operations of any subcontractor. (d) Acceptability of Insurer:

Insurance is to be placed with insurers with a Best's rating of no less than A:VII.

In the event the form of any policy or certificate, or the amount of the insurance or the companies writing same are not satisfactory to the City, the Contractor shall furnish other policies or certificatesin form and amount, andwith companiessatisfactory to the City. The Contractor shall not cause any policies to be canceled or permit it to lapse, and all policies shall include a clause to the effect that the policy or certificate shall not be subject to cancellation or to a reduction in the required limits of liability or amounts of insurance until notice has been mailed to the City statingwhen, notlessthan ten (10) daysthereafter,such Pecan Sewer Repair C-9

cancellation or reduction shall be effective. All certificates of insurance, authenticated by the proper officer of the insurer, shall state in particular those insured, the extent of the insurance, the location and operations to which the insurance applies, the expiration date, and the above‐mentioned notice of cancellation clause.

The Contractor shall furnish to the City at the date of delivering the signed contracts and bonds, certificates or riders duly executed on behalf of the surety company, certifying asto the amounts of insurance carried, and providing for the coverage therein of the City, its officers, agents, and employees, within all risks arising out of the project.

23. Proof of Carriage of Insurance:

Contractorshall furnish City on City Forms, through the City Engineer, concurrentlywith the execution hereof,with satisfactory proof of carriage ofthe insurance required, andthateach carrier shall give City at least thirty (30) days prior notice of the cancellation of any policy during the effective period of this contract.

24. Wages & Hours of Employment:

In the performance of this contract, eight (8) hoursshall be the maximum hours of labor on any calendar day, and the minimum wages of compensation of persons performing labor in the execution ofthis Agreementshall be the current prevailing scale ofwages determinedby the U.S. Secretary of Labor for the community and on file with the City Engineer.

The Contractorshall forfeit as penalty to the City, Twenty‐FiveDollars($25)to be paid to the City of Waterford for eachworkman employed in the execution of this Agreement by himor by any subcontractor, for each calendar day during which any workman is required or permitted to labor more than eight (8) hours, in violation of provisions of Article 3, Chapter 1, Part 7, a Division 2, of the Labor Code of the State of California, and all amendments thereto.

25. Emergency ‐ Additional Time for Performance ‐ Procurement of Materials:

If, because of war or other declared national emergency, the Federal or State Government restricts,regulates, or controlsthe procurement and allocation oflaborormaterials,or both, and if solely because of said restrictions, regulations or controls, contractor is through no fault ofthe contractor, unable to performthis Agreement, orthework isthereby suspended or delayed, any of the following steps may be taken.
(a) City may, pursuant to resolution of the Council, grant Contractor additional time for the performance of this Agreement, sufficient to compensate in time, for delay or suspension.

To qualify for such extension in time, Contractor within ten (10) days of Contractor's discovering such inability to perform,shall notify City Engineerinwriting thereof, and Pecan Sewer Repair C-10

give specific reasons therefore; City Engineer shall thereupon have sixty (60) days within which to procure such needed materials or labor as is specified in this Agreement, or permitsubstitution, or provide for changesin thework in accordance with other provisions of this Agreement. Substituted materials, or changes in the work, or both, shall be ordered in writing by City Engineer, and the concurrenceof the Council shall not be necessary. All reasonable expenses of such procurement incurred by the City Engineer shall be defrayed by the Contractor; or (b) If such materials or labor cannot be procured through legitimate channels within sixty (60) days after the filing of the aforesaid notice, either party may, upon thirty (30) days' written notice to the other, terminate this Agreement. In such event, Contractor shall be compensated for all work executed upon a unit basis in proportion to the amount of the work completed, or upon a cost‐plus ten percent (10%) basis, whichever is the lesser. Materials on the ground, in process of fabrication or in route upon the date of notice of termination specially ordered for the project andwhich cannot be utilized by Contractor,shall be compensated for by City at cost, including freight, provided the Contractorshall take allsteps possible to minimize this obligation; or
(c) City Council, by resolution,may suspend this Agreement untilthe cause ofinability to perform is removed but for a period of not to exceed sixty (60) days.

If this Agreement is not canceled, and the inability of Contractor to perform continues without fault on Contractor's part, beyond the time during which the Agreement may have been suspended, as hereinabove provided, City Council may further suspend this Agreement, or either party hereto may, without incurring any liability, electtodeclare this Agreementterminated upon the ground ofimpossibility of performance. In the event City declares this Agreement terminated, such declaration shall be authorized by the CityCouncil by resolution, and Contractorshall be notified in writing thereof within five (5) days after the adoption of such resolution. Upon such termination, Contractor shall be entitled to proportionate compensation atthe Agreementrate forsuch portion ofthe Agreement asmay have been performed, or
(d) City may terminate this Agreement, in which case Contractor shall be entitled to proportionate compensation atthe agreed rate forsuch portion oftheAgreement as may have been performed. Such termination shall be authorized by resolution ofthe Council. Notice thereof shall be forthwith given in writing to Contractor, and this Agreement shall be terminated upon receipt by Contractor of such notice. In the event of the termination provided in thissub‐paragraph (d), none of the covenants, conditions or provisions hereofshall apply to thework not performed, and City shall be liable to Contractor for the proportionate compensation last herein mentioned.

Pecan Sewer Repair C-11

26. Provisions Cumulative:

The provisions of this Agreement are cumulative, and in addition to and not in limitation of, any other rights or remedies available to City.

27. Notices:

All notices shall be in writing and delivered in person or transmitted by certified mail, postage prepaid.

Notices required to be given to City shall be addressed as follows:

CITY MANAGER, CITY OF WATERFORD, P. O. BOX 199, WATERFORD, CA 95386 Notices required to be given to Contractor shall be addressed as follows:

Sam Farias Fencing, Inc.
1517 Brannon Ave,
Modesto, CA 95350
Phone 209-521-7994
Fax 209-529-6877
Notices required to be given sureties of Contractor shall be addressed as follows:

City of Waterford
101 E. Street
Waterford, CA, 95386
Phone 209-874-2328
Fax 209-874-9656

28. Interpretation:

As used herein, any gender includes each other gender, the singular includes the plural and vice versa.

29. Anti‐Trust Claims:

Pecan Sewer Repair C-12

The Contractor or subcontractor offers and agrees to assign to the City all rights, title and interest to any causes of action under Section Four of the Clayton Act and the Cartwright Act concerning anti‐trust claims.

INWITNESSWHEREOF,fouridentical counterpartsofthisAgreement, consisting of a totalof 12 pages, each of which counterparts shall for all purposes be deemed an original of said Agreement, have been duly executed by the parties hereinabove named, on the day and year first hereinabove written.

Pecan Sewer Repair C-13

(Attach Contractor's
Notary Seal here)
By:

Contractor
Address:

Phone:

CITY OF WATERFORD,

A MUNICIPAL CORPORATION
By:

Michael G. Pitcock, City Manager
APPROVED AS TO FORM:

By: _
Federal Tax ID #
OR
Social Security #
Corbett Browning, City Attorney
APPROVED AS TO SUFFICIENCY:

MCR ENGINEERING
By: _
Rob Marler, City Engineer
ATTEST:

By:

Patricia Krause, City Clerk
General Business 6d
January 5, 2023
Lonnie Statzer Public Works Superintendent
City Council Staff Report
Resolution: Approving Resolution 2023-02, Accepting Improvements for Project No. 2022-05, “H & I Street Improvement Project” and Authorizing the City Engineer to File a Notice of Completion with the Stanislaus County Recorder’s Office.

SUMMARY:

City Council is being asked to approve Resolution 2023-02, accepting the improvements for Project No. 2022-05, “H & I Street Improvement Project” and authorize the City Engineer to file a Notice of Completion with the Stanislaus County Recorder’s Office.

ANALYSIS:

H & I Street were severely dilapidated and in need of major renovations. The improvements were visible from our main thoroughfare, Yosemite Avenue, improving the looks of our city and also will be a major upgrade for the residents that are affected by the condition of these roads. The H & I Street Improvement Project were located on H Street between Dorsey Street and Yosemite Blvd, and I Street between Main Street and Bentley Street. The project consisted of the reconstruction of the existing pavement and curb returns, and other miscellaneous concrete repairs.

The table below provides the City Council of an accounting of funding approved to date:

Action Scope of Work Approval Amount
Award of Bid Original Contract City Manager $458,440.00 Change Order #1 Remove Existing
Concrete. City Manager<10% $8,865.19.00
Change Order #2 2” Grinding & Overlay,
3” AC/6” AB, 4”
Concrete Sidewalk, 6”
Concrete Driveway,
Backfill Dig out areas
with AB, Re-Mob and
Escalation Increases,
Vertical Curb & Gutter
& Native Replacement.

City Manager<10% $33,214.90
Final Contract Price $500,520.09
All work has been completed in accordance with the Plans, Specifications and Standard Plans. Staff recommends City Council accept the improvements and authorize the City Engineer to file a Notice of Completion with the Stanislaus County Recorder’s Office.

FISCAL IMPACT
All of the funding for this project will come from CDBG funds and is included in the FY 2022-2023 budget. The project budget is as follows:

Expenses
Total Project
Cost
Construction
Contract
Change Order
#1
Change Order
#2
Construction
Engineering &
Inspection
Preliminary
Engineering
$551,982.89 $458,440.00 $8,865.19 $33,214.90 $17,637.80 $33,825.00 Revenues:

Funding Title Funding Required Budget Number
CDBG $551,982.89 2080-460-8290
Total $551,982.89
No General Fund money will be used for this project.

ENVIRONMENTAL REVIEW:

1. Council could choose not to accept the NOC.

ATTACHMENTS:
• Resolution 2023-02
• Notice of Completion
• Change Order #1
• Change Order #2
RESOLUTION 2023-02 Page 1 of 2

WATERFORD CITY COUNCIL
RESOLUTION # 2023-02
APPROVING RESOLUTION 2023-02, ACCEPTING IMPROVEMENTS FOR PROJECT NO. 2022-05, “H & I STREET IMPROVEMENT PROJECT” AND

AUTHORIZING THE CITY ENGINEER TO FILE A NOTICE OF COMPLETION WITH THE STANISLAUS COUNTY RECORDER’S OFFICE.

WHEREAS, the City Council of the City of Waterford previously approved the H & I Street Improvement Project bid documents; and
WHEREAS, on or around May 5, 2022, a Contract was duly executed by and between George Reed, Inc. Contractor, and the City of Waterford, California, a Municipal Corporation to have certain public improvements constructed and installed to the satisfaction of the City Engineer; and
WHEREAS, it is the City Engineer’s opinion the improvements have been constructed and installed in accordance with the contract, approved specifications and plans; and WHEREAS, security securing the payment to the contractor, his subcontractors, and to persons furnishing labor, materials, or equipment may be released six (6) months from receipt by the City of the recorded Notice of Completion, provided no claims have been filed with the City; and
WHEREAS, the performance security to remain in effect for (1) year guaranteeing that the completed work remains satisfactory during the required one (1) year warranty period and may be released upon correction, by Contractor, of any defects in the work existing at the end of the warranty period.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WATERFORD DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. The City Council of the City of Waterford accepts the public improvements into the City of Waterford maintained infrastructure system, such having been inspected by the City Engineer of the City of Waterford.

Section 2. The City Council of the City of Waterford authorizes the City Engineer to prepare the Notice of Completion and cause same to be recorded in the Official Records of Stanislaus County, California.

Section 3. The adoption of this resolution does not release any improvement securities which have been provided in accordance with the above-referenced Contract.

Such shall remain in full force and effect as set forth above.

PASSED, APPROVED, AND ADOPTED by the Waterford City Council of the City of Waterford at a regular meeting this 5
th day of January 2023, by the following vote:

RESOLUTION 2023-02 Page 2 of 2
AYES:

NOES:

ABSTAIN:

ABSENT:

CITY OF WATERFORD
Charlie Goeken, Mayor
ATTEST: APPROVED AS TO FORM:

PATRICIA KRAUSE, CMC CORBETT J. BROWNING
City Clerk City Attorney

RECORDING REQUESTED BY

CITY OF WATERFORD
WHEN RECORDED MAIL TO:

City Engineer
City of Waterford
101 “E” Street
Waterford, California 95386
SPACE ABOVE THIS LINE FOR RECORDER’S USE
Notice of Completion
Notice is hereby given that:

1. The undersigned is a representative of the owner of the interest or estate stated below in the property hereinafter described.

2. The full name of the owner is the City of Waterford.

3. The full address of the owner 101 E Street, Waterford, California, 95386

4. The nature of the title of the owner is: In fee.

5. A work of improvement on the property hereinafter described was completed on November 11, 2022.

6. The name of the contractor, for such work of improvement was George Reed Inc.

7. The nature of the work of improvement was Re-paving the roads and replacing curb, gutter and sidewalk as described in City Bid #2022-05.

8. The property on which said work of improvement was completed is in the city of Waterford, county of Stanislaus, state of California, and is described as follows: H & I Streets

9. The street address of said property is none.

I, Robert B. Marler, declare under penalty of perjury, under the laws of the State of California that the foregoing is true and correct.

Signing on behalf of City of Waterford
Dated: __ ____ By _________________________________________ Robert B. Marler, Waterford City Engineer

VERIFICATION:

I, Robert B. Marler, the undersigned, declare under penalty, under the laws of the State of California that I am the owner, or agent of the owner, of the interest or estate in the property described in the above notice; that I have read the notice, that I know and understand the contents thereof, and that the facts stated therein are true and correct.

Executed on _______ , at Manteca, California.

Signing on behalf of City of Waterford

_________________________________________
Robert B. Marler, Waterford City Engineer

General Business 6e
January 5, 2023
Lonnie Statzer Public Works Superintendent
City Council Staff Report
Resolution: Approving Resolution 2023-03, Adopting the Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan update and the City of Waterford Local Hazard Mitigation Plan Annex as an Amendment to the City of Waterford General Plan Safety Element
SUMMARY:

Staff recommends that the City Council approve the attached Resolution Adopting the 2022 Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan (MJHMP) update and the City of Waterford Local Hazard Mitigation Plan (LHMP) Annex as an Amendment to the City of Waterford General Plan Safety Element by incorporation by reference.

ANALYSIS:

Background:

The Disaster Mitigation Act (DMA) of 2000 (Public Law 106-390) requires local governments to develop and adopt pre-disaster mitigation plans in order to minimize property damage and the risk to public health and safety that might result from the effects of natural or man-made disasters. A MJHMP assesses risk and vulnerabilities and identifies and prioritizes mitigation projects. The 2022 Stanislaus County MJHMP update makes the City eligible for Federal Emergency Management Agency (FEMA) Pre-Disaster Mitigation and Hazard Mitigation Assistance (HMA) grant programs. FEMA requires the MJHMP to be updated every five years to maintain eligibility for grants.

This single-jurisdiction Local Hazard Mitigation Plan (LHMP) Annex to the 2022 Stanislaus County MJHMP update is a customized plan tailored for the City of Waterford. The related General Plan Amendment adopts the 2022 MJHMP update into the General Plan by reference. California adopted Assembly Bill (AB) 2140 (Hancock) in 2006, which added provisions specifying what is to be included in a LHMP and requiring a linkage between local jurisdiction’s LHMP and the Safety Element of their General Plan. AB 2140 requires a jurisdiction to adopt the MJHMP into the Safety Element of the General Plan in order to be eligible for an increased share of disaster relief funding under the California Disaster Assistance Act.

The increasing cost of disaster recovery in the nation and the State of California over the past decades prompted a renewed interest in determining effective and holistic approaches to minimize natural hazards. Hazard mitigation planning plays an important role in building community resilience through the identification of hazards, assessment of vulnerabilities, and the development of mitigation actions.

The goal of the MJHMP update is to develop practical, attainable, and cost-effective mitigation actions to reduce vulnerability to the identified hazards and reduce human, property, and economic losses from hazard events. Stanislaus County contracted with Wood Environment & Infrastructure Solutions, Inc., now WSP USA Environment & Infrastructure Inc., to facilitate and develop the updated MJHMP and associated annexes. Subsequently, the plan was prepared pursuant to the requirements of the DMA of 2000, so that the City and County would become eligible for FEMA HMA, Flood Mitigation Assistance (FMA), and Building Resilient Infrastructure and Communities (BRIC) grant programs.

Goal Alignment:

This MJHMP update identifies resources, information, and strategies for reducing risk from natural hazards. Mitigation strategies in the plan were collaboratively developed to best meet the needs of the City’s planning partners, stakeholders, and their citizens. One of the benefits of hazard mitigation planning and specifically convening a Hazard Mitigation Planning Committee (HMPC) is the ability to pool resources and eliminate redundant activities within a planning area that has uniform risk exposure and vulnerabilities.

This MJHMP update builds on successful mitigation actions developed in adjacent planning areas, such as the 2017 Stanislaus County MJHMP, the 2018 California Climate Adaptation Strategy, and the 2017 Central Valley Flood Protection Plan. This plan will also help guide and coordinate mitigation activities throughout the City’s Planning Area, as defined by the Waterford city limits. The 2022 MJHMP update was developed to meet the following objectives:
• Meet or exceed requirements of the DMA of 2000.
• Enable the City to use federal HMA and BRIC grant funding to reduce risk through mitigation. • Create a risk assessment that focuses on the City’s hazards of concern. • Maintain and implement the MJHMP to identify natural hazards, minimize or eliminate their effects and reduce prospective costs of reparations before any natural hazard takes place consistent with the Disaster Preparedness Goal in the City of Waterford’s General Plan Safety Element. • Create a single planning document that integrates all planning partner and stakeholder input into a framework that supports partnerships and coordination within the City and the County. • Meet the planning requirements of FEMA’s National Flood Insurance Program (NFIP) Community Rating System (CRS) if the City chooses to participate in this program in the future. • Coordinate existing plans and programs so that high-priority initiatives and projects to mitigate possible disaster impacts are funded and implemented.

Discussion:

To begin the MJHMP update process, in December 2020, Stanislaus County issued a Request for Proposal (RFP) (#20-51-AH) seeking a qualified consultant to help prepare an update to the County’s 2017 LHMP and to facilitate a multi-jurisdictional planning process with the nine participating municipalities and the Stanislaus County Office of Education, for a total of 10 participating agencies. In February 2021, the County selected Wood Environment & Infrastructure Solutions, Inc. (now WSP USA Environment & Infrastructure Inc.) as its consultant.

County staff and WSP Environment & Infrastructure Inc. began the MJHMP update process with an evaluation of the existing 2017 LHMP, a compilation of background information, the development of an Outreach Strategy, and the establishment of a HMPC comprised of County and City staff, as well as external agency and organization partners. This planning process consisted of participation in the HMPC and the formation of a smaller internal planning team referred to as the City’s Local Planning Committee (LPT). Planning partners and stakeholders involved with the Waterford LPT included the City Manager and the Public Works Superintendent. Public participation was an important part of the MJHMP update process. Public outreach for the MJHMP update included deliberate engagement with planning partners, stakeholders, and community groups with an acute interest and/or experience in hazard mitigation issues as well as opportunities for the general public to participate and inform the MJHMP update.

The planning process began with a kick-off meeting with the HMPC on August 5, 2021. The meeting covered the scope of work for the MJHMP update and an introduction to the DMA requirements. During the planning process, the HMPC communicated through virtual planning work sessions, email, and monthly virtual meetings, and added information to the County’s MJHMP webpage. WSP Environment & Infrastructure, Inc. distributed draft planning documents via email to the City’s LPT (City Manager and Public Works Superintendent) and to the HMPC. The HMPC met three times during the planning period (August 5, 2021, November 9, 2021, January 13, 2022). The risk assessment in the City of Waterford LHMP Annex focused on potential impacts from dam incidents and drought. Mitigation actions addressed public education and awareness on dam safety and water system redundancies associated with the City’s water system and water tanks that need to be upgraded. The actions were then prioritized using the STAPLEE criteria (social, technical, administrative, political, legal, economic, and environmental).

Public Outreach:

Public involvement for hazard mitigation plans according to the DMA of 2000 (Code of Federal Regulations [CFR] § 201.6(b)) requires the planning process include an opportunity for the public to comment on the plan during the drafting stage and prior to plan approval and opportunity for neighboring communities, local and regional agencies involved in hazard mitigation activities to be involved in the planning process. The County developed an Outreach Strategy for the MJHMP update to provide a meaningful process through which the County, and each city and their citizens, public officials, and stakeholder groups could effectively participate in the MJHMP planning process. It outlines a range of engagement platforms the County and City used to notify and engage stakeholders and the public. The County notified the project stakeholders and public about the MJHMP update via email, the circulation of press releases and advertisements, and social media postings. The County formally engaged Alameda County, Calaveras County, Merced County, Santa Clara County, San Joaquin County, and Tuolumne County, as neighboring jurisdictions during the planning process, and to comment on the Administrative Draft MJHMP.

The County also circulated a public survey for the MJHMP update for a two-month period and facilitated two public workshops. The first Public Workshop was on November 4, 2021, and the second Public Workshop was on June 23, 2022. Public Review Draft LHMP was available for public comments for 30 days between June 20, 2022 through July 22, 2022. The County compiled public comments on the planning process, hazard profiles, risk assessment, and the Draft MJHMP during public review. During this time formal comments on the draft plan circulated during public review were compiled and organized. These comments were submitted by email and through an online form; some public comments were also recorded during the second Public Workshop. The County and WSP incorporated public input by reviewing the comments and revising the MJHMP prior to submittal to Cal OES and FEMA Region IX.

FISCAL IMPACT:

Adoption of the MJHMP does not have any direct financial implications. Indirectly, adoption of the MJHMP update may have financial implications in order to provide necessary resources to implement programs and remain in compliance with DMA of 2000 (44 CFR § 201.6) requirements and annual plan maintenance and implementation protocols. Once the plan is adopted locally, the County will become eligible to apply for future HMA, FMA, and BRIC funds through FEMA.

ENVIRONMENTAL REVIEW:

Development and adoption of the Stanislaus County MJHMP update and the City of Waterford LHMP Annex is a planning exercise to prepare the County and the City for foreseeable emergencies and other risks. As the plan indicates, implementation of any of the mitigations identified will be a post-adoption actions subject to staff review on a case-by-case basis and City Council action. Accordingly, the plan is not a project subject to the requirements of the California Environmental Quality Act (CEQA) given the plan itself is a continuing administrative or maintenance activity, such as general policy and procedure making, or governmental administrative activity, and will not result in direct or indirect physical changes in the environment in accordance with Section 15378(b).

The plan is also categorically exempt based on the common sense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment, and it can be seen with certainty that there is no possibility that the current activity may affect the environment, in accordance with Section 15061(b)(3). It is also exempt from CEQA in accordance with Section 15183 as a project that is consistent with the City’s General Plan, Community Plans, and Zoning Ordinance; and/or categorically exempt from CEQA in accordance with Section 15162 as a feasibility and planning study that informs the City of vulnerabilities to natural hazards and develops potential future actions to mitigation risks.

Policy Implications:

The purpose of the Stafford Act, as amended by the DMA of 2000, is to “reduce the loss of life and property, human suffering, economic disruption, and disaster assistance costs resulting from natural disasters.” Section 322 of the Stafford Act specifically addresses mitigation planning and requires state and local governments to prepare LHMPs as a precondition to receiving FEMA HMA and BRIC grant funding. The requirements of Title 44 Code of Federal Regulations (CFR) Section 201.6 includes regulations that must be met before FEMA will approve a LHMP. LHMPs must also be updated every 5 years in order for jurisdictions to remain eligible for FEMA HMA and BRIC funding.

This action is consistent with the following City of Waterford General Plan Safety Element Policy:

Policy S-1.1 Develop and maintain emergency preparedness procedures for the City.

The comprehensive development of the MJHMP update is the City’s main roadmap to building a safer Waterford and promoting resiliency throughout every department at the City through cooperation with Stanislaus County and neighboring jurisdictions. The City can achieve this goal through ongoing implementation and maintenance of the mitigation strategy, annual review and evaluation review, and regular MJHMP updates.

The action is also consistent with Safety Element policies S-2.1 through S-2.3 for seismic safety, policies S-3-1 through S-3.2 for flooding, and policies S-4.1 through S-4.2 for fire protection.

ALTERNATIVES:

1. Approve the resolution adopting the 2022 Stanislaus County MJHMP update and the City of Waterford Annex and as an Amendment to the City of Waterford General Plan Safety Element for Incorporation by Reference; or

2. Approve the resolution with modifications; or

3. Direct staff to return with more information; or

4. Take no action.

ATTACHMENTS:
• Resolution 2023-03

WATERFORD CITY COUNCIL
RESOLUTION 2023-03
APPROVING RESOLUTION 2023-03, ADOPTION OF THE 2022 STANISLAUS

COUNTY MULTI-JURISDICTIONAL HAZARD MITIGATION PLAN UPDATE AND

CITY OF WATERFORD ANNEX AND INCORPORATION BY REFERENCE INTO THE

SAFETY ELEMENT OF THE CITY OF WATERFORD GENERAL PLAN
WHEREAS, the City of Waterford recognizes the threat that natural hazards pose to people and property within our community; and
WHEREAS, undertaking hazard mitigation actions will reduce the potential for harm to people and property from future hazard occurrences; and
WHEREAS, the U.S. Congress passed the Disaster Mitigation Act of 2000 (“Disaster Mitigation Act”) emphasizing the need for pre-disaster mitigation of potential hazards; and WHEREAS, the Disaster Mitigation Act made available hazard mitigation grants to state and local governments; and
WHEREAS, an adopted Local Hazard Mitigation Plan (LHMP) update is required as a condition of future funding for mitigation projects under multiple Federal Emergency Management Agency (FEMA) pre- and post-disaster hazard mitigation assistance grant programs; and WHEREAS, the City of Waterford has met all federal requirements of the Stafford Act and applicable amendments, and has further met all the requirements of the Disaster Mitigation Act through stakeholder engagement and by participating in the Hazard Mitigation Planning Committee and through public participation from online surveys and public workshops; and WHEREAS, the City of Waterford fully participated in the FEMA-prescribed mitigation planning process to prepare this LHMP Annex; and
WHEREAS, the California Office of Emergency Services (Cal OES) and FEMA Region IX officials have reviewed the Stanislaus County MJHMP update and City of Waterford LHMP Annex and approved it contingent upon this official adoption of the participating governing body; and WHEREAS, the City of Waterford desires to comply with the requirements of the Disaster Mitigation Act and to augment its emergency planning efforts by formally adopting the 2022 Stanislaus County MJHMP update; and
WHEREAS, the City of Waterford’s General Plan Safety Element includes Disaster Preparedness Policy S-1.1 to “Develop and maintain emergency preparedness procedures for the City” among other policies that support minimizing seismic, flooding, and fire hazards; and WHEREAS, adoption by the governing body for the City of Waterford, demonstrates the jurisdiction’s commitment to fulfilling the mitigation goals and objectives outlined in this 2022 MJHMP update and the City of Waterford LHMP Annex; and
WHEREAS, Assembly Bill (AB) 2140 provides cities the authority to adopt by reference their respective LHMP as part of the Safety Element of its General Plan and by doing so, a city becomes eligible for additional funding from the Cal OES under the California Disaster Assistance RESOLUTION 2023-03
RESOLUTION 2023-03
Act, and absent adoption of the LHMP into the Safety Element, maximum State funding from the OES is limited to 75% of the total cost of mitigation for qualifying events; and WHEREAS, additional funding from Cal OES made available through this General Plan Amendment is in the public interest; and
WHEREAS, the potential impacts and proposed changes due to the General Plan Amendment are not detrimental to public health, safety, or welfare; and WHEREAS, adoption of this legitimacies the plan and authorizes responsible agencies to carry out their responsibilities under the plan; and
WHEREAS, the adoption of the 2022 Stanislaus County MJHMP update and the City of Waterford LHMP Annex and as an amendment to the City of Waterford General Plan Safety Element incorporating the LHMP Annex is exempt from the California Environmental Quality Act (CEQA) pursuant to the following CEQA Guidelines sections each on a separate and independent basis:
15061(b)(3) (common sense exemption), 15183 (projects consistent with a community plan, general plan, or zoning), and 15162 (feasibility and planning studies). The common sense exemption applies only to projects which have the potential for causing a significant effect on the environment, and it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment. Section 15183 categorically exempts projects that are consistent with the City’s General Plan, Community Plans, and Zoning Ordinance; the adoption of the 2022 Stanislaus County MJHHMP and the City of Waterford LHMP Annex and its incorporation into the General Plan by reference will not have a significant effect on the environment. Section 15162 exempts feasibility and planning studies; the LHMP update is a planning study that informs the City of vulnerabilities to natural hazards and develops potential future actions to mitigation risks. The adoption of the LHMP is not a commitment to any future action, nor is it a decision to approve, adopt, or fund any of the potential mitigation actions identified in the plan.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF WATERFORD adopts the 2022 Stanislaus County MJHMP update and the City of Waterford LHMP Annex as an official plan. While content related to the City of Waterford may require revisions to meet the plan approval requirements, changes occurring after adoption will not require the City of Waterford to re-adopt any further iterations of the plan. Subsequent plan updates following the approval period for this plan will require separate adoption resolutions; and

NOW, THEREFORE, BE IT FURTHER RESOLVED THAT THE CITY COUNCIL OF THE CITY OF WATERFORD will submit this adoption resolution to the Cal OES and FEMA Region IX officials to enable the plan’s final approval in accordance with the requirements of the Disaster Mitigation Act of 2000 and to establish conformance with the requirements of AB 2140.

PASSED AND ADOPTED by the City Council of the City of Waterford, at a regular meeting thereof held on the 5
th day of January, 2023, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

RESOLUTION 2023-03
City of Waterford,
Charlie Goeken, Mayor
ATTEST: Approved as to Form:
__________________________ ___________________________
Patricia Krause, CMC, City Clerk Corbett J. Browning, City Attorney 2022-2027 Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan Annex I: City of Waterford
Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan | 2022-2027 Update Page 1 1 CITY OF WATERFORD

1.1 Purpose
This Annex summarizes the hazard mitigation elements specific to the City of Waterford. This Annex supplements the Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan (MJHMP); therefore, the Annex is not a stand-alone plan but intended to supplement the hazard information provided in the Base Plan document. All other sections of the Stanislaus County MJHMP, or Base Plan, including the sections on the planning process, countywide risk assessment, and procedural requirements related to plan implementation and maintenance apply to the City of Waterford. This Annex provides additional information specific to the City of Waterford, including details on the City’s profile, planning process, risk assessment, and mitigation strategy for the community.

1.2 Community Profile

1.2.1 Mitigation Planning History and 2021-2022 Process This Annex was created during the development of the 2022 Stanislaus County MJHMP update. The City of Waterford did not participate in Stanislaus County’s 2017 Local Hazard Mitigation Plan (LHMP) process. However, the City of Waterford did participate in a 2010-2011 Multi-Jurisdictional Hazard Mitigation Plan (MJHMP) process with the County. The MJHMP was approved on May 24, 2011. The City of Waterford adopted the 2010 MJHMP and the 2011 City of Waterford LHMP Annex on September 1, 2011. However, the City elected not to include or report progress on any of the mitigation actions from the outdated and expired version of the MJHMP (a requirement only for plan updates following the release of FEMA’s October 1, 2011 Local Mitigation Plan Review Guide). This Annex instead effectively represents a new plan for Waterford based on current development, demographics, and mitigation capabilities that addresses the City’s current hazards and vulnerabilities.

During the current update process, the City of Waterford followed the planning process detailed in Chapter 3 of the Base Plan. This planning process consisted of participation in the Hazard Mitigation Planning Committee (HMPC) and the formation of a smaller internal planning team referred to as the City’s Local Planning Committee (LPT). The LPT was organized to support the broader planning process, coordinate with the City departmental staff, and develop customized mitigation actions and projects specific to the City of Waterford. The City’s LPT is also responsible for the update, implementation, and maintenance of the plan. LPT members are listed in Appendix A.

1.2.2 Geography and Climate
The City of Waterford is relatively isolated from the major growth centers of the Central Valley.

Historically, Waterford was home to a ferry that provided north-south travel across the Tuolumne River.

Later, the City was located along a railroad corridor serving the surrounding ranch land. Today the City of Waterford is located at the rural crossroads of the east west trending State Highway 132 (Yosemite Boulevard) and the north south roadway system connecting Waterford with the City of Merced.

The City receives an average annual precipitation of 12.21 inches and receives most of this precipitation from November through March (WRCC 2022). The City experiences its average monthly highest temperature in July (94.3 °F), and its monthly lowest temperature in January (53.8 °F). Similar to the rest of Stanislaus County, the City of Waterford has a mild Mediterranean climate.

Figure 1-1 below shows the City limits and Sphere of Influence (SOI) for the City of Waterford. The City limits, or the area where the City has authority to make land-use decisions, is the City’s planning area, and consists of 1,536 acres or 2.4 square miles.
2022-2027 Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan Annex I: City of Waterford
Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan | 2022-2027 Update Page 2 Figure 1-1 City of Waterford

1.2.3 History
According to the City of Waterford General Plan 2025, in 1859, a group of immigrants led by William Wilkerson Baker settled on the south bank of the Tuolumne River about six miles upstream from the present town of Empire. A few years later, Mr. Baker crossed over to the north bank and filed a homestead. He established a store and distributed supplies and mail to the men on their way to the gold mines in Tuolumne and Mariposa Counties to the east. He also built a ferry. This small community became known as Bakerville, and the original street pattern is still evident in the southeast portion of the community. After the railroad was built, the “old town” was moved to higher ground along the railroad which is the present center of the downtown area. Another source states that when the Stockton-Merced branch of the railroad. was constructed in 1890, the name Waterford was given to the Southern Pacific 2022-2027 Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan Annex I: City of Waterford
Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan | 2022-2027 Update Page 3 Station because it was near a much-used ford across the Tuolumne River. The City was incorporated as the “City of Waterford” in 1969.

1.2.4 Economy
With its location along the Tuolumne River, Waterford is a gateway to the recreation areas in the foothills of the Sierra and beyond. Farming, recreation and, of course, “bedrooms” form the basis of Waterford’s economy. Given traditional patterns of rural growth, adjacent to major metropolitan centers, Waterford was destined to be a bedroom community for the Modesto urban center.

The City of Waterford is challenged by its lack of transportation infrastructure (rail, freeway, air) that connects the City with major commercial/industrial centers of the region and the state. Traditionally, the City has been an agricultural service center for the surrounding farmland.

With increased population and growth in the urban centers along Highway 99 corridor to the west, the City’s economic growth has been sustained by its strategic location along Highway 132. This corridor provides access to the recreational resources to the east of the City. These resources include Modesto Reservoir, Turlock Lake, and the Sierra recreation areas in Tuolumne and Mariposa counties. Highway 132 also provides access to Yosemite National Park.

In recent years, the small-town environment, affordable housing and recreation access have become an attractor to new residents who commute to the regional employment centers along the Highway 99 corridor to the west. This influx of new residents has created new local employment opportunities in the retail and service sectors of the local economy. This growth has also resulted in an increase in per capita income levels for the area. Based on an economic study prepared for the City, it is forecasted that the combination of these economic trends will result in the City growing and exceeding the median and per capita income levels of other major population centers in the area and the County as a whole.

Estimates of select economic characteristics for the City of Waterford are shown in Table 1-1.

Table 1-1 City of Waterford Economic Characteristics, 2015-2019 Characteristic City of Waterford
Families below Poverty Level (%) 16.1%
All People below Poverty Level (%) 19.5%
Median Family Income $59,196
Median Household Income $58,904
Per Capita Income $20,891
Population in Labor Force 57.6%
Population Employed* 52.9%
Unemployment Rate** 8.1%
Source: U.S. Census Bureau, California Department of Finance, 2015-2019 American Community Survey (ACS), 5-year estimates, www.census.gov/
*Excludes armed forces. **Does not reflect unemployment numbers due to COVID-19 Pandemic The most common industries within a five-mile radius of Waterford are agriculture, forestry, fishing and hunting, and mining (a combined average of 16.6 percent of workers). Educational services, and health care and social assistance and manufacturing are other two major industries, which resonates with the information regarding manufacturing being one of Stanislaus County’s major industries in Chapter 2 Community Profile of the main plan. The tables below show the labor force breakdown by occupations and industry based on estimates from the 2015-2019 five-year American Community Survey (ACS). 2022-2027 Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan Annex I: City of Waterford
Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan | 2022-2027 Update Page 4 Table 1-2 City of Waterford Employment by Industry, 2015-2019 Occupation # Employed % Employed
Agriculture, forestry, fishing and hunting, and mining 565 16.6% Educational services, and health care and social assistance 524 15.4% Manufacturing 485 14.2%
Construction 358 10.5%
Arts, entertainment, and recreation, and accommodation and food services
351 10.3%
Professional, scientific, and management, and administrative and waste management services
317 9.3%
Retail trade 280 8.2%
Transportation and warehousing, and utilities 178 5.2%
Wholesale trade 126 3.7%
Other services, except public administration 126 3.7%
Public administration 54 1.6%
Finance and insurance, and real estate and rental and leasing 46 1.3% Information 0 0.0%
Total 3,410 100%
Source: U.S. Census Bureau, California Department of Finance, 2015-2019 American Community Survey (ACS), 5-year estimates, www.census.gov/
*Excludes armed forces
Table 1-3 City of Waterford Employment by Occupation, 2015-2019 Occupation # Employed % Employed
Management, business, science, and arts occupations 876 25.7% Service occupations 604 17.7%
Sales and office occupations 522 15.3%
Natural resources, construction, and maintenance occupations 897 26.3% Production, transportation, and material moving occupations 512 15.0% Total 3,410 100%
Source: U.S. Census Bureau, California Department of Finance, 2015-2019 American Community Survey (ACS), 5-year estimates, www.census.gov/
*Excludes armed forces

1.2.5 Population
In May 2021, the State Department of Finance (DOF) released population data for the state demographic report, According to the report the City of Waterford has a population of 8,944 persons as of January 1, 2021 and gained 31 residents from the previous year. Select demographic and social characteristics for the City of Waterford from the 2015-2019 American Community Survey and the California Department of Finance, are shown in Table 1-4.

Table 1-4 City of Waterford Demographic and Social Characteristics015-2019 Characteristic City of Waterford
Gender/Age
Male 50.8%
Female 49.2%
Median age (years) 33.9
Under 5 years 8.3%
Under 18 years 31.7%
65 years and over 10.5%
2022-2027 Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan Annex I: City of Waterford
Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan | 2022-2027 Update Page 5 Characteristic City of Waterford
Race/Ethnicity
White 43.2%
Asian 2.1%
Black or African American 0.8%
American Indian/Alaska Native 0%
Hispanic or Latino (of any race) 51.3%
Native Hawaiian and Other Pacific
Islander

0.1%
Some other race 0%
Two or more races 2.5%
Education*
% High school graduate or higher 66.1%
% with bachelor’s degree or Higher 6.5%
Social Vulnerability
% with Disability 14.9%
% Language other than English spoken at
home 44.1%
% Speak English less than "Very Well" 16%
% of households with a computer 89.3%
% of households with an Internet
subscription 85.1%
% of households with no vehicle available 3.3%
Source: U.S. Census Bureau, California Department of Finance, 2015-2019 American Community Survey (ACS), 5-year estimates, www.census.gov/
* Population 25 years and over
The following table with information from the ACS 5-year estimates (2015-2019) is related to housing occupancy in the City of Waterford.

Table 1-5 City of Waterford Housing Occupancy and Units, 2015-2019 Housing Characteristic Estimate Percentage
Housing Occupancy
Total Housing Units 2,706 100%
Units Occupied 2,485 91.8%
Vacant 221 8.2%
Housing Units
1-unit detached 2,284 84.4%
1-unit attached 24 0.9%
2 units 55 2.0%
3 or 4 units 178 6.6%
5-9 units 125 4.6%
10-19 units 0 0%
20 or more units 10 0.4%
Mobile Home 30 1.1%
Boat, RV, van etc. 0 0%
Housing Tenure
Owner Occupied 1,674 67.4%
Renter Occupied 811 32.6%
Source: U.S. Census Bureau, California Department of Finance, 2015-2019 American Community Survey (ACS), 5-year estimates, www.census.gov/
2022-2027 Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan Annex I: City of Waterford
Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan | 2022-2027 Update Page 6

1.2.6 Disadvantaged Communities
There is one census tract in the western portion of the City of Waterford that has a higher housing burden (6099002802). Based on information from the California Office of Environmental Health Hazard Assessment (OEHHA) CalEnviroScreen tool, approximately 16% of the people residing in this census tract are housing burdened low-income households. Housing-burdened low-income households are households that are both low income and highly burdened by housing costs. California has very high housing costs relative to the rest of the country, which can make it hard for households to afford housing ("CalEnviroScreen 4.0" 2021). Households with lower incomes may spend a larger proportion of their income on housing and may suffer from housing-induced poverty ("CalEnviroScreen 4.0" 2021). These households are also more likely to be adversely affected during a hazard event and less likely to recover.

In other words, in Waterford, there are approximately 1,860 housing units in the census tract in the western portion of the City, and about 740 of them are considered low income and 290 are considered housing burdened.

The OEHHA CalEnviroScreen tool applies a formula to generate a combined ranking score that considers 21 indicators for each census tract that cover pollution indicators, such as diesel emissions and concentrations of toxic clean-up sites and population indicators, such as poverty and unemployment rates. The census tracts with CalEnviroScreen rankings between 75 and 100 percent (i.e., a combined score in the top 25 percent of all census tracts in the State) are considered to be disadvantaged communities (DACs). The census tract in the City of Waterford with a higher housing burden has a CalEnviroScreen ranking of 42, meaning the percent of housing burdened is higher than 42% of the rest of California. The City can use this information to conduct targeted outreach and engage community members to consider what other hazards and mitigation strategies or programs should be considered to meet community needs. The City can also engage these communities to proactively prioritize hazard mitigation projects that benefit DACs.

1.2.7 Development Trends
According to Waterford Vision 2025 General Plan, the plan’s guiding principles included: conserving natural resource areas and promoting an urban form that integrates housing, shops, workplaces, schools, parks and civic facilities. The City’s development trends are summarized in the City’s vision: “a community whose growth and expansion occurs in such a manner as to enhance the existing community and preserves and maintains Waterford’s rural small community charm.” With regards to the City’s long-range planning and vision for urban expansion, the guiding policies include maintain the City’s compact form; maintain efficient and cost-effective service delivery systems; and preserve agricultural lands and open space outside the City's growth boundaries
2022-2027 Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan Annex I: City of Waterford
Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan | 2022-2027 Update Page 7 The City has examined several growth alternatives concerning the direction of future urban expansion.

The City defined its future Urban Growth Area to include approximately 4,458-acres and its intention to expand its SOI to include an area of approximately 1,608 acres. There were approximately 1,108 acres in the 2005 City limits. Within the Waterford Urban Planning Area, sufficient land has been set aside to accommodate the City’s projected growth needs beyond the year 2025. Figure 1-2 below shows the City of Waterford Planned Urban Growth Area and SOI according to the Waterford 2025 General Plan.

Figure 1-2 City of Waterford Planned Urban Growth Area & Sphere of Influence, Waterford 2025 General Plan
Source: City of Waterford 2007
Figure 1-3 below, presents the proposed general distribution of the uses of land within the City of Waterford and its Urban Planning Area.
2022-2027 Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan Annex I: City of Waterford
Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan | 2022-2027 Update Page 8 Figure 1-3 City of Waterford Land Use Diagram, Waterford 2025 General Plan Source: City of Waterford 2007

1.2.8 Future Development
The areas located in the SOI shown in Figure 1-1 are areas each City plans to grow into and are potentially slated for future development. Understanding the potential hazard exposure in the area can help to mitigate the impacts of events before development occurs in those areas.

The City regularly updates its building codes to meet minimum standards in the California Building Code (CBC) last updated in 2019. Compliance with the 2019 CBC ensures construction standards are met and hazards risks related to earthquake, landslides, flood, severe weather, and wildfire are minimized. The City also complies with the National Flood Insurance Program (NFIP) and all development must meet minimum flood protection standards set forth by FEMA. Participation in the 2022-2027 MJHMP update planning process also ensures the City of Waterford continually reviews and updates hazard information and takes this information into account when reviewing development applications. This process will help the City make better decisions on where, when, and how future development occurs.

During this plan update process, a parcel analysis was conducted using the SOI and overlaid with available hazard risk layers to determine where future development may be at risk of natural hazard events. The results of the analysis have been integrated into the applicable hazard sections: dam incidents and flood hazards. Table 1-6 is the summary of the SOI total exposure for the City of Waterford. 2022-2027 Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan Annex I: City of Waterford
Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan | 2022-2027 Update Page 9 Table 1-6 Sphere of Influence Total Exposure Summary
Property Type Improved
Parcel Count
Improved
Value
Estimated
Content Value Total Value
Commercial 1 $1,147,621 $1,147,621 $2,295,242
Residential 3 $588,645 $294,323 $882,968
Residential-Income 1 $67,867 $33,934 $101,801
Rural, Farm, Agricultural 76 $12,289,901 $12,289,901 $24,579,802 Unclassified 1 $1,045,144 $1,045,144 $2,090,288
Total 82 $15,139,178 $14,810,922 $29,950,100
Source: Stanislaus County Assessor, Wood analysis
2 HAZARD IDENTIFICATION AND SUMMARY
The City of Waterford LPT identified the hazards that affect the City and summarized their frequency of occurrence, spatial extent, potential magnitude, and significance specific to their community (see Table 2-1). There are no hazards that are unique to Waterford, although the flood risk in the City is greater and distinct from the flooding risk in the County’s planning area. The purpose of this section is to profile the City of Waterford hazards and assess the City’s specific vulnerabilities.

The hazards profiled in the County MJHMP Base Plan discuss the overall impacts to the County’s planning area. This information is summarized in the hazard description, geographic extent, magnitude/severity, previous occurrences, and probability of future occurrences sections. The information in the City of Waterford’s risk assessment summarizes only those hazards that vary from the County’s planning area. The hazard profile information is organized in a similar format here as a way to identify priority hazards for mitigation purposes.

Table 2-1 summarizes the hazards profiled in the County’s planning area and risk assessment to provide a way for the LPT to evaluate which hazards are addressed in their General Plan Safety Element and which hazards are relevant and priority hazards for the City. The City’s General Plan Safety Element addresses safety issues including seismic hazards, flooding hazards, fire hazards, and hazardous materials. Among these hazards in the General Plan, flooding (including dam inundation) is further addressed in this Annex, while seismic hazards and wildfire hazards are further addressed in the Base Plan. Climate change considerations are also addressed in the Base Plan.

Table 2-1 City of Waterford —Hazard Profiles
Hazard Geographic
Area
Probability of
Future
Occurrence
Magnitude/S
everity
(Extent)
Overall
Significance
Priority
Hazard?
Agriculture Pest and
Disease Extensive Likely Negligible Low No
Aquatic Invasive
Species Limited Likely Negligible Low No
Cyber Attack Significant Likely NA Medium No
Dam Incidents Extensive Unlikely Catastrophic High Yes
Drought Extensive Likely Critical High Yes
Earthquake Extensive Occasional Limited Medium No
Extreme Heat Extensive Highly Likely Critical Medium No Flood Limited Likely Negligible Low No
Landslide, Mud/Debris
Flow, Rockfall Limited Occasional Negligible Low
No
Public Health Hazards:

Pandemic/Epidemic Extensive Occasional Critical High No 2022-2027 Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan Annex I: City of Waterford
Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan | 2022-2027 Update Page 10 Hazard Geographic
Area
Probability of
Future
Occurrence
Magnitude/S
everity
(Extent)
Overall
Significance
Priority
Hazard?
Severe Weather: Dense
Fog Extensive Likely Critical Medium No
Severe Weather: Hail,
Heavy Rain,
Thunderstorms,
Lightning
Extensive Highly Likely Critical High
No
Severe Weather: High
Wind/Tornado Extensive Highly Likely Critical High No
Wildfire Limited Occasional Negligible Low No
Geographic Area
Limited: Less than 10% of planning area
Significant: 10-50% of planning area
Extensive: 50-100% of planning area
Probability of Future Occurrences
Highly Likely: Near 100% chance of occurrence in
next year or happens every year.

Likely: Between 10 and 100% chance of occurrence
in next year or has a recurrence interval of 10 years
or less.

Occasional: Between 1 and 10% chance of
occurrence in the next year or has a recurrence
interval of 11 to 100 years.

Unlikely: Less than 1% chance of occurrence in
next 100 years or has a recurrence interval of
greater than every 100 years.

Magnitude/Severity (Extent)
Catastrophic—More than 50 percent of property severely
damaged; shutdown of facilities for more than 30 days; and/or multiple deaths
Critical—25-50 percent of property severely damaged; shutdown of facilities for at least two weeks; and/or injuries and/or illnesses result in permanent disability
Limited—10-25 percent of property severely damaged;
shutdown of facilities for more than a week; and/or
injuries/illnesses treatable do not result in permanent disability Negligible—Less than 10 percent of property severely damaged, shutdown of facilities and services for less than 24 hours; and/or injuries/illnesses treatable with first aid
Significance
Low: minimal potential impact
Medium: moderate potential impact
High: widespread potential impact

2.1 Vulnerability Assessment
The intent of this section is to assess Waterford’s vulnerability that is separate from that of the planning area as a whole, which has already been assessed in Section 4 Hazard Identification and Risk Assessment in the Base Plan. For dam incidents and flood hazards, this vulnerability assessment analyzes the population, property, and other assets at risk to hazards ranked of medium or high significance that may vary from other parts of the planning area. For the other hazard profiles, the City described the specific vulnerabilities in the community by developing problem statements that qualitatively summarize areas of concern associated with the hazards that vary from other parts of the County planning area. These specific vulnerabilities are referred to as “problem statements” in the risk assessment. The problem statements are based on the risk assessment mapping and modeling and where spatial data and maps are not available, they are based on specific input from the City LPT. With this information mitigation actions were then developed to address these specific vulnerabilities; this process provides the connection between the problem statement and the mitigation action.

The information to support the hazard identification and risk assessment was based on a combination of the previous LHMP for the City and County and jurisdiction-specific information collected during the 2021 update. A Data Collection Guide and associated worksheets were distributed to each participating municipality or special district to complete during the update process in 2021. Information collected was analyzed and summarized in order to identify and rank all the hazards that could impact anywhere within the County, as well as to rank the hazards and identify the related vulnerabilities unique to each jurisdiction.

Each participating jurisdiction was in support of the main hazard summary identified in the Base Plan (see Table 4-2). However, the hazard summary rankings for each jurisdictional Annex may vary due to specific hazard risks and vulnerabilities unique to that jurisdiction. The information in this Annex helps differentiate the jurisdiction’s risk and vulnerabilities from that of the overall County. 2022-2027 Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan Annex I: City of Waterford
Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan | 2022-2027 Update Page 11 Note: The hazard “Significance” reflects the overall ranking for each hazard and is based on the City of Waterford’s LPT input from the Data Collection Guide and the risk assessment developed during the planning process (see Section 4 of the Base Plan), and the set of problem statements developed by the City LPT. The hazard significance summaries in Table 2-1 above reflect the hazards that could potentially affect City. The discussion of vulnerability for each of the following hazards is located in Section 2.3 Estimating Potential Losses, which includes an overview of the local issues and areas of concern associated with the hazard, a problem statement for the priority hazard, and a quantitative risk assessment, where spatial data is available. Based on this analysis, the priority hazards for the City of Waterford for mitigation are identified below.
• Dam Incidents
• Drought
Cyber Attack, Drought, Earthquake, Extreme Heat, Pandemic/Epidemic and Severe Weather hazards are not addressed in this vulnerability assessment as the exposure is similar to the overall County exposure, and the potential for losses are difficult to quantify specific to the City of Waterford. Additionally, hazards assigned a significance rating of Low and which do not differ significantly from the County ranking (e.g., Low vs. High) are not addressed further and are not assessed individually for specific vulnerabilities in this Annex. In the City of Waterford, those hazards include Agriculture Pests and Disease, Aquatic Invasive Species, Flood, Landslide (Mud/Debris Flow, Rockfall), and Wildfire. For example, flooding, landslide, and wildfire hazards were assessed for the City and based on the analysis and mapping neither hazard resulted in significant vulnerabilities or impacts.

2.2 Assets
This section considers Waterford’s assets at risk, including values at risk, critical facilities and infrastructure, historic assets, economic assets and growth and development trends.

2.2.1 Property Exposure
The following data on property exposure is derived from the Stanislaus County 2021 Parcel and Assessor data. This data should only be used as a guideline to overall values in the City as the information has some limitations. It is also important to note that in the event of a disaster, it is generally the value of the infrastructure or improvements to the land that is of concern or at risk. Generally, the land itself is not a loss and is not included in the values below. Table 2-2 shows the exposure of properties (e.g., the values at risk) broken down by property type for the City of Waterford.

Table 2-2 City of Waterford Property Exposure by Type
Property Type Improved
Parcel Count
Improved
Value
Estimated
Content Value Total Value
Commercial 117 $38,179,265 $38,179,265 $76,358,530
Industrial 18 $4,182,790 $6,274,185 $10,456,975
Residential 2,114 $311,482,233 $155,741,117 $467,223,350 Residential-Income 29 $5,006,986 $2,503,493 $7,510,479
Rural, Farm, Agricultural 20 $2,708,574 $2,708,574 $5,417,148 Unclassified 76 $28,263,326 $28,263,326 $56,526,652
Vacant Commercial 2 $61,743 $61,743 $123,486
Total 2,376 $389,884,917 $233,731,703 $623,616,620
Source: Stanislaus County Assessor, Wood analysis

2.2.2 Critical Facilities and Infrastructure
For the purposes of this plan, a critical facility is defined as one that is essential in providing utility or direction either during the response to an emergency or during the recovery operation. FEMA sorts critical facilities into seven lifeline categories as shown in Figure 4-1 in the Base Plan.

Table 2-3 shows a summary of the critical facilities within the City of Waterford. Critical facilities and other community assets as important to protect in the event of a disaster. 2022-2027 Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan Annex I: City of Waterford
Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan | 2022-2027 Update Page 12 Table 2-3 Critical Facilities within the City of Waterford Lifeline # of Critical Facilities
Communication -
Energy -
Food, Water, Shelter 6
Hazardous Materials -
Health and Medical -
Safety and Security 7
Transportation 3
Total 16
Within the City of Waterford, the following are considered critical facilities:
• Stanislaus Consolidated Fire Protection District Station 34 • Waterford City Hall
• Waterford Police Department
• Waterford Police Department building
• Water supply lines and wells
• Wastewater treatment plant, pumping stations, and trunk lines • Major electrical transmission lines and substations
• Major communication lines and microwave transmission facilities • Major public and private schools
• Emergency shelter
• Public Library
• Hospital facilities, nursing homes and dialysis centers There are also several designated shelters in Waterford for use in an emergency event such as First Southern Baptist Church and Waterford Community Center.

2.2.3 Historic, Cultural and Natural Resources
There are no historical resources in the City of Waterford that are designated on a federal, state or local level based on the California Office of Historic Preservation.

Natural resources are important to include in benefit-cost analyses for future projects and may be used to leverage additional funding for projects that also contribute to community goals for protecting sensitive natural resources. According to the City’s General Plan Open Space & Conservation Element, the Waterford planning area contains several important habitats that could contain species of plant and animal life considered “sensitive”. For example, the northern and eastern portions of the City, in the region of Dry Creek and the Modesto Reservoir, contain seasonal wetlands and vernal pools in scattered locations. These seasonal wetlands and vernal pools provide potential habitats for several species of wildlife that are listed as threatened and endangered. Awareness of natural assets then can lead to opportunities for meeting multiple objectives. For instance, protecting wetlands areas protects sensitive habitat as well as attenuates and stores floodwaters.

2.3 Estimating Potential Losses

2.3.1 Dam Incidents
Protection from flood hazards created by dam failures is critical to the safety and well-being of Waterford residents. A dam vulnerability assessment was completed during the 2021 update, following the methodology described in Section 4 of the Base Plan. Dam inundation areas from the Don Pedro, Turlock Lake and Modesto Reservoir dams with the City of Waterford are shown in Figure 2-1. Table 2-4 summarizes the values at risk within Don Pedro dam’s inundation area. All these three dams are rated as high hazard. Both Don Pedro and Modesto Reservoir dams are also rated as Extremely High by the California Department of Water Resources (DWR), Division of Safety of Dams (DSOD). Extremely High rated dams are expected to cause considerable loss of human life or result in an inundation area with a population of 1,000 or more. All areas within City Limits and SOI are vulnerable to dam incidents. The 2022-2027 Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan Annex I: City of Waterford
Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan | 2022-2027 Update Page 13 City would experience catastrophic damage if Don Pedro dam were to breach. A total of 16 critical facilities are located within dam inundation areas.

Figure 2-1 City of Waterford Potential Dam Inundation Areas 2022-2027 Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan Annex I: City of Waterford
Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan | 2022-2027 Update Page 14 Table 2-4 Don Pedro Dam Inundation
Property Type Improved Parcel Count Population
Commercial 117
Industrial 18
Residential 2,114 7,547
Residential-Income 29 104
Rural, Farm, Agricultural 20
Unclassified 76
Vacant Commercial 2
Total 2,376 7,651
Source: California DSOD, National Inventory of Dams, Stanislaus County Assessor’s Office Future Development
The results of the SOI and dam analysis are shown in Table 2-5.

Table 2-5 Sphere of Influence Areas Exposed to Don Pedro Inundation Property Type Improved Parcel Count Population
Commercial 1
Residential 3 10.71
Residential-Income 1 3.57
Rural, Farm, Agricultural 76
Unclassified 1
Total 82 14
Source: Stanislaus County Assessor, Wood analysis

2.3.2 Drought
According to the City’s 2016 Water Master Plan (WMP), the City of Waterford operates and maintains three separate service areas (systems); River Pointe, Waterford, and Hickman. The service areas are hydraulically independent, and there are no emergency interconnections between any two systems.

The River Pointe service area is a new development (since 2004) with approximately 330 metered residential customers, and a buildout capacity of approximately 350 total connections. The water system consists of two wells, a water treatment facility for the removal of manganese, two 100,000-gallon storage tanks, and booster pumps. The water production capacity of the River Pointe system exceeds the service area demands.

The Waterford service area is an older water system, with facilities dating back to at least 1945. The system provides water for both residential and commercial development. The Waterford system has six wells, and approximately 91,000 feet of distribution pipes. Wells and distribution pipelines are of various sizes, ages, and materials, and some wells and pipes need replacement. The system has approximately 2,260 service connections. A comprehensive water meter installation program began in 2005 and was completed in 2014 to comply with State water code requirements. Due to minimal elevation change, the City currently only has a single pressure zone. The Waterford system also currently has no storage.

For both River Pointe and Waterford systems, the source water is from local groundwater aquifers, exclusively, as the City does not currently use surface water. The total production capacity for the systems are 3,406 gallons per minute (gpm) and 1,550 gpm, for Waterford and River Pointe systems respectively. It is also mentioned in the WMP that none of the Waterford wells appear to be operating at this minimum, and some are excessively low. Poor efficiency can be due to many reasons, including age, dropping water tables due to overdrawing of the aquifer, well screen encrustation or obstruction, and pump bowl damage from sand wear.
2022-2027 Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan Annex I: City of Waterford
Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan | 2022-2027 Update Page 15 The Hickman water service area includes approximately 185 service connections that serves a population of approximately 430 persons. Most of Hickman is residential, though there are approximately 11 commercial connections, including a public elementary school. The Hickman system has two wells, with a combined production of approximately 600 gpm. One well is equipped with a specific treatment system for taste and odor control. The Hickman system also has no storage. The source capacity of the Hickman system is also inadequate to meet demands and requires significant capital improvements.

The City’s total water production capacity is adequate, due to the recent permit adjustment (Division of Drinking Water (DDW). The City’s water permit requires sufficient capacity to meet maximum day and peak hour demands. However, the system capacity does not provide adequate fire suppression capacity during a high-demand period, under typical waterworks standards. By joining the River Pointe and Waterford service areas, all capacity requirements would be met. The River Pointe water supply system is the newest infrastructure owned by the City. The River Pointe wells were constructed based on a modern design. Therefore, the River Pointe facilities are expected to remain an important part of the City’s water production. With the consolidation of the River Pointe and Waterford systems, surplus capacity in the River Pointe system could be used outside of the River Pointe service area, although the City has still been working on addressing the concerns related to the planned consolidation of these two systems.

Regarding water conservation, as noted in the 2016 WMP, the City’s installation of water meters has already achieved a lower average water demand and thus water conservation. Other mandatory conservation measures (i.e., SBx7-7, SB407, AB 1881, California Green Building Code, and energy conservation programs that impact water use, such as low water use clothes and dishwashing machines) will further increase conservation efforts over time. For example, new development is required by law to use at least 20% less water than existing development. Conservation and efficient water use will continue to be an important part of managing demands and reducing the amount of source water required. (City of Waterford 2016)
The City currently relies solely on groundwater, as mentioned previously. However, with significant increases in groundwater pumping due to growing water demands in the agricultural and urban sectors, and a decrease in groundwater recharge due to drought or other factors, the diversification of the City’s water supply should be considered given the potential changes that may occur in groundwater quantity, quality, reliability, and cost. Like many areas in California, the City is seeing declines in the local groundwater table. For example, despite a significant decrease in its water use over the past two years of nearly 30%, the City has seen an average drop in the groundwater surface elevation of nearly 15 feet (City of Waterford 2016). Future state groundwater regulations are expected to address this problem eventually, but this may also place restrictions on the City’s access to local groundwater in the future.

Nevertheless, groundwater is, and is expected to continue to be, a key water supply source for the City.

Other sources of water the City may pursue include surface water, and recycled wastewater from the City’s Wastewater Treatment Plant (WWTP). Surface water sources include local rivers, reservoirs, and state/federal water project conveyance systems. The City may also have a unique opportunity to acquire surface water due to its location near the Modesto Irrigation District’s treatment and conveyance facilities.

Furthermore, the City should establish a long-term goal to diversify its water supply portfolio, since the lack of a diversified water supply for the City indicates that climate change could impact the City due to the potential reduction in groundwater recharge and runoff, increasing concerns related to groundwater overdraft and declining groundwater quality. The City is now participating in both the Stanislaus and Tuolumne Rivers Groundwater Basin Association and the Turlock Groundwater Basin Association and should continue its participation in regional groundwater management associations to develop viable water use and conservation strategies. (City of Waterford 2016)

2.3.3 Flood
The primary types of flood events in Stanislaus County that may impact the City of Waterford are riverine and local urban flooding. Regardless of the type of flood, the cause is often the result of severe weather and excessive rainfall, either in the flood area, upstream, or from winter snowmelt.

The southern portion of the City of Waterford along the Tuolumne River is in the FEMA 1% and 0.2% annual chance floodplains. The physical risks associated with potential flooding and the regulatory requirements for floodplain management are important considerations when decisions are being made 2022-2027 Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan Annex I: City of Waterford
Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan | 2022-2027 Update Page 16 regarding future land use throughout the City. Parts of the City may also be vulnerable to localized stormwater flooding during severe storms. The rest of the City of Waterford to the north lies outside the FEMA 1% and 0.2% annual chance floodplains. Based on the history of flooding in the County of Stanislaus, the City of Waterford and surrounding areas are considered likely to have the hazard potential for future flooding.

A flood vulnerability assessment was completed during the 2021 update, following the methodology described in Section 4 of the Base Plan. FEMA 1% and 0.2% annual chance floodplains within the City are shown in Figure 2-2. None of the City’s improved parcels are located within 1% annual chance floodplains.

Table 2-6 summarizes the values at risk in the City’s 0.2% annual chance floodplains. 2022-2027 Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan Annex I: City of Waterford
Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan | 2022-2027 Update Page 17 Figure 2-2 City of Waterford FEMA 1% and 0.2% Annual Chance Floodplains Table 2-6 City of Waterford FEMA 0.2% Annual Chance Flood Hazard, by Property Type Property Type
Improved
Parcel
Count
Improved
Value
Estimated
Content
Value
Total Value Estimated
Loss Population
Industrial 1 $27,971 $41,957 $69,928 $17,482
Residential 91 $24,377,622 $12,188,811 $36,566,433 $9,141,608 325 Residential-Income 1 $510,594 $255,297 $765,891 $191,473 4 Total 93 $24,916,187 $12,486,065 $37,402,252 $9,350,563 328 Source: Stanislaus County Assessor’s Office; National Flood Hazard Layer Effective 8/24/2021; FEMA; Wood analysis 2022-2027 Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan Annex I: City of Waterford
Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan | 2022-2027 Update Page 18 Based on this analysis, the City of Waterford has 93 improved parcels located within the 0.2% annual chance floodplain for a total value of around $37.4 million. The potential loss is estimated at around $9.4 million if these areas were inundated by the 0.2% annual chance flood. The population at risk was calculated for 0.2% annual chance floodplains based on the number of residential properties at risk and the average number of persons per household (3.57). There are an estimated 328 persons at risk to 0.2% annual chance flood in the City of Waterford.

The City is not near the DWR Awareness 100-year floodplains; these mapped floodplains are located to the south of the City, well outside the City limits.

Critical Facilities at Risk
Critical facilities are those community components that are most needed to withstand the impacts of disaster as previously described. As shown in Figure 2-3, there are no critical facilities within the City’s floodplains.
2022-2027 Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan Annex I: City of Waterford
Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan | 2022-2027 Update Page 19 Figure 2-3 Critical Facilities within the FEMA 1% and 0.2% Annual Chance Floodplain Insurance Coverage, Claims Paid, and Repetitive Losses
The City of Waterford joined the NFIP on July 16, 1979. NFIP Insurance data indicates that as of April 2022, there were five flood insurance policies in force in the City with $1,750,000 of coverage. None of these policies is located in A-zones. All of the policies are single-family residential and located in the B, C, and X zone. There has been one historical claim for flood losses. According to the FEMA Community Information System accessed April 6, 2022, the City has no Repetitive Loss properties or Severe Repetitive Loss properties.

Future Development
The results of the SOI flood analysis are shown in Table 2-7. None of the parcels within the SOI are exposed to the 1% annual chance flood. A total of 1 parcel within the SOI is exposed to the 0.2% annual 2022-2027 Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan Annex I: City of Waterford
Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan | 2022-2027 Update Page 20 chance flood. This indicates the risk to existing development that could be under the City’s jurisdiction if the area was annexed.

Table 2-7 Sphere of Influence Areas Exposed to 0.2% Annual Chance Flood Hazard Property Type
Improved
Parcel
Count
Improved
Value
Estimated
Content
Value
Total Value Estimated
Loss Population
Rural, Farm,
Agricultural
1 $7,664 $7,664 $15,328 $3,832 N/A
Total 1 $7,664 $7,664 $15,328 $3,832 N/A
Source: Stanislaus County Assessor, Wood analysis

2.3.4 Landslide
As shown in Figure 2-4, most of the City is not susceptible to deep-seated landslide hazards, although there is a long and narrow segments located in the southern portion of the City that has high susceptibility along the Tuolumne River. However, landslide hazard is overall rated as low for the City and is not a priority hazard. This hazard profile and the map are prepared for planning and awareness purposes. 2022-2027 Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan Annex I: City of Waterford
Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan | 2022-2027 Update Page 21 Figure 2-4 City of Waterford Deep-Seated Landslide Susceptibility

2.3.5 Wildfire
As shown in Figure 2-5, there are limited areas within the City limits that have moderate or low wildfire threat; these areas are mostly within the southern portion, northeast, and west of the City. No area in the City has high fire threat. Therefore, wildfire is rated as low for the City and included in this analysis for public awareness and planning purposes only.
2022-2027 Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan Annex I: City of Waterford
Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan | 2022-2027 Update Page 22 Figure 2-5 City of Waterford Wildfire Threat Areas
3 CAPABILITY ASSESSMENT
Capabilities are the programs and policies currently in use to reduce hazard impacts or that could be used to implement hazard mitigation activities. This capabilities assessment is divided into five sections:
regulatory mitigation capabilities, administrative and technical mitigation capabilities, fiscal mitigation capabilities, mitigation outreach and partnerships, and other mitigation efforts. To develop this capability assessment, the LPT representatives reviewed a matrix of common mitigation activities to inventory which of these policies or programs and shared any updates or changes through the Waterford Data Collection 2022-2027 Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan Annex I: City of Waterford
Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan | 2022-2027 Update Page 23 Guide. The team then supplemented this inventory by reviewing additional existing policies, regulations, plans, and programs to determine if they contribute to reducing hazard-related losses.

During the plan update process, this inventory was reviewed by the LPT representatives and Wood consultant team staff to update information where applicable and note ways in which these capabilities have improved or expanded. Additionally, in summarizing current capabilities and identifying gaps, the LPT representatives also considered their ability to expand or improve upon existing policies and programs as potential new mitigation strategies. The City of Waterford’s capabilities are summarized below.

3.1 Regulatory Capability
The regulatory and planning capabilities table lists planning and land management tools typically used by local jurisdictions to implement hazard mitigation activities. The table below indicates those that are in place in the City of Waterford.

Table 3-1 City of Waterford —Regulatory and Planning Capabilities Regulatory Tool
(ordinances, codes, plans) Yes/No Comments
General Plan Yes Adopted June 2007
Zoning ordinance Yes Title 17
Subdivision ordinance Yes Title 16
Growth management ordinance No No
Floodplain ordinance No Chapter 15.32 Flood Damage Prevention Other special purpose ordinance
(stormwater, steep slope, wildfire)
No No
Building code Yes Title 15
Fire department ISO rating No N/A
Erosion or sediment control program No No
Stormwater management program No No
Site plan review requirements Yes Chapter 17.52 Architectural and Design Review Procedures
Capital improvements plan No A Capital Improvement Plan is not available while info regarding Capital Projects is available.

Economic development plan No No
Local emergency operations plan Yes Adopted in November 2011 Other special plans No
Flood insurance study or other
engineering study for streams
Yes Included in the County’s FIS, which was revised on
August 24, 2021
Elevation certificates (for floodplain
development)
No No
Other
Waterford General Plan Vision 2025 (2007)
The Waterford Vision 2025 General Plan recognizes that residential development is a necessary component of growth and will occur (is occurring) in the early phases of “City Building”. The plan, however, recognizes that it must accommodate business and industry to improve the quality of life for residents of the city in the future; a future that includes increasing energy costs, global warming, and changes in the region’s demographics and basic economic structure over the next few decades.

Waterford’s “vision” did not evolve without some resistance. Some agricultural interests were strongly opposed the “urban limit line” established along the western boundary of the city restricting urban encroachment into “prime” agricultural farmlands. Others had concerns of the impacts of noise, traffic, and air pollution on the city’s residents with growth.

The General Plan identifies the community's environmental, social, and economic goals, as well as records the local government's policies and standards for the maintenance and improvement of existing development and the location and characteristics of future development. In addition, the General Plan provides citizens with information about their community and with opportunities to participate in the local planning and decision-making process. The General Plan also improves the coordination of community 2022-2027 Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan Annex I: City of Waterford
Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan | 2022-2027 Update Page 24 development and environmental protection activities among local, regional, state, and federal agencies.

Furthermore, the General Plan establishes a basis for subsequent planning efforts, such as the preparation of specific plans, redevelopment plans, and special studies, to deal with unique problems or areas in the community.

Emergencies Organizations and Functions Ordinance, Chapter 2.48 The declared purposes of this chapter are to provide for the preparation and carrying out of plans for the protection of persons and property within the City in the event of an emergency; the direction of the Emergency Organization; and the coordination of the emergency functions of the City with all other public agencies, corporations, organizations and affected private persons.

The Ordinance establishes the City/County Disaster Council membership, the Disaster Council powers and duties, which include overseeing the preparedness activities of the various County departments and other jurisdictions in the Stanislaus County operational area, including the preparation of emergency and disaster plans, policies, and procedures, and ensuring unity of purpose.

The Ordinance also establishes the Operational Area Council. The Operational Area Council is responsible for coordinating, reviewing, and recommending for approval all emergency or disaster response policies, procedures, plans, and other influencing factors or events that would affect the Stanislaus operational area. The Operation Area Council does not have operational duties or powers during an event or emergency and is created to serve in the preparedness and planning phases only.

Emergency Operations Plan (2011)
The purpose of the City of Waterford Emergency Operations Plan (EOP) is to establish a comprehensive approach to various identified natural, man-made and technological disasters. The EOP provides an overview of operational concepts, identifies the components of the City’s Emergency Management Organization, and describes the overall responsibilities of federal, state and local agencies. This EOP does not address ordinary day-to-day emergencies, or the established routine procedures used to cope with such incidents. Rather, this plan concentrates on operational concepts and response procedures relative to large-scale emergencies and disasters. The EOP is a preparedness document and is designed to be read, understood, and exercised prior to an emergency. The EOP has been developed following the Standardized Emergency Management System (SEMS) and the National Incident Management System (NIMS).

Flood Damage Prevention Management Chapter 15.12
The purpose of the City’s Flood Damage Prevention Management Ordinance is to promote public health, safety, and general welfare, and to minimize public and private losses due to flood conditions in specific areas by legally enforceable regulations. These regulations are designed to protect human life and health; minimize expenditure of public money for costly flood control projects; minimize the need for rescue and relief efforts associated with flooding and are generally undertaken at the expense of the general public.

The ordinance is also in place to minimize damage to public facilities and utilities in SFHAs and help maintain a stable tax base by providing for the sound use and development of areas of special flood hazard. Moreover, the ordinance ensures that potential buyers are notified that property is in a SFHA and ensure that those who occupy the areas of special flood hazard assume responsibility for their actions.

Furthermore, the ordinance aims to minimize prolonged business interruptions.

All new construction or substantial development of residential structures shall have the lowest floor, including basement, elevated above the highest adjacent grade to a height equal to or exceeding the depth number specified in feet on the FIRM, or elevated at least two feet above the highest adjacent grade if no depth number is specified (in an AO zone), or elevated to or above the base flood elevation in an A zone as well as all other zones. For new construction or substantial development of residential structures in all other zones, upon the completion of the structure, the elevation of the lowest floor including the basement shall be certified by a registered professional engineer or surveyor and verified by the community building inspector to be properly elevated. Such certification and verification shall be provided to the floodplain administrator.
2022-2027 Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan Annex I: City of Waterford
Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan | 2022-2027 Update Page 25

3.2 Administrative and Technical Capability
The table below identifies City personnel with responsibilities for activities related to mitigation and loss prevention in the City of Waterford. Many positions are full-time and/or filled by the same person. A summary of technical resources follows.

Table 3-2 City of Waterford —Personnel Capabilities
Personnel Resources Yes/No Department/Position Comments Planner/engineer with knowledge of land
development/land management practices Yes Planning Division Engineer/professional trained in
construction practices related to buildings
and/or infrastructure
Yes
Building Department
Planner/engineer/scientist with an
understanding of natural hazards Yes Planning Division
Personnel skilled in GIS No
Full time building official Yes Building Department
Floodplain manager N/A Director of Public Works
(Floodplain administrator)
Emergency manager Yes City Manager (Director of
Emergency Services)
Grant writer Yes Administration
Other personnel
Yes
Multiple agencies and
departments with support
personnel expanding
capabilities for mitigation
GIS Data Resources
(Hazard areas, critical facilities, land use,
building footprints, etc.)
No
Warning Systems/Services
(Reverse 9-11, cable override, outdoor
warning signals)
No
Other
City Council
The City of Waterford was organized as a General Law City in 1969 and operates under the CouncilManager form of government. The Council-Manager is the most common form of local government and combines the strong political leadership of elected officials (City Council), with the strong managerial experience of an appointed local government manager (City Manager). In a Council-Manager government, the elected council appoints a City Manager, makes major decisions, and wields representative power on behalf of the citizens. The City Manager is, in turn, responsible for hiring a city staff to carry out the implementation of the decisions made by the Council.

The City Council is responsible to ensure the welfare of the people of Waterford. They are empowered to pass laws, approve the spending of money, and set general policy for the City. Members of the Waterford City Council also serve as the Governing Board for the City’s Redevelopment Agency, Public Financing Authority and serve as City representatives on various regional, state, and local organizations, as well as government boards and committees where the concerns and interests of the City require participation and involvement.

City Manager
The City Manager serves as the chief administrative officer of the City of Waterford and directs the activities and operations of the Public Works, City Clerk, Police Services, Planning & Engineering, Parks & Recreation and Finance departments. The Manager advises and assists the City Council in the conduct of City business, provides administrative oversight to recommending and implementing policies, program planning, fiscal management, administration, and provides a variety of other responsible and complex administrative support to the City Council. The City Manager also serves as the Executive Director of the Waterford Public Financing Authority and doubles as the Finance Director. The City Manager attends and 2022-2027 Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan Annex I: City of Waterford
Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan | 2022-2027 Update Page 26 participates in professional, state/local agency, and community meetings as necessary, stays current on issues relative to public administration and relative service delivery responsibilities, responds to and resolves sensitive and complex community and organizational inquiries, issues and complaints, as well as establishes and maintains a customer service orientation within the City organization.

City’s Building Division
The Building Division manages all work associated with processing building plans and permits. For all work including tenant improvements in a commercial building to remodels, additions, pools, patios for residential homes, a building permit is required.

City’s Economic Development Division
The Economic Development division is responsible for activities to protect, improve, and diversify Waterford’s local economy.

The office of Mayor is an elected position for a two-year term. The Mayor is the Presiding Officer at City Council meetings. The Mayor is responsible for the maintenance of order and decorum at all times. The Mayor calls the meeting to order and during the session all persons wishing to speak must first be recognized. The Mayor signs all ordinances, resolutions and contracts approved by the City Council and is the ceremonial head of the City, representing the City at official functions. Council Members are elected to a four-year term.

Fire Department
Stanislaus Consolidated Fire Protection District provides fire protection services for the City of Waterford.

Finance Department
The Finance Department manages and maintains the City’s financial records in conformity with Generally Accepted Accounting Principles and compliance with state and federal laws. The Finance Department is committed to developing and maintaining effective and efficient financial planning, reporting and central support systems to provide the City Council, City Manager and other City officials with financial information on a timely and meaningful basis.

Information Technology Program
The Information Technology program provides City-wide support for all office automation equipment, including computers, telephones, cell phones, fax machines, copiers, and other equipment. Program activities include developing, implementing and maintaining long-range policies, standards, equipment inventories, preventive maintenance and repair programs, as well as providing training, on-going user support and day-to-day troubleshooting on all equipment.

Planning Division
The Planning Division is responsible for administering the city’s land-use planning and entitlement process as well as managing, implementing and when necessary, updating the General Plan. Planning serves as the first stop for development proposals of any kind and assists developers, architects, builders, business owners and residents seeking approval for their development applications.

Public Works Department
The City of Waterford Public Works Department provides essential services to the community, including water supply production and treatment, wastewater and stormwater collection. The Department’s purpose is to develop and maintain the City’s infrastructure, buildings, grounds and vehicular equipment, and provide specialized community services, including assisting law enforcement and Fire District with emergency response and site management. The Department provides maintenance services on streets, parks, City trees and landscaped areas.
2022-2027 Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan Annex I: City of Waterford
Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan | 2022-2027 Update Page 27 Police Services
The City of Waterford has contracted with Stanislaus County’s Sheriff’s Department for Police Services since 1998. The community’s safety is the responsibility of both the Waterford Police Services and the community in relaying relevant information, tips, and calls on all crimes. The Waterford Police Services is committed to providing a high visibility of patrol service, increased narcotic enforcement and the targeting of known criminal offenders.

3.3 Fiscal Capability
The following table identifies financial tools or resources that the City could potentially use to help fund mitigation activities. There are currently no specific funding sources for hazard mitigation.

Table 3-3 City of Waterford —Available Financial Tools and Resources Financial Resources
Accessible/
Eligible to
Use
Has This Been Used for
Mitigation in the Past? Comments
Community Development
Block Grants
Yes No
Capital improvements project
funding
Yes No
Authority to levy taxes for
specific purposes
Yes No Must be approved by voters
Fees for water, sewer, gas, or
electric services, new
development
Yes
No
Incur debt through general
obligation bonds
Yes No
Incur debt through special tax
bonds
Yes No Requires approval by two-thirds of
voters
Incur debt through private
activities
Yes No Do not have any in place
Federal Grant Programs
(Hazard Mitigation Grant
Program)
Yes
No
Various Departments

3.4 Outreach and Partnerships
The City of Waterford partners with the Stanislaus County Office of Emergency Services (OES) Division.

The Stanislaus County OES is responsible for the day-to-day administration of Stanislaus County's disaster preparedness, mitigation, response and recovery programs. OES develops and maintains the Stanislaus County EOP and its associated annexes. OES also coordinates training, planning and exercises for first responders throughout the Stanislaus Operational Area. According to Stanislaus County OES’ 2021 – Emergency Management Strategic Plan, OES listed “increased number of outreach engagements (i.e., meetings, events) as an action item to achieve one of its strategic goals, which is to build a culture of preparedness. The Stanislaus County OES will work with community partners to develop agreements for mutual aid, facilitate discussion with partners regarding preparedness planning, conduct outreach activities to engage residents, and attend emergency management trainings and conferences to stay up to date with the most current practices for disaster preparedness. The City also works in coordination with the County on the Stanislaus County MJHMP.

Moreover, the Stanislaus County OES protects the public’s safety by developing and maintaining general and specific preparedness programs for the County and its nine cities. The OES educates and informs the public in the areas of emergency preparedness and fire prevention.

During the 2021-2022 planning process the following outreach efforts were identified that the City of Waterford could support related to hazard mitigation:
• Emergency Operations Webpage
• Flood Hazard and Preparedness Information
2022-2027 Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan Annex I: City of Waterford
Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan | 2022-2027 Update Page 28 • Social Media
• E-Notifications
• Community Events
Education and outreach efforts, as well as emergency response planning, will need to address the needs of low-income residents and the large Spanish-speaking population. The City LPT will implement additional bi-lingual surveys and outreach materials in the future on hazard mitigation to increase awareness.

3.5 Other Mitigation Efforts
The City of Waterford does not have other hazard mitigation efforts in place, in addition to those already described in this Annex.

3.6 Opportunities for Enhancement
Based on the capability assessment, the City of Waterford has existing regulatory, administrative/technical, fiscal mechanisms in place that help to mitigate hazards. In addition to these existing capabilities, there are opportunities for the City to expand or improve on these policies and programs to further protect the community. These are organized below by regulatory, administrative/technical, fiscal, and outreach opportunities.

Regulatory Opportunities
Future opportunities for regulatory enhancement should focus on compliance with Assembly Bill 2140, including amending the City of Waterford General Plan Safety Element to incorporate the 2022-2027 Stanislaus County MJHMP and City of Waterford Annex by reference.

Administrative/Technical Opportunities
Other future enhancements may include providing hazard training for staff or hazard mitigation grant funding in partnership with Stanislaus County and Cal OES. Existing City staff are aware of the benefits of participating in training and webinars offered by Cal OES Hazard Mitigation Assistance (HMA) Team related to HMGP opportunities, HMGP Sub application Development support, and other funding programs, such as Prepare California Jumpstart. Other opportunities may be related to coordinating and educating key stakeholders in the City. Other stakeholders may be interested in aligning efforts related to hazard mitigation and also supporting HMGP Sub applications and other hazard mitigation trainings.

Fiscal Opportunities
The City can update other plans, such as their CIP to incorporate hazard information and include hazard mitigation actions and climate adaptation strategies that relate to infrastructure systems resiliency associated with the water and wastewater systems. Once projects related to hazard mitigation are approved, the recent CIP can be shared with the community on the City’s webpage. Capital investments and improvements related to seismic retrofits, cooling center upgrades, and WWTP upgrades should all be emphasized in the outreach materials as they are related to hazard mitigation. Additionally, given the prioritization of flooding mitigation projects, the City should apply for HMGP grants to fund implementation costs associated with key CIP projects, and related projects in the City’s mitigation strategy. These fiscal capabilities may be supported by City staff or augmented with Consultant staff.

Outreach Opportunities
The City can also expand their outreach capabilities related to the implementation of the 2022-2027 Stanislaus County MJHMP and the City of Waterford Annex. Specific enhancements may include continued public involvement through social media posts and advertisements focused on projects successes related to the Annex Mitigation Strategy, and focused outreach to under-represented and special-interest groups in the City. The City can also develop outreach kits for partner organizations. 2022-2027 Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan Annex I: City of Waterford
Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan | 2022-2027 Update Page 29 4 MITIGATION STRATEGY

4.1 Goals and Objectives
The City of Waterford adopted the hazard mitigation goals and objectives developed by the HMPC and described in Section 5 Mitigation Strategy of the Base Plan. Like the Mitigation Strategy in the Base Plan, this section outlines the City’s roadmap for future hazard mitigation administration and implementation.

The purpose of the strategy is to reduce vulnerabilities from key priority hazards outlined in the risk assessment through regulatory tools and projects.

4.2 Continued Compliance with the National Flood Insurance Program The City has been an NFIP participating community since 1979. In addition to the mitigation actions identified herein the City will continue to comply with the NFIP. Floodplain management is under the purview of the Director of Public Works as the Floodplain Administrator. This includes ongoing activities such as enforcing local floodplain development regulations, issuing permits for appropriate development in SFHAs and ensuring that this development is mitigated in accordance with the regulations. This will also include periodic reviews of the floodplain ordinance to ensure that it is clear and up to date and reflects new or revised flood hazard mapping.

4.3 Mitigation Actions
The LPT for the City identified and prioritized the following new mitigation actions based on risk assessments, goals, and objectives. Background information as well as information on how the action will be implemented and administered, such as ideas for implementation, responsible office, partners, potential funding, estimated cost, and timeline also are described. Because the City did not participate in the 2017 LHMP the LPT did not have existing mitigation actions to review and did not provide status updates on past hazard mitigation planning efforts.

The mitigation strategy includes only those actions and projects which reflect the actual priorities and capacity of the jurisdiction to implement over the next five years covered by this plan. It should further be noted, that although a jurisdiction may not have specific projects identified for each significant (medium or high) hazard for the five-year coverage of this planning process, each jurisdiction has focused on identifying those projects which are realistic and reasonable for them to implement. Should future projects be identified for significant hazards where the implementing jurisdiction has the capacity to implement, the jurisdiction would add those projects to their Annex. The City also recognizes that other mitigation actions proposed in the County’s mitigation strategy will cover the significant hazards in the City that are not currently linked to a mitigation action.
2022-2027 Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan Annex I: City of Waterford
Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan | 2022-2027 Update Page 30 Table 4-1 City of Waterford Mitigation Action Plan
ID
Goal(s)
and
Lifeline
s
Hazard(s)
Mitigated Description/Background/Benefits
Lead
Agency and
Partners
Cost
Estimate
and
Potential
Funding
Priority Timeline Status/Implementation
Notes
1 Goals 1,
2, 3 and
& 5;
Safety
and
Security
; Food,
Water,
Shelter
Dam
Incidents
Dam Safety Awareness Month –
Promote dam safety awareness each
year on May 31 as part of the National
Dam Safety Awareness Day campaign,
using FEMA templates and background
materials coupled with information from
the risk assessment.

Public
Works
Department,
Stanislaus
County
Office of
Emergency
Services,
USACE,
DSOD,
Merced
Irrigation
District, TID
< $10,000 Medium 1-3 years New in 2022
2 Goals 1,
4 and 5;
Health
and
Medical,
Food,
Water,
Shelter
MultiHazard:

Drought,
Earthquake,
Extreme
Heat, Flood,
Severe
Weather
Water Storage Tanks –
The City has a very old water system
that is slowly getting upgraded, however,
the City does not have storage tanks for
water. With water storage tanks, the City
will always have the emergency
capacity, in case a natural disaster
knocks out the City’s well sites. The
development of the Waterford Storage
Tank would add a 1 million gallon
storage tank in the City and will improve
drought resiliency. The development of
the Hickman Storage Tank would add a

0.5 million gallon storage tank in the City
and will also improve resiliency.

Public
Works
Department
$5,000,000
TO
$7,000,00
State
Grants
High 1-3 years New in 2022
3 Goals 1,
4 and 5;
Health
and
Medical,
Food,
MultiHazard:

Drought,
Earthquake
Waterford to Hickman Water
Transmission Main –
The City would connect the two
independent water systems and new
water storage tanks to improve water
sharing and drought resiliency.

Public
Works
Department
>
$1,000,000
State
Grants
High 1-3 years New in 2022
2022-2027 Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan Annex I: City of Waterford
Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan | 2022-2027 Update Page 31 ID
Goal(s)
and
Lifeline
s
Hazard(s)
Mitigated Description/Background/Benefits
Lead
Agency and
Partners
Cost
Estimate
and
Potential
Funding
Priority Timeline Status/Implementation
Notes
Water,
Shelter
2022-2027 Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan Annex I: City of Waterford
Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan | 2022-2027 Update Page 32 5 IMPLEMENTATION AND MAINTENANCE
Moving forward, the City will use the mitigation action table in the previous section to track the progress on the implementation of each project. Implementation of the plan overall is discussed in Section 6 in the Base Plan.

5.1 Incorporation into Existing Planning Mechanisms
The information contained within this plan, including results from the Vulnerability Assessment, and the Mitigation Strategy will be used by the City to help inform updates and the development of local plans, programs and policies. The Public Utilities Department may utilize the hazard information when implementing the City’s Capital Projects. The Planning and Building Divisions may utilize the hazard information when reviewing a site plan or other type of development applications. The City will also incorporate this MJHMP into the Safety Element of their General Plan, as recommended by AB 2140.

As noted in Section 6 of the Base Plan, the City of Waterford LPT representatives will report on efforts to integrate the hazard mitigation plan into local plans, programs and policies and will report on these efforts at the annual LPT plan review meeting.

5.2 Monitoring, Evaluation and Updating the Plan
The City will follow the procedures to monitor, review, and update this plan in accordance with Stanislaus County as outlined in Section 6 of the Base Plan. The city will continue to involve the public in mitigation, as described in Section 6.2.1 of the Base Plan. The Police Chief, Planning/Building Division Director and Battalion Chief will be responsible for representing the City in the County LPT, and for coordination with City staff and departments during plan updates. The City realizes it is important to review the plan regularly and update it every five years in accordance with the Disaster Mitigation Act Requirements as well as other State of California requirements.

U.S. Department of Homeland Security
FEMA Region 9
1111 Broadway, Suite 1200
Oakland, CA 94607-4052
www.fema.gov
November 17, 2022
Ruben Wegner
Emergency Services Manager
Stanislaus County Office of Emergency Services
3705 Oakdale Rd
Modesto, CA 95357
Dear Ruben Wegner:

The Federal Emergency Management Agency (FEMA) has completed its review of the Stanislaus County 2022 – 2027 Multi-Jurisdictional Hazard Mitigation Plan and has determined that this plan is eligible for final approval pending its adoption by Stanislaus County and all participating jurisdictions. Please see the enclosed list of approvable pending adoption jurisdictions.

Formal adoption documentation must be submitted to FEMA Region 9 by at least one participating jurisdiction within one calendar year of the date of this letter, or the entire plan must be updated and resubmitted for review. FEMA will approve the plan upon receipt of the documentation of formal adoption.

Once the plan is approved, each participating jurisdiction must adopt the plan within five calendar years of the date of the approval. The adoption of the plan by each jurisdiction ensures that jurisdiction’s continued eligibility for funding under FEMA’s Hazard Mitigation Assistance (HMA) programs. All requests for funding, however, will be evaluated individually according to the specific eligibility, and other requirements of the particular program under which applications are submitted.

If you have any questions regarding the planning or review processes, please contact the FEMA Region 9 Hazard Mitigation Planning Team at [email protected].

Sincerely,
Alison Kearns
Planning and Implementation Branch Chief
Mitigation Division
FEMA Region 9
Stanislaus County Hazard Mitigation Plan Approvable Pending Adoption Notice November 17, 2022

Page 2 of 3 ends

Waterford City CouncilJanuary 5, 2023

Waterford City Council
January 5, 2023