Loading...
HomeMy WebLinkAbout2025 Financial StatementsA T A S C A D E R O C I T Y O F F I N A N C I A L S T A T E M E N T S Ju n e 3 0, 20 2 5 FINANCIAL STATEMENTS June 30, 2025 Charles Bourbeau, MAYOR Mark Dariz, MAYOR PRO TEMPORE Susan Funk, COUNCIL MEMBER Heather Newsom, COUNCIL MEMBER Seth Peek, COUNCIL MEMBER James R. Lewis, CITY MANAGER Jeri Rangel, CITY TREASURER Prepared by the Department of Administrative Services CITY OF ATASCADERO TABLE OF CONTENTS June 30, 2025 Independent Auditors' Report……………………...…………………………………………………………………………………………………………………………………………1 Management's Discussion and Analysis…………………………………………………………………………………………………………………………………………………………………………………3 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position……………………………………………………………………….……………………………………………………………………………………………………………………15 Statement of Activities………………………………………………………………………………………………………………………………………………………….17 Fund Financial Statements: Governmental Funds: Balance Sheet……………………………………………………………………………………………………………………………………………………………………18 Reconciliation of the Governmental Funds - Balance Sheet to the Statement of Net Position…………………………………………………………………20 Statement of Revenues, Expenditures, and Changes in Fund Balances……………………………………………………………………………………..21 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities……………………………...……..……………………...……………………………………..23 Proprietary Funds: Statement of Net Position……………………………….…………………………………………………………………………………………………………………………24 Combining Statement of Revenues, Expenses, and Changes in Net Position……………………………………………………………………………………………………….26 Combining Statement of Cash Flows………………………………………………………………………………………...……………………………………………………………28 Private Purpose Trust Funds: Statement of Fiduciary Net Position……………………………….…………………………………………………………………………………………………………………………30 Statement of Changes in Fiduciary Net Position………………………………………………………………………………………………………………………………….31 Notes to the Basic Financial Statements……………………………………………………………………………………………………………………………………………32 Required Supplementary Information: Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund Summary ………………………………………………77 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund Detail………………………………………………79 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - In Lieu Low/Moderate Income Housing Fund…………...........99 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Local Transportation Fund……………………...........................100 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Circulation System Fees Fund………………………………………………102 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Fire Aerial Vehicle Impact Fees Fund………………………………………………103 Schedule of Changes in the Total OPEB Liability and Related Ratios…………………………………………………………………………………………………104 i CITY OF ATASCADERO TABLE OF CONTENTS June 30, 2025 Required Supplementary Information (continued): Schedule of OPEB Contributions……………………………………………….…………………………………………………………………………………………………105 Schedule of the Local Government's Proportionate Share of the Net Pension Liability ……………………………………………………………………………………………………106 Schedule of Pension Contributions…………………………………………………………………………………………………………………………………………………………….107 Other Supplementary Information: Nonmajor Governmental Funds Overview………………………………………………………………………………………………………………………………………….108 Combining and Individual Fund Statements and Schedules: Combining Balance Sheet - Nonmajor Governmental Funds………………………………………………………………………………………………………………113 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds…………………………………..………………118 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual: Supplemental Law Enforcement Services Fund…………………………………………………………………………………………………………………………….123 Downtown Business Improvement Area Fund……………………………………………………………………………………………………………………………………….124 Atascadero Tourism Business Improvement District Fund……………………………………………………………………………………………………………………………………….125 Community Development Block Grant Fund………………………………………………………………………………………………………………………………..126 Tree Plant Fund………………………………………………………………………………………………………………………………………………………………127 Gas Tax Fund…………………………………………………………………………………………………………………………………………………………………..128 Street Assessment Fund……………………………………………………………………………………………………………………………………………………..130 General Government Facilities Fees Fund……………………………………………………………………………………………………………………………………..131 Storm Drainage Facilities Fees Fund…………………………………………………………………………………………………………………………………………….132 Law Enforcement Facilities Fees Fund…………………………………………………………………………………………………………………………………….133 Fire Facilities Fees Fund…………………………………………………………………………………………………………………………………………………………..134 Open Space Acquisition Fees Fund……………………………………………………………………………………………………………………………………………….135 Parkland Facilities Fees Fund………………………………………………………………………………………………………………………………………………………136 Public Facilities Fees Fund………………………………………………………………………………………………………………………………………………………137 Library Expansion Facilities Fees Fund………………………………………………………………………………………………………………………………………………138 Community Facilities District Fund…………………………...………………..…………………………………………………………………………………………..139 Apple Valley Street & Storm Drain Assessment District Fund………….……………………………………………………………………………………………140 Apple Valley Landscape & Lighting Assessment District Fund…………………..…………………………………………………………………………………………141 Las Lomas Street & Storm Drain Assessment District Fund……………………...………………………………………………………………………………………142 ii CITY OF ATASCADERO TABLE OF CONTENTS June 30, 2025 Other Supplementary Information (continued): Combining and Individual Fund Statements and Schedules (continued): Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (continued): Las Lomas Landscape & Lighting Assessment District Fund…………………………...……………………………………………………………………………………143 De Anza Street & Storm Drain Assessment District Fund…………………………..…………………………………………………………………………………144 De Anza Landscape & Lighting Assessment District Fund…………………………...…………………………………………………………………………………145 Capital Projects Fund……………………………………………………………………………………………………………………………………………………………146 2010 Bond Proceeds Master Agreement Fund……………………………………………………………………………………………………………………………………………………………147 Public Safety Facilities Project Fund……………………………………………………………………………………………………………………………………………………………148 2010 Bond Debt Service Fund……………………………………………………………………………………………………………………………………………………………149 Combining Statement of Net Position - Internal Service Funds……………………………………………………………………………………………………………………150 Combining Statement of Revenues, Expenses, and Changes in Net Position - Internal Service Funds…………………………………………………………………..152 Combining Statement of Cash Flows - Internal Service Funds……………………………………………………………………………………………………………..154 iii Moss, Levy & Hartzheim LLP Certified Public Accountants 2400 Professional Parkway, Suite 205 Santa Maria, CA 93455 Tel 805.925.2579 Fax 805.925.2147 mlhcpas.com BEVERLY HILLS · CULVER CITY · SANTA MARIA INDEPENDENT AUDITORS’ REPORT City Council of the City of Atascadero Atascadero, California Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, the business-type activities, the major funds, and the aggregate remaining fund information of the City of Atascadero, as of and for the fiscal year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City of Atascadero’s basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the major funds, and the aggregate remaining fund information of the City of Atascadero, as of June 30, 2025, and the respective changes in financial position and, where applicable, cash flows thereof, for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Atascadero 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 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 of Atascadero’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City of Atascadero’s internal control. Accordingly, no such opinion is expressed. 1  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 of Atascadero’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, the budgetary comparison information the General Fund and major special revenue funds, the schedule of changes in the OPEB liability and related ratios, the schedule of OPEB contributions, the schedule of the local government’s proportionate share of net pension liability, and the schedule of pension contributions, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquires of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Atascadero’s basic financial statements. The major debt service fund budgetary schedule, combining and individual nonmajor fund financial statements and schedules, and combining internal service funds financial statements, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The major debt service fund budgetary schedule, combining and individual nonmajor fund financial statements and schedules, and combining internal service funds financial statements, are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or 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 major debt service fund budgetary schedule, combining and individual non-major fund financial statements and schedules, and combining internal service funds financial statements, 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 January 13, 2026, on our consideration of the City of Atascadero’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 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 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. Santa Maria, California January 13, 2026 2 3 Working together to serve, build community and enhance quality of life. Management’s Discussion and Analysis January 13, 2026 To the Honorable Mayor, Members of the City Council, and Residents of the City of Atascadero We are pleased to present to you the annual financial statements of the City of Atascadero, California, for the fiscal year ending on June 30, 2025. The City prepares a complete set of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) after the end of each fiscal year. This discussion and analysis of the City of Atascadero’s financial performance provides an overview of the City’s financial activities for the fiscal year ended June 30, 2025. For the most complete picture of the City, please read this document in conjunction with the City’s basic financial statements and the accompanying notes to the basic financial statements. The City’s financial statements are available at City Hall offices and at the City’s website at www.atascadero.org. Financial Highlights City total assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources at the close of June 30, 2025, by about $250.2 million. Of this amount, $197.8 million is net investment in capital assets, $32.5 million is restricted for various purposes, and $19.9 million is unrestricted.  During fiscal year 2025, the City entered into a contract for the construction of the new Fire Station #1 and Emergency Operations Center and rehabilitation and upgrades to Fire Station #2 and Police Headquarters facilities. The Public Safety Facilities project is expected to be completed by the end of calendar year 2027 at a cost of $37.1 million.  Capital projects expenditures were about $24.1 million, or $4.2 million more than the amount spent in the prior fiscal year. This difference was due primarily to timing and status of various capital projects including road rehabilitation projects, the Downtown Infrastructure Enhancement Plan, and wastewater system projects such as the Wastewater Lift Station #13 Forcemain Realignment Project. City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2025 4 Financial Highlights (continued) • As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $52.7 million, a decrease of about $9.4 million from the prior fiscal year. Approximately $32.7 million of the total is not available for more general spending because it represents amounts that are already obligated or restricted. About $20 million of the ending fund balance is available for future obligations. • The City’s compensated absences due to employees decreased by about $53,410, and the City’s total long-term liabilities decreased by about $14.7 million. This decrease was primarily due to the City’s defeasance of the 2010 Lease Revenue Bonds and the change in CalPERS Net Pension Liability. For additional information, see Notes 4 and 8 in the Notes to the Financial Statements. • At the end of the current fiscal year, unassigned fund balance for the general fund was $20,710,423 or 51% of total general fund expenditures, $1,189,066 of which is related to the Sales Tax Measure F-14 funding. • On April 18, 2024, the Successor Agency to the Community Redevelopment Agency of Atascadero issued $15.43 million in Series 2024A Tax Allocation Refunding Bonds and $1.405 million in Series 2024B Taxable Tax Allocation Refunding Bonds to refund the 2004 Tax Allocation Bonds and the 2010 Lease Revenue Bonds. The 2004 and 2010 Series bonds were defeased on July 16, 2024. Overview of the Financial Statements The financial statements presented herein include the activities of the City of Atascadero using the integrated approach as prescribed by Governmental Accounting Standards Board (GASB) Statement No. 34. Government-Wide Financial Statements The Government-Wide Financial Statements present a broad overview of the financial picture of the City from the economic resources measurement focus using the accrual basis of accounting. They present governmental activities and business-type activities separately. These statements include all assets of the City (including infrastructure) as well as all liabilities (including long-term liabilities). Additionally, certain eliminations have occurred as prescribed by GASB Statement No. 34 in regard to interfund activity, payables, and receivables. The Statement of Net Position presents information on all of the City’s assets, deferred outflows, liabilities, and deferred inflows, with the difference reported as net position. Over time, increases or decreases in net position may serve as an indicator of whether the financial position of the City of Atascadero is improving or declining. The Statement of Activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods. Both of the Government-wide Financial Statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees or are required by grantor agencies to be accounted for in this fashion (business-type activities). City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2025 5 Government-Wide Financial Statements (continued) The governmental activities include police, fire, parks, recreation, community development, public works, and general government activities. Property and sales taxes, user fees, interest income, franchise fees, and state and federal grants finance these activities. The business-type activities include wastewater and transit. As required by accounting principles generally accepted in the United States of America, these financial statements present the City (the primary government). The City previously had a component unit (the Community Redevelopment Agency of Atascadero) through January 31, 2012, for which the government was considered to be financially accountable. Effective February 1, 2012, Assembly Bill AB 1x26, as modified by the California Supreme Court, dissolved redevelopment agencies in California. All assets and liabilities were required to be transferred to the corresponding Successor Agency identified in each community. In Atascadero, the City became the Successor Agency and holds these assets and liabilities in Private Purpose Trust. See Note 15 in the Notes to the Financial Statements for further details on the Successor Agency. The City has no component units that require discrete presentation in accordance with GASB Statement No. 14, as amended by GASB Statements No. 39, No. 61, No. 80, and No. 90. Fund Financial Statements A fund is a group of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Atascadero, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The funds of the City are divided into three categories of activities – governmental, proprietary, and private purpose trust 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. Because the focus of 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 Government-wide Financial Statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains multiple individual governmental funds. Information for the General Fund is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances. The General Fund, the In Lieu Low/Moderate Income Housing Fund, the Local Transportation Fund, the Circulation System Fees Fund, and the Fire Aerial Vehicle Impact Fees Fund are considered to be the major governmental funds. Data from the other nonmajor governmental funds are combined into a single, aggregated presentation. Individual fund data, including budgetary information, for each of these nonmajor governmental funds are provided in the combining financial statements under the supplementary information section. A budget comparison statement has been provided to demonstrate compliance with the budget. Budgetary information for the major governmental funds has been provided under the required supplementary information section. City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2025 6 Proprietary Funds Proprietary Funds provide the same type of information as the business-type activities in the government-wide financial statements, except that the Proprietary Funds provide greater detail. The City maintains two types of Proprietary Funds: Enterprise Funds and Internal Service Funds. The City’s Enterprise Funds are the same as the business-type activities reported in the Government-wide Financial Statements: Transit and Wastewater. The City uses Internal Service Funds to report activities that provide supplies and services for the City’s other programs and activities. The City’s Internal Services Funds include the Technology Fund, the Building Maintenance and Replacement Fund, and the Vehicle and Equipment Replacement Fund. The Internal Service Funds are combined into one column within the Proprietary Funds statements and then are combined with governmental activities in the Government-wide Financial Statements. Private Purpose Trust Funds Private Purpose Trust Funds are used to account for monies held on behalf of others in a fiduciary capacity. The City uses private purpose trust funds to account for the Successor Agency of the Former Redevelopment Agency which was dissolved on January 31, 2012, pursuant to state law. All resources of the funds are used to support specified activities. 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. 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 of Atascadero, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by about $250.2 million at the close of the most recent fiscal year. City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2025 7 Government-Wide Financial Analysis (continued) 2024-2025 Governmental Activities 2024-2025 Business-Type Activities 2024-2025 Total 2023-2024 Governmental Activities 2023-2024 Business-Type Activities 2023-2024 Total 78,344,525$ 9,123,655$ 87,468,180$ 77,241,846$ 12,173,029$ 89,414,875$ 172,756,883 25,221,609 197,978,492 160,169,110 20,649,800 180,818,910 Total assets 251,101,408 34,345,264 285,446,672 237,410,956 32,822,829 270,233,785 11,947,060 246,740 12,193,800 15,193,371 335,927 15,529,298 Total deferred outflows 11,947,060 246,740 12,193,800 15,193,371 335,927 15,529,298 6,247,955 1,355,240 7,603,195 7,360,624 1,645,723 9,006,347 38,164,782 941,057 39,105,839 39,271,072 945,106 40,216,178 Total liabilities 44,412,737 2,296,297 46,709,034 46,631,696 2,590,829 49,222,525 614,327 144,966 759,293 853,672 151,440 1,005,112 Total deferred inflows 614,327 144,966 759,293 853,672 151,440 1,005,112 172,626,991 25,221,609 197,848,600 160,049,256 20,649,800 180,699,056 32,456,949 - 32,456,949 41,550,213 - 41,550,213 12,937,464 6,929,132 19,866,596 3,519,490 9,766,687 13,286,177 Total net position 218,021,404$ 32,150,741$ 250,172,145$ 205,118,959$ 30,416,487$ 235,535,446$ Net position: Net investment in capital assets Restricted Unrestricted Deferred inflows Current and other assets Capital assets Current liabilities Noncurrent liabilities Deferred outflows The largest portion of the City’s net position (79%) reflects its investment in capital assets, less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves usually are not used to liquidate these liabilities. City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2025 8 Government-Wide Financial Analysis (continued) An additional 13% of the City’s net position represents resources subject to external restrictions on how they may be used. The remaining 8% ($19,866,596) is considered unrestricted and may be used to meet the City’s ongoing obligations to citizens and creditors. There was an increase of $6,580,419 in unrestricted net position from fiscal year 2023-2024 to 2024-2025. Consistent with the prior fiscal year, as of the end of the current fiscal year, the City is able to report positive balances in both categories of net position, for both the government as a whole, as well as for its separate governmental and business-type activities. During the current fiscal year, the City’s net position increased by about $14.6 million. Information about changes in net position is summarized below: 2024-2025 Governmental Activities 2024-2025 Business-Type Activities 2024-2025 Total 2023-2024 Governmental Activities 2023-2024 Business-Type Activities 2023-2024 Total Revenues: Program Revenues Charges for services 4,700,289$ 5,526,780$ 10,227,069$ 4,215,346$ 5,110,610$ 9,325,956$ Operating grants and contributions 1,844,198 460,920 2,305,118 1,719,998 427,145 2,147,143 Capital grants and contributions 8,802,115 107,411 8,909,526 10,560,939 3,070 10,564,009 General Revenues: Secured and unsecured property taxes 14,598,057 - 14,598,057 13,975,711 - 13,975,711 Sales and use taxes 14,767,006 - 14,767,006 14,643,144 - 14,643,144 Other taxes 4,431,835 - 4,431,835 4,422,575 - 4,422,575 Motor vehicle in lieu 48,562 - 48,562 38,021 - 38,021 Investment income 3,479,226 466,866 3,946,092 3,135,948 521,184 3,657,132 Interest from Successor Agency 20,006 - 20,006 749,116 - 749,116 Total Revenues 52,691,294 6,561,977 59,253,271 53,460,798 6,062,009 59,522,807 SUMMARY OF CHANGES IN NET POSITION For the Fiscal Years Ended June 30, 2025 and 2024 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2025 9 Government-Wide Financial Analysis (continued) 2024-2025 Governmental Activities 2024-2025 Business-Type Activities 2024-2025 Total 2023-2024 Governmental Activities 2023-2024 Business-Type Activities 2023-2024 Total Program Expenses General Government 3,967,900$ -$ 3,967,900$ 3,648,247$ -$ 3,648,247$ Public Safety 20,510,598 - 20,510,598 19,229,282 - 19,229,282 Community Development 4,061,563 - 4,061,563 5,938,261 - 5,938,261 Community, Recreation & Zoo Services 4,627,590 - 4,627,590 3,730,252 - 3,730,252 Parks & Open Space 1,395,624 - 1,395,624 1,892,022 - 1,892,022 Public Works 5,125,274 - 5,125,274 4,669,691 - 4,669,691 Sewer - 3,542,568 3,542,568 - 2,913,934 2,913,934 Transit - 1,285,155 1,285,155 - 507,744 507,744 Interest on long-term debt 18,244 - 18,244 622,559 - 622,559 Total Expenses 39,706,793 4,827,723 44,534,516 39,730,314 3,421,678 43,151,992 Change in net position 12,984,501 1,734,254 14,718,755 13,730,484 2,640,331 16,370,815 Net position- beginning 205,118,959 30,416,487 235,535,446 191,388,475 27,776,156 219,164,631 Adjustment- (Note 16) (82,056) - (82,056) - - - Net position at beginning of fiscal year, restated 205,036,903 30,416,487 235,453,390 191,388,475 27,776,156 219,164,631 Net position- ending 218,021,404$ 32,150,741$ 250,172,145$ 205,118,959$ 30,416,487$ 235,535,446$ - - - - - - SUMMARY OF CHANGES IN NET POSITION (continued) For the Fiscal Years Ended June 30, 2025 and 2024 Governmental activities during the fiscal year increased the City’s net position by $12,984,501. The net position for the governmental activities was reduced by a prior period adjustment of $82,056. Business-type activities increased the City’s net position by $1,734,254. Financial Analysis of the City’s Funds As noted earlier, the City of Atascadero uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2025 10 Financial Analysis of the City’s Funds (continued) Governmental Funds (continued) As of June 30, 2025, the City’s governmental funds reported combined ending fund balances of $52,711,341. Of this total, $124,084 cannot be spent because it is in a non-spendable form and/or a non-cash form such as prepaid items, deposits, and inventory. The City’s governmental funds Unassigned Fund Balance is $20,036,039. The General Fund portion of this, $20,710,423, is available for any purpose. The remaining Unassigned Fund Balance of -$674,384 is the amount of the Fire Aerial Vehicle Impact Fees Fund where expenditures were made prior to receipt of restricted revenues. The Restricted Fund Balance of $32,448,302 includes amounts constrained to specific purposes by their providers (such as grantors and higher levels of government), through constitutional provisions, or by enabling legislation. The Assigned fund balance, $102,916, is the amount the City intends to use for road projects. General Fund – The General Fund is the chief operating fund of the City. At June 30, 2025, the total fund balance was $20,924,016 and the spendable unassigned fund balance was 99% of the total. As a measure of the General Fund’s liquidity, it may be useful to compare total fund balance to total fund expenditures. The total General Fund balance represents 51% of fund expenditures. The General Fund balance decreased $304,640 during the fiscal year. Local Transportation Fund – This fund accounts for Local Transportation funds that can be used for streets projects. Local Transportation Funds (LTF) must first be spent to meet any reasonable community transit need. The City used LTF monies to run the City's bus system and to contribute to San Luis Obispo Regional Transit Authority. Any remaining funds are accounted for in this fund and must be used for bikepath projects and streets projects. The fund balance at June 30, 2025, was $5,264,485, down $2.5 million from the prior fiscal year. The decreased fund balance is primarily due to some large projects including the Downtown Infrastructure Enhancement Plan and the Santa Lucia Road Rehabilitation Segments B & C. There was also a restatement of $82,056 from fiscal year 2024 for the San Marcos Road Soldier Pile Wall project. See Note 16 in the Notes to the Basic Financial Statements. In Lieu Low/Moderate Income Housing Fund – This fund accounts for fees that are paid by developers in lieu of building inclusionary (affordable) housing. These fees are expended on programs that provide and/or promote affordable housing within the City. At June 30, 2025, the fund balance was $5,942,024. Circulation System Fees Fund – This fund accounts for fees that are paid by developers to fund the creation of more lane miles or more efficient lane miles with which to accommodate the additional trips created by new development. These fees are expended for the construction of new/increased/improved roadway and bridge facilities. The fund balance at June 30, 2025, was $3,887,555, up $649,373 from the prior fiscal year. Fire Aerial Vehicle Impact Fees Fund – This fund accounts for impact fees imposed on commercial and multi-family residential developments for the purpose of contributing toward the purchase of the Aerial Fire Truck (Ladder Truck). The City purchased this truck in fiscal year 2007-2008 using future revenues, and therefore, the fund had a negative balance of ($674,384) at June 30, 2025. As projects continue to develop over time, Impact Fee revenues should move this negative balance toward zero. Other Governmental Funds – These are nonmajor funds of the City and are presented in the basic financial statements in the aggregate and in detail in the supplementary section of this report. At June 30, 2025, these funds had an aggregate fund balance of $17,367,645. Of this total, $8,647 is non-spendable, $102,916 is assigned for specific uses, and $17,256,082 is restricted. More information about these nonmajor funds can be found in the combining and individual fund financial statements and schedules. City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2025 11 Financial Analysis of the City’s Funds (continued) Proprietary Funds The City’s two enterprise funds provide the same type of information found in the Government-wide Financial Statements, but in more detail. Highlights of the annual activity for these funds have already been presented in the discussion of the business-type activities. During fiscal year 2024-2025, $6.1 million was transferred from the Building Maintenance and Replacement Internal Service Fund to the Public Safety Facilities Project Fund for the Public Safety Facilities Project. These funds were accrued from years of setting aside Sales Tax Measure D-20 funds specifically for the Public Safety Projects. Debt Administration Debt, considered a liability of governmental and business-type activities, decreased in fiscal year 2024-2025 by $14,689,593, primarily due to the City’s defeasance of the 2010 Lease Revenue Bonds and the change in CalPERS’ Net Pension Liability, as required to be reported by GASB Statement No. 68. On April 18, 2024, the Successor Agency issued $16,835,000 in Tax Allocation Refunding Bonds to achieve cost savings. The bonds were issued to redeem the 2004 Redevelopment Agency Tax Allocation Bonds, of which $7,070,000 remained outstanding, and the 2010 Lease Revenue Bonds issued by the Atascadero Public Financing Authority, of which $13,530,000 remained outstanding. The bonds were defeased on July 16, 2024. The Refunding yielded a gross savings of about $5.8 million over the remaining life of the original bonds. Of this amount, about $1.16 million were savings realized by Atascadero, and the remaining $4.7 million was realized by other taxing entities. The CalPERS’ Net Pension Liability decreased about $934,000 from the prior fiscal year. See Note 9 for additional information on CalPERS. Total compensated absences were down about $53,000, and the Subscription Liability also decreased by about $121,000. The Net Pension Liability for Governmental Activities at the end of the fiscal year was $35,895,546 and $911,200 for Business-type Activities. Cash Management To obtain flexibility in cash management, the City employs a pooled cash system. Under the pooled cash concept, the City invests the cash of all funds with maturities planned to coincide with cash needs. Idle cash is invested in certain eligible securities as constrained by law and further limited by the City’s Investment Policy. The goals of the City’s Investment Policy are safety, liquidity, and yield. Capital Assets The capital assets of the City are those assets that are used in the performance of the City’s functions, including infrastructure assets. At June 30, 2025, net capital assets of the governmental activities totaled $172,756,883 and the net capital assets of the business-type activities totaled $25,221,609. Depreciation and amortization on capital assets is recognized in the Government-wide Financial Statements and Proprietary Fund Financial Statements. The City has elected to depreciate its infrastructure assets. In order to depreciate the infrastructure assets, an estimated useful life for each type of asset was determined using engineering standards, industry standards, as well as discussions with City staff regarding the City’s maintenance program for each asset type. This allowed the estimated useful life of each asset type to be tailored to include the unique attributes of the City of Atascadero. City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2025 12 Financial Analysis of the City’s Funds (continued) The following table presents summary information on the City’s capital assets: 2024-2025 Governmental Activities 2024-2025 Business-Type Activities 2024-2025 Total 2023-2024 Governmental Activities 2023-2024 Business-Type Activities 2023-2024 Total Non-Depreciable: Land 41,659,554$ 547,738$ 42,207,292$ 41,659,554$ 547,738$ 42,207,292$ Construction in progress 14,845,385 2,378,079 17,223,464 5,047,390 3,313,109 8,360,499 Depreciable: Vehicles and equipment 16,946,307 1,366,630 18,312,937 16,713,745 1,378,782 18,092,527 Structures and improvements 58,045,129 41,433,312 99,478,441 57,636,477 36,281,890 93,918,367 Subscription asset 959,667 - 959,667 997,263 - 997,263 Infrastructure 105,572,993 - 105,572,993 99,625,050 - 99,625,050 Accumulated amortization (561,788) - (561,788) (357,839) - (357,839) Accumulated depreciation (64,710,364) (20,504,150) (85,214,514) (61,152,530) (20,871,719) (82,024,249) Net capital assets 172,756,883$ 25,221,609$ 197,978,492$ 160,169,110$ 20,649,800$ 180,818,910$ General Fund Budgetary Highlights A detailed budgetary comparison schedule for the fiscal year ended June 30, 2025, is presented in the required supplementary information to the basic financial statements. The final budget amounts (which are the focus of this discussion) are different from those presented in the 2023-2025 budget document. This is due to changes that occurred between the time that the budget was prepared and fiscal year-end final budget approvals. The following summarizes the original and final budget compared with actual results for 2024-2025: General Fund Original Budget Final Budget Actual Variance Positive (Negative) Revenues 38,412,360$ 39,164,570$ 40,138,651$ 974,081$ Expenditures 44,936,470 50,637,160 40,782,273 9,854,887 Other Sources (Uses)69,700 (80,300) 338,982 419,282 Fund Balance, beginning 21,228,656 21,228,656 21,228,656 - Fund Balance, ending 14,774,246$ 9,675,766$ 20,924,016$ 11,248,250$ City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2025 13 General Fund Budgetary Highlights (continued) Both revenue and expenditure budgets were increased during the year. During the course of the fiscal year, the City Council approved an additional allocation of $4,130,000 for Measure F-14 project expenses, over half of which was a timing adjustment moving $2.6 million in budget project funds from fiscal year 2025- 2026 to fiscal year 2024-2025. The bulk of the remaining increases were due to special and capital projects that were budgeted but not expended in the prior year and therefore were moved to fiscal year 2024-2025. Some of the larger projects include the General Plan Update, the Economic Development Restaurant Loan Program, the Broadband Development Project, paving projects, and Zoo projects. Economic Factors and Next Fiscal Year’s Budget The local economy remains relatively stable, though growth is modest. Property tax revenues continue to demonstrate steady and reliable growth, reflecting resilience in the real estate market. However, sales tax and transient occupancy tax (TOT) revenues are trending flat to slightly negative, indicating some softening in consumer spending and tourism-related activity. Despite these mixed indicators, the City is well-positioned for future growth, supported by the Council’s ongoing focus on economic development and key investments such as the Downtown Infrastructure Enhancement Project. These initiatives are expected to stimulate continued economic activity and community vitality. Additionally, the passage of Sales Tax Measure D-20 in 2020 has had a sustained positive impact on the City’s financial position, enabling improvements that enhance the quality of life for residents and support long-term fiscal sustainability. Economic factors and key issues and trends that affect the budget include: Public Safety Facilities Project The Public Safety Facilities Project continues to move forward and addresses critical needs in three aging public safety facilities. This Project includes the construction of a new 17,000-square-foot Fire Station #1 and Emergency Operations Center, replacing the outdated and structurally deficient facility at its current location. Fire Station #2 will undergo significant rehabilitation to meet modern safety and code standards, while the Police Headquarters will be upgraded to enhance operational efficiency and align with current policing practices. Improvements include enhanced security, updated interior finishes, renovated restrooms and locker rooms, and a new 1,300-square-foot detached dispatch building. F&H Construction was awarded the $31 million fixed-price contract, funded through the 2025 Lease Revenue Bonds issued in October 2025. Project completion is anticipated by the end of calendar year 2027. Sales Tax Measure D-20 Measure D-20, a general-purpose one-cent transaction and use tax, became effective on April 1, 2021. This revenue source continues to play a critical role in supporting essential City services. In fiscal year 2024-25, Measure D-20 generated approximately $6.5 million in revenue, contributing significantly to the City’s financial stability and service delivery capacity. Public Safety The City remains committed to maintaining high quality Police and Fire services, a priority strongly supported by the community. Funding from Measure D-20 has enabled strategic investments in public safety, including increased staffing, replacement of aging vehicles and equipment, the planned reconstruction of Fire Station #1, and facility upgrades at both the Police Station and Fire Station #2. Staffing Retention and Attraction A key focus of the 2025-26 budget is the retention and recruitment of qualified personnel. These efforts are aimed at enhancing operational efficiency, improving service delivery to the public, and reducing long-term hiring and training costs. Competitive compensation and strategic workforce planning are central to these initiatives. Investments in Infrastructure, Internal Replacement Reserves, and Broadband Enhancement The adopted budget reflects a strong commitment to long-term infrastructure and technology investments. Major allocations include funding for the Downtown Infrastructure Enhancement Project, road maintenance, . 5 t . ^ i § s I ?1 1 l l i I l l I l l ^1 1 ^^^ 1 . ^ 1 -c T III%0 ) • a•s^swu - a? z- 0cnI. 2I0c0IS - 0cco ^s ' I0 ) - 0 • c is&s- 0 I12w: ^ u(Us- ^ IIIc . (U - 0c : coIII81uIQ - ' 5s ' T 3 cr o0 ) • usI I i l , 0 I I . t ^ - o . y I I I I i s d ) ol 5 - . i ) L l - ^ : i d - a i ' - .> w 3 I l l I s mm( f t £ ^ . ^ , s •q - - p -£ ? - 2 l i t i ^ s - y ; o : m 0 3 ^ S5 ' 3 I I . . y . m s ' ^I D ^ sC ^ l s l (U^0 5 c! t < u ^ ^s - < =3 in0 1w>* =s ' 1 1 ; I t Q - 3 i l w w , Cd i l l ^. Q - G (0 p 0 = r o £ ( D ^ < w = > - ^ I I | i < y ^i i § s . ^ § ) i i w s "^ ^ I ° .^ S ( S . | i l i ' ^ ( 0 a) m ^ u I I ~s : - 0 ?-E I I l i T 3 C O l l wa ) 2 I N ? Q - U 0 ^ ^ r o l ^ ^ l § 1 £ ^ ^" - E 0 - ^ ^ ^ ^ 0 01 8 0s 5 - 0 ? ^ g . 1 " : i l ^ 8 F-2 1 IIII I I^1y l 0: 1I u 5 Q- L L ^ 2 n ~m0^ " i i I s 0s ^ CM ^ !111 -S r o @ ^ i( =0 1 32 I^u0 ) 0 1 I3( / ) t oI<u IIi0 ) T 3wU) Is"^ £ 'i r o f l w C L W Q . £ 3 • s ^ <D ' 0 ^ 1 t S i i ^^ ^ 1 - 0c U ) £v0 3 £ ^ ^ ^ ' 0 s c : 0 I t s l w - ^ . i 2 ^ $ ' ? ° co r o ^ L U c ." ' s s ' ^ ^ 3 I ^ H I ; 2 j a i i ^ ^ ro w < u ^I t 1 ^ .l u ^ c3 i. 1 ^ ^ • E 1 ^ LU L L L U w -Q§ 1 3 i - 0cro a . 0 1 •t = 8 1 s . I ' CN i £ • & i j~m0croc : i ^I(U£sIIIw^- s%^c : ^ gQ . w<u - 03'U%t^ 2CDs^i n r \ l (UJ " I0 ) a ? "I- c . sIr o . 0 ^ " 1 1 ^ § I I c ' T O ( 0 C v . • ° w ^ 0 ^ E " o ( 0c>* = c \ i ro r s i _U ) • < = 0 1 ^ • ^ < s i <u I1° ^uE0 ) c n Icu - -" >^ ^ 0 | 2 £ ^ ^1wr o : 1•^ r oE ,( 0 •« — ' ;1 £- sI l l ^ I i 1 ^ 1 0 ) ! ' l l § Q : i l i l i l ^ • 2 - K ^ • £ I p s I l l j ^ I ' l l l i t 3 1 - ? i "1 ^ 1 I I I I l l " ° i I l l 0 0p . £ ^ T 5 t l IQ - l s • 5 v ^ w s c <u ^ I N • a * T r o • ^ ^ s ^ s 0 c I I - 01 11 1 1 I i : I I i l l w ° . I . ^ % ^ u E ^ ^ 1 F £ . £ I^ : c : r o£0J "miI - r o0 ) > - 0 ) £- 30^0 1 32£c0I. y0 ) j- 0c : r oQ . 1 c^< u1^a I - 0 W § ^~f i I I I I 1 - i i t :U ) roE% ^ u ^ s ^ £ S I I I I r o r o E t ^ I s i s0 )I wic•* =8' I£ ^^ : i £ 's 2 0 ' ^0<u £I^0- 0cm!<u sI r o£ s ' s I ! ^ 8rif ) i i - ^ i 5 I i ^ (UI -Sj (U £ t I8- 0c(0 0' ° 3 c U ) n3E S ^ £ ^ 3 0 ^ I y )I I ^r o a . T 3 I 5 g " 3 ^ < 5 ^ m . I i '2 ^ (0 - c< yW L L l i i £1 1 ^ . ^ §11. 1 " 2 o - o < u c n 0 ) C L C - 0 0 0 Iin s -\ 0£ Q ^ U) ^> 0) u ^ £(U <- ^ w ^ 0) .> 's " s 0 )=- S o co <d - s -0<DyEJ33w 0) (U > , 0 ) (0 a Q; c ^ ro w (U d) a - E w ^ (D ? 0 K . BASIC FINANCIAL STATEMENTS CITY OF ATASCADERO STATEMENT OF NET POSITION June 30, 2025 Governmental Activities Business-Type Activities Total ASSETS Cash and investments 65,439,637$ 8,609,699$ 74,049,336$ Receivables: Federal distributions due 1,247,521 302,408 1,549,929 Due from State of California 2,604,481 - 2,604,481 Due from County of San Luis Obispo 3,050,939 117,613 3,168,552 Accrued interest 403,753 43,509 447,262 Other receivables 1,323,642 47,804 1,371,446 Internal balances 30,576 - 30,576 Deposits, prepaid items, and inventory 128,077 2,622 130,699 Notes receivable 4,115,899 - 4,115,899 Capital assets: Non-depreciable: Land 41,659,554 547,738 42,207,292 Construction in progress 14,845,385 2,378,079 17,223,464 Depreciable or amortizable: Vehicles and equipment 16,946,307 1,366,630 18,312,937 Structures and improvements 58,045,129 41,433,312 99,478,441 Subscription asset 959,667 - 959,667 Infrastructure 105,572,993 - 105,572,993 Accumulated amortization (561,788) - (561,788) Accumulated depreciation (64,710,364) (20,504,150) (85,214,514) Total assets 251,101,408 34,345,264 285,446,672 DEFERRED OUTFLOWS Deferred outflows related to pensions 11,947,060 246,740 12,193,800 Total deferred outflows 11,947,060 246,740 12,193,800 The notes to the basic financial statements are an integral part of this statement. 15 CITY OF ATASCADERO STATEMENT OF NET POSITION (continued) June 30, 2025 Governmental Activities Business-Type Activities Total LIABILITIES Accounts payable 2,943,823$ 934,188$ 3,878,011$ Accrued salaries and benefits 1,388,809 31,516 1,420,325 Other payables 143,368 1,926 145,294 Deposits payable 73,518 - 73,518 Unearned revenue 1,698,437 357,034 2,055,471 Due to other funds - 30,576 30,576 Noncurrent liabilities: Due within one year 466,319 - 466,319 Due in more than one year 37,698,463 941,057 38,639,520 Total liabilities 44,412,737 2,296,297 46,709,034 DEFERRED INFLOWS Deferred inflows related to pensions 614,327 144,966 759,293 Total deferred inflows 614,327 144,966 759,293 NET POSITION Net investment in capital assets 172,626,991 25,221,609 197,848,600 Restricted for: Restricted for parks and recreation 4,108,174 - 4,108,174 Restricted for streets, roads, and drainage 13,654,515 - 13,654,515 Restricted for public safety 7,452,594 - 7,452,594 Restricted for economic development 1,299,642 - 1,299,642 Restricted for redevelopment and housing 5,942,024 - 5,942,024 Unrestricted 12,937,464 6,929,132 19,866,596 Total net position 218,021,404$ 32,150,741$ 250,172,145$ The notes to the basic financial statements are an integral part of this statement. 16 CITY OF ATASCADERO STATEMENT OF ACTIVITIES For the Fiscal Year Ended June 30, 2025 Program Revenues Expenses Charges for Services Operating Contributions and Grants Capital Contributions and Grants Net Governmental Activities Net Business-Type Activities Total Governmental activities: General government 3,967,900$ 92,991$ 114,290$ -$ (3,760,619)$ -$ (3,760,619)$ Public safety 20,510,598 1,437,891 604,311 118,726 (18,349,670) - (18,349,670) Community development 4,061,563 1,493,188 8,135 65,000 (2,495,240) - (2,495,240) 4,627,590 1,359,872 194,327 123,046 (2,950,345) - (2,950,345) Parks & open space 1,395,624 50,022 11,239 543,667 (790,696) - (790,696) Public works 5,125,274 266,325 911,896 7,951,676 4,004,623 - 4,004,623 Interest on long-term debt 18,244 - - - (18,244) - (18,244) Total governmental activities 39,706,793 4,700,289 1,844,198 8,802,115 (24,360,191) - (24,360,191) Business-type activities: Sewer 3,542,568 5,510,735 - - - 1,968,167 1,968,167 Transit 1,285,155 16,045 460,920 107,411 - (700,779) (700,779) Total business-type activities 4,827,723 5,526,780 460,920 107,411 - 1,267,388 1,267,388 Total primary government 44,534,516$ 10,227,069$ 2,305,118$ 8,909,526$ (24,360,191) 1,267,388 (23,092,803) General revenues Taxes: Secured and unsecured property taxes 14,598,057 - 14,598,057 Sales tax 14,767,006 - 14,767,006 Transient lodging tax 1,994,291 - 1,994,291 Franchise taxes 1,571,784 - 1,571,784 Business license tax 178,781 - 178,781 Property transfer tax 155,990 - 155,990 Other taxes 530,989 - 530,989 Motor vehicle in lieu, unrestrictted 48,562 - 48,562 Investment income 3,479,226 466,866 3,946,092 Interest from Successor Agency 20,006 - 20,006 Total general revenues 37,344,692 466,866 37,811,558 Change in net position 12,984,501 1,734,254 14,718,755 Net position at beginning of fiscal year, as previously reported 205,118,959 30,416,487 235,535,446 Adjustment- (Note 16) (82,056) - (82,056) Net position at beginning of fiscal year, restated 205,036,903 30,416,487 235,453,390 Net position at end of fiscal year 218,021,404$ 32,150,741$ 250,172,145$ Net (Expense) Revenue and Changes in Net Position Community, recreation, & zoo services The notes to the basic financial statements are an integral part of this statement. 17 CITY OF ATASCADERO GOVERNMENTAL FUNDS BALANCE SHEET June 30, 2025 General Fund In Lieu Low / Moderate Income Housing Fund Local Transportation Fund Circulation System Fees Fund Fire Aerial Vehicle Impact Fees Fund Totals ASSETS Cash and investments 19,334,063$ 1,814,861$ 2,908,408$ 5,069,429$ -$ 16,759,529$ 45,886,290$ Receivables: Federal distributions due 58,138 - 1,137,864 - - 51,056 1,247,058 Due from State of California 2,380,432 - - - - 224,049 2,604,481 43,526 - 2,937,189 - - 70,224 3,050,939 Accrued interest 109,120 11,264 21,624 31,148 - 110,741 283,897 Other receivables 1,168,646 - - - - 154,551 1,323,197 Due from other funds 74,509 - - - - 674,384 748,893 Deposits, prepaid items, and inventory 115,437 - - - - 8,647 124,084 Notes receivable - 4,115,899 - - - - 4,115,899 Total assets 23,283,871$ 5,942,024$ 7,005,085$ 5,100,577$ -$ 18,053,181$ 59,384,738$ Other Nonmajor Governmental Funds Due from County of San Luis Obispo The notes to the basic financial statements are an integral part of this statement. 18 CITY OF ATASCADERO GOVERNMENTAL FUNDS BALANCE SHEET (continued) June 30, 2025 General Fund In Lieu Low / Moderate Income Housing Fund Local Transportation Fund Circulation System Fees Fund Fire Aerial Vehicle Impact Fees Fund Totals LIABILITIES AND FUND BALANCES Liabilities: Accounts payable 758,112$ -$ 1,740,600$ -$ -$ 323,928$ 2,822,640$ Accrued salaries and benefits 1,320,385 - - - - 20,158 1,340,543 Due to other funds - - - - 674,384 43,933 718,317 Unearned revenue 186,998 - - 1,213,022 - 297,517 1,697,537 Deposits 73,518 - - - - - 73,518 Other payables 20,842 - - - - - 20,842 Total liabilities 2,359,855 - 1,740,600 1,213,022 674,384 685,536 6,673,397 Fund Balances: Nonspendable 115,437 - - - - 8,647 124,084 Restricted 98,156 5,942,024 5,264,485 3,887,555 - 17,256,082 32,448,302 Assigned for road projects - - - - - 102,916 102,916 Unassigned 20,710,423 - - - (674,384) - 20,036,039 Total fund balances (deficits)20,924,016 5,942,024 5,264,485 3,887,555 (674,384) 17,367,645 52,711,341 23,283,871$ 5,942,024$ 7,005,085$ 5,100,577$ -$ 18,053,181$ 59,384,738$ Other Nonmajor Governmental Funds Total liabilities and fund balances The notes to the basic financial statements are an integral part of this statement. 19 CITY OF ATASCADERO RECONCILIATION OF THE GOVERNMENTAL FUNDS - BALANCE SHEET TO THE STATEMENT OF NET POSITION Total fund balances - governmental funds 52,711,341$ In governmental funds, only current assets are reported. In the statement of net position, all assets are reported, including capital assets and accumulated depreciation and amortization. Capital assets at historical cost 164,778,254$ Accumulated depreciation and amortization (37,013,403) Net 127,764,851 Long-term liabilities: In governmental funds, only current liabilities are reported. In the statement of net position, all liabilities, including long-term liabilities, are reported. Long-term liabilities relating to governmental activities consist of: Workers' Compensation deposits in excess of estimated claims liability (87,856) Compensated absences payable 1,855,633 CalPERS pension liability 34,506,993 Other Post Employment Benefits 243,550 (36,518,320) The deferred outflows below are not current assets or financial resources; and the deferred inflows are not due and payable in the current period and therefore are not reported in the Governmental Funds. Deferred outflows 11,493,071 Deferred inflows (562,961) Internal service funds are used by management to charge the costs of various City activities to individual governmental and enterprise funds. The net position of the internal service funds are included in the Governmental Activities in the Statement of Net Position.63,133,422 Total net position, governmental activities 218,021,404$ June 30, 2025 The notes to the basic financial statements are an integral part of this statement. 20 CITY OF ATASCADERO GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Fiscal Year Ended June 30, 2025 General Fund In Lieu Low / Moderate Income Housing Fund Local Transportation Fund Circulation System Fees Fund Fire Aerial Vehicle Impact Fees Fund Other Nonmajor Governmental Funds Totals Revenues: Secured and unsecured property taxes 13,417,926$ -$ -$ -$ -$ 1,622,719$ 15,040,645$ Taxes based on sales and use 14,767,006 - - - - - 14,767,006 Transient Occupancy Tax 1,994,291 - - - - - 1,994,291 Franchise tax 1,571,784 - - - - - 1,571,784 Other taxes 379,287 - - - - - 379,287 Licenses and permits 947,591 65,000 - 407,859 21,672 901,193 2,343,315 Intergovernmental revenues: 48,562 - - - - - 48,562 Grants 173,355 - 2,162,982 - - 496,792 2,833,129 Other governmental revenues 265,994 - 4,068,526 - - 1,737,030 6,071,550 Charges for services: Public safety 1,283,982 - - - - - 1,283,982 Development 886,390 - - - - - 886,390 Recreation, parks, pavilion, and zoo 1,383,154 - - - - - 1,383,154 Other services 84,162 - - - - - 84,162 Fines and forfeitures 58,470 - - - - 934 59,404 Use of money and property 902,674 98,004 351,306 254,329 - 820,018 2,426,331 Other revenues 1,974,023 - - - - 6,071,564 8,045,587 Total revenues 40,138,651 163,004 6,582,814 662,188 21,672 11,650,250 59,218,579 Motor vehicle in lieu The notes to the basic financial statements are an integral part of this statement. 21 CITY OF ATASCADERO GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (continued) For the Fiscal Year Ended June 30, 2025 General Fund In Lieu Low / Moderate Income Housing Fund Local Transportation Fund Circulation System Fees Fund Fire Aerial Vehicle Impact Fees Fund Other Nonmajor Governmental Funds Totals Expenditures: Current: General government 3,764,291$ -$ -$ -$ -$ 9,846$ 3,774,137$ Public safety 21,190,242 - - - - 134,265 21,324,507 Community development 3,103,276 78,510 - - - 606,994 3,788,780 4,029,815 - - - - 13,098 4,042,913 Parks and open space 1,029,309 - - - - 32,780 1,062,089 Public works 1,942,608 - 14,682 - - 1,513,513 3,470,803 Capital outlay 5,722,732 - 10,483,370 12,815 - 1,360,606 17,579,523 Debt service: Principal - - - - - 13,530,000 13,530,000 Total expenditures 40,782,273 78,510 10,498,052 12,815 - 17,201,102 68,572,752 Excess of revenues over (under) expenditures (643,622) 84,494 (3,915,238) 649,373 21,672 (5,550,852) (9,354,173) Other Financing Sources (Uses): Transfers in 783,700 - 1,445,428 - - 359,970 2,589,098 Transfers out (509,970) - - - - (2,079,128) (2,589,098) Proceeds from freezer refund 65,252 - - - - - 65,252 Total other financing sources and uses 338,982 - 1,445,428 - - (1,719,158) 65,252 Net change in fund balances (304,640) 84,494 (2,469,810) 649,373 21,672 (7,270,010) (9,288,921) 21,228,656 5,857,530 7,816,351 3,238,182 (696,056) 24,637,655 62,082,318 Adjustment (Note 16) - - (82,056) - - - (82,056) 21,228,656 5,857,530 7,734,295 3,238,182 (696,056) 24,637,655 62,000,262 Fund balances (deficits) - June 30, 2025 20,924,016$ 5,942,024$ 5,264,485$ 3,887,555$ (674,384)$ 17,367,645$ 52,711,341$ Fund balances (deficits), June 30, 2024, as restated Fund balances (deficits), June 30, 2024, as previously reported Community, recreation, and zoo services The notes to the basic financial statements are an integral part of this statement. 22 CITY OF ATASCADERO RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Fiscal Year Ended June 30, 2025 Total net change in fund balance - governmental funds (9,288,921)$ Capital outlays are reported in governmental funds as expenditures. However, in the statement of activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which additions to capital assets of $17,579,523 is greater than depreciation expense $(2,452,002) in the period.15,127,521 The sale or deletion of capital assets is not recorded in the governmental financial statements. In the statement of activities, however, the gain or loss from the sale or deletion is recorded as an appropriate program expense.(335,236) In governmental funds, repayments of long-term debt are reported as expenditures. In the government-wide statements, repayments of long-term debt are reported as reductions of liabilities.13,530,000 In the statement of activities, compensated absences are measured by the amounts earned during the fiscal year. In governmental funds, however, expenditures for these items are measured by the amount of financial resources used (essentially the amounts paid). This fiscal year, leave amounts used exceeded the amounts earned by:123,397 In governmental funds, pension costs are recognized when employer contributions are made. In the Statement of Activities, pension costs are recognized on the accrual basis. This fiscal year, the difference between accrual-basis pension costs and actual employer contributions was:(2,000,241) In the statement of activities, changes to some claims and judgment liabilities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. (2,477) In the statement of activities, the long-term liability for Other Post Employment Benefits is recognized. The decrease in the long-term liability does not require the use of current financial resources and is not reported in governmental funds.4,082 Internal service funds are used by management to charge the costs of various City activities to individual governmental and enterprise funds. The change in the unrestricted net position of the internal service funds is included in the Governmental Activities in the Statement of Activities. This amount is the net of the change in net position -$2,652,205 less the capital contributions from other governmental funds ($1,521,419).(4,173,624) Changes in net position - governmental activities 12,984,501$ The notes to the basic financial statements are an integral part of this statement. 23 CITY OF ATASCADERO PROPRIETARY FUNDS STATEMENT OF NET POSITION June 30, 2025 Wastewater Fund Transit Fund Totals ASSETS Current Assets: Cash and investments 8,609,699$ -$ 8,609,699$ 19,553,347$ Receivables: Federal distributions due 235 302,173 302,408 463 Due from County of San Luis Obispo 117,568 45 117,613 - Accrued interest 44,567 (1,058) 43,509 119,856 Other receivables 46,272 1,532 47,804 445 Prepaid expenses 2,622 - 2,622 3,993 Total current assets 8,820,963 302,692 9,123,655 19,678,104 Capital Assets: Non-depreciable: Land 547,738 - 547,738 - Construction in progress 2,378,079 - 2,378,079 1,523,105 Depreciable: Vehicles and equipment 1,366,630 - 1,366,630 16,855,591 Structures and improvements 41,433,312 - 41,433,312 53,912,418 Accumulated depreciation (20,504,150) - (20,504,150) (27,696,961) Subscription assets, net - - - 397,879 Net capital assets 25,221,609 - 25,221,609 44,992,032 Total assets 34,042,572 302,692 34,345,264 64,670,136 DEFERRED OUTFLOWS Deferred outflows related to pensions 230,812 15,928 246,740 453,989 Total deferred outflows 230,812 15,928 246,740 453,989 Internal Service Funds Enterprise Funds The notes to the basic financial statements are an integral part of this statement. 24 CITY OF ATASCADERO PROPRIETARY FUNDS STATEMENT OF NET POSITION (continued) June 30, 2025 Wastewater Fund Transit Fund Totals LIABILITIES Current Liabilities: Accounts payable 932,812$ 1,376$ 934,188$ 121,183$ Accrued salaries and benefits 29,041 2,475 31,516 48,266 Unearned revenue - 357,034 357,034 900 Due to other funds - 30,576 30,576 - Other payables - 1,926 1,926 122,526 Noncurrent Liabilities: Noncurrent liabilities 871,321 69,736 941,057 1,646,462 Total liabilities 1,833,174 463,123 2,296,297 1,939,337 DEFERRED INFLOWS Deferred inflows related to pensions 144,997 (31) 144,966 51,366 Total deferred inflows 144,997 (31) 144,966 51,366 NET POSITION Net investment in capital assets 25,221,609 - 25,221,609 44,992,032 Net subscription liability - - - 249,197 Unrestricted 7,073,604 (144,472) 6,929,132 17,892,193 Total net position 32,295,213$ (144,472)$ 32,150,741$ 63,133,422$ Enterprise Funds Internal Service Funds The notes to the basic financial statements are an integral part of this statement. 25 CITY OF ATASCADERO PROPRIETARY FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION For the Fiscal Year Ended June 30, 2025 Wastewater Fund Transit Fund Totals Operating Revenues: Service fees 5,109,882$ 16,045$ 5,125,927$ 3,503,676$ Installation, extension, and connection fees 399,859 - 399,859 - Other 994 - 994 1,042 Total operating revenues 5,510,735 16,045 5,526,780 3,504,718 Operating Expenses: Salaries and benefits 771,493 55,860 827,353 1,105,476 Office expense 11,272 138 11,410 1,725 Advertising 234 - 234 - Computer maintenance and replacement 44,660 31,422 76,082 4,310 Insurance 53,198 7,464 60,662 104,202 Occupancy and rental costs 42,834 3,720 46,554 62,180 Utilities 449,594 - 449,594 131,100 Communications 11,144 1,380 12,524 84,591 Operating supplies 180,156 291 180,447 46,585 Vehicle and equipment operating costs 165,027 40,145 205,172 17,762 Contract services 173,319 159,324 332,643 239,986 Professional development 16,498 - 16,498 6,738 Recruitment 1,013 - 1,013 502 Interest expense - - - 9,584 Franchise fees 101,324 - 101,324 - Administrative charges 507,620 177,220 684,840 96,420 Special projects: Manhole rehabilitation projects 112,848 - 112,848 - Wastewater fee study 34,192 - 34,192 - Collection system expansion feasibility 3,600 - 3,600 - Wastewater master plan study 104,816 - 104,816 - Monitors - - - 3,148 Mobile data terminal - - - 961 Tables - - - 12,500 Internal Service Funds Enterprise Funds The notes to the basic financial statements are an integral part of this statement. 26 CITY OF ATASCADERO PROPRIETARY FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION (continued) For the Fiscal Year Ended June 30, 2025 Wastewater Fund Transit Fund Totals Operating Expenses (continued): Special projects (continued): Amortization expense -$ -$ -$ 239,345$ Depreciation expense 757,726 72,189 829,915 2,254,115 Total operating expenses 3,542,568 549,153 4,091,721 4,421,230 Operating income (loss)1,968,167 (533,108) 1,435,059 (916,512) Non-Operating Revenues (Expenses): Transportation Development Act Funds - Operations - 242,120 242,120 - Section 5307 Revenues - Operations - 218,800 218,800 - Investment income 262,618 (2,661) 259,957 669,772 Investments- adjustment to fair value- GASB 31 205,067 1,842 206,909 384,885 Gain (loss) on sale of capital assets 3,150 (739,152) (736,002) (75,702) Total non-operating revenues 470,835 (279,051) 191,784 978,955 Change in net position prior to capital contributions 2,439,002 (812,159) 1,626,843 62,443 Capital Contributions: Transportation Development Act Funds - Capital - 21,483 21,483 - Section 5307 Revenues - Capital - 85,928 85,928 - Cash contributions from other funds - - - 1,819,744 Cash contributions to other funds - - - (6,056,772) Capital contributions from other funds - - - 1,521,419 Capital contributions between Internal Service Funds - - - 961 Total capital contributions - 107,411 107,411 (2,714,648) Change in net position 2,439,002 (704,748) 1,734,254 (2,652,205) Total net position, June 30, 2024 29,856,211 560,276 30,416,487 65,785,627 Total net position, June 30, 2025 32,295,213$ (144,472)$ 32,150,741$ 63,133,422$ Enterprise Funds Internal Service Funds The notes to the basic financial statements are an integral part of this statement. 27 CITY OF ATASCADERO PROPRIETARY FUNDS COMBINING STATEMENT OF CASH FLOWS For the Fiscal Year Ended June 30, 2025 Wastewater Fund Transit Fund Totals Cash Flows From Operating Activities: Receipts from customers 5,488,194$ 17,020$ 5,505,214$ -$ Internal activity - payments from other funds - - - 3,504,718 Payments to suppliers of goods and services (2,285,394) (434,766) (2,720,160) (992,087) Payments for employee services (687,005) (52,395) (739,400) (942,361) Net cash provided (used) by operating activities 2,515,795 (470,141) 2,045,654 1,570,270 - 407,621 407,621 - - 30,576 30,576 - Net cash provided by non-capital related financing activities - 438,197 438,197 - Acquisition of capital assets (6,033,467) (107,411) (6,140,878) (387,501) Cash contributions for capital purchases - - - 1,700,000 Cash contributions for capital purchases - - - (6,056,772) Capital grant proceeds - 30,666 30,666 (463) Proceeds from sale of capital assets 3,150 - 3,150 21,611 Net cash provided (used) by capital and related financing activities (6,030,317) (76,745) (6,107,062) (4,723,125) Cash Flows From Non-Capital Financing Activities: Cash Flows From Capital and Related Financing Activities: Loans / repayments to other funds Receipts from intergovernmental agencies Internal Service Funds Enterprise Funds The notes to the basic financial statements are an integral part of this statement. 28 CITY OF ATASCADERO PROPRIETARY FUNDS COMBINING STATEMENT OF CASH FLOWS (continued) For the Fiscal Year Ended June 30, 2025 Wastewater Fund Transit Fund Totals Cash Flows From Investing Activities: Interest income 494,588$ 948$ 495,536$ 1,062,640$ Net cash provided (used) by investing activities 494,588 948 495,536 1,062,640 Net increase (decrease) in cash and cash equivalents (3,019,934) (107,741) (3,127,675) (2,090,215) Cash and cash equivalents - June 30, 2024 11,629,633 107,741 11,737,374 21,643,562 Cash and cash equivalents - June 30, 2025 8,609,699$ -$ 8,609,699$ 19,553,347$ Operating income (loss)1,968,167$ (533,108)$ 1,435,059$ (916,512)$ Amortization expense - - - 239,345 Depreciation expense 757,726 72,189 829,915 2,254,115 Receivables, net (22,541) 975 (21,566) (445) Prepaid expenses 4,070 2,612 6,682 1,918 Accounts payable (276,115) (16,274) (292,389) (173,708) Accrued salaries and benefits 8,735 554 9,289 16,705 Other payables - - - 1,471 Deferred outflows 85,021 4,166 89,187 132,788 Deferred inflows (6,172) (302) (6,474) (9,640) Long-term subscriptions payable - - - 971 Net pension liability (19,448) (953) (20,401) (30,373) Compensated absences 16,352 - 16,352 53,635 Net cash provided (used) by operating activities 2,515,795$ (470,141)$ 2,045,654$ 1,570,270$ Change in assets, deferred outflows, liabilities, and deferred inflows: Internal Service Funds Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Enterprise Funds The notes to the basic financial statements are an integral part of this statement. 29 CITY OF ATASCADERO PRIVATE PURPOSE TRUST FUNDS STATEMENT OF FIDUCIARY NET POSITION For the Fiscal Year Ended June 30, 2025 Successor Agency to the Community Redevelopment Agency of Atascadero Housing Successor Agency to the Community Redevelopment Agency of Atascadero Totals ASSETS Cash and investments 1,691,655$ -$ 1,691,655$ GASB 31 Adjustment to market 942 - 942 Restricted cash and investments: 23,482 - 23,482 Receivables: Accrued interest 9,516 - 9,516 Other receivables 350 - 350 Notes receivable - 200,000 200,000 Due from Successor Agency - 1,335,322 1,335,322 Total assets 1,725,945 1,535,322 3,261,267 LIABILITIES Unearned revenue 469,825 - 469,825 Interest Payable 194,116 - 194,116 Due to Successor Agency Housing Fund 1,335,322 - 1,335,322 2024 Premium/(Discount) on Bonds Payable 2,026,508 - 2,026,508 2024 Bonds Payable 15,745,000 - 15,745,000 Total liabilities 19,770,771 - 19,770,771 NET ASSETS Held in trust for taxing agencies (18,044,826)$ 1,535,322$ (16,509,504)$ Successor Agency to the Atascadero Community Redevelopment Agency Cash with fiscal agent The notes to the basic financial statements are an integral part of this statement. 30 CITY OF ATASCADERO PRIVATE-PURPOSE TRUST FUNDS STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS For the Fiscal Year Ended June 30, 2025 Successor Agency to the Community Redevelopment Agency of Atascadero Housing Successor Agency to the Community Redevelopment Agency of Atascadero Totals Additions Contributions: RPTTF Distributions 1,854,283$ -$ 1,854,283$ Contributions for 2024 Bond Fund 109,584 - 109,584 Investment earnings: Interest 132,199 - 132,199 Total additions 2,096,066 - 2,096,066 Deductions Payment on outstanding services contracts 5,000 - 5,000 Administrative costs 49,490 - 49,490 Amortization of Bond (premium)/discount (130,964) - (130,964) 2004 Bond Interest Expense/(amortization of premium)(2,077) - (2,077) 2010 Bond Reimburesemenet Interest Expense 30,259 - 30,259 2024 Bond Interest Expense 968,867 - 968,867 Total deductions 920,575 - 920,575 Change in net assets 1,175,491 - 1,175,491 Net assets - June 30, 2024 (19,220,317) 1,535,322 (17,684,995) Net assets - June 30, 2025 (18,044,826)$ 1,535,322$ (16,509,504)$ The notes to the basic financial statements are an integral part of this statement. 31 NOTES TO THE BASIC FINANCIAL STATEMENTS CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 32 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity The accompanying basic financial statements present the financial activity of the City, which is the primary government. The reporting entity is the City of Atascadero. There are no component units included in this report which meet the reporting entity definition criteria of GASB Statement No. 14, The Financial Reporting Entity, as amended by GASB Statement No. 39, GASB Statement No. 61, GASB Statement No. 80, and GASB Statement No. 90. B. Basis of Presentation The City’s basic financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Governmental Accounting Standards Board is the acknowledged standard-setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States of America. The accompanying financial statements are presented on the basis set forth in Governmental Accounting Standards Board Statements No. 34, Basic Financial Statements—Management’s Discussion and Analysis—for State and Local Governments; No. 36, Recipient Reporting for Certain Non-Exchange Revenues, an Amendment of GASB Statement No. 33; No. 37, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Government – Omnibus; and No. 38, Certain Financial Statement Note Disclosures. These statements require that the financial statements described below be presented. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on the primary government and its component unit. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and private purpose trust funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 33 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) C. Major Funds GASB Statement No. 34 defines major funds and requires that the City’s major governmental funds are identified and presented separately in the fund financial statements. All other funds, called nonmajor funds, are combined and reported in a single column, regardless of their fund-type. Major funds are defined as funds that have either assets, liabilities, revenues, or expenditures/expenses equal to ten percent of their fund-type total. The General Fund is always a major fund. The City may also select other funds it believes should be presented as major funds. The City reported the following major governmental funds in the accompanying financial statements: General Fund This fund accounts for all financial resources except those to be accounted for in another fund. It is the general operating fund of the City. In Lieu Low/Moderate Income Housing Fund This fund accounts for fees that are paid by developers in lieu of building inclusionary (affordable) housing. These fees are expended on programs that provide and/or promote affordable housing within the City. Local Transportation Fund This fund accounts for Local Transportation Funds that can be used for streets projects. Local Transportation Funds (LTF) must first be spent to meet any reasonable community transit need. The City uses the majority of LTF monies to run the City’s bus system and to contribute to San Luis Obispo Regional Transit Authority. Any remaining funds are accounted for in this fund and must be used for bikepath projects and street projects. Circulation System Fees Fund This fund accounts for fees that are paid by developers to fund the creation of more lane miles or more efficient lane miles with which to accommodate the additional trips created by new development. These fees are expended for the construction of new/increased/improved roadway and bridge facilities. Fire Aerial Vehicle Impact Fees Fund This fund accounts for impact fees imposed on commercial and multi-family residential developments for the purpose of contributing toward the purchase of the Aerial Fire Truck (Ladder Truck). The City purchased this truck in fiscal year 2007-2008 using future revenues. The City reported the following major proprietary funds: Wastewater Fund This fund accounts for the activities associated with the City’s sewer plant operation and maintenance. Transit Fund This fund accounts for the activities associated with the operation and maintenance of transportation services, such as the Dial-a-Ride Transit System. CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 34 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D. Internal Service Funds The Internal Service Funds are used to account for services rendered on a cost-reimbursement basis within the City. The City maintains three internal service funds: the Technology Fund, the Vehicle and Equipment Replacement Fund, and the Building Maintenance and Replacement Fund. The Internal Service Funds are presented in total on the Proprietary Funds financial statements. They are included in the governmental activities in the government-wide financial statements since they represent internal governmental activities. E. Private Purpose Trust Funds Private Purpose Trust Funds are used to account for monies held on behalf of others in a fiduciary capacity. The City uses private purpose trust funds to account for the Successor Agency of the Former Redevelopment Agency which was dissolved on January 31, 2012, pursuant to state law. All resources of the funds are used to support specified activities. F. Basis of Accounting The government-wide, proprietary fund financial statements, and the private purpose trust fund financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after fiscal year end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent that they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of long-term debt and acquisitions under leases and SBITAs are reported as other financing sources. Proprietary funds distinguish operating revenues from nonoperating revenues. Operating revenues generally result from providing services in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Wastewater Fund and the Transit Fund are charges to customers for services. The Wastewater Fund also recognizes as operating revenue the installation, extension and connection fees intended to recover the cost of connecting new customers to the system. All revenues not meeting these definitions are reported as non-operating revenues, including non-exchange transactions such as local transportation funds and federal Section 5307 revenues. Non-exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange, include property taxes, grants, entitlements, and donations. On an accrual basis, revenues from property taxes are recognized in the fiscal year for which the taxes are levied. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 35 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) F. Basis of Accounting (continued) Other revenues susceptible to accrual include other taxes, intergovernmental revenues, interest, and charges for services. Grant revenues are recognized in the fiscal year in which all eligibility requirements are met. Under the terms of grant agreements, the City may fund certain programs with a combination of cost-reimbursement grants, categorical block grants, and general revenues. Thus, both restricted and unrestricted net position may be available to finance program expenditures/expenses. The City’s policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary. G. Compensated Absences The City accounts for compensated absences in accordance with GASB Statement No. 101, Compensated Absences. Under this standard, a liability is recognized for leave that accumulates and is attributable to services already rendered, to the extent it is more likely than not that the leave will be used or paid. This includes vacation, sick leave (when eligible), and other forms of paid time off. The City accrues these liabilities in the government-wide and proprietary fund financial statements using the vesting method, based on current pay rates and historical usage patterns. In governmental funds, expenditures for compensated absences are recognized when paid, and the related liability is reported in the government-wide statement of net position. In proprietary funds, the liability is recognized as it is incurred. The City’s estimates are based on existing policies, labor agreements, and historical trends regarding leave usage and payouts. H. Property Taxes California Constitution Article XIII A limits the combined property tax rate to one percent of a property’s assessed valuation. Additional taxes may be imposed with voter approval. Assessed value is calculated at one hundred percent of a property’s fair value, as defined by Article XIII A, and may be increased no more than two percent per year unless a change in ownership or new construction occurs. The state legislature has determined the method of distributing the one percent tax levy among the various taxing jurisdictions. Property tax revenues are recognized in the fiscal year for which taxes have been levied and collected within sixty days of fiscal year end. Property taxes are billed and collected as follows: Secured Unsecured Valuation/Lien Date(s) January 1 January 1 Levy Date(s) July 1 July 1 Due Date(s) November 1 (50%) August 1 February 1 (50%) Delinquency Date(s) December 10 (Nov.) August 31 April 10 (Feb.) The City adopted an alternative method of property tax distribution (the “Teeter Plan”). Under this method, the City receives 100% of its secured property tax levied in exchange for foregoing any interest and penalties collected on delinquent taxes. The City receives payments as a series of advances made by the County throughout the fiscal year. The secured property tax levy is recognized as revenue upon receipt, including the final payment, which generally is received within 60 days after the fiscal year end. CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 36 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) I. Capital Assets Additions and Retirements Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Contributed capital assets are valued at their estimated fair value on the date contributed. The City’s policy is to capitalize all capital assets with costs exceeding a minimum of $2,500, and with useful lives exceeding one year. In the Technology Fund, the City uses a lower cost threshold to capitalize assets due to the nature of the assets. With the implementation of GASB Statement No. 34, the City has recorded all its public domain (infrastructure) capital assets, which include roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems. The City’s collection of zoo animals is not capitalized. The collection of animals is held for public education purposes, is well cared for, and there is a City commitment to continue the collection. 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 fiscal year represents that fiscal 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 fiscal year until the asset is fully depreciated. The City has assigned the useful lives listed below to capital assets. Structures and Improvements 3-100 years Equipment 3-25 years Infrastructure 15-100 years J. Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, as prescribed by the GASB and the American Institute of Certified Public Accountants, 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/expenses during the reporting period. Actual results could differ from those estimates. K. Cash and Cash Equivalents For purposes of the statement of cash flows, the City considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. The Proprietary Funds’ “deposits” in the Citywide cash management pool are, in substance, demand deposits and are, therefore, considered cash equivalents for purposes of the statement of cash flows. CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 37 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) L. Performance Bonds The City receives performance bonds from developers to ensure compliance and completion of projects that affect the City’s infrastructure. These commitments may be in the form of cash, certificates of deposit in the City’s name, letters of credit, or surety bonds. Upon receipt, these deposits are recorded both as an asset and a liability. For purposes of simplifying the balance sheet, the performance bonds asset account in the amount of $47,112,771 was netted against the liability account of $47,172,105 in fiscal year 2025. The net balance in the performance bond deposits liability account at June 30, 2025, was $59,334 and is included with other amounts in the “Deposits” liability reported in the basic financial statements. M. Short-Term Debt The City has no short-term debt. N. Long-Term Contracts The City uses the percentage-of-completion method of accounting for long-term contracts, recognizing the pro rata portion of the contract in the accounting period covered by the contract. O. Fund Balance Categories of Fund Balance In accordance with Government Accounting Standards Board Statement No. 54, the City classifies fund balances as follows: Non-spendable- includes fund balance amounts that cannot be spent either because it is not in spendable form or because of legal or contractual constraints. Restricted- includes fund balance amounts that are constrained for specific purposes which are externally imposed by providers, such as creditors or amounts constrained due to constitutional provisions or enabling legislation. Committed- includes amounts that can only be used for specific purposes pursuant to constraints imposed by the City Council. Assigned- includes fund balance amounts that are constrained for specific purposes by the City through formal action of the City Council and does not lapse at fiscal year end. Unassigned- includes positive fund balance within the General Fund which has not been classified within the above-mentioned categories and negative fund balances in other governmental funds. Non-Spendable Fund Balance The non-spendable fund balance of $124,084 is comprised of amounts reported in non-spendable form and/or not in cash form such as prepaid items and deposits. Restricted Fund Balance The restricted fund balance of $32,448,302 is comprised of $98,156 for economic development to offset the impact of the impending closure of Pacific Gas and Electric’s Diablo Canyon Power Plant, $5,942,024 for affordable housing, and $26,408,122 restricted for other Capital Project Funds and Special Revenue Funds. CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 38 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) O. Fund Balance (continued) Assigned Fund Balance The fund balance assigned for road projects of $102,916 is held in the Capital Projects Fund for road rehabilitation projects. These funds remain from the City Council’s action to move funds annually in fiscal years 2001/2002 through 2007/2008 for these projects, and associated interest earnings. Use of Fund Balance Order The City budgets and expends funds for each project or expense based on specific identified funding sources that are available now and in the future. This means that, at times, the City may use unrestricted funds first for a particular project, leaving the eligible restricted funds available for a specific future project; however, it is the City’s general policy to use restricted amounts first when both restricted and unrestricted amounts are available. Similarly, the City would typically first use committed, then assigned, and lastly unassigned amounts of unrestricted fund balance when expenditures are made. Minimum Fund Balance Policy The City adopted a formal fund balance policy stating that as part of the biennial budget process, fund balance shall be evaluated to determine the prudent level of reserves based on eleven key measurements. The policy further states that except in the case of natural or fiscal emergencies, the City’s general fund balance shall not fall below 20% of General Fund expenditures. The General Fund reserve met this criterion for fiscal year 2024-2025. Major Special Revenue and Capital Projects Funds The purpose for each major fund may be found in Note 1(C); however, each major special revenue and capital projects fund and its revenue source is listed below: Major Special Revenue and Debt Service Funds Revenue Source In Lieu Low/Moderate Income Housing Fund New Developments Local Transportation Fund Local Transportation Funds Circulation System Fees Fund Development Impact Fees Fire Aerial Vehicle Impact Fees Fund Development Impact Fees CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 39 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) O. Fund Balance (continued) Detailed Schedule of Fund Balances A detailed schedule of fund balances is provided below: General Fund In Lieu Low/Moderate Income Housing Fund Local Transportation Fund Circulation System Fees Fund Fire Aerial Vehicle Impact Fees Fund Totals FUND BALANCES: Nonspendable 115,437$ -$ -$ -$ -$ 8,647$ 124,084$ Restricted Public Safety - - - - - 7,446,927 7,446,927 Streets, Roads, and Drainage - - 5,264,485 3,887,555 - 4,499,495 13,651,535 Parks, Open Space, and Recreation - - - - - 4,108,174 4,108,174 98,156 - - - - 1,201,486 1,299,642 Affordable Housing - 5,942,024 - - - - 5,942,024 Assigned Roads Projects - - - - - 102,916 102,916 Unassigned 20,710,423 - - - (674,384) - 20,036,039 Total Fund Balances (Deficits)20,924,016$ 5,942,024$ 5,264,485$ 3,887,555$ (674,384)$ 17,367,645$ 52,711,341$ Other Nonmajor Governmental Funds Disclosure of Fund Balances Reported on Balance Sheet June 30, 2025 Community Development and Blight Elimination Deposits, prepaid items, and inventory CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 40 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) P. New GASB Pronouncements GASB Statements listed below will be implemented in future financial statements: Statement No. 103 "Financial Reporting Model Improvements"The provisions of this statement are effective for fiscal years beginning after June 15, 2025. Statement No. 104 "Disclosure of Certain Capital Assets"The provisions of this statement are effective for fiscal years beginning after June 15, 2025. Q. Deferred Outflows and Inflows of Resources Pursuant to GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, and GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, the City recognizes deferred outflows and inflows of resources. In addition to assets, the Statement of Net Position will sometimes report a separate section for deferred outflows of resources. A deferred outflow of resources is defined as a consumption of net position by the government that is applicable to a future reporting period. The City has one item which qualifies for reporting in this category; refer to Note 9 for a detailed listing of the deferred outflows of resources the City has recognized. In addition to liabilities, the Statement of Net Position will sometimes report a separate section for deferred inflows of resources. A deferred inflow of resources is defined as an acquisition of net position by the City that is applicable to a future reporting period. The City has one item which qualifies for reporting in this category; refer to Note 9 for a detailed listing of the deferred inflows of revenues the City recognized. R. Pensions 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 of Atascadero’s California Employees’ Retirement System (CalPERS) Plan (Plan) and additions to/deductions from the Plan’s 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. NOTE 2 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY A. Budgetary Information Biennial budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for all governmental funds. After adoption of the final budget, transfers of appropriations within a general fund department, or within other funds, can be made by the City Manager or his appointee. Budget modifications between funds, and increases or decreases to a fund’s overall budget, must be approved by the City Council. Numerous CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 41 NOTE 2 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (continued) A. Budgetary Information (continued) properly authorized amendments were made during the fiscal year. Budgetary control is enhanced by integrating the budget into the general ledger accounts. Encumbrance accounting is employed (e.g., purchase orders) to avoid expenditures over budget. Encumbrances outstanding at fiscal year-end are automatically re-budgeted in the following fiscal year. B. Deficit Fund Balance A deficit fund balance exists in the Fire Aerial Vehicle Impact Fees Fund due to large purchases incurred prior to the receipt of the long-term reimbursing revenues. Deficit Fund Balance Major Governmental Fund Fire Aerial Vehicle Impact Fees Fund (674,384)$ C. Excess of Expenditures over Appropriations Expenditures exceeded projections in the 2010 Bond Debt Service Fund due to the refunding of these bonds. They were defeased on July 16, 2025. See Notes 4, 8, and 15 for additional information. Excess Expenditures Nonmajor Governmental Funds 2010 Bond Debt Service Fund (12,663,093)$ CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 42 NOTE 3 – CASH AND INVESTMENTS Cash balances from all funds are combined and invested to the extent possible, pursuant to the Investment Policy and Guidelines approved by the City Council, as well as State Government Code. The earnings from these investments are allocated monthly to each fund, based on an average of monthly opening and closing balances of cash and investments. Investments are stated at fair value. Cash and investments at June 30, 2025, consisted of the following: Pooled Cash and Investments: Cash in bank and on hand 15,583,796$ Investments 53,940,121 Local Agency Investment Fund (LAIF)6,218,016 Total Pooled Cash and Investments 75,741,933 Funds with Fiscal Agents: United States Treasury Money Fund 23,482 Total Funds with Fiscal Agents 23,482 Total Cash and Investments 75,765,415$ Cash and investments are reflected in the accompanying financial statements as follows: Governmental Activities Business- Type Activities Private-Purpose Trust Funds Total Cash and investments 65,439,637$ 8,609,699$ 1,692,597$ 75,741,933$ Cash and investments held by fiscal agents - - 23,482 23,482 Total Cash and Investments 65,439,637$ 8,609,699$ 1,716,079$ 75,765,415$ CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 43 NOTE 3 – CASH AND INVESTMENTS (continued) A. Deposits with Financial Institutions For custodial credit risk associated with deposits, the City follows the California Government Code, which requires California financial institutions to secure the City’s deposits by pledging government securities as collateral. The fair value of the pledged securities must equal 110% of the City’s deposits. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes equal to 150% of the City’s deposits. At fiscal year end, the City’s bank account and bank money market fund balances totaled $15,455,580. The first $250,000 was insured by federal depository insurance and the remainder was 110% collateralized. Certificates of Deposit totaling $15,630,647 are fully insured. B. State Investment Pool The fair value of the City’s position in the State LAIF pool is the same as the value of the pool shares. The State LAIF pool credit quality is unrated. LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. The State Treasurer’s Office audits the fund annually. Separate financial statements for LAIF can be obtained by writing Local Agency Investment Fund, Post Office Box 942809, Sacramento, CA 94209-0001. C. Authorized Investments The City’s Investment Policy lists the following as authorized investments: Local Agency Investment Fund (LAIF) U.S. Government Obligations California and California Local Agency Municipal Obligations Other State Municipal Obligations Supranational Securities Bankers’ Acceptances Commercial Paper Certificates of Deposit and Passbook Savings Accounts Money Market Funds CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 44 NOTE 3 – CASH AND INVESTMENTS (continued) D. Marking Investments to Fair Value (GASB Statement No. 31) In fiscal year 1997/98, the City adopted Governmental Accounting Standards Board Statement No. 31, which requires that the City’s investments be carried at fair value instead of cost. Under GASB Statement No. 31, the City must adjust the carrying value of its investments to reflect their fair value at each fiscal year end, and it must include the effects of these adjustments in income for that fiscal year. GASB Statement No. 31 applies to all City investments, even if held to maturity and redeemed at full face value. Since the City’s policy is to hold all investments to maturity, the fair value adjustments required by GASB Statement No. 31 result in accounting gains or losses (called “recognized” gains or losses) which do not reflect actual sales of the investments (called “realized” gains or losses). Thus, recognized gains or losses on an investment purchased at par will now reflect changes in its value at each succeeding fiscal year end, but these recognized gains or losses will net to zero if the investment is held to maturity. By following the requirements of GASB Statement No. 31, the City is reporting the amount of resources which would actually have been available if it had been required to liquidate all of its investments at any fiscal year end. E. Governmental Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurements and Application, provides the framework for measuring fair value. The framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value with Level 1 given the highest priority and Level 3 the lowest priority. The three levels of the fair value hierarchy are as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the organization has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include the following: 1. Quoted prices for similar assets or liabilities in active markets. 2. Quoted prices for identical or similar assets or liabilities in markets that are not active. 3. Inputs other than quoted prices that are observable for the asset or liability (for example, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates). 4. Inputs that are derived principally from or corroborated by observable market data by correlation or other means (market-corroborated inputs). Level 3 inputs are unobservable inputs for the asset or liability. CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 45 NOTE 3 – CASH AND INVESTMENTS (continued) Fair value of assets measured on a recurring basis at June 30, 2025, are as follows: June 30, 2025 Fair Value Quoted Prices in Active Markets for Identical Assets (Level1) Significant Other Observable Inputs (Level 2) Uncategorized (Level 3) U. S. Government Obligations 28,873,001$ 7,746,215$ 21,126,786$ -$ Supranational Securities 1,005,810 - 1,005,810 - Municipal Securities 8,430,663 - 8,430,663 - Certificates of Deposit 15,630,647 - 15,630,647 - 53,940,121 7,746,215$ 46,193,906$ -$ Investments measured at amortized cost Local Agency Investment Fund (LAIF)6,218,016 Total investments 60,158,137$ Fair values for investments are determined by using a matrix pricing technique. Matrix pricing is used to value securities based on the security’s relationship to benchmark quoted prices. Uncategorized investments do not fall under the fair value hierarchy as there is no active market for the investments. CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 46 NOTE 3 – CASH AND INVESTMENTS (continued) F. Investments Investments for the City are summarized below: Investments Fair Value Percent of Portfolio U.S. Government Obligations 28,873,001$ 48% Supranational Securities 1,005,810 2% Municipal Securities 8,430,663 14% Certificates of Deposit 15,630,647 26% Local Agency Investment Fund (LAIF)6,218,016 10% Total Investments Managed by City 60,158,137$ 100% Investments Held by Fiscal Agents United States Treasury Money Fund 23,482$ 100% Total Investments Held by Fiscal Agents 23,482$ 100% Fair Value On Demand Within One Month One Month to One Year One to Five Years Investments U.S. Government Obligations 28,873,001$ -$ -$ 3,669,533$ 25,203,468$ Supranational Securities 1,005,810 - - - 1,005,810 Municipal Securities 8,430,663 - 605,000 1,116,698 6,708,965 Certificates of Deposit 15,630,647 - - 3,908,868 11,721,779 Local Agency Investment Fund (LAIF)6,218,016 6,218,016 - - - Investments Held by Fiscal Agents 23,482 23,482 *- - - Total Investments Managed by City 60,181,619$ 6,241,498$ 605,000$ 8,695,099$ 44,640,022$ Percentage of Portfolio 100%10%1%14%75% * Held by fiscal agents for the 2024 Tax Allocation Refunding Bonds CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 47 NOTE 3 – CASH AND INVESTMENTS (continued) F. Investments (continued) Interest Rate Risk. This is the risk that the market value of securities in the portfolio will fall, due to changes in general interest rates. In accordance with its Investment Policy, the City mitigates interest rate risk by: • Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity. • Investing operating funds primarily in shorter-term securities, money market mutual funds, or similar investment pool. Credit Risk. This is the risk of loss due to the failure of the security issuer or backer. The City mitigates credit risk by: • Limiting investments to the safest types of securities. • Pre-qualifying the financial institutions, broker/dealers, intermediaries, and advisers with which the City will do business. • Diversifying the investment portfolio so that potential losses on individual securities will be minimized. State law limits investments in commercial paper and corporate bonds to the top two ratings issued by Nationally Recognized Statistical Rating Organizations (NRSROs). It is the City’s policy to limit its investments in these investment types to the top rating issued by NRSROs. The City does not hold any commercial paper or corporate bonds. U. S. Government Obligations held by the City are rated AAA, the top rating issued by NRSROs. The City’s investment in the State LAIF pool is unrated, as are the investments in Certificates of Deposit. Fair Value AAA - A Not Rated Investments U. S. Government Obligations 28,873,001$ 28,873,001$ -$ Supranational Securities 1,005,810 1,005,810 - Municipal Securities 8,430,663 8,430,663 - Certificates of Deposit 15,630,647 - 15,630,647 Local Agency Investment Fund (LAIF)6,218,016 - 6,218,016 Investments Held by Fiscal Agents 23,482 - 23,482 Total Investments Managed by City 60,181,619$ 38,309,474$ 21,872,145$ Rating as of June 30, 2025 Custodial Credit Risk. Custodial credit risk is the risk that in the event of failure of the counterparty, the government will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City’s investments in government securities are held in trust by US Bank and are exposed to custodial credit risk because these investments are uninsured and collateralized with securities held by the US Bank’s trust department or agency, but not in the City’s name. The amounts held under this custodial arrangement are not limited by the City’s Investment Policy. CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 48 NOTE 3 – CASH AND INVESTMENTS (continued) F. Investments (continued) Concentration Credit Risk. The City’s Investment Policy provides guidelines (by type of investment vehicle that limits either the dollar amount, the percent of the portfolio or the maturity term) for diversifying the investment portfolio so that potential losses on individual securities will be minimized. The City’s Investment Policy outlines the following criteria related to portfolio diversification: • No more than thirty percent (30%) of the City’s portfolio shall be invested in California and California local agency municipal obligations, and other state municipal obligations. • Up to forty percent (40%) of the City’s portfolio may be invested in bankers’ acceptances that are defined as bills of exchange or time drafts, drawn on and accepted by a commercial bank, which are eligible for purchase by the Federal Reserve System, although no more than thirty percent (30%) of the portfolio may be invested in bankers’ acceptances with any one commercial bank. Additionally, the maturity periods cannot exceed 180 days. • A maximum of twenty-five percent (25%) of the City’s portfolio may be invested in highest tier (e.g., A-1, P-1, F-1 or D-1 or higher) commercial paper as rated by a nationally recognized statistical rating organization (NRSRO). Issuing corporations must be organized and operating in the United States, have $500 million total assets, and have at least an “A” rating (by a NRSRO) on debt other than commercial paper. The maturity period cannot exceed 270 days. Purchases of eligible commercial paper may not exceed 10% of the outstanding paper of an issuing corporation. • A maximum of thirty percent (30%) of the City’s portfolio may be deposited in certificates of deposit or passbook savings accounts. The minimum requirements for certificate of deposit investments shall be: o Investments and accrued interest shall never exceed the FDIC insurance limit in any one institution. o Qualified institutions must have a minimum equity ratio of 6% and a minimum capitalization of $10,000,000. • Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec 80a-l et seq.) shall not exceed twenty percent (20%) of the agency's surplus money that may be invested pursuant to the City’s Investment Policy. • Up to thirty percent (30%) of the City’s portfolio may be invested in United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this paragraph shall be rated in a rating category of “AA” or its equivalent or better by a nationally recognized statistical rating organization. No more than 10% of the City’s portfolio shall be invested in obligations of any one bank. G. Funds with Fiscal Agents The City had $23,482 in cash and investments as of June 30, 2025, held by fiscal agents for the new 2024 Tax Allocation Bond Refunding in the Successor Agency to the Community Redevelopment Agency of Atascadero Private Purpose Trust Fund. The California Government Code provides that these monies, in the absence of specific statutory provisions governing the issuance of bonds, certificates, or leases, may be invested in accordance with the ordinance, resolutions, or indentures specifying the types of investments its fiscal agents may make. CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 49 NOTE 4 – ADVANCES RECEIVABLE – SUCCESSOR AGENCY Advances receivable of $13,530,000 related to a reimbursement agreement with the City for bond debt service was satisfied during fiscal year 2025. The 2024 Tax Allocation Refunding Bonds were issued in April, 2024, and the 2010 Lease Revenue Bonds were subsequently defeased on July 16, 2024. The original Advances receivable agreement was entered into in 2010 whereby the City advanced the former Agency the proceeds of the bond and the former Agency was required to make annual payments to the City in the amount of the debt service on the bonds. With the dissolution of redevelopment, this became a debt of the Successor Agency and the Successor Agency made the required payments. See Note 15D – Successor Agency Trust for Assets of Former Redevelopment Agency, Bond Reimbursement Agreement Payable, for additional information. NOTE 5 – NOTES RECEIVABLE Notes Receivable in the amount of $4,115,899 is outstanding in the In Lieu Low/Moderate Income Housing Fund. Developments meeting certain criteria must either pay an In-Lieu fee into the fund or provide “affordably” priced homes for sale to income qualified buyers. These homes are sold by developers at prices below fair market value and the City records notes receivable against the titles in the amounts equal to the difference between the reduced sales prices and the fair market values. The loans are either paid back on a pro-rata share of equity at the time the homes sell or are forgiven after a period of 30 years of ownership by the same homeowner. The Notes Receivable amount includes loans for 22 homes in the Very Low-Income category and 8 homes in the Low/Moderate Income category. CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 50 NOTE 6 – CAPITAL ASSETS A. Capital Assets Additions and Retirements Capital assets activity in the Governmental Activities for the fiscal year ended June 30, 2025, was as follows: Balance June 30, 2024 Additions Deletions Transfers Between Assets Balance June 30, 2025 Governmental Activities Non-Depreciable capital assets Land 41,659,554$ -$ -$ -$ 41,659,554$ Construction in progress 5,047,390 17,195,780 - (7,397,785) 14,845,385 Total non-depreciable capital assets 46,706,944 17,195,780 - (7,397,785) 56,504,939 Depreciable or amortizable capital assets Vehicles and equipment 16,713,745 469,233 (255,546) 18,875 16,946,307 Structures and improvements 57,636,477 30,121 - 378,531 58,045,129 Subscription assets 997,263 - (37,596) - 959,667 Infrastructure 99,625,050 272,850 (1,325,286) 7,000,379 105,572,993 174,972,535 772,204 (1,618,428) 7,397,785 181,524,096 (61,510,369) (4,945,462) 1,183,679 - (65,272,152) Net depreciable capital assets 113,462,166 (4,173,258) (434,749) 7,397,785 116,251,944 Net governmental capital assets 160,169,110$ 13,022,522$ (434,749)$ -$ 172,756,883$ Less accumulated depreciation or amortization Total depreciable or amortizable capital assets CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 51 NOTE 6 – CAPITAL ASSETS (continued) A. Capital Assets Additions and Retirements (continued) Capital assets activity in the Business-Type Activities for the fiscal year ended June 30, 2025, was as follows: Balance June 30, 2024 Additions Deletions Transfers Between Assets Balance June 30, 2025 Business-Type Activities Non-depreciable capital assets Land 547,738$ -$ -$ -$ 547,738$ Construction in progress 3,313,109 5,474,992 - (6,410,022) 2,378,079 Total non-depreciable capital assets 3,860,847 5,474,992 - (6,410,022) 2,925,817 Depreciable capital assets Vehicles and equipment 1,378,782 452,048 (464,200) - 1,366,630 Structures and improvements 36,281,890 213,836 (1,472,436) 6,410,022 41,433,312 Total depreciable or amortizable capital assets 37,660,672 665,884 (1,936,636) 6,410,022 42,799,942 (20,871,719) (829,915) 1,197,484 - (20,504,150) Net depreciable capital assets 16,788,953 (164,031) (739,152) 6,410,022 22,295,792 Net business-type capital assets 20,649,800$ 5,310,961$ (739,152)$ -$ 25,221,609$ Less accumulated depreciation CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 52 NOTE 6 – CAPITAL ASSETS (continued) B. Depreciation Allocations Depreciation expense was charged to functions and programs based on their usage of the related assets. The amounts allocated to each function or program were as follows: Governmental Activities: General government 353,044$ Public safety 1,112,794 Community development 234,838 Community, recreation, & zoo services 396,207 Parks & open space 353,573 Public works 2,495,006 Total Depreciation and Amortization Expense- Governmental Activities 4,945,462$ Sewer 757,726$ Transit 72,189 Total Depreciation Expense- Business-Type Activities 829,915$ Business-Type Activities: CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 53 NOTE 7 – INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS A. Interfund Receivables and Payables Due to/due from other funds consist of short-term interfund loans made for the purposes of cash flows. They are expected to be repaid by the borrowing fund within one year. The composition of due to/due from balances at June 30, 2025, is as follows: Receivable Fund Payable Fund Amount General Fund Nonmajor Community Development Block Grant Fund 43,933$ General Fund Transit Fund 30,576 Nonmajor Fire Facilities Fees Fund Fire Aerial Vehicle Impact Fees Fund 674,384 Total 748,893$ B. Interfund Transfers Interfund transfers were made as follows: Actual Amount Description 783,700$ Transfer from the Community Facilities District Fund to the General Fund for fire, police, and park services 355,970 Transfer from the General Fund to the Gas Tax Fund for the cost of Streets Department operations 1,295,428 Transfer from the Gas Tax Fund to the Local Transportation Fund for the Traffic Way North Project 2,600 Transfer from the General Fund to the Las Lomas Landscape & Lighting Fund for open space maintenance 1,400 Transfer from the General Fund to the De Anza Landscape & Lighting Fund for open space maintenance 150,000 Transfer from the General Fund to the Local Transportation Fund for the Downtown Infrastructure Enhancement Plan 2,589,098$ Interfund Transfers June 30, 2025 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 54 NOTE 8 – LONG-TERM LIABILITIES A. Compensated Absences City employees accumulate earned but unused vacation and certain other leave pay benefits which can be converted to cash at termination of employment. In the statement of activities, the expenditure is allocated to each function based on usage. The vested benefits payable in accordance with various collective bargaining agreements at June 30, 2025, total $1,983,650 for governmental activities and $29,857 for business-type activities. B. 2010 Lease Revenue Bonds The 2010 Lease Revenue Bonds were satisfied during fiscal year 2025. The 2024 Tax Allocation Refunding Bonds were issued in April 2024, and the 2010 Lease Revenue Bonds were subsequently defeased on July 16, 2024. The 2010 Lease Revenue Bonds were previously issued with a principal amount of $16,010,000 for the former Community Redevelopment Agency of Atascadero. The bonds were issued by the City in order to achieve an overall lower interest rate on the bonds. The bond proceeds were transferred to the former Redevelopment Agency for use on the Historic City Hall Project and other redevelopment blight elimination projects. These bonds were scheduled to mature between fiscal years 2015 and 2041, at interest rates ranging from 3.0% to 5.0%. The Successor Agency made payments, from tax increment revenues, to the City in amounts equal to the annual debt service payments on the bonds. CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 55 NOTE 8 – LONG-TERM LIABILITIES (continued) C. Changes in Long-Term Liabilities Long-term liability activity for the fiscal year ended June 30, 2025, was as follows: Balance June 30, 2024 Additions Payments Balance June 30, 2025 Due Within One Year Governmental Activities: Bonds Payable: 13,530,000$ -$ (13,530,000)$ -$ -$ Compensated Absences 2,053,412 1,382,052 (1,451,814) 1,983,650 346,465 Premium on 2010 Lease Revenue Bonds 48,504 - (48,504) - - Subscription Liability 250,865 - (120,973) 129,892 119,854 (90,333) (17,082) 19,559 (87,856) - Net Pension Liability 36,809,496 3,595,401 (4,509,351) 35,895,546 - Other Post Employment Benefits Liability 247,632 4,718 (8,800) 243,550 - Total Governmental Activities 52,849,576$ 4,965,089$ (19,649,883)$ $ 38,164,782 466,319$ Business-type Activities: Compensated Absences 13,505$ 35,722$ (19,370)$ 29,857$ -$ Net Pension Liability 931,601 97,254 (117,655) 911,200 - Total Business-type Activities $ 945,106 132,976$ $ (137,025) $ 941,057 -$ 2010 Lease Revenue Bonds Workers' Compensation estimated claims liability in excess of deposits D. Subscription Based Information Technology Arrangements On January 12, 2022, the City entered into an initial contract term for Computer-Aided Dispatch/Records Management System (CAD/RMS) software arrangement with Mark43, Inc.. The CAD/RMS system was implemented February 1, 2023 and expires in fiscal year 2026-2027. Accumulated amortization for the current fiscal year was $504,203 and the outflows of resources in the current fiscal year were $119,744. On February 9, 2022, the City entered into an initial contract term for Website Software and Support Services with Planeteria Media. The website software was implemented November 1, 2023, and has a term of five years. Accumulated amortization for the current fiscal year was $33,110 and the outflows of resources in the current fiscal year were $7,140. CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 56 NOTE 8 – LONG-TERM LIABILITIES (continued) D. Subscription Based Information Technology Arrangements (continued) The following is a summary of principal and interest payments to be made in future fiscal years: Fiscal Year Ending June 30,Principal Interest 2026 $ 112,779 $ 5,577 2027 116,209 2,105 $ 228,988 $ 7,682 Mark43, Inc - CAD/RMS Fiscal Year Ending June 30,Principal Interest 2026 $ 6,525 $ 580 2027 6,754 399 2028 6,929 210 $ 20,208 $ 1,189 Planeteria Media - Website The City entered into a prepaid software arrangement with SHI International Corp. for Malwarebytes Software. The initial contract term is July 31, 2022 – July 31, 2025. The total subscription asset is valued at $25,174, and $24,476 has accumulated in amortization as of the end of the fiscal year. CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 57 NOTE 9 – EMPLOYEE RETIREMENT BENEFITS A. Public Employees’ Retirement System Summary of Significant Accounting Policies-Pensions 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 of Atascadero’s California Public Employees’ Retirement System (CalPERS) Plan (Plan) and additions to/deductions from the Plan’s 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. 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 others). Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous 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 City of Atascadero sponsors six rate plans (three miscellaneous and three safety). Benefit provisions under the Plan are established by State statute and City of Atascadero 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 at www.calpers.ca.gov. 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 services, equal to a fixed percentage of their highest annual salary formula as determined by the benefit program they participate in. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 58 NOTE 9 – EMPLOYEE RETIREMENT BENEFITS (continued) A. Public Employees’ Retirement System (continued) Benefits Provided (continued) The rate plan provisions and benefits in effect at June 30, 2025, are summarized as follows: Tier 1 Tier 2 Tier 3 Hire date Prior to July 1, 2012 On or after July 1, 2012 On or after January 1, 2013 Benefit formula 2.5% @ 55 2.0% @ 55 2.0% @ 62 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 50-63 52-67 Monthly benefits, as a % of eligible compensation 2.0% to 2.5%1.426% to 2.418%1.0% to 2.5% Required employee contribution rates 8.00%7.00%8.25% Required employer contribution rates 14.99%12.67%8.18% Miscellaneous Plan Tier 1 Tier 2 Tier 3 Hire date Prior to July 1, 2012 On or after July 1, 2012 On or after January 1, 2013 Benefit formula 3.0% @ 50 3.0% @ 55 2.7% @ 57 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 50-55 50-57 Monthly benefits, as a % of eligible compensation 3.0%2.4% to 3.0%2.0% to 2.7% Required employee contribution rates 9.00%9.00%13.75% Required employer contribution rates 27.32%23.00%13.76% Safety Plan CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 59 NOTE 9 – EMPLOYEE RETIREMENT BENEFITS (continued) A. 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 CalPERS. 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 the employees. The City’s contributions to the Plan for the fiscal year ended June 30, 2025, were $5,275,288. Beginning in fiscal year 2016, CalPERS collects employer contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability and side fund. The dollar amount was paid at the beginning of the fiscal year. The City of Atascadero’s required contribution for the unfunded liability and side fund was $3,206,112 in fiscal year ended June 30, 2025. B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2025, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan of $36,806,746. The City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2024, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2023, rolled forward to June 30, 2024, using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plan relative to other 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, 2024, and 2023, was as follows: June 30, 2025 June 30, 2024 Measurement Date 6/30/2024 6/30/2023 Percentage of Plan (PERF C) Net Pension Liability 0.30350%0.30253%0.00097% Change: Increase/ (Decrease) Percentage share of Plan Proportionate Percentage Share of Net Pension Liability CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 60 NOTE 9 – EMPLOYEE RETIREMENT BENEFITS (continued) B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (continued) For the fiscal year ended June 30, 2025, the City recognized pension expense of $7,430,616. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience 3,079,977$ (108,981)$ Changes of assumptions 923,565 - Net differences between projected and actual earnings on plan investments 1,924,165 - Change in employer's proportion 45,960 (443,559) Differences between the employer's contributions and the employer's proportionate share of contributions 944,845 (206,753) Pension contributions subsequent to measurement date 5,275,288 - Total 12,193,800$ (759,293)$ All Plans $5,275,288 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the fiscal year ended June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows: Fiscal Year Ended June 30, Deferred Outflows / (Inflows) of Resources 2026 2,195,202$ 2027 4,580,765 2028 42,096 2029 (658,844) CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 61 NOTE 9 – EMPLOYEE RETIREMENT BENEFITS (continued) B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (continued) Actuarial Assumptions – For the measurement period ended June 30, 2024, the total pension liabilities were determined by rolling forward the June 30, 2023, valuation of total pension liability. The June 30, 2024, total pension liability was based on the following actuarial methods and assumptions: Valuation Date Measurement Date Actuarial Assumptions: Discount Rate Inflation Salary Increases Post Retirement Benefit Increase Mortality Plan June 30, 2023 June 30, 2024 6.90% 2.30% Varies by Entry Age and Service Contract COLA up to 2.3% until Purchasing Power Protection Allowance Floor on Purchasing Power Applies Derived using CalPERS' Membership Data for all Funds. The mortality table was developed based on CalPERS-specific date. The rates incorporate Generational Mortality to capture ongoing mortality improvements using 80% of Scale MP 2020 published by the Society of Actuaries. For more details, please refer to the 2021 experience study report that can be found on the CalPERS’ website. Discount Rate The discount rate used to measure the total pension liability for PERF C was 6.90%. 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. CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 62 NOTE 9 – EMPLOYEE RETIREMENT BENEFITS (continued) B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (continued) Actuarial Assumptions (continued) Long-Term Expected Rate of Return In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated and combined with risk estimates, are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. The following table reflects long-term expected real rate of return by asset class. The rates of return were calculated using the capital market assumptions applied to determine the discount rate and asset allocation. Asset Class Assumed Asset Allocation 1 Real Return Years 1-10 1,2 Global equity - cap-weighted 30.0%4.54% Global equity non-cap-weighted 12.0%3.84% Private equity 13.0%7.28% Treasury 5.0%0.27% Mortgage-backed Securities 5.0%0.50% Investment Grade Corporates 10.0%1.56% High Yield 5.0%2.27% Emerging Market Debt 5.0%2.48% Private Debt 5.0%3.57% Real assets 15.0%3.21% Leverage -5.0%-0.59% Total 100.0% (1) An expected inflation of 2.30% used for this period. (2) Figures are based on the 2021-22 Asset Liability Management Study. CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 63 NOTE 9 – EMPLOYEE RETIREMENT BENEFITS (continued) B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (continued) Sensitivity of Proportionate Share of 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 the 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: 5.90% (1% Decrease) 6.90% (Current Rate) 7.90% (1% Increase) Measurement Date Fiscal Year End Net Pension Liability 55,855,705$ 36,806,746$ 21,184,345$ Discount Rate 6/30/2024 6/30/2025 Pension Plan Fiduciary Net Position Detailed information about the Plan’s fiduciary net positions is available in separately issued CalPERS’ financial reports. C. Payable to the Pension Plan The City paid 100% of the required actuarially determined contributions for the fiscal year ending June 30, 2025, and therefore recorded no payables to the pension plan for the same period. D. Defined Contribution Plan The City offers a defined contribution plan, Nationwide Retirement Solutions, for those employees that are excluded from CalPERS membership due to part- time or elected status. The plan is approved as a FICA substitute. Members contribute 5% and the City contributes 2.5%. Total employee contributions for the fiscal year were $22,438, and total contributions from the City were $11,219. Nationwide Retirement Solutions is the public employee plan subsidiary of Nationwide Financial Services, Inc. (NYSE: NFS). CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 64 NOTE 10 – OTHER POST EMPLOYMENT BENEFITS Plan Description In addition to the CalPERS pension benefits described above, the City provides post-retirement health benefits for Executive Management (City Council, City Manager, Deputy City Managers, and Department Heads). The City agreed to reimburse the retiree for retiree and/or retiree’s dependent health (medical/dental/vision) insurance premiums, disability insurance, long-term health care or life insurance premiums up to a maximum of $200 per month. The benefit is available upon retirement from CalPERS or other similar retirement program after age 50, and the employee must have served for eight years with the City. The benefit extends between the date of retirement and age 65. Currently, there are three people that received benefits in fiscal year 2024/2025, and seventeen other people that may become eligible for benefits under this program. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. Contributions The City accounts for this benefit on a pay-as-you-go basis. Post employment expenditures are made from the General Fund, which is maintained on the modified accrual basis of accounting. No funds are set aside to pay for benefits and administrative costs. These expenditures are paid as they come due. For fiscal year ended June 30, 2025, the City’s total contributions were $8,800. Employees Covered As of June 30, 2025, the following current and former employees were covered by the benefit under the plan. Active members 14 Inactive members 3 Beneficiaries 3 Total 20 Total OPEB Liability The City has elected to calculate the OPEB liability and related information using the alternative measurement method permitted by GASB Statement No. 75 for employers in plans with fewer than one hundred total plan members. The City’s OPEB liability was measured as of June 30, 2025, and the total OPEB used to calculate the OPEB liability was from the City’s valuation as of June 30, 2025. CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 65 NOTE 10 – OTHER POST EMPLOYMENT BENEFITS (continued) Changes in the OPEB Liability Total OPEB Liability Balance at June 30, 2024 (valuation date June 30, 2024)247,632$ Changes recognized for the measurement period: Service cost (2,711) Interest 7,429 Benefit payments (8,800) Net changes (4,082) Balance at June 30, 2025 (valuation date June 30, 2025)243,550$ Sensitivity of the OPEB Liability to Changes in the Discount Rate The following presents the OPEB liability, as well as what the OPEB liability would be if it were calculated using a discount rate that is 1 percentage point lower (2.00%) or 1 percentage point higher (4.00%) than the current discount rate. 1% Decrease Current 1% Increase 2.00%3.00%4.00% OPEB Liability 244,176$ 243,550$ 243,057$ Discount Rate Sensitivity of the OPEB Liability to Changes in the Healthcare Cost Trend Rate The following presents the OPEB liability, as well as what the OPEB liability would be if it were calculated using a healthcare cost trend rate that is 1 percentage point lower (2.00%) or 1 percentage point higher (4.00%) than the current Healthcare Trend Rate of 3.0%. 1% Decrease Current 1% Increase 2.00%3.00%4.00% OPEB Liability 243,057$ 243,550$ 244,176$ Healthcare Trend Rate 3% CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 66 NOTE 10 – OTHER POST EMPLOYMENT BENEFITS (continued) Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members at that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value assets, consistent with the long-term perspective of the calculations. The following simplifying assumptions were made: Retirement age for active employees – Based on the historical average retirement age for the covered group, public safety active plan members were assumed to retire at age 50, or at the first subsequent year in which the member would qualify for benefits and other active plan members were assumed to retire at age 55, or at the first subsequent year in which the member would qualify for benefits. Mortality – All active and inactive plan members were expected to live through age 65 (the age that benefits terminate). Turnover – All active members were expected to remain employed until the assumed retirement/age. Discount Rate – Based on the historical and expected returns of the City’s short-term investment portfolio, a discount rate of 3.0 percent was used. In addition, a simplified version of the projected unit credit and level cost method was used. The remaining amortization period at June 30, 2025, was twenty-six years. NOTE 11 – REVENUE LIMITATIONS IMPOSED BY CALIFORNIA PROPOSITION 218 Proposition 218, which was approved by voters in November 1996, regulates the City’s ability to impose, increase and extend taxes, assessments, and fees. Any new, increase, or extended taxes, assessments, and fees subject to the provisions of Proposition 218, require voter approval before they can be implemented. Additionally, Proposition 218 provides that these taxes, assessments, and fees are subject to the voter initiative process and may be rescinded in the future years by the voters. NOTE 12 – RISK MANAGEMENT A. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City of Atascadero is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 126 California public entities and is organized under a joint powers’ agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee. CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 67 NOTE 12 – RISK MANAGEMENT (continued) B. Primary Self-Insurance Programs of the Authority Each member pays an annual contribution at the beginning of the coverage period. The total funding requirement for primary self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool. Primary Liability Program Claims are pooled separately between police and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $100,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $100,000 to $500,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $500,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers. The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. Subsidence losses also have a $50 million per occurrence limit. The coverage structure is composed of a combination of pooled self-insurance, reinsurance, and excess insurance. Additional information concerning the coverage structure is available on the Authority’s website: https://cjpia.org/coverage/risk-sharing-pools/. Primary Workers’ Compensation Program Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $75,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $75,000 to $200,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $200,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers. For 2024-25 the Authority’s pooled retention is $1 million per occurrence, with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer’s Liability losses from $5 million to $10 million are pooled among members. C. Purchased Insurance Pollution Legal Liability Insurance The City of Atascadero participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City of Atascadero. Coverage is on a claims-made basis. There is a $250,000 deductible. The Authority has an aggregate limit of $20 million. CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 68 NOTE 12 – RISK MANAGEMENT (continued) C. Purchased Insurance (continued) Property Insurance The City of Atascadero participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. City of Atascadero property is currently insured according to a schedule of covered property submitted by the City of Atascadero to the Authority. City of Atascadero property currently has all-risk property insurance protection in the amount of $106,788,835. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible. Crime Insurance The City of Atascadero purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority. Special Event Tenant User Liability Insurance The City of Atascadero further protects against liability damages by requiring tenant users of certain property to purchase low-cost tenant user liability insurance for certain activities on agency property. The insurance premium is paid by the tenant user and is paid to the City of Atascadero according to a schedule. The City of Atascadero then pays for the insurance. The insurance is facilitated by the Authority. D. Adequacy of Protection During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2024-25. E. Unemployment The City is fully self-insured for unemployment claims. F. Self Insurance The City retains the risk for losses incurred prior to joining the Authority. Several member agencies of the now dissolved Central Coast Cities Self-Insurance Fund continue to participate in a non-risk sharing arrangement for claims management and the purchase of excess insurance for claims prior to joining the Authority. Losses are debited and investment income is credited to specific member accounts. The City has not incurred any losses in excess of insurance coverage. CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 69 NOTE 12 – RISK MANAGEMENT (continued) F. Self Insurance (continued) Workers' Compensation Assets on deposit 102,067$ Estimated liability for reported claims and settlement expenses (14,211) Assets in excess of (less than) liabilities 87,856$ Workers' Compensation Deposits June 30, 2023 161,641$ Claim payments and related expenditures (79,063) Decrease in estimated claims liability June 30, 2024 3,419 Deposits and interest earnings 4,336 Deposits (unpaid claims liability) June 30, 2024 90,333 Claim payments and related expenditures (19,558) Decrease in estimated claims liability June 30, 2025 16,098 Deposits and interest earnings 983 Deposits (unpaid claims liability) June 30, 2025 87,856$ Self-insurance activity as of and for the fiscal year ended June 30, 2025, is summarized as follows: Changes in the balances of claim liabilities during the past two fiscal years are as follows: CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 70 NOTE 13 – CONTINGENCIES AND COMMITMENTS The City has received state and federal funds for specific purposes that are subject to review and audit by the grantor agencies. Although such audits could generate expenditure disallowances under terms of the grants, it is believed that any required reimbursements will not be material. According to the City Attorney, there is one potentially significant issue pending. Veronica Ulloa-Nevarez v. City of Atascadero (not yet filed). This is a matter regarding the California Voting Rights Act ("CVRA"). An individual alleged that the City's at-large elections violates the CVRA. No litigation is yet filed; the matter is currently suspended in accordance with the terms of a tolling agreement between the City and claimant. CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 71 NOTE 13 – CONTINGENCIES AND COMMITMENTS (continued) Construction and other significant commitments as of June 30, 2025, including encumbrances outstanding at fiscal year-end, are as follows: 100 General Fund 4,276,124$ 201 Community Facilities District Fund 2,934 202 Apple Valley Street & Storm Drain Assessment District Fund 1,984 203 Apple Valley Landscape & Lighting Assessment District Fund 2,541 204 Las Lomas Street & Storm Drain Assessment District Fund 1,984 205 Las Lomas Landscape & Lighting Assessment District Fund 2,541 206 De Anza Street & Storm Drain Assessment District Fund 1,984 207 De Anza Landscape & Lighting Assessment District Fund 2,541 240 Community Development Block Grant Fund 2,706 260 Gas Tax Fund 577 265 Local Transportation Fund 2,598,831 280 General Government Facilities Fees Fund 348,691 281 Circulation System Fees Fund 277 385 Public Safety Facilities Project Fund 31,072,318 527 Wastewater Fund 2,593,878 615 Building Maintenance and Replacement Fund 2,284,540 680 Vehicle and Equipment Replacement Fund 1,003,524 690 Technology Fund 902,172 Total 45,100,147$ Capital Commitments Fiscal Year 2024/2025 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 72 NOTE 14 – NET POSITION GASB Statement No. 63 requires that the difference between assets added to the deferred outflows of resources and liabilities added to the deferred inflows of resources be reported as net position. Net position is classified as either net investment in capital assets, restricted, or unrestricted. Net position that is net investment in capital assets consists of capital assets, net of accumulated depreciation, and reduced by the outstanding principal of related debt. Restricted net position is the portion of net position that has external constraints placed on it by creditors, grantors, contributors, laws, or regulations of other governments, or through constitutional provisions or enabling legislation. Unrestricted net position consists of net position that does not meet the definition of net investment in capital assets or restricted net position. Net Position Net Position is the excess of all the City’s assets and deferred outflows of resources over all its liabilities and deferred inflows of resources, regardless of fund. Net Position is divided into three captions under GASB Statement No. 34. These captions apply only to Net Position, which is determined only at the government-wide level, and are described below: Net Investment in Capital Assets describes the portion of Net Position which is represented by the current net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets. Restricted describes the portion of Net Position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter. These principally include fees received for use on economic development, capital projects, debt service requirements, and redevelopment funds restricted to low- and moderate-income purposes. Restricted Net Position includes $32,448,302 restricted by enabling legislation. Unrestricted describes the portion of Net Position which is not restricted as to use. NOTE 15 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY On December 29, 2011, the California Supreme Court upheld Assembly Bill 1x 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Atascadero, which had previously reported a redevelopment agency within the reporting entity of the City as a blended component unit. The Bill provides that, upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 10, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City Resolution Number 2012-002. After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of the oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments). CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 73 NOTE 15 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (continued) Successor agencies are only allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated. The Bill directs the State Controller of the State of California to review the propriety of any transfers of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the successor agency by the Bill. Management believes, in consultation with legal counsel, that the obligations of the former redevelopment agency due to the City are valid enforceable obligations payable by the successor agency trust under the requirements of the Bill. In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011), all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012. The assets and activities of the dissolved redevelopment agency are reported in a fiduciary fund (private purpose trust fund) in the financial statements of the City. The transfer of the assets and liabilities of the former redevelopment agency as of February 1, 2012 (effectively the same date as January 31, 2012), from governmental funds of the City to fiduciary funds, was reported in the governmental funds as an extraordinary loss in the governmental fund financial statements in fiscal year 2011-2012. The receipt of these assets and liabilities as of January 31, 2012, was reported in the private purpose trust fund as an extraordinary gain in the fiscal year 2011-2012. The Successor Agency received a Finding of Completion (FOC) from the State Department of Finance on March 8, 2013. In order to be eligible for the FOC, the Successor Agency had to meet the following requirements: • pay the housing fund balance as determined by Due Diligence Review; • pay the non-housing fund balance as determined by Due Diligence Review; and • pay the balance of any outstanding pass-through obligations and residual payments. A. Notes Receivable The Housing Successor Agency is holding $200,000 in Notes Receivable as part of the Downtown Stimulus Program. The former Redevelopment Agency used the Downtown Stimulus Program as a tool to encourage investors to provide affordable housing in the downtown area. Neither the principal nor interest shall be payable under the Note for the term of 55 years; or until such time as the Program Participant sells or otherwise transfers the site. The Notes will be forgiven in full after the period of 55 years. B. Capital Assets The remainder of the capital assets of the Successor Agency were disposed of during fiscal year 2017-2018. No capital asset activity was recorded in the Private Purpose Trust Funds for the fiscal year ended June 30, 2025. CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 74 NOTE 15 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (continued) C. Loans Payable Written-Off The City General Fund loaned three separate advances to the former Redevelopment Agency. The total of these three loans, $1,375,175, was a liability of the Successor Agency through fiscal year 2019-20. AB 1484 sets forth the criteria for repayment of these loans: • California Department of Finance must issue the Successor Agency a Finding of Completion. • Oversight Board must find that the loans were for legitimate redevelopment purposes. • Repayment is subject to certain restrictions, including a reduction of the interest rate to the LAIF rate, restrictions on the timing and amount of annual repayments, and a requirement that 20% of the repayment amount must be deposited into a restricted housing set-aside fund. • Loan repayments shall not be made prior to the 2013-14 fiscal year. On September 22, 2015, Governor Brown signed Senate Bill 107, a budget bill including, among other things, a modification to Health and Safety Code Section 34191.4(b), concerning the manner in which interest on the loans is to be calculated and limitations on annual loan payment amounts: • All outstanding interest as of the date of dissolution is to be recalculated from the date of origination of the loan as approved by the Redevelopment Agency on a quarterly basis, at a simple interest rate of 3 percent. • The amount of property tax available to fund loan repayments is one-half of the difference between the Redevelopment Property Tax Trust Fund (RPTTF) funds available in the current fiscal year and the RPTTF payments to the affected taxing entities in fiscal year 2012-13. Loan repayment was requested on the Required Obligation Payment Schedule 2019-20. The State Department of Finance denied the request to begin repayment of the loans. These loans were written-off as uncollectable during the 2020-21 fiscal year. D. Bond Reimbursement Agreement Payable In September of 2010, the City issued $16,010,000 in bonds on behalf of the Redevelopment Agency in order for the Agency to achieve an overall lower debt service cost. At the time of the bond issuance, a reimbursement agreement was entered into whereby the City advanced the Agency the proceeds of the bond and the Agency is required to make annual payments to the City in the amount of the debt service on the bonds. Annual principal payments on the advance were required between fiscal years 2015 and 2041, at interest rates ranging from 3.0% to 5.0%. See Note 8B – Long Term Liabilities, 2010 Lease Revenue Bonds, for additional information. These bonds were defeased on July 16, 2024, with the issuance of the 2024 Tax Allocation Refunding Bonds. E. 2004 Redevelopment Agency Tax Allocation Bonds The former Atascadero Community Redevelopment Agency (Agency) issued $12,490,000 in Tax Allocation bonds for improvements to the downtown core. These bonds matured between fiscal years 2011 and 2035, at interest rates ranging from 3.0% to 5.0%. Since the Agency was dissolved effective February 1, 2012, the bonds were a liability of the Successor Agency. The liability was reflected on the private purpose trust financial statements of the Successor Agency and is no longer found on the financial statements of the City and its component unit. These bonds were defeased on July 16, 2024, with the issuance of the 2024 Tax Allocation Refunding Bonds. CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 75 NOTE 15 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (continued) F. 2024 Redevelopment Agency Tax Allocation Refunding Bonds On April 18, 2024, the Successor Agency issued $16,835,000 in Tax Allocation Refunding Bonds to achieve cost savings. The bonds were issued to redeem the 2004 Redevelopment Agency Tax Allocation Bonds, of which $7,070,000 remained outstanding, and the 2010 Lease Revenue Bonds issued by the Atascadero Public Financing Authority, of which $13,530,000 remained outstanding. The bonds were defeased on July 16, 2024. The Refunding yielded a gross savings of about $5.8 million over the remaining life of the original bonds. Of this amount, about $1.16 million were savings realized by Atascadero, and the remaining $4.7 million was realized by other taxing entities. The bonds are being paid with Redevelopment Property Tax Trust Fund increment, and the liability is held in the Private Purpose Trust Fund. The following is a summary of principal and interest payments to be made in future fiscal years: Fiscal Year Ending June 30, Principal Interest 2026 $ 820,000 $ 766,750 2027 515,000 733,375 2028 740,000 702,000 2029 775,000 664,125 2030 810,000 624,500 2031-2035 4,720,000 2,454,500 2036-2040 5,980,000 1,122,500 2041 1,385,000 34,625 $ 15,745,000 $ 7,102,375 2024 Redevelopment Agency Tax Allocation Refunding Bonds CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2025 76 NOTE 16 – ADJUSTMENTS TO BEGINNING FUND BALANCES The beginning fund balance of the Local Transportation Fund as of July 1, 2024, has been restated to correct an error in the previously issued financial statements for the fiscal year ended June 30, 2024. The adjustment decreases the beginning fund balance by $82,056 to correct for an overstatement of USHA Revenue for the San Marcos Road Landslide Repair Project, which was calculated incorrectly in the prior period. The effect on the financial statement beginning fund balance is shown below. LOCAL TRANSPORTATION FUND Fund balance, June 30, 2024, as previously reported 7,816,351$ Adjustment (82,056) Fund balance, June 30, 2024, as restated 7,734,295$ NOTE 17 – ATASCADERO DIAL-A-RIDE TRANSIT CONSOLIDATION The City of Atascadero successfully consolidated its Dial-A-Ride (DAR) transit service into the San Luis Obispo Regional Transit Authority (SLORTA) to improve operational efficiency, reduce administrative burdens, and enhance the rider experience. Atascadero DAR, which had provided curb-to-curb demand response service since 1979, had experienced declining ridership, increasing costs, and more complex regulatory requirements. Following a strategic planning directive, the City entered into an agreement with SLORTA, transferring operations, vehicles, and funding responsibilities as of June 2025. The consolidation streamlined transit services, unified fare systems, improved service coordination, and offered expanded employment opportunities for drivers, while allowing City staff to redirect efforts toward other priority projects. REQUIRED SUPPLEMENTARY INFORMATION CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - SUMMARY BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Revenues: Secured and unsecured property taxes 13,130,450$ 13,130,450$ 13,417,926$ 287,476$ Taxes based on sales and use 15,307,160 15,307,160 14,767,006 (540,154) Transient occupancy tax 2,056,100 2,056,100 1,994,291 (61,809) Franchise tax 1,464,650 1,464,650 1,571,784 107,134 Other taxes 408,720 408,720 379,287 (29,433) Licenses and permits 914,500 914,500 947,591 33,091 Intergovernmental revenues: Motor vehicle in-lieu and related payments 32,350 32,350 48,562 16,212 Grants 10,000 57,580 173,355 115,775 Other governmental revenues 194,550 204,390 265,994 61,604 Charges for services: Public safety 478,610 974,840 1,283,982 309,142 Development 910,590 910,590 886,390 (24,200) Recreation, parks, pavilion, and zoo 1,231,220 1,345,290 1,383,154 37,864 Other services 109,020 109,020 84,162 (24,858) Fines and forfeitures 56,530 56,530 58,470 1,940 Use of money and property 372,890 372,890 902,674 529,784 Other revenues 1,735,020 1,819,510 1,974,023 154,513 Total revenues 38,412,360 39,164,570 40,138,651 974,081 Expenditures: Employee services 23,756,230 24,540,500 23,520,384 1,020,116 Operating supplies and services 9,158,830 9,764,340 9,128,958 635,382 Special purchases, projects, and community funding 5,625,140 5,764,270 2,410,199 3,354,071 Capital outlay 6,396,270 10,568,050 5,722,732 4,845,318 Total expenditures 44,936,470 50,637,160 40,782,273 9,854,887 Excess of revenues over (under) expenditures (6,524,110) (11,472,590) (643,622) 10,828,968 Budget Variance with Final Budget Positive (Negative) 77 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - SUMMARY (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Other Financing Sources (Uses): Transfers in 783,700$ 783,700$ 783,700$ -$ Transfers out (714,000) (864,000) (509,970) 354,030 Proceeds from freezer refund - - 65,252 65,252 Total other financing sources and uses 69,700 (80,300) 338,982 419,282 (6,454,410)$ (11,552,890)$ (304,640) 11,248,250$ Fund balance - June 30, 2024 21,228,656 Fund balance - June 30, 2025 20,924,016$ Excess of revenue and other sources over (under) expenditures and other uses Budget Variance with Final Budget Positive (Negative) 78 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Revenues: Taxes: Property taxes: Secured property tax 8,188,230$ 8,188,230$ 8,201,398$ 13,168$ Property tax in lieu of VLF 3,826,560 3,826,560 3,916,601 90,041 Unsecured property taxes 290,730 290,730 333,961 43,231 Supplemental property taxes 231,400 231,400 205,474 (25,926) 604,330 604,330 770,531 166,201 Prior year secured and unsecured (10,000) (10,000) (9,762) 238 Property tax penalties and interest (800) (800) (277) 523 Taxes based on sales: Sales and use taxes 5,344,360 5,344,360 4,923,990 (420,370) Measure D-20 sales tax 6,626,500 6,626,500 6,577,379 (49,121) Measure F-14 sales tax 3,336,300 3,336,300 3,265,637 (70,663) Transient occupancy tax 2,056,100 2,056,100 1,994,291 (61,809) Franchise taxes: Cable television franchise fees 260,130 260,130 212,243 (47,887) Electricity franchise fees 381,920 381,920 430,804 48,884 Garbage disposal franchise fees 571,260 571,260 704,204 132,944 Landfill franchise fees 18,880 18,880 17,682 (1,198) Gas franchise fees 135,140 135,140 105,527 (29,613) Wastewater franchise fees 97,320 97,320 101,324 4,004 Business licenses 181,580 181,580 178,781 (2,799) Property transfer tax 172,000 172,000 155,990 (16,010) Cannabis business tax 55,140 55,140 44,516 (10,624) Total Taxes 32,367,080 32,367,080 32,130,294 (236,786) Licenses and Permits: Construction permits 805,680 805,680 764,819 (40,861) Grading and drainage permits 39,690 39,690 25,695 (13,995) Encroachment permits 63,500 63,500 135,573 72,073 Tree application fees 4,330 4,330 5,450 1,120 Planning inspections 1,300 1,300 16,054 14,754 Total Licenses and Permits 914,500 914,500 947,591 33,091 Budget Variance with Final Budget Positive (Negative) Redevelopment Agency dissolution- residual distribution 79 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Revenues (continued): Intergovernmental Revenues: Motor vehicle in-lieu 32,350$ 32,350$ 48,562$ 16,212$ Homeowners' tax relief 47,050 47,050 43,884 (3,166) State mandated costs 10,000 10,000 33,318 23,318 P.O.S.T. reimbursement 12,000 21,840 63,296 41,456 School Resources Officer 80,000 80,000 80,000 - 45,500 45,500 45,496 (4) Grants: Fire Safe Council- 2025 Fuel Management - 38,640 38,640 - Fire Safe Council- 2023 Wildfire Consultations - 1,990 3,288 1,298 - - 1,278 1,278 10,000 10,000 2,074 (7,926) CA Fire Foundation Grant - 6,950 6,964 14 OES Administration- January 2023 Storms - - 102 102 FEMA Administration- January 2023 Storms - - 121,009 121,009 Total Intergovernmental Revenues 236,900 294,320 487,911 193,591 Budget Variance with Final Budget Positive (Negative) Settlement agreement- SB 1090 Essential Services Mitigation Funds (PG&E DCPP) Board of State and Community Corrections- Police Grant 2016/17 Board of State and Community Corrections- Police Grant 2022/23 80 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Revenues (continued): Charges for Services: Public safety: First response charges 139,370$ 139,370$ 142,855$ 3,485$ Weed abatement services 50,000 93,840 93,838 (2) Mutual Aid- Fire 250,000 702,390 991,145 288,755 Police/Fire false alarms 2,240 2,240 5,092 2,852 Castlerock Communication Site Lease 17,170 17,170 21,290 4,120 Fingerprints 1,140 1,140 2,578 1,438 Vehicle release fees 13,530 13,530 21,458 7,928 Other public safety services 5,160 5,160 5,726 566 Development: Zoning fees 48,480 48,480 87,124 38,644 Subdivision fees- Planning 52,630 52,630 52,836 206 Subdivision fees- Public Works 29,540 29,540 18,333 (11,207) General and specific plans - - 8,503 8,503 Appeals 1,310 1,310 2,822 1,512 Assessment district formations/annexations - - 1,483 1,483 Planning review 63,500 63,500 68,969 5,469 Building plan check fees 476,260 476,260 391,776 (84,484) Public Works plan check fees and inspections 111,130 111,130 86,447 (24,683) Stormwater permit compliance inspection 2,130 2,130 - (2,130) Fire plan check and inspection fees 118,410 118,410 153,755 35,345 Other development fees 7,200 7,200 14,342 7,142 Recreation: Advertising 3,440 3,440 9,222 5,782 Aquatics - 10,020 6,751 (3,269) Adult sports 26,520 26,520 26,757 237 Youth sports 74,260 74,260 81,914 7,654 Classes 115,940 115,940 131,352 15,412 Special events- promotions 44,290 86,430 113,289 26,859 Special events 47,380 47,380 55,907 8,527 Teen Center membership 5,300 5,300 6,158 858 Budget Variance with Final Budget Positive (Negative) 81 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Revenues (continued): Charges for Services (continued): Rentals and concessions: Pavilion facility rentals 127,870$ 134,730$ 150,837$ 16,107$ Other Pavilion rents and concessions 6,940 6,940 1 (6,939) Colony Park Community Center rentals 31,780 31,780 20,080 (11,700) Zoo Event Center rental 870 870 1,102 232 Outdoor court rentals 200 200 112 (88) Park charges 51,680 51,680 44,572 (7,108) Zoo: Zoo admissions 456,750 456,750 451,442 (5,308) Zoo educational programs 20,200 49,420 49,425 5 Zoo gift shop 177,400 188,670 179,271 (9,399) Special events- Zoo 40,400 54,960 54,962 2 Administrative: Copy and mailing fees 6,340 6,340 6,668 328 Filming permit - - 387 387 Document imaging fee - - 248 248 Technology surcharge 59,530 59,530 40,160 (19,370) Business license application fees 43,150 43,150 36,699 (6,451) Total Charges for Services 2,729,440 3,339,740 3,637,688 297,948 Fines and Forfeitures: Motor vehicle fines 30,170 30,170 17,672 (12,498) Traffic school fines - - 2,308 2,308 Misdemeanor and other minor fines 2,160 2,160 1,029 (1,131) Parking fines 840 840 35 (805) Code enforcement and fire fines 820 820 400 (420) Transient Occupancy Tax Penalties 10,000 10,000 14,194 4,194 Business license penalties 12,240 12,240 20,566 8,326 Other penalties 300 300 2,266 1,966 Total Fines and Forfeitures 56,530 56,530 58,470 1,940 Variance with Final Budget Positive (Negative) Budget 82 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Revenues (continued): Use of Money and Property: Interest 286,590$ 286,590$ 496,316$ 209,726$ Adjustment to fair value- GASB 31 - - 302,076 302,076 Lease Revenue- 2010 Bonds 36,100 36,100 - (36,100) Interest on Measure F-14 Funds 50,200 50,200 54,358 4,158 Measure F-14 Funds adjustment to fair value - - 49,924 49,924 Total Use of Money and Property 372,890 372,890 902,674 529,784 Other Revenues: Interfund administrative charges General overhead charges 589,850 589,850 589,850 - Staffing charges for other funds 723,070 723,070 716,075 (6,995) Staffing charges for capital projects 289,700 289,700 293,942 4,242 Staffing charges for CDBG administration - - 9,378 9,378 Administrative charges- Third Parties 6,270 6,270 6,116 (154) Administrative charges- Successor Agency 49,490 49,490 49,490 - Workers' compensation reimbursement 5,100 5,100 88,623 83,523 Miscellaneous revenue 22,040 31,690 93,547 61,857 Donations: Police - - 351 351 Parks - 240 239 (1) Zoo 1,500 9,460 9,467 7 Friends of Zoo Donations: Memberships 48,000 70,160 72,474 2,314 Lemur Exhibit - 2,570 2,565 (5) Aviary Exhibit - 2,000 2,000 - Other - 27,100 27,096 (4) Zoo Wine Festival Donations: Aviary Exhibit - 12,810 12,810 - Total Other Revenues 1,735,020 1,819,510 1,974,023 154,513 Total Revenues 38,412,360 39,164,570 40,138,651 974,081 Variance with Final Budget Positive (Negative) Budget 83 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Expenditures: City Council: Salaries and benefits 80,480$ 80,480$ 74,045$ 6,435$ Office expense 200 370 363 7 Advertising 870 700 177 523 Computer maintenance and replacement 9,380 9,380 9,380 - Occupancy 90,680 90,680 90,680 - Communications 460 460 170 290 Operating supplies 4,110 4,110 1,382 2,728 Vehicle and equipment operating costs 650 650 248 402 Contract services 40,280 37,050 36,000 1,050 Professional development 26,480 34,390 32,143 2,247 Community outreach 56,840 60,070 60,019 51 LAFCO contribution 20,970 21,430 21,430 - Special projects and community funding: Sales Tax Measure Renewal Process 60,000 60,000 - 60,000 Total City Council 391,400 399,770 326,037 73,733 City Clerk: Office expense 700 700 571 129 Advertising 5,850 5,850 3,015 2,835 Computer maintenance and replacement 19,700 16,390 14,726 1,664 Contract services 6,600 9,910 9,902 8 Professional development 6,910 6,910 1,902 5,008 Municipal election 43,260 74,260 58,458 15,802 Special projects and community funding: Citywide Scanning Project 75,000 75,000 - 75,000 Capital outlay: Software-Agenda & meetings management 10,930 10,930 - 10,930 Total City Clerk 168,950 199,950 88,574 111,376 Budget Variance with Final Budget Positive (Negative) 84 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Expenditures (continued): City Treasurer: Salaries and benefits 5,750$ 6,750$ 5,268$ 1,482$ Contract services 13,770 13,810 13,808 2 Professional development 2,500 2,460 - 2,460 Total City Treasurer 22,020 23,020 19,076 3,944 City Attorney: Office expense 80 80 - 80 Occupancy 6,560 6,560 6,560 - Communications 80 80 31 49 Contract services 314,560 311,450 192,428 119,022 Special projects and community funding: Special legal costs - 3,110 3,105 5 Total City Attorney 321,280 321,280 202,124 119,156 City Manager: Salaries and benefits 1,683,180 1,233,060 1,195,153 37,907 Office expense 8,270 8,450 4,733 3,717 Computer maintenance and replacement 88,490 89,200 87,242 1,958 Insurance 26,530 25,740 23,852 1,888 Occupancy 53,780 53,780 53,780 - Communications 2,020 2,830 2,822 8 Operating supplies 11,460 10,550 8,851 1,699 Vehicle and equipment operating costs 3,980 3,980 3,600 380 Contract services 167,660 167,660 56,303 111,357 Professional development 24,790 37,620 30,572 7,048 Citywide training 540 4,830 157 4,673 Recruitment 7,700 540 408 132 Employee development 4,110 28,910 12,370 16,540 Contingency 100,000 100,000 - 100,000 Budget Variance with Final Budget Positive (Negative) 85 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Expenditures (continued): City Manager (continued): Special projects and community funding: Personnel system rules update 80,500$ 80,500$ -$ 80,500$ Desks - 310 310 - City Hall breakroom equipment - 180 179 1 Opportunities fund 154,000 108,000 - 108,000 Capital Outlay: Tablet Computers - 2,380 2,379 1 Total City Manager 2,417,010 1,958,520 1,482,711 475,809 Administrative Services: Salaries and benefits 1,075,190 1,140,190 1,113,142 27,048 Office expense 15,490 16,510 16,507 3 Advertising 530 530 524 6 Computer maintenance and replacement 104,900 105,130 105,125 5 Insurance 50,340 23,750 23,034 716 Occupancy 84,750 84,750 84,710 40 Communications 1,080 1,080 836 244 Operating supplies 310 630 624 6 Vehicle and equipment operating costs 3,600 3,640 3,638 2 Contract services 208,390 229,700 229,694 6 Professional development 7,240 8,400 8,399 1 Recruitment 200 1,910 1,905 5 Contingency 5,000 5,000 - 5,000 Capital Outlay: Desks 4,000 4,800 4,796 4 Total Administrative Services 1,561,020 1,626,020 1,592,934 33,086 Budget Variance with Final Budget Positive (Negative) 86 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Expenditures (continued): Police: Salaries and benefits 9,631,410$ 9,818,210$ 9,168,813$ 649,397$ Office expense 17,400 17,400 16,396 1,004 Computer maintenance and replacement 782,620 660,530 655,438 5,092 Insurance 269,360 426,690 426,685 5 Occupancy 63,140 73,180 73,172 8 Utilities 57,100 74,860 74,854 6 Communications 32,450 32,450 31,445 1,005 Operating supplies 33,150 33,150 31,052 2,098 Vehicle and equipment operating costs 589,090 587,140 586,656 484 Contract services 782,850 659,450 576,530 82,920 Professional development 36,700 38,650 38,650 - Recruitment 14,150 32,420 32,414 6 Contingency 10,000 10,000 - 10,000 Special purchases, projects, and studies: - 119,750 119,744 6 Capital Outlay: Computer/Laptop - 2,340 2,338 2 36,000 36,000 29,753 6,247 Radio console replacement 16,370 16,370 10,000 6,370 12,371,790 12,638,590 11,873,940 764,650 Budget Variance with Final Budget Positive (Negative) Capital transfer to Technology Fund for Mark43 annual maintenance 911 recording system- replacement 87 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Expenditures (continued): Police Grants: Operating supplies 3,620$ 4,110$ 2,383$ 1,727$ Contract services 1,500 1,550 1,542 8 Professional development 41,380 50,680 46,643 4,037 46,500 56,340 50,568 5,772 Total Police 12,418,290 12,694,930 11,924,508 770,422 Fire: Salaries and benefits 5,323,260 5,725,600 5,661,424 64,176 Office expense 3,750 2,720 2,714 6 Computer maintenance and replacement 274,280 271,080 267,743 3,337 Insurance 129,870 109,200 109,191 9 Occupancy 89,570 83,400 83,393 7 Utilities 33,500 42,600 42,594 6 Communications 11,600 13,960 13,952 8 Operating supplies 76,700 69,200 69,191 9 665,560 666,040 660,261 5,779 Contract services 41,780 40,460 40,453 7 Professional development 24,350 18,160 18,159 1 Recruitment 3,500 830 826 4 Contingency 10,000 - - - Special purchases, projects, and studies: Wildland protective gear 8,840 8,840 7,352 1,488 Comprehensive evacuation plan - 2,970 2,965 5 1,500,000 1,500,000 1,500,000 - 8,196,560 8,555,060 8,480,218 74,842 Cash contribution to Public Safety Facilities Project Fund for the Public Safety Facilities Project Budget Variance with Final Budget Positive (Negative) Vehicle and equipment operating costs 88 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Expenditures (continued): Mutual Aid Program: Salaries and benefits 147,180$ 585,730$ 585,729$ 1$ Operating supplies 15,000 33,290 33,281 9 Vehicle and equipment operating costs 5,500 1,050 1,046 4 167,680 620,070 620,056 14 Weed Abatement and Other Fire Programs: Salaries and benefits - 2,490 2,480 10 Office expense 3,800 6,660 5,153 1,507 Operating supplies - 6,950 6,944 6 Contract services 104,870 190,690 160,684 30,006 108,670 206,790 175,261 31,529 Total Fire 8,472,910 9,381,920 9,275,535 106,385 Community Development: Salaries and benefits 1,741,730 1,775,970 1,687,879 88,091 Office expense 15,180 17,910 17,907 3 Advertising 5,500 3,600 3,210 390 Computer maintenance and replacement 182,460 183,140 183,134 6 Insurance 35,990 34,380 34,233 147 Occupancy 94,830 94,830 94,830 - Communications 4,350 4,560 4,559 1 Operating supplies 1,150 1,800 1,799 1 Vehicle and equipment operating costs 17,350 17,420 17,413 7 Contract services 90,000 217,230 217,226 4 Professional development 18,200 30,450 23,890 6,560 Recruitment 850 2,280 2,271 9 Contingency 5,000 5,000 - 5,000 Budget Variance with Final Budget Positive (Negative) 89 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Expenditures (continued): Community Development (continued): Special purchases, projects, and studies: Zoning code update 150,000$ 150,000$ 31,443$ 118,557$ Electronic plan review equipment 4,500 4,500 - 4,500 General plan update 500,010 500,010 177,871 322,139 Capital Outlay: Tablet computers - 660 659 1 Total Community Development 2,867,100 3,043,740 2,498,324 545,416 Central Reception: Salaries and benefits 89,690 108,100 100,392 7,708 Office expense 900 900 845 55 Computer maintenance and replacement 19,480 19,480 19,480 - Insurance 2,960 2,540 2,477 63 Occupancy 72,560 72,560 72,560 - Communications 190 640 304 336 Operating supplies 30 - - - Professional development 410 410 145 265 Recruitment 180 180 - 180 Total Central Reception 186,400 204,810 196,203 8,607 Economic and Business Development: Salaries and benefits 188,240 186,530 186,529 1 Advertising - 4,760 4,753 7 Computer maintenance and replacement 11,000 11,250 11,250 - Insurance 6,050 4,890 4,887 3 Occupancy 4,580 4,580 4,580 - Contract services 5,000 80 79 1 Professional development 3,700 2,630 2,568 62 Chamber of Commerce 137,480 138,970 138,962 8 Business development 14,000 4,860 2,525 2,335 Budget Variance with Final Budget Positive (Negative) 90 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Expenditures (continued): Economic and Business Development (continued): Special purchases, projects, and studies: Economic Development- downtown 474,380$ 374,380$ 3,575$ 370,805$ Economic Development- Centennial Plaza - 11,500 11,500 - Broadband enhancement project 1,298,160 1,298,160 - 1,298,160 Restaurant development loan program 386,560 486,560 3,550 483,010 Total Economic and Business Development 2,529,150 2,529,150 374,758 2,154,392 Community Services: Salaries and benefits - 239,790 239,768 22 Office expense 11,690 10,270 10,263 7 Advertising 51,600 64,370 64,368 2 Computer maintenance and replacement 5,490 5,490 5,490 - Insurance 4,820 3,900 3,895 5 Occupancy 8,400 8,400 8,400 - Communications 780 - - - Operating supplies 54,740 56,270 56,261 9 Vehicle and equipment operating costs 700 3,600 3,600 - Contract services 112,560 158,970 158,963 7 Professional development 930 970 961 9 Special purchases, projects and studies: Ranger house upgrades - 1,690 1,681 9 Total Community Services 251,710 553,720 553,650 70 Recreation: Salaries and benefits 444,680 420,030 373,673 46,357 Office expense 4,970 7,860 7,667 193 Advertising 26,900 28,820 28,709 111 Computer maintenance and replacement 30,550 30,550 30,550 - Insurance 26,340 23,740 23,631 109 Occupancy 55,060 54,860 54,138 722 Utilities 4,450 4,670 4,029 641 Communications 2,790 1,390 1,387 3 Variance with Final Budget Positive (Negative) Budget 91 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Expenditures (continued): Recreation (continued): Operating supplies 39,360$ 39,320$ 35,715$ 3,605$ Vehicle and equipment operating costs 5,030 4,870 4,865 5 Contract services 156,910 166,910 145,678 21,232 Professional development 5,100 5,020 5,018 2 Recruitment 880 2,410 2,405 5 Contingency 2,500 2,500 - 2,500 Total Recreation 805,520 792,950 717,465 75,485 Community Center: Salaries and benefits 11,390 50,350 49,925 425 Office expense 1,280 850 759 91 Advertising 280 - - - Computer maintenance and replacement 11,640 11,640 11,640 - Insurance 18,950 19,360 19,353 7 Occupancy 139,750 139,750 139,750 - Utilities 61,130 68,830 68,830 - Communications 2,710 2,960 2,949 11 Operating supplies 14,700 11,430 11,241 189 Vehicle and equipment operating costs 730 680 677 3 Contract services 20,530 18,370 18,366 4 Recruitment 150 150 - 150 Total Community Center 283,240 324,370 323,490 880 Budget Variance with Final Budget Positive (Negative) 92 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Expenditures (continued): Pavilion: Salaries and benefits 226,980$ 248,000$ 247,984$ 16$ Office expense 1,180 750 746 4 Advertising 4,800 5,030 5,024 6 Computer maintenance and replacement 16,630 16,630 16,630 - Insurance 11,930 11,710 11,707 3 Occupancy 69,470 69,470 69,470 - Utilities 37,000 32,740 32,734 6 Communications 3,550 3,340 3,332 8 Operating supplies 7,480 6,580 6,579 1 Vehicle and equipment operating costs 2,600 50 47 3 Contract services 27,070 26,570 26,566 4 Professional development 100 - - - Recruitment 300 80 74 6 Special purchases, projects, and studies: Tables 11,020 11,020 - 11,020 Minor building projects 40,000 40,000 23,800 16,200 Door projects 1,390 1,390 - 1,390 Window blinds 28,000 28,000 1,000 27,000 Capital outlay: Painting Projects 35,000 35,000 - 35,000 Total Pavilion 524,500 536,360 445,693 90,667 Budget Variance with Final Budget Positive (Negative) 93 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Expenditures (continued): Zoo: Salaries and benefits 976,410$ 936,060$ 936,043$ 17$ Office expense 1,940 3,300 3,294 6 Advertising 200 - - - Computer maintenance and replacement 60,480 57,400 57,395 5 Insurance 34,110 30,610 30,601 9 Occupancy 42,880 42,820 42,819 1 Utilities 88,900 90,450 90,443 7 Communications 1,770 1,210 1,210 - Operating supplies 147,500 208,530 208,517 13 Vehicle and equipment operating costs 8,200 11,600 11,594 6 Contract services 87,400 162,270 162,267 3 Professional development 17,090 28,970 28,967 3 Recruitment 100 1,270 1,263 7 Animal acquisition - 7,380 7,370 10 Gift shop retail 69,870 62,930 58,690 4,240 Special purchases, projects, and studies: Drainage improvements - 23,400 23,400 - Infrastructure improvements - 11,890 11,886 4 Building improvements - 22,390 22,384 6 HVAC unit repairs - 450 445 5 Zoo accreditation 354,240 341,490 241,609 99,881 Capital outlay: Perimeter Zoo Fencing - 15,320 15,311 9 Aviary exhibit improvement - 14,810 14,810 - Zoo exhibit improvements 1,000,000 1,000,000 - 1,000,000 Zoo electrical upgrade 29,170 29,170 - 29,170 Software 12,580 12,580 - 12,580 Total Zoo 2,932,840 3,116,300 1,970,318 1,145,982 Budget Variance with Final Budget Positive (Negative) 94 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Expenditures (continued): Public Works Administration: Salaries and benefits 1,302,590$ 1,176,050$ 1,111,274$ 64,776$ Office expense 6,150 7,070 7,069 1 Advertising 260 - - - Computer maintenance and replacement 108,510 95,380 93,083 2,297 Insurance 24,330 20,200 20,194 6 Occupancy 40,740 40,740 40,740 - Communications 2,850 1,710 1,701 9 Operating supplies 19,600 24,230 24,224 6 Vehicle and equipment operating costs 13,680 9,010 9,009 1 Contract services 28,200 223,970 217,438 6,532 Professional development 16,820 12,310 12,301 9 Recruitment 680 370 366 4 Contingency 7,000 7,000 - 7,000 Special purchases, projects, and studies: Lake dam inundation mapping study 4,040 4,040 - 4,040 City engineering standards 25,000 25,000 - 25,000 Primary benchmark survey 40,000 40,000 - 40,000 Capital outlay: Tablet computers - 2,310 2,306 4 Scanner - 360 356 4 Total Public Works Administration 1,640,450 1,689,750 1,540,061 149,689 Variance with Final Budget Positive (Negative) Budget 95 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Expenditures (continued): Public Works Operations: Salaries and benefits 296,390$ 307,070$ 305,543$ 1,527$ Office expense 2,470 2,470 1,124 1,346 Computer maintenance and replacement 19,070 19,070 19,070 - Insurance 12,400 12,400 10,215 2,185 Occupancy 28,260 28,260 27,149 1,111 Utilities 12,720 12,630 9,673 2,957 Communications 1,150 1,240 1,238 2 Operating supplies 6,750 6,280 3,691 2,589 Vehicle and equipment operating costs 9,260 9,300 9,299 1 Contract services 500 830 828 2 Professional development 1,770 1,770 790 980 Recruitment - 100 99 1 Special purchases, projects, and studies: Radio equipment 21,400 21,400 - 21,400 Corp yard building remodel 9,550 9,550 920 8,630 Downtown street tree renewal program 5,980 5,980 - 5,980 Total Public Works Operations 427,670 438,350 389,639 48,711 Parks: Salaries and benefits 531,680 500,040 475,320 24,720 Computer maintenance and replacement 11,750 11,750 11,750 - Insurance 24,830 19,450 19,446 4 Occupancy 36,990 36,990 36,990 - Utilities 178,900 223,120 223,115 5 Communications 2,000 1,750 1,748 2 Operating supplies 65,050 73,070 73,069 1 Vehicle and equipment operating costs 54,830 58,450 58,443 7 Contract services 159,790 99,420 99,413 7 Professional development 3,500 380 375 5 Recruitment 900 - - - Variance with Final Budget Positive (Negative) Budget 96 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Expenditures (continued): Parks (continued): Special purchases, projects, and studies (continued): Memorial benches 540$ 780$ 239$ 541$ Parks repair and replacement 160,030 160,030 - 160,030 Capital outlay: Trailer - 2,800 2,793 7 80,000 80,000 69,186 10,814 21,860 21,860 18,144 3,716 354,020 354,020 27,536 326,484 Total Parks 1,686,670 1,643,910 1,117,567 526,343 Measure F-14 Sales Tax: Capital outlay: 2024 Pavement Resurfacing (North/Central)394,250 444,250 451,653 (7,403) 2024 Pavement Rehabilitation (East/Central)3,454,940 4,884,940 4,797,729 87,211 2025 Pavement Resurfacing (South/Central)750,000 750,000 1,517 748,483 2025 Pavement Rehabilitation (South)147,150 2,797,150 271,315 2,525,835 2026 Pavement Rehabilitation (West/Central)50,000 50,000 151 49,849 Total Measure F-14 Sales Tax 4,796,340 8,926,340 5,522,365 3,403,975 Non-Departmental: Special purchases, projects, and studies: 200,000 200,000 200,000 - 2023 Storms- Atascadero Creek Capacity - - 21,241 (21,241) Copiers 32,000 32,000 - 32,000 Total Non-Departmental 232,000 232,000 221,241 10,759 Total expenditures 44,936,470 50,637,160 40,782,273 9,854,887 Excess of revenues over (under) expenditures (6,524,110) (11,472,590) (643,622) 10,828,968 Variance with Final Budget Positive (Negative) Slurry seal and stripe parking lots Cash contribution to Building Maintenance and Replacement Fund for fund balance Turf sweeper Utility cart Budget 97 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Other Financing Sources (Uses): 783,700$ 783,700$ 783,700$ -$ Proceeds from freezer refund - - 65,252 65,252 (710,000) (710,000) (355,970) 354,030 - (150,000) (150,000) - (2,600) (2,600) (2,600) - (1,400) (1,400) (1,400) - Total other financing sources and uses 69,700 (80,300) 338,982 419,282 (6,454,410)$ (11,552,890)$ (304,640) 11,248,250$ Fund balance - June 30, 2024 21,228,656 Fund balance - June 30, 2025 20,924,016$ Variance with Final Budget Positive (Negative) Net change in fund balance Transfer to Las Lomas Landscape and Lighting District for open space maintenance Transfer to De Anza Landscape and Lighting District for open space maintenance Transfer to the Local Transportation Fund for the Downtown Infrastructure Enhancement Project Transfer to Gas Tax Fund for streets maintenance Transfer from Community Facilities District Fund Budget 98 CITY OF ATASCADERO IN LIEU LOW/MODERATE INCOME HOUSING FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Original Final Actual Amounts Revenues: Affordable housing program loans -$ -$ 65,000$ 65,000$ Interest income 39,170 39,170 65,960 26,790 Investments- adjustment to fair value- GASB 31 - - 32,044 32,044 Total revenues 39,170 39,170 163,004 123,834 Expenditures: Contract services - 5,000 - 5,000 Administrative charges 83,510 78,510 78,510 - Special projects: PSHHC Del Rio Ridge affordable housing project 400,000 400,000 - 400,000 Total expenditures 483,510 483,510 78,510 405,000 Net change in fund balance (444,340)$ (444,340)$ 84,494 528,834$ Fund balance, June 30, 2024 5,857,530 Fund balance, June 30, 2025 5,942,024$ For the Fiscal Year Ended June 30, 2025 Budget Variance with Final Budget Positive (Negative) 99 CITY OF ATASCADERO LOCAL TRANSPORTATION FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Revenues: Local Transportation Tax- Article 3 Bike Paths 29,400$ 29,400$ 36,223$ 6,823$ Local Transportation Tax- Article 8 Streets 1,213,100 1,213,100 1,036,230 (176,870) HBRR Grant- Via Avenue Bridge 2,115,590 2,115,590 119,941 (1,995,649) HBRR Grant- Santa Lucia Bridge 1,738,260 1,738,260 72,643 (1,665,617) FHWA- San Marcos Road Landslide Repair - 500 495 (5) FHWA- 11800 San Marcos Road Embankment Repair - 463,900 166,246 (297,654) USHA- Santa Lucia Rd Rehabilitation Segments B & C 250,000 250,000 238,742 (11,258) USHA- Downtown Infrastructure Enhancement Plan - 1,800,000 1,800,000 - RSHA- Downtown Infrastructure Enhancement Plan - 597,960 597,959 (1) 1,970,400 1,970,400 1,970,398 (2) OES-2023 Storms Disaster 4683 Cost Recovery - - 14,955 14,955 FEMA-2023 Storms Disaster 4683 Cost Recovery - - 177,676 177,676 Investment income 99,840 99,840 201,217 101,377 Investments- adjustment to fair value- GASB 31 - - 150,089 150,089 Total revenues 7,416,590 10,278,950 6,582,814 (3,696,136) Expenditures: Special projects: Pavement Crack Sealing Preservation Program 100,000 100,000 413 99,587 30,000 30,000 - 30,000 Bridge Maintenance and Repair 125,000 125,000 - 125,000 Commercial Node Concept Plans and Analysis 71,580 71,580 14,269 57,311 Capital outlay: Downtown Infrastructure Enhancement Plan 7,262,500 9,660,460 8,469,270 1,191,190 San Anselmo Road Rehabilitation-West 50,000 50,000 30,902 19,098 11805 San Marcos Road Embankment Repair 250,000 250,000 251 249,749 Traffic Way Rehabilitation - North 795,950 1,295,950 1,295,428 522 Santa Lucia Road Rehabilitation Segments B & C 2,972,090 2,972,090 238,742 2,733,348 Downtown District Pavement Rehabilitation 286,900 286,900 12,833 274,067 San Marcos Road Landslide Repair - 500 559 (59) 11800 San Marcos Road Embankment Repair - 524,000 183,881 340,119 Storm Drainage Improvement Projects 175,000 175,000 - 175,000 Traffic Way Rehabilitation - South 100,000 100,000 18,864 81,136 Culvert Replacement Program 104,500 104,500 44,830 59,670 Via Avenue Bridge Replacement 2,394,530 2,394,530 135,481 2,259,049 Budget Variance with Final Budget Positive (Negative) Bridge Evaluations and Studies State Legislative Grant- Downtown Infrastructure Enhancement Plan 100 CITY OF ATASCADERO LOCAL TRANSPORTATION FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Capital outlay (continued): Santa Lucia Road Bridge Replacement 1,739,760$ 1,739,760$ 48,242$ 1,691,518$ 2023 Storms- Old Morro Road Repairs - - 4,087 (4,087) Total expenditures 16,457,810 19,880,270 10,498,052 9,382,218 Excess of revenues over (under) expenditures (9,041,220) (9,601,320) (3,915,238) 5,686,082 Other Financing Sources (Uses): 150,000 150,000 150,000 - 795,950 1,295,950 1,295,428 (522) 1,500,000 1,500,000 - (1,500,000) Total other financing sources (uses)2,445,950 2,945,950 1,445,428 (1,500,522) Net change in fund balance (6,595,270)$ (6,655,370)$ (2,469,810) 4,185,560$ Fund balance, June 30, 2024, as previously reported 7,816,351 Adjustment (Note 16)(82,056) Fund balance, June 30, 2024, as restated 7,734,295 Fund balance, June 30, 2025 5,264,485$ Transfer from Gas Tax Fund for Santa Lucia Road Rehabilitation Segments B & C (SB1) Budget Variance with Final Budget Positive (Negative) Transfer from General Fund for the Downtown Infrastructure Enhancement Project Transfer from Gas Tax Fund for Traffic Way Rehabilitation Project North (SB1) 101 CITY OF ATASCADERO CIRCULATION SYSTEM FEES FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Revenues: Impact fees 396,000$ 396,000$ 407,859$ 11,859$ Interest income 86,190 86,190 175,011 88,821 - - 79,318 79,318 Total revenues 482,190 482,190 662,188 179,998 Expenditures: Capital outlay: 101 @ Del Rio Interchange Project 3,803,680 3,803,680 12,815 3,790,865 Total expenditures 3,803,680 3,803,680 12,815 3,790,865 Net change in fund balance (3,321,490)$ (3,321,490)$ 649,373 3,970,863$ Fund balance, June 30, 2024 3,238,182 Fund balance, June 30, 2025 3,887,555$ Budget Variance with Final Budget Positive (Negative) Investments- adjustment to fair value- GASB 31 102 CITY OF ATASCADERO FIRE AERIAL VEHICLE IMPACT FEES FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Revenues: Impact fees 18,000$ 18,000$ 21,672$ 3,672$ Total revenues 18,000 18,000 21,672 3,672 Net change in fund balance 18,000$ 18,000$ 21,672 3,672$ Fund balance (deficit), June 30, 2024 (696,056) Fund balance (deficit), June 30, 2025 (674,384)$ Budget Variance with Final Budget Positive (Negative) 103 CITY OF ATASCADERO SCHEDULE OF CHANGES IN THE OPEB LIABILITY AND RELATED RATIOS Last 10 Years* For the Fiscal Year Ended June 30, 2025 The following table provides required supplementary information regarding the City's postemployment healthcare benefits. 2025 2024 2023 2022 2021 2020 2019 2018 Total OPEB Liability Service cost (3,462)$ (2,783)$ 14,653$ 10,981$ 8,079$ 9,582$ 13,252$ 7,820$ Interest on total OPEB liability 7,429 7,528 7,009 6,699 6,464 6,190 5,763 5,583 Benefit payments (8,800) (8,049) (4,346) (7,357) (6,726) (6,610) (4,800) (7,400) Net change in total OPEB liability (4,833) (3,304) 17,316 10,323 7,817 9,162 14,215 6,003 OPEB liability, beginning of year 247,632 250,936 233,620 223,297 215,480 206,318 192,103 186,100 OPEB liability, end of year 242,799$ 247,632$ 250,936$ 233,620$ 223,297$ 215,480$ 206,318$ 192,103$ Covered payroll 1,902,241$ 1,716,549$ 1,354,325$ 1,173,780$ 1,200,858$ 1,200,858$ 1,200,858$ 1,126,865$ 12.76% 14.43% 18.53% 19.90% 18.59% 17.94% 17.18% 17.05% Notes to Schedule: There were no changes in assumptions reflected above. * Fiscal year 2018 was the first year of implementation, therefore, only eight years are shown. Measurement Period Total OPEB liability as a percentage of covered payroll 104 CITY OF ATASCADERO SCHEDULE OF OPEB CONTRIBUTIONS Last 10 Years As of June 30, 2025 As of June 30,2025,the plan is not administered through a qualified trust.Therefore,there is no Actuarially Determined Contribution (ADC).Benefit payments of $8,800 were made on a pay-as-you-go basis for the fiscal year ended June 30,2025.Benefit payments of $8,049 were made on a pay-as-you-go basis for the fiscal year ended June 30,2024. Benefit payments of $4,346 were made on a pay-as-you-go basis for the fiscal year ended June 30,2023.Benefit payments of $7,357 were made on a pay-as-you-go basis for the fiscal year ended June 30,2022.Benefit payments of $6,726 were made on a pay-as-you-go basis for the fiscal year ended June 30,2021.Benefits payments of $6,610 were made on a pay-as-you-go basis for the fiscal year ended June 30,2020.Benefit payments of $4,800 were made on a pay-as-you-go basis for the fiscal year ended June 30, 2019. Benefit payments of $7,400 were made on a pay-as-you-go basis for the fiscal year ended June 30, 2018. 105 CITY OF ATASCADERO SCHEDULE OF THE LOCAL GOVERNMENT'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY Cost-Sharing Multiple-Employer Defined Pension Plan - Last 10 Years As of June 30, 2025 6/30/2025 6/30/2024 6/30/2023 6/30/2022 6/30/2021 Measurement Date 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 City's proportion of the net pension liability 0.303500%0.302530%0.303060%0.346860%0.281480% 36,806,746$ 37,741,097$ 35,005,507$ 18,759,199$ 30,626,061$ City's covered payroll *13,193,268$ 12,476,406$ 11,164,515$ 9,943,967$ 10,024,682$ 278.98%302.50%313.54%188.65%305.51% 55,320,956,562$ 52,441,984,274$ 49,525,975,138$ 46,174,942,264$ 43,702,930,887$ 43,193,516,089$ 39,966,633,692$ 37,975,170,163$ 40,766,653,876$ 32,822,501,335$ 78.08%76.21%76.68%88.29%75.10% Measurement Date 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 City's proportion of the net pension liability 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 0.277520%0.275210%0.270324%0.272255%0.278260% City's covered payroll *28,437,309$ 26,519,899$ 26,808,749$ 23,558,492$ 19,099,492$ 9,541,259$ 9,337,993$ 10,102,742$ 8,658,607$ 8,348,164$ 298.05%284.00%265.36%272.08%228.79% 41,426,453,489$ 38,944,855,364$ 37,161,348,332$ 33,358,627,624$ 31,771,217,402$ 31,179,414,067$ 29,308,589,559$ 27,244,095,376$ 24,705,532,291$ 24,907,305,871$ 75.26%75.26%73.31%74.06%78.40% * For the year ending on the measurement date. City's proportionate share of the net pension liability as percentage of covered payroll Plan's total pension liability Plan's fiduciary net position Plan's fiduciary net position as a percentage of the plan's total pension liability City's proportionate share of the net pension liability City's proportionate share of the net pension liability as percentage of covered payroll Plan's total pension liability City's proportionate share of the net pension liability Plan's fiduciary net position Plan's fiduciary net position as a percentage of the plan's total pension liability Fiscal Year End 106 CITY OF ATASCADERO SCHEDULE OF PENSION CONTRIBUTIONS Cost-Sharing Multiple-Employer Defined Pension Plan - Last 10 Years As of June 30, 2025 Contributions for the fiscal year ending:6/30/2025 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 5,275,288 4,627,006$4,688,082$4,236,582$3,742,162$3,366,536$2,982,660$2,685,953$2,489,485$2,255,947$$ (5,275,288) (4,627,006) (4,688,082) (4,236,582) (3,742,162) (3,366,536) (2,982,660) (2,685,953) (2,489,485) (2,255,947) Contribution deficiency (excess)--$-$-$-$-$-$-$-$-$$ 13,915,614Covered payroll *13,193,268$12,476,406$11,164,515$9,943,967$10,024,682$9,541,259$9,337,993$10,102,742$8,658,607$$ 26.05%24.64%28.76%31.26%33.58%37.63%37.95%37.58%35.07%37.91% Notes to Schedule Valuation Date 06/30/23 06/30/22 06/30/21 06/30/20 06/30/19 06/30/18 06/30/17 06/30/16 06/30/15 06/30/14 Methods and assumptions used to determine contribution rates: Actuarial cost method Asset valuation method Amortization method 7.500%7.650%7.650%7.375%7.150%7.150%7.150%6.900%6.900%6.900%Discount rate 2.75%2.75%2.75%2.50%2.50%2.50%2.50%2.30%2.30%2.30%Price inflation Salary increases Mortality Post retirement benefit * For the fiscal year ending on the date shown. Varies by entry age and service Contractually required contribution (actuarially determined) Contributions in relation to the actuarially determined contributions Contributions as a percentage of covered payroll Entry age 5-year smoothed market Level percentage of payroll, closed Derived using CalPERS' Membership data for all funds Contract COLA up to 2.30% until Purchasing Power Protection Contract COLA up to 2.50% until Purchasing Power Protection Allowance Floor on Purchasing Power appliesAllowance Floor on Purchasing Power applies 2.30% thereafter 107 OTHER SUPPLEMENTARY INFORMATION CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS OVERVIEW SPECIAL REVENUE FUNDS The City has established the following special revenue funds in order to account for the proceeds from revenue sources that are restricted to expenditures for specified purposes: Supplemental Law Enforcement Services Fund This fund is used for Supplemental Law Enforcement Services grant monies received and to account for the allowed expenditures of these funds. Downtown Business Improvement Area Fund The City established a Downtown Business Improvement Area (BIA)in 1986 for the purpose of acquisition,construction,and/or maintenance of parking facilities, decoration of public places,promotion of public events,and the general promotion of business activities in the downtown area.An annual assessment is placed on all businesses in the downtown area,and this fund accounts for the revenues and expenses associated with these BIA monies.The assessment was reduced to $0.00 in 2010 at the behest of downtown landlords as part of a program to encourage downtown business.In January 2018,the Atascadero Colony District Committee requested that the assessment be reinstituted. The assessment was reinstituted effective January 2019. Atascadero Tourism Business Improvement District Fund The City established the Atascadero Tourism Business Improvement District (ATBID)effective June 1,2013,for the purpose of funding tourism promotion and increasing stays at the lodging businesses in Atascadero.A two percent (2%)assessment was originally placed on the nightly rent of all occupied rooms or spaces for all transient occupancies in Atascadero.The rate was changed to 2.5%in January 2025.The additional funds will focus on improvements and facilities at the Central Coast Zoo and adjacent areas with the purpose of increasing hotel stays in the City. Community Development Block Grant Fund This fund is used for Community Development Block Grant monies received from the federal government.These funds must be used for low or moderate income projects,or to eliminate blight in the community.The City receives an annual allocation from the federal government,based on the number of qualified persons in the City. The City holds an annual hearing to determine how this money is to be spent. Tree Plant Fund This fund accounts for Tree Mitigation Fees and the expenditure thereof.A fee may be paid by a developer in lieu of planting a tree on improved property.These funds are then used for the preservation and planting of the City's native trees. Gas Tax Fund This fund accounts for gas tax monies received from the State, which are expended to maintain various streets within the City. Street Assessment Fund This fund accounts for assessments collected to maintain various streets within the City. 108 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS OVERVIEW (continued) SPECIAL REVENUE FUNDS (continued) General Government Facilities Fees Fund General Facilities are those limited to office or work buildings and equipment used by City staff to undertake their daily duties.As the City increases in both population and new businesses,City Hall and the City maintenance yard will increasingly become overcrowded with growing staff.New facilities and equipment are necessary to extend the current level of service to these new residents and businesses.Because the need for these new facilities and additional equipment is directly related to new construction,a General Government Facilities Fee is charged on all new development.These fees are deposited into this fund and then used for expanded/new facilities and equipment as listed in the Atascadero Master Facilities Plan, updated February 2006. Storm Drainage Facilities Fees Fund As vacant land is developed and bare dirt or turf is replaced with impervious rooftop,parking lots,driveways,pools and sidewalks,water runoff increases;the cumulative effects of this additional runoff is managed by constructing the appropriate capital facilities.Because the need for these capital facilities is directly related to new construction,a Storm Drainage Facilities Fee is charged on all new development.These fees are deposited into this fund and then used for the construction of the new/increased/improved capital facilities as listed in the Atascadero Master Facilities Plan, updated February 2006. Law Enforcement Facilities Fees Fund Residents and businesses benefit from both direct (response to a call for service)and indirect (crime prevention programs,patrol,etc.)law enforcement services. The addition of new residential units and new businesses necessarily increase the demand upon the law enforcement service level by creating more direct calls for service,more area requiring preventive patrol,and in general,more opportunities for crimes to be committed.If law enforcement capabilities are not expanded, then the increasing number of calls for service will reduce the amount of time available for preventive patrol.Because the need for additional police officers,as well as the need for these officers to be equipped and housed,is directly related to new construction,a Law Enforcement Facilities Fee is charged on all new development.These fees are deposited into this fund and then used for the purchase/construction of equipment/stations for these additional officers as listed in the Atascadero Master Facilities Plan, updated February 2006. Fire Facilities Fees Fund In addition to providing fire prevention programs,the Fire Department responds to calls for fire and medical services from two existing fire stations.Each new residential and business development creates more calls for service,increasing the likelihood of simultaneous (and thus competing)calls for service.Additionally, as development spreads further from the existing stations,response times will necessarily increase,taking the existing engine companies out of service for greater periods of time.These developments create the need for additional facilities and equipment.Because the need for these new facilities and additional equipment is directly related to new construction,a Fire Facilities Fee is charged on all new development.These fees are deposited into this fund and then used for the relocation/construction of fire stations, as well as the purchase of additional equipment, as listed in the Atascadero Master Facilities Plan, updated February 2006. Open Space Acquisition Fees Fund Future residential development, by increasing the City's population, will by definition impact the City's available land and decrease open space. Without open space acquisition,the City's remaining available land will be developed and the City will lose much of its historic charm that is so valuable to residents.Because the need for land acquisition is directly related to new construction,an Open Space Acquisition Fee is charged on all new development.These fees are deposited into this fund and then used for land acquisitions as listed in the Atascadero Master Facilities Plan, updated February 2006. 109 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS OVERVIEW (continued) SPECIAL REVENUE FUNDS (continued) Parkland Facilities Fees Fund Residential development,by increasing the City's population,necessarily impacts the City's park system.Without future parkland and continued development of currently owned,but underutilized parkland,the City's parks become overcrowded and overused with the ultimate result becoming a negative experience for park users.Because the need for new facilities and land acquisitions is directly related to new construction,a Parkland Facilities Fee is charged on all new development.These fees are deposited into this fund and then used for expanded/new facilities and land acquisitions as listed in the Atascadero Master Facilities Plan, updated February 2006. Public Facilities Fees Fund The City currently has existing community use facilities,such as the Pavilion on the Lake and the Colony Park Community Center.Future additional residential units will increase the City's population,placing ever greater demands on existing community use facilities,and new or expanded community center space will be necessary to extend the current level of service to new residents.Because the need for these new facilities is directly related to new construction,a Public Facilities Fee is charged on all new residential development.These fees are deposited into this fund and then used for expanded/new community use facilities as listed in the Atascadero Master Facilities Plan, updated February 2006. Library Expansion Facilities Fees Fund The County Public Library System currently owns and maintains a library facility within the City limits.While the City is not the library service provider,the City's residents and businesses have an interest in maintaining the library service levels.Additional development within the City will increase the demand for a larger sized library and for more volumes within the library.Because the need for expanded library services is directly related to new construction,a Library Facilities Fee is charged on all new development.These fees are deposited into this fund and then are used for the expansion of the amount of library facility space and the expansion of the library collection as listed in the Atascadero Master Facilities Plan,updated February 2006.In December 2010,the County purchased a new library facility at 6555 Capistrano Avenue.The City contributed a total of $315,180 toward the library expansion during the period spanning December 2010 through June 2014. This amount was a combination of impact fees and other funds that had been set aside for library expansion. Community Facilities District Fund This fund is used to account for fees assessed in the Community Facilities District.This district was established in 2005 in order to provide funding for expansion of police,fire,and parks services as the City's population increases.Developments that must obtain Planning Commission approval are subject to annexation into the city-wide district. Apple Valley Street & Storm Drain Assessment District Fund This fund is used to account for fees assessed in a development known as The Colony at Apple Valley.This assessment district was established in 2005 in order to maintain the street and storm drain related improvements in the development. Apple Valley Landscape & Lighting Assessment District Fund This fund is used to account for fees assessed in a development known as The Colony at Apple Valley.This assessment district was established in 2005 in order to maintain the landscape and lighting related improvements in the development. 110 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS OVERVIEW (continued) SPECIAL REVENUE FUNDS (continued) AND CAPITAL PROJECTS FUNDS Las Lomas Street & Storm Drain Assessment District Fund This fund is used to account for fees assessed in a development known as Las Lomas.This assessment district was established in 2005 in order to maintain the street and storm drain related improvements in the development. Las Lomas Landscape & Lighting Assessment District Fund This fund is used to account for fees assessed in a development known as Las Lomas.This assessment district was established in 2005 in order to maintain the landscape and lighting related improvements in the development. De Anza Street & Storm Drain Assessment District Fund This fund is used to account for fees assessed in a development known as De Anza Estates.This assessment district was established in 2005 in order to maintain the street and storm drain related improvements in the development. De Anza Landscape & Lighting Assessment District Fund This fund is used to account for fees assessed in a development known as De Anza Estates.This assessment district was established in 2005 in order to maintain the landscape and lighting related improvements in the development. The City has established the following capital projects funds in order to account for expenditures for specific capital project purposes: Capital Projects Fund This fund is typically used to account for the financial resources used in the construction or acquisition of major capital facilities or equipment obtained by special funding such as grants or dedicated reimbursements. It is also used as a type of clearinghouse for projects with many different sources of funding. 2010 Bond Proceeds Master Agreement Fund On September 1,2010,the City issued $16,010,000 in lease revenue bonds to be used for various redevelopment public improvement projects within the downtown area.As part of June 2011 state legislation,all redevelopment agencies throughout the state were dissolved.At that time,the Redevelopment Agency was in the process of expending the 2010 bond proceeds in accordance with the bond covenants which require the funds to be spent on the Historic City Hall Rehabilitation Project with the remaining funds to be spent on other eligible redevelopment projects.The Historic City Hall Rehabilitation Project has been completed,leaving remaining 2010 bond proceeds.In accordance with redevelopment dissolution law,in August of 2014,the City and the Successor Agency entered into a Master Agreement,transferring all remaining bond proceeds to the City to be spent on projects for which the bonds were originally sold.This fund accounts for the expenditure of those 2010 bond funds transferred to the City under the Master Agreement. Public Safety Facilities Fund This fund accounts for funds received and expended on the constructions of the Public Safety Facilities,including a full demolition and rebuild of Fire Station #1, remodel of Fire Station #2, and remodel and addition of a Dispatch Building at the Police Station. 111 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS OVERVIEW (continued) DEBT SERVICE FUNDS The City has established the following debt service funds in order to account for the payment and accumulation of resources related to long-term debt principal and interest for the following debt issues: 2010 Bond Debt Service Fund The City issued $16,010,000 in Lease Revenue bonds,transferring the proceeds to the Redevelopment Agency for the rehabilitation of the historic City Hall building,as well as blight elimination projects.The bonds were scheduled to mature between fiscal years 2014 and 2040,at interest rates ranging from 3.00%to 5.00%.The Bonds were paid by the City General Fund,and were reimbursed by the Redevelopment Agency General Fund.The 2010 Bonds were defeased in July 2024. 112 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET June 30, 2025 Special Revenue Funds Supplemental Law Enforcement Services Fund Downtown Business Improvement Area Fund Atascadero Tourism Business Improvement District Fund Community Development Block Grant Fund Tree Plant Fund ASSETS Cash and investments 309,821$ 15,725$ 667,508$ -$ 193,566$ Receivables: Federal distributions due - - - 49,193 - Due from State of California - - - - - Due from County of San Luis Obispo - - - - - Accrued interest 1,981 96 4,006 - 1,210 Other receivables - - 140,586 363 - Due from other funds - - - - - Prepaid items 5,667 - - - - Total assets 317,469$ 15,821$ 812,100$ 49,556$ 194,776$ LIABILITIES AND FUND BALANCES Liabilities: Accounts payable 3,041$ -$ 63,852$ 5,623$ 350$ Accrued salaries and benefits 3,796 - - - - Due to other funds - - - 43,933 - Unearned revenue 290,648 - 99 - - Total liabilities 297,485 - 63,951 49,556 350 Fund Balances: Nonspendable 5,667 - - - - Restricted 14,317 15,821 748,149 - 194,426 Assigned for road projects - - - - - Total fund balances (deficits)19,984 15,821 748,149 - 194,426 Total liabilities and fund balances 317,469$ 15,821$ 812,100$ 49,556$ 194,776$ 113 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET (continued) June 30, 2025 Special Revenue Funds Gas Tax Fund Street Assessment Fund General Government Facilities Fees Fund Storm Drainage Facilities Fees Fund Law Enforcement Facilities Fees Fund Fire Facilities Fees Fund ASSETS Cash and investments 1,125,858$ 98,458$ 465,317$ 726,856$ 330,483$ 1,026,126$ Receivables: Federal distributions due 1,863 - - - - - Due from State of California 224,049 - - - - - Due from County of San Luis Obispo - - - - - - Accrued interest 14,167 608 2,839 4,462 2,025 6,306 Other receivables 13,602 - - - - - Due from other funds - - - - - 674,384 Prepaid items 2,980 - - - - - Total assets 1,382,519$ 99,066$ 468,156$ 731,318$ 332,508$ 1,706,816$ LIABILITIES AND FUND BALANCES Liabilities: Accounts payable 55,703$ -$ 35,024$ -$ -$ -$ Accrued salaries and benefits 16,362 - - - - - Due to other funds - - - - - - Unearned revenue - - - - - - Total liabilities 72,065 - 35,024 - - - Fund Balances: Nonspendable 2,980 - - - - - Restricted 1,307,474 99,066 433,132 731,318 332,508 1,706,816 Assigned for road projects - - - - - - Total fund balances (deficits)1,310,454 99,066 433,132 731,318 332,508 1,706,816 Total liabilities and fund balances 1,382,519$ 99,066$ 468,156$ 731,318$ 332,508$ 1,706,816$ 114 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET (continued) June 30, 2025 Special Revenue Funds Open Space Acquisition Fees Fund Parkland Facilities Fees Fund Public Facilities Fees Fund Library Expansion Facilities Fees Fund Community Facilities District Fund ASSETS Cash and investments 1,305,927$ 1,369,402$ 287,090$ 406,463$ 21,835$ Receivables: Federal distributions due - - - - - Due from State of California - - - - - Due from County of San Luis Obispo - - - - 65,083 Accrued interest 8,009 8,277 1,732 2,493 - Other receivables - - - - - Due from other funds - - - - - Prepaid items - - - - - Total assets 1,313,936$ 1,377,679$ 288,822$ 408,956$ 86,918$ LIABILITIES AND FUND BALANCES Liabilities: Accounts payable -$ -$ -$ -$ -$ Accrued salaries and benefits - - - - - Due to other funds - - - - - Unearned revenue - - - - - Total liabilities - - - - - Fund Balances: Nonspendable - - - - - Restricted 1,313,936 1,377,679 288,822 408,956 86,918 Assigned for road projects - - - - - Total fund balances (deficits)1,313,936 1,377,679 288,822 408,956 86,918 Total liabilities and fund balances 1,313,936$ 1,377,679$ 288,822$ 408,956$ 86,918$ 115 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET (continued) June 30, 2025 Special Revenue Funds Apple Valley Street & Storm Drain Assessment District Fund Apple Valley Landscape & Lighting Assessment District Fund Las Lomas Street & Storm Drain Assessment District Fund Las Lomas Landscape & Lighting Assessment District Fund De Anza Street & Storm Drain Assessment District Fund De Anza Landscape & Lighting Assessment District Fund ASSETS Cash and investments 669,284$ 219,828$ 916,328$ 214,600$ 622,949$ 120,250$ Receivables: Federal distributions due - - - - - - Due from State of California - - - - - - Due from County of San Luis Obispo 828 1,353 1,210 908 558 284 Accrued interest 4,115 1,346 5,600 1,323 3,845 757 Other receivables - - - - - - Due from other funds - - - - - - Prepaid items - - - - - - Total assets 674,227$ 222,527$ 923,138$ 216,831$ 627,352$ 121,291$ LIABILITIES AND FUND BALANCES Liabilities: Accounts payable -$ 11,327$ -$ 15,489$ -$ 2,708$ Accrued salaries and benefits - - - - - - Due to other funds - - - - - - Unearned revenue - 6,770 - - - - Total liabilities - 18,097 - 15,489 - 2,708 Fund Balances: Nonspendable - - - - - - Restricted 674,227 204,430 923,138 201,342 627,352 118,583 Assigned for road projects - - - - - - Total fund balances (deficits)674,227 204,430 923,138 201,342 627,352 118,583 Total liabilities and fund balances 674,227$ 222,527$ 923,138$ 216,831$ 627,352$ 121,291$ 116 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET (continued) June 30, 2025 Debt Service Funds Capital Projects Fund 2010 Bond Proceeds Master Agreement Fund Public Safety Facilities Project Fund 2010 Bond Debt Service Fund TOTALS ASSETS Cash and investments 238,313$ 4,358$ 5,403,184$ -$ 16,759,529$ Receivables: Federal distributions due - - - - 51,056 Due from State of California - - - - 224,049 Due from County of San Luis Obispo - - - - 70,224 Accrued interest 1,523 26 33,995 - 110,741 Other receivables - - - - 154,551 Due from other funds - - - - 674,384 Prepaid items - - - - 8,647 Total assets 239,836$ 4,384$ 5,437,179$ -$ 18,053,181$ LIABILITIES AND FUND BALANCES Liabilities: Accounts payable -$ -$ 130,811$ -$ 323,928$ Accrued salaries and benefits - - - - 20,158 Due to other funds - - - - 43,933 Unearned revenue - - - - 297,517 Total liabilities - - 130,811 - 685,536 Fund Balances: Nonspendable - - - - 8,647 Restricted 136,920 4,384 5,306,368 - 17,256,082 Assigned for road projects 102,916 - - - 102,916 Total fund balances (deficits)239,836 4,384 5,306,368 - 17,367,645 Total liabilities and fund balances 239,836$ 4,384$ 5,437,179$ -$ 18,053,181$ Capital Projects Funds 117 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Fiscal Year Ended June 30, 2025 Supplemental Law Enforcement Services Fund Downtown Business Improvement Area Fund Atascadero Tourism Business Improvement District Fund Community Development Block Grant Fund Tree Plant Fund Revenues: Taxes and assessments -$ 13,754$ 442,589$ -$ -$ Licenses and permits - - - - 15,048 Intergovernmental revenues 128,468 - - 368,324 - Fines and forfeitures - - 934 - - Use of money and property 14,588 758 35,844 - 10,743 Other revenues - - - - - Total revenues 143,056 14,512 479,367 368,324 25,791 Expenditures: Salaries and benefits 77,155 - - - - Supplies and services 49,474 14,620 482,791 9,846 32,780 Principal - - - - - Special projects and studies 1,840 - - 13,098 - Capital outlay - - - 345,380 - Total expenditures 128,469 14,620 482,791 368,324 32,780 Excess of revenues over (under) expenditures 14,587 (108) (3,424) - (6,989) Other Financing Sources (Uses): Transfers in - - - - - Transfers out - - - - - Total other financing sources (uses)- - - - - Net change in fund balances 14,587 (108) (3,424) - (6,989) Fund balances, June 30, 2024 5,397 15,929 751,573 - 201,415 Fund balances, June 30, 2025 19,984$ 15,821$ 748,149$ -$ 194,426$ Special Revenue Funds 118 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (continued) For the Fiscal Year Ended June 30, 2025 Gas Tax Fund Street Assessment Fund General Government Facilities Fees Fund Storm Drainage Facilities Fees Fund Law Enforcement Facilities Fees Fund Fire Facilities Fees Fund Revenues: Taxes and assessments -$ 2,160$ -$ -$ -$ -$ Licenses and permits - - 106,998 55,650 37,779 59,275 Intergovernmental revenues 1,737,030 - - - - - Fines and forfeitures - - - - - - Use of money and property 103,148 5,113 21,313 36,470 16,721 51,429 Other revenues 14,792 - - - - - Total revenues 1,854,970 7,273 128,311 92,120 54,500 110,704 Expenditures: Salaries and benefits 404,016 - - - - - Supplies and services 895,913 - - - - - Principal - - - - - - Special projects and studies - 623 - - - - Capital outlay 2,793 - 38,541 - - - Total expenditures 1,302,722 623 38,541 - - - Excess of revenues over (under) expenditures 552,248 6,650 89,770 92,120 54,500 110,704 Other Financing Sources (Uses): Transfers in 355,970 - - - - - Transfers out (1,295,428) - - - - - Total other financing sources (uses)(939,458) - - - - - Net change in fund balances (387,210) 6,650 89,770 92,120 54,500 110,704 Fund balances, June 30, 2024 1,697,664 92,416 343,362 639,198 278,008 1,596,112 Fund balances, June 30, 2025 1,310,454$ 99,066$ 433,132$ 731,318$ 332,508$ 1,706,816$ Special Revenue Funds 119 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (continued) For the Fiscal Year Ended June 30, 2025 Open Space Acquisition Fees Fund Parkland Facilities Fees Fund Public Facilities Fees Fund Library Expansion Facilities Fees Fund Community Facilities District Fund Revenues: Taxes and assessments -$ -$ -$ -$ 838,760$ Licenses and permits 127,021 365,376 82,929 40,117 - Intergovernmental revenues - - - - - Fines and forfeitures - - - - - Use of money and property 64,680 60,554 12,496 20,121 12 Other revenues - - - - - Total revenues 191,701 425,930 95,425 60,238 838,772 Expenditures: Salaries and benefits - - - - - Supplies and services - - - - 5,796 Principal - - - - - Special projects and studies - - - - - Capital outlay - - - - - Total expenditures - - - - 5,796 Excess of revenues over (under) expenditures 191,701 425,930 95,425 60,238 832,976 Other Financing Sources (Uses): Transfers in - - - - - Transfers out - - - - (783,700) Total other financing sources (uses)- - - - (783,700) Net change in fund balances 191,701 425,930 95,425 60,238 49,276 Fund balances, June 30, 2024 1,122,235 951,749 193,397 348,718 37,642 Fund balances, June 30, 2025 1,313,936$ 1,377,679$ 288,822$ 408,956$ 86,918$ Special Revenue Funds 120 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (continued) For the Fiscal Year Ended June 30, 2025 Apple Valley Street & Storm Drain Assessment District Fund Apple Valley Landscape & Lighting Assessment District Fund Las Lomas Street & Storm Drain Assessment District Fund Las Lomas Landscape & Lighting Assessment District Fund De Anza Street & Storm Drain Assessment District Fund De Anza Landscape & Lighting Assessment District Fund Revenues: Taxes and assessments 38,500$ 63,000$ 101,507$ 76,014$ 30,561$ 15,874$ Licenses and permits - 11,000 - - - - Intergovernmental revenues - - - - - - Fines and forfeitures - - - - - - Use of money and property 33,956 11,021 44,708 11,147 32,023 6,595 Other revenues - - - - - - Total revenues 72,456 85,021 146,215 87,161 62,584 22,469 Expenditures: Salaries and benefits - - - - - - Supplies and services 6,075 54,269 12,045 76,827 10,198 17,416 Principal - - - - - - Special projects and studies 747 10,410 - 13,135 570 11,269 Capital outlay - - - - - - Total expenditures 6,822 64,679 12,045 89,962 10,768 28,685 Excess of revenues over (under) expenditures 65,634 20,342 134,170 (2,801) 51,816 (6,216) Other Financing Sources (Uses): Transfers in - - - 2,600 - 1,400 Transfers out - - - - - - Total other financing sources (uses)- - - 2,600 - 1,400 Net change in fund balances 65,634 20,342 134,170 (201) 51,816 (4,816) Fund balances, June 30, 2024 608,593 184,088 788,968 201,543 575,536 123,399 Fund balances, June 30, 2025 674,227$ 204,430$ 923,138$ 201,342$ 627,352$ 118,583$ Special Revenue Funds 121 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (continued) For the Fiscal Year Ended June 30, 2025 Debt Service Funds Capital Projects Fund 2010 Bond Proceeds Master Agreement Fund Public Safety Facilities Project Fund 2010 Bond Debt Service Fund TOTALS Revenues: Taxes and assessments -$ -$ -$ -$ 1,622,719$ Licenses and permits - - - - 901,193 Intergovernmental revenues - - - - 2,233,822 Fines and forfeitures - - - - 934 Use of money and property 13,118 229 211,469 1,762 820,018 Other revenues - - 6,056,772 - 6,071,564 Total revenues 13,118 229 6,268,241 1,762 11,650,250 Expenditures: Salaries and benefits - - - - 481,171 Supplies and services - - - - 1,668,050 Principal - - - 13,530,000 13,530,000 Special projects and studies - - - 109,583 161,275 Capital outlay 12,019 - 961,873 - 1,360,606 Total expenditures 12,019 - 961,873 13,639,583 17,201,102 Excess of revenues over (under) expenditures 1,099 229 5,306,368 (13,637,821) (5,550,852) Other Financing Sources (Uses): Transfers in - - - - 359,970 Transfers out - - - - (2,079,128) Total other financing sources (uses)- - - - (1,719,158) Net change in fund balances 1,099 229 5,306,368 (13,637,821) (7,270,010) Fund balances, June 30, 2024 238,737 4,155 - 13,637,821 24,637,655 Fund balances, June 30, 2025 239,836$ 4,384$ 5,306,368$ -$ 17,367,645$ Capital Projects Funds 122 CITY OF ATASCADERO SUPPLEMENTAL LAW ENFORCEMENT SERVICES FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Revenues: S.L.E.S.F. Grant 100,000$ 129,140$ 128,468$ (672)$ Interest income - - 10,625 10,625 Investments- adjustment to fair value- GASB 31 - - 3,963 3,963 Total revenues 100,000 129,140 143,056 13,916 Expenditures: Employee services 77,160 77,160 77,155 5 Computer maintenance & replacement - 10,900 10,248 652 Operating supplies 22,840 32,160 32,153 7 Contract services - 7,080 7,073 7 Special projects and purchases: Crime scene investigation equipment - 1,840 1,840 - Total expenditures 100,000 129,140 128,469 671 Excess of revenues over (under) expenditures - - 14,587 14,587 Net change in fund balance -$ -$ 14,587 14,587$ Fund balance, June 30, 2024 5,397 Fund balance, June 30, 2025 19,984$ Budget Variance with Final Budget Positive (Negative) 123 CITY OF ATASCADERO DOWNTOWN BUSINESS IMPROVEMENT AREA FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Revenues: Tourism assessments 14,900$ 14,900$ 13,754$ (1,146)$ Interest income 220 220 476 256 Investments- adjustment to fair value- GASB 31 - - 282 282 Total revenues 15,120 15,120 14,512 (608) Expenditures: Downtown Business Association Improvement Program 15,660 15,660 14,620 1,040 Total expenditures 15,660 15,660 14,620 1,040 Net change in fund balance (540)$ (540)$ (108) 432$ Fund balance, June 30, 2024 15,929 Fund balance, June 30, 2025 15,821$ Budget Variance with Final Budget Positive (Negative) 124 CITY OF ATASCADERO ATASCADERO TOURISM BUSINESS IMPROVEMENT DISTRICT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Revenues: Tourism assessments 422,400$ 422,400$ 442,589$ 20,189$ Tourism assessment penalties - - 934 934 Interest income 19,790 19,790 24,139 4,349 Investments- adjustment to fair value- GASB 31 - - 11,705 11,705 Total revenues 442,190 442,190 479,367 37,177 Expenditures: Office expense 250 30 24 6 Advertising 180,000 253,870 253,865 5 Contract services 175,000 223,640 223,637 3 Professional development 8,000 830 830 - Administration 4,220 4,440 4,435 5 Special projects and studies: Opportunities Fund 65,000 5,660 - 5,660 Total expenditures 432,470 488,470 482,791 5,679 Net change in fund balance 9,720$ (46,280)$ (3,424) 42,856$ Fund balance, June 30, 2024 751,573 Fund balance, June 30, 2025 748,149$ Budget Variance with Final Budget Positive (Negative) 125 CITY OF ATASCADERO COMMUNITY DEVELOPMENT BLOCK GRANT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Revenues: Community Development Block Grant 355,420$ 515,140$ 368,324$ (146,816)$ Total revenues 355,420 515,140 368,324 (146,816) Expenditures: Advertising - 470 468 2 Administration - 9,380 9,378 2 Special projects and studies: Youth scholarships - 13,100 13,098 2 Capital outlay: Santa Rosa barrier removal 286,880 336,410 336,404 6 Viejo Camino barrier removal 68,540 155,780 8,976 146,804 Total expenditures 355,420 515,140 368,324 146,816 Net change in fund balance -$ -$ - -$ Fund balance, June 30, 2024 - Fund balance, June 30, 2025 -$ Budget Variance with Final Budget Positive (Negative) 126 CITY OF ATASCADERO TREE PLANT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Revenues: Permits and fees 12,000$ 12,000$ 15,048$ 3,048$ Interest income 4,580 4,580 7,169 2,589 Investments- adjustment to fair value- GASB 31 - - 3,574 3,574 Total revenues 16,580 16,580 25,791 9,211 Expenditures: Office expense 200 200 - 200 Operating supplies 100 100 - 100 Contract services 6,000 5,060 4,200 860 Professional development 300 300 - 300 Administrative charges 27,640 28,580 28,580 - Special projects and studies: Native tree replanting 16,000 16,000 - 16,000 Total expenditures 50,240 50,240 32,780 17,460 Net change in fund balance (33,660)$ (33,660)$ (6,989) 26,671$ Fund balance, June 30, 2024 201,415 Fund balance, June 30, 2025 194,426$ Budget Variance with Final Budget Positive (Negative) 127 CITY OF ATASCADERO GAS TAX FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Revenues: Section 2103 highway users tax 235,560$ 235,560$ 294,244$ 58,684$ Section 2105 highway users tax 173,040 173,040 191,356 18,316 Section 2106 highway users tax 128,430 128,430 147,939 19,509 Section 2107 highway users tax 220,080 220,080 253,850 33,770 Section 2107.5 highway users tax 6,000 6,000 6,000 - SB1- Section 2031 Road Maintenance & Rehabilitation 813,410 813,410 840,504 27,094 FEMA-2023 Storms Disaster 4683 Cost Recovery - - 3,137 3,137 Other revenues - - 14,792 14,792 Investment income 7,080 7,080 73,683 66,603 Investments- adjustment to fair value- GASB 31 - - 29,465 29,465 Total revenues 1,583,600 1,583,600 1,854,970 271,370 Expenditures: Salaries and benefits 589,100 591,370 404,016 187,354 Office expense - 810 805 5 Computer maintenance & replacement 4,690 4,690 4,690 - Insurance 19,600 17,460 17,467 (7) Utilities 177,650 163,970 163,970 - Communications 1,700 2,980 2,976 4 Operating supplies and equipment 55,770 48,510 48,501 9 Vehicle and equipment operations 91,190 74,290 74,281 9 Contract services 172,050 221,960 219,582 2,378 Professional development 2,510 3,270 3,266 4 Recruitment 400 220 215 5 Department service allocation 192,050 192,050 192,050 - Administrative charges 168,110 168,110 168,110 - Special projects Traffic Signal Back-up Battery Repair 9,000 9,000 - 9,000 Capital outlay: 2,670 2,800 2,793 7 Total expenditures 1,486,490 1,501,490 1,302,722 198,768 Excess of revenues over (under) expenditures 97,110 82,110 552,248 470,138 Trailer Budget Variance with Final Budget Positive (Negative) 128 CITY OF ATASCADERO GAS TAX FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Other Financing Sources (Uses): 710,000$ 710,000$ 355,970$ (354,030)$ (795,950) (1,295,950) (1,295,428) 522 (1,500,000) (1,500,000) - 1,500,000 Total other financing sources (uses)(1,585,950) (2,085,950) (939,458) 1,146,492 Net change in fund balance (1,488,840)$ (2,003,840)$ (387,210) 1,616,630$ Fund balance, June 30, 2024 1,697,664 Fund balance, June 30, 2025 1,310,454$ Transfer out to Local Transportation Fund for Santa Lucia Road Rehabilitation Segments B & C (SB1) Transfer out to Local Transportation Fund for Traffic Way Rehabilitation North (SB1) Budget Variance with Final Budget Positive (Negative) Transfer from General Fund for street maintenance 129 CITY OF ATASCADERO STREET ASSESSMENT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Revenues: Taxes and special assessments- Lobos Lane 280$ 280$ 280$ -$ Taxes and special assessments- Sonora / Pinal 380 380 380 - Taxes and special assessments- Maleza 180 180 180 - Taxes and special assessments- San Fernando 580 580 580 - Taxes and special assessments- Aguila 100 100 100 - Taxes and special assessments- Pinal / Escarpa 180 180 180 - Taxes and special assessments- Cayucos 220 220 220 - Taxes and special assessments- Falda 240 240 240 - Interest income 130 130 3,471 3,341 Investments- adjustment to fair value- GASB 31 - - 1,642 1,642 Total revenues 2,290 2,290 7,273 4,983 Expenditures: Special projects and studies: Street maintenance projects 87,760 87,760 623 87,137 Total expenditures 87,760 87,760 623 87,137 Net change in fund balance (85,470)$ (85,470)$ 6,650 92,120$ Fund balance, June 30, 2024 92,416 Fund balance, June 30, 2025 99,066$ Variance with Final Budget Positive (Negative) Budget 130 CITY OF ATASCADERO GENERAL GOVERNMENT FACILITIES FEES FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Revenues: Impact fees 63,000$ 63,000$ 106,998$ 43,998$ Interest income (30) (30) 15,147 15,177 Investments- adjustment to fair value- GASB 31 - - 6,166 6,166 Total revenues 62,970 62,970 128,311 65,341 Expenditures: Capital projects: Asset management software 419,150 419,150 38,541 380,609 Total expenditures 419,150 419,150 38,541 380,609 Net change in fund balance (356,180)$ (356,180)$ 89,770 445,950$ Fund balance, June 30, 2024 343,362 Fund balance, June 30, 2025 433,132$ Variance with Final Budget Positive (Negative) Budget 131 CITY OF ATASCADERO STORM DRAINAGE FACILITIES FEES FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Revenues: Impact fees 47,700$ 47,700$ 55,650$ 7,950$ Interest income 17,250 17,250 25,085 7,835 Investments- adjustment to fair value- GASB 31 - - 11,385 11,385 Total revenues 64,950 64,950 92,120 27,170 Net change in fund balance 64,950$ 64,950$ 92,120 27,170$ Fund balance, June 30, 2024 639,198 Fund balance, June 30, 2025 731,318$ Variance with Final Budget Positive (Negative) Budget 132 CITY OF ATASCADERO LAW ENFORCEMENT FACILITIES FEES FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Revenues: Impact fees 45,000$ 45,000$ 37,779$ (7,221)$ Interest income 9,230 9,230 11,312 2,082 Investments- adjustment to fair value- GASB 31 - - 5,409 5,409 Total revenues 54,230 54,230 54,500 270 Expenditures: Special projects and studies: Equipment for new police officers 28,640 28,640 - 28,640 Total expenditures 28,640 28,640 - 28,640 Excess of revenues over (under) expenditures 25,590 25,590 54,500 28,910 Net change in fund balance 25,590$ 25,590$ 54,500 28,910$ Fund balance, June 30, 2024 278,008 Fund balance, June 30, 2025 332,508$ Budget Variance with Final Budget Positive (Negative) 133 CITY OF ATASCADERO FIRE FACILITIES FEES FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Revenues: Impact fees 65,700$ 65,700$ 59,275$ (6,425)$ Interest income 29,190 29,190 35,396 6,206 Investments- adjustment to fair value- GASB 31 - - 16,033 16,033 Total revenues 94,890 94,890 110,704 15,814 Net change in fund balance 94,890$ 94,890$ 110,704 15,814$ Fund balance, June 30, 2024 1,596,112 Fund balance, June 30, 2025 1,706,816$ Variance with Final Budget Positive (Negative) Budget 134 CITY OF ATASCADERO OPEN SPACE ACQUISITION FEES FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Revenues: Impact fees 77,400$ 77,400$ 127,021$ 49,621$ Interest income 36,630 36,630 44,675 8,045 Investments- adjustment to fair value- GASB 31 - - 20,005 20,005 Total revenues 114,030 114,030 191,701 77,671 Net change in fund balance 114,030$ 114,030$ 191,701 77,671$ Fund balance, June 30, 2024 1,122,235 Fund balance, June 30, 2025 1,313,936$ Budget Variance with Final Budget Positive (Negative) 135 CITY OF ATASCADERO PARKLAND FACILITIES FEES FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Revenues: Impact fees 212,400$ 212,400$ 365,376$ 152,976$ Interest income 33,310 33,310 43,442 10,132 Investments- adjustment to fair value- GASB 31 - - 17,112 17,112 Total revenues 245,710 245,710 425,930 180,220 Expenditures: Special projects and studies: Atascadero Lake pipeline project 69,150 69,150 - 69,150 Total expenditures 69,150 69,150 - 69,150 Net change in fund balance 176,560$ 176,560$ 425,930 249,370$ Fund balance, June 30, 2024 951,749 Fund balance, June 30, 2025 1,377,679$ Budget Variance with Final Budget Positive (Negative) 136 CITY OF ATASCADERO PUBLIC FACILITIES FEES FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Revenues: Impact fees 50,400$ 50,400$ 82,929$ 32,529$ Interest income 7,330 7,330 9,014 1,684 Investments- adjustment to fair value- GASB 31 - - 3,482 3,482 Total revenues 57,730 57,730 95,425 37,695 Net change in fund balance 57,730$ 57,730$ 95,425 37,695$ Fund balance, June 30, 2024 193,397 Fund balance, June 30, 2025 288,822$ Budget Variance with Final Budget Positive (Negative) 137 CITY OF ATASCADERO LIBRARY EXPANSION FACILITIES FEES FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Revenues: Impact fees 25,200$ 25,200$ 40,117$ 14,917$ Interest income 11,360 11,360 13,904 2,544 Investments- adjustment to fair value- GASB 31 - - 6,217 6,217 Total revenues 36,560 36,560 60,238 23,678 Net change in fund balance 36,560$ 36,560$ 60,238 23,678$ Fund balance, June 30, 2024 348,718 Fund balance, June 30, 2025 408,956$ Budget Variance with Final Budget Positive (Negative) 138 CITY OF ATASCADERO COMMUNITY FACILITIES DISTRICT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Original Final Actual Amounts Revenues: Taxes and assessments 789,370$ 789,500$ 838,760$ 49,260$ Investments- adjustment to fair value- GASB 31 - - 12 12 Total revenues 789,370 789,500 838,772 49,272 Expenditures: Contract services 5,670 5,800 5,796 4 Total expenditures 5,670 5,800 5,796 4 Excess of revenues over (under) expenditures 783,700 783,700 832,976 49,276 Other Financing Sources (Uses): (783,700) (783,700) (783,700) - Total other financing sources (uses)(783,700) (783,700) (783,700) - Net change in fund balance -$ -$ 49,276 49,276$ Fund balance, June 30, 2024 37,642 Fund balance, June 30, 2025 86,918$ For the Fiscal Year Ended June 30, 2025 Budget Variance with Final Budget Positive (Negative) Transfer to the General Fund for police, fire, and parks services 139 CITY OF ATASCADERO APPLE VALLEY STREET & STORM DRAIN ASSESSMENT DISTRICT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Original Final Actual Amounts Revenues: Taxes and assessments 38,500$ 38,500$ 38,500$ -$ Interest income 17,120 17,120 23,133 6,013 Investments- adjustment to fair value- GASB 31 - - 10,823 10,823 Total revenues 55,620 55,620 72,456 16,836 Expenditures: Office expense 30 30 - 30 Advertising 200 220 217 3 Contract services 20,460 20,440 4,779 15,661 Administration 1,920 1,920 1,079 841 Special projects and studies: Traffic Signs Replacement 15,000 15,000 747 14,253 Total expenditures 37,610 37,610 6,822 30,788 Net change in fund balance 18,010$ 18,010$ 65,634 47,624$ Fund balance, June 30, 2024 608,593 Fund balance, June 30, 2025 674,227$ For the Fiscal Year Ended June 30, 2025 Budget Variance with Final Budget Positive (Negative) 140 CITY OF ATASCADERO APPLE VALLEY LANDSCAPE & LIGHTING ASSESSMENT DISTRICT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Original Final Actual Amounts Revenues: Taxes and assessments 63,000$ 63,000$ 63,000$ -$ Contributions from developer 11,000 11,000 11,000 - Interest income 3,920 3,920 7,379 3,459 Investments- adjustment to fair value- GASB 31 - - 3,642 3,642 Total revenues 77,920 77,920 85,021 7,101 Expenditures: Office expense 30 30 - 30 Advertising 510 510 439 71 Utilities 14,770 14,770 10,797 3,973 Operating supplies 2,600 2,600 297 2,303 Contract services 63,950 63,950 41,568 22,382 Administration 2,160 2,160 1,168 992 Special projects and studies:- Tree trimming and replacement 2,950 2,950 2,950 - Infrastructure Improvements 7,500 7,500 7,460 40 Total expenditures 94,470 94,470 64,679 29,791 Net change in fund balance (16,550)$ (16,550)$ 20,342 36,892$ Fund balance, June 30, 2024 184,088 Fund balance, June 30, 2025 204,430$ Budget For the Fiscal Year Ended June 30, 2025 Variance with Final Budget Positive (Negative) 141 CITY OF ATASCADERO LAS LOMAS STREET & STORM DRAIN ASSESSMENT DISTRICT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Original Final Actual Amounts Revenues: Taxes and assessments 99,190$ 99,190$ 101,507$ 2,317$ Interest income 24,070 24,070 30,660 6,590 Investments- adjustment to fair value- GASB 31 - - 14,048 14,048 Total revenues 123,260 123,260 146,215 22,955 Expenditures: Office expense 80 80 - 80 Advertising 150 270 267 3 Contract services 20,720 20,600 10,699 9,901 Administration 1,880 1,880 1,079 801 Total expenditures 22,830 22,830 12,045 10,785 Net change in fund balance 100,430$ 100,430$ 134,170 33,740$ Fund balance, June 30, 2024 788,968 Fund balance, June 30, 2025 923,138$ Budget Variance with Final Budget Positive (Negative) For the Fiscal Year Ended June 30, 2025 142 CITY OF ATASCADERO LAS LOMAS LANDSCAPE & LIGHTING ASSESSMENT DISTRICT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Original Final Actual Amounts Revenues: Taxes and assessments 76,480$ 76,480$ 76,014$ (466)$ Interest income 4,180 4,180 7,306 3,126 Investments- adjustment to fair value- GASB 31 - - 3,841 3,841 Total revenues 80,660 80,660 87,161 6,501 Expenditures: Office expense 80 80 - 80 Advertising 350 530 529 1 Utilities 7,680 15,030 15,024 6 Operating supplies 2,000 2,000 26 1,974 Contract services 89,440 78,330 59,881 18,449 Administration 1,440 1,440 1,367 73 Special projects and studies: Minor playground equipment - 3,580 3,572 8 Landscape improvements 10,920 10,920 9,563 1,357 Total expenditures 111,910 111,910 89,962 21,948 Excess of revenues over (under) expenditures (31,250) (31,250) (2,801) 28,449 Other Financing Sources (Uses): 2,600 2,600 2,600 - Total other financing sources (uses)2,600 2,600 2,600 - Net change in fund balance (28,650)$ (28,650)$ (201) 28,449$ Fund balance, June 30, 2024 201,543 Fund balance, June 30, 2025 201,342$ Variance with Final Budget Positive (Negative) Budget Transfer from the General Fund for open space maintenance For the Fiscal Year Ended June 30, 2025 143 CITY OF ATASCADERO DE ANZA STREET & STORM DRAIN ASSESSMENT DISTRICT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Original Final Actual Amounts Revenues: Taxes and assessments 30,560$ 30,560$ 30,561$ 1$ Interest income 16,140 16,140 21,793 5,653 Investments- adjustment to fair value- GASB 31 - - 10,230 10,230 Total revenues 46,700 46,700 62,584 15,884 Expenditures: Office expense 20 20 - 20 Advertising 100 220 217 3 Contract services 20,790 20,670 8,991 11,679 Administration 1,600 1,600 990 610 Special projects and studies: Traffic Signs Replacement 8,000 8,000 570 7,430 Total expenditures 30,510 30,510 10,768 19,742 Net change in fund balance 16,190$ 16,190$ 51,816 35,626$ Fund balance, June 30, 2024 575,536 Fund balance, June 30, 2025 627,352$ For the Fiscal Year Ended June 30, 2025 Budget Variance with Final Budget Positive (Negative) 144 CITY OF ATASCADERO DE ANZA LANDSCAPE & LIGHTING ASSESSMENT DISTRICT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Original Final Actual Amounts Revenues: Taxes and assessments 15,870$ 15,870$ 15,874$ 4$ Interest income 3,280 3,280 4,400 1,120 Investments- adjustment to fair value- GASB 31 - - 2,195 2,195 Total revenues 19,150 19,150 22,469 3,319 Expenditures: Office expense 20 - - - Advertising 350 460 454 6 Utilities 1,500 1,460 1,456 4 Operating supplies 600 - - - Contract services 14,660 14,880 14,139 741 Administration 2,250 1,370 1,367 3 Special projects and studies: Landscape improvements 10,060 11,270 11,269 1 Total expenditures 29,440 29,440 28,685 755 Excess of revenues over (under) expenditures (10,290) (10,290) (6,216) 4,074 Other Financing Sources (Uses): 1,400 1,400 1,400 - Total other financing sources (uses)1,400 1,400 1,400 - Net change in fund balance (8,890)$ (8,890)$ (4,816) 4,074$ Fund balance, June 30, 2024 123,399 Fund balance, June 30, 2025 118,583$ Transfer from the General Fund for open space maintenance Budget Variance with Final Budget Positive (Negative) For the Fiscal Year Ended June 30, 2025 145 CITY OF ATASCADERO CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Revenues: Interest income 11,320$ 11,320$ 8,884$ (2,436)$ Investments- adjustment to fair value- GASB 31 - - 4,234 4,234 Total revenues 11,320 11,320 13,118 1,798 Expenditures: Capital projects: Atascadero Creek retaining wall near high school - 25,000 12,019 12,981 Total expenditures - 25,000 12,019 12,981 Net change in fund balance 11,320$ (13,680)$ 1,099 14,779$ Fund balance, June 30, 2024 238,737 Fund balance, June 30, 2025 239,836$ Variance with Final Budget Positive (Negative) Budget 146 CITY OF ATASCADERO 2010 BOND PROCEEDS MASTER AGREEMENT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Revenues: Interest income -$ -$ 155$ 155$ Investments- adjustment to fair value- GASB 31 - - 74 74 Total revenues - - 229 229 Expenditures: Capital outlay: Maiden statue placement - 4,230 - 4,230 Total expenditures - 4,230 - 4,230 Net change in fund balance -$ (4,230)$ 229 4,459$ Fund balance, June 30, 2024 4,155 Fund balance, June 30, 2025 4,384$ Budget Variance with Final Budget Positive (Negative) 147 CITY OF ATASCADERO PUBLIC SAFETY FACILITIES PROJECT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Revenues: Interest income -$ -$ 208,461$ 208,461$ Investments- adjustment to fair value- GASB 31 - - 3,008 3,008 - 6,073,090 6,056,772 (16,318) Total revenues - 6,073,090 6,268,241 195,151 Expenditures: Capital outlay: Public Safety Facilities Project - 6,073,090 961,873 5,111,217 Total expenditures - 6,073,090 961,873 5,111,217 Excess of revenues over (under) expenditures - - 5,306,368 5,306,368 Net change in fund balance -$ -$ 5,306,368 5,306,368$ Fund balance, June 30, 2024 - Fund balance, June 30, 2025 5,306,368$ Budget Variance with Final Budget Positive (Negative) Cash Contribution from the Building Maintenance and Replacement Fund for the Public Safety Facilities Project 148 CITY OF ATASCADERO 2010 BOND DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2025 Original Final Actual Amounts Revenues: Interest income 36,100$ 36,100$ 1,665$ (34,435)$ Interest income- cash with fiscal agent - - 97 97 635,390 635,390 - (635,390) * Total revenues 671,490 671,490 1,762 (669,728) Expenditures: Insurance 4,310 4,310 - 4,310 Contract services 2,600 2,600 - 2,600 Principal 305,000 305,000 13,530,000 (13,225,000) * Interest 664,580 664,580 - 664,580 Special projects: - - 109,583 (109,583) * Total expenditures 976,490 976,490 13,639,583 (12,663,093) Net change in fund balance (305,000)$ (305,000)$ (13,637,821) (13,332,821)$ Fund balance, June 30, 2024 13,637,821 Fund balance, June 30, 2025 -$ *See Note 4, 8, and 15. The 2024 Tax Allocation Refunding Bonds were defeased July 16, 2024. Budget Variance with Final Budget Positive (Negative) Interest income- 2010 reimbursement agreement with the Successor Agency to the RDA Cash contribution to Successor Agency of Atascadero 2024 Tax Allocation Refunding Bonds Debt Service Fund 149 CITY OF ATASCADERO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET POSITION June 30, 2025 Technology Fund Vehicle and Equipment Replacement Fund Building Maintenance and Replacement Fund Totals ASSETS Current Assets: Cash and investments 3,068,854$ 9,266,934$ 7,217,559$ 19,553,347$ Receivables: Federal distributions due 463 - - 463 Other receivables - - 445 445 Accrued interest 18,667 56,784 44,405 119,856 Prepaid expenses 3,993 - - 3,993 Total current assets 3,091,977 9,323,718 7,262,409 19,678,104 Capital Assets: Non-depreciable: Construction in progress 41,863 67,007 1,414,235 1,523,105 Depreciable: Vehicles & equipment 3,954,066 12,875,704 25,821 16,855,591 Structures & improvements - - 53,912,418 53,912,418 Accumulated depreciation (3,442,348) (8,506,584) (15,748,029) (27,696,961) Subscription assets, net 397,879 - - 397,879 Net capital assets 951,460 4,436,127 39,604,445 44,992,032 Total assets 4,043,437 13,759,845 46,866,854 64,670,136 DEFERRED OUTFLOWS Deferred outflows related to pensions 262,583 - 191,406 453,989 Total deferred outflows 262,583 - 191,406 453,989 LIABILITIES Current Liabilities: Accounts payable 96,247 4,687 20,249 121,183 Accrued salaries and benefits 36,473 - 11,793 48,266 Unearned revenue - - 900 900 Other payables 122,526 - - 122,526 Noncurrent Liabilities: Noncurrent liabilities 994,686 - 651,776 1,646,462 Total liabilities 1,249,932 4,687 684,718 1,939,337 150 CITY OF ATASCADERO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET POSITION (continued) June 30, 2025 Technology Fund Vehicle and Equipment Replacement Fund Building Maintenance and Replacement Fund Totals DEFERRED INFLOWS Deferred inflows related to pensions 39,224$ -$ 12,142$ 51,366$ Total deferred inflows 39,224 - 12,142 51,366 NET POSITION Net investment in capital assets 951,460 4,436,127 39,604,445 44,992,032 Net subscription liability 249,197 - - 249,197 Unrestricted 1,816,207 9,319,031 6,756,955 17,892,193 Total net position 3,016,864$ 13,755,158$ 46,361,400$ 63,133,422$ 151 CITY OF ATASCADERO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION For the Fiscal Year Ended June 30, 2025 Technology Fund Vehicle and Equipment Replacement Fund Building Maintenance and Replacement Fund Totals Operating Revenues: Charges for services 1,445,826$ 1,029,700$ 1,028,150$ 3,503,676$ Other 463 - 579 1,042 Total operating revenues 1,446,289 1,029,700 1,028,729 3,504,718 Operating Expenses: Salaries and benefits 774,806 - 330,670 1,105,476 Office expense 1,685 - 40 1,725 Computer maintenance, software and replacement - - 4,310 4,310 Insurance - - 104,202 104,202 Occupancy and rental costs 62,180 - - 62,180 Utilities - - 131,100 131,100 Communications 82,650 - 1,941 84,591 Operating supplies and services 21,389 - 25,196 46,585 Vehicle and equipment operating costs 2,594 - 15,168 17,762 Contract services 158,964 - 81,022 239,986 Professional development 6,478 - 260 6,738 Recruitment 502 - - 502 Interest Expense 9,584 - - 9,584 Administrative charges 6,650 - 89,770 96,420 Special projects: Monitors 3,148 - - 3,148 Mobile data terminal 961 - - 961 Tables - - 12,500 12,500 Amortization expense 239,345 - - 239,345 Depreciation expense 189,883 851,435 1,212,797 2,254,115 Total operating expenses 1,560,819 851,435 2,008,976 4,421,230 Operating income (loss)(114,530) 178,265 (980,247) (916,512) 152 CITY OF ATASCADERO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION (continued) For the Fiscal Year Ended June 30, 2025 Technology Fund Vehicle and Equipment Replacement Fund Building Maintenance and Replacement Fund Totals Non-Operating Revenues (Expenses): Interest income 101,508$ 318,430$ 249,834$ 669,772$ Investments- adjustment to fair value- GASB 31 45,656 147,191 192,038 384,885 Gain (loss) on sale of capital assets - (75,702) - (75,702) Total non-operating revenues (expenses)147,164 389,919 441,872 978,955 Change in net position prior to capital contributions 32,634 568,184 (538,375) 62,443 Capital Contributions: Cash contributions from other funds 119,744 - 1,700,000 1,819,744 - - (6,056,772) (6,056,772) Capital contributions from other funds 46,579 132,669 1,342,171 1,521,419 Capital contributions between Internal Service Funds 961 - 961 Total capital contributions 166,323 133,630 (3,014,601) (2,714,648) Change in net position 198,957 701,814 (3,552,976) (2,652,205) Total net position, June 30, 2024 2,817,907 13,053,344 49,914,376 65,785,627 Total net position, June 30, 2025 3,016,864$ 13,755,158$ 46,361,400$ 63,133,422$ Cash contributions to Public Facilities Project Fund for Public Safety Facilities Project 153 CITY OF ATASCADERO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS For the Fiscal Year Ended June 30, 2025 Technology Fund Vehicle and Equipment Replacement Fund Building Maintenance and Replacement Fund Totals Cash Flows From Operating Activities: Internal activity - payments from other funds 1,446,289$ 1,029,700$ 1,028,729$ 3,504,718$ Payments to suppliers of goods and services (278,028) (200,097) (513,962) (992,087) Payments for employee services (658,752) - (283,609) (942,361) Net cash provided by operating activities 509,509 829,603 231,158 1,570,270 Acquisition of capital assets (126,504) (260,997) - (387,501) Cash contributions received for capital purchases - - 1,700,000 1,700,000 - - (6,056,772) (6,056,772) Capital grant proceeds (463) - - (463) Proceeds from sale of capital assets - 21,611 - 21,611 Net cash provided (used) by capital and related financing activities (126,967) (239,386) (4,356,772) (4,723,125) Cash Flows From Investing Activities: Investment income (loss)143,141 457,204 462,295 1,062,640 Net cash provided by investing activities 143,141 457,204 462,295 1,062,640 Net increase (decrease) in cash and cash equivalents 525,683 1,047,421 (3,663,319) (2,090,215) Cash and cash equivalents - June 30, 2024 2,543,171 8,219,513 10,880,878 21,643,562 Cash and cash equivalents - June 30, 2025 3,068,854$ 9,266,934$ 7,217,559$ 19,553,347$ Cash Flows From Capital and Related Financing Activities: Cash contributions to Public Facilities Project Fund for Public Safety Facilities Project 154 CITY OF ATASCADERO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS (continued) For the Fiscal Year Ended June 30, 2025 Technology Fund Vehicle and Equipment Replacement Fund Building Maintenance and Replacement Fund Totals Operating income (loss)(114,530)$ 178,265$ (980,247)$ (916,512)$ Amortization expense 239,345 - - 239,345 Depreciation expense 189,883 851,435 1,212,797 2,254,115 Receivables, net - - (445) (445) Prepaid expenses 1,918 - - 1,918 Accounts payable 74,397 (200,097) (48,008) (173,708) Accrued salaries and benefits 16,975 - (270) 16,705 Other payables 1,471 - - 1,471 Deferred outflows 88,525 - 44,263 132,788 Deferred inflows (6,426) - (3,214) (9,640) Subscriptions payable 971 - - 971 Net pension liability (20,249) - (10,124) (30,373) Compensated absences 37,229 - 16,406 53,635 Net cash provided by operating activities 509,509$ 829,603$ 231,158$ 1,570,270$ Reconciliation of operating income (loss) to net cash provided by operating activities: Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Change in assets, deferred outflows, liabilities, and deferred inflows: 155