Anderson City Council
February 17, 2026

CITY COUNCIL AGENDA
February 17, 2026
REGULAR SESSION - 5:30 P.M.

CLOSED SESSION FOLLOWING

ANDERSON CITY HALL
1887 Howard Street

PARTICIPATION BY PUBLIC IN MEETING
Please review the Agenda to determine if the subject you wish to discuss is scheduled for Council consideration. If it is on the Agenda, you will have an opportunity when that matter comes up for discussion to briefly address the Council.

If the subject is l1QI on tonight's Agenda, please complete an Agenda Request Form (on Clerk's table) and present it to the City Council Clerk You will have the opportunity to speak on the subject under Item 5.2. However, if the item is not on the Agenda, each speaker will be limited to one three (3) minute opportunity to speak, unless the City Council makes an exception due to special circumstances.

The Brown Act prohibits the Council from taking action on any item not placed on the printed Agenda in most cases.

The Brown Act requires any non-confidential documents or writings distributed to a majority of the City Council less than 72 hours before a regular meeting will be made available to members of the public at the same time they are distributed.

In compliance with the Americans with Disabilities Act, the City of Anderson will make available to members of the public any special assistance necessary to participate in this meeting. The public should contact the City Clerk's office (378-6646) to make such a request. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

This is an Equal Opportunity Program. Discrimination is prohibited by Federal Law.

Complaints of discrimination may be filed with the Secretary of Agriculture, Washington, D.C. 20250.

City Council Meeting
February 17, 2026
Page2

1.0 ROLL CALL - COUNCIL:

REGULAR SESSION- 5;30 P.M,
Councilmember Hale
Councilmember Baugh
Councilmember Gallagher
Vice-Mayor Simmons
Mayor Gallier

2.0 INVOCATION - Lynn Fritz, Chair, Shasta Interfaith, Karuk Tribal Descendant.

3.0 PLEDGE OF ALLEGIANCE - Councilmember Darin Hale.

4.0 STUDENT REPORTS - A representative from the teen center will give an update on current activities.

5.2 PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA - This is the time to address public comments by any member of the public to the Council regarding an item not on the agenda. Each comment must be limited to 3 minutes or less and on an item within the City's subject matter jurisdiction. The Brown Act does not permit any action or discussion on items not listed on the agenda. Are there any public comments?

CONSENT AGENDA

6.0 CONSENT AGENDA - Consent Agenda items are expected to be routine and noncontroversial. They will be acted upon by the Council at one time without discussion. Any member of the public, staff or City Council may request that an item be removed from the Consent Agenda for separate discussion. Are there any requests to remove any items from the Consent Agenda?

6.1 MINUTES-Approve the minutes of the regular meeting of February 3, 2026.

6.2 WARRANTS• Receive and file warrant 36599 to 36668 in the amount of $184,584.26; Receive and file ACH in the amount of $130,444.75; Receive and file ACH in the amount of $55,365.44; Receive and file warrant 36669 to 36713 in the amount of $189,228.53; Receive and file Gross Payroll in the amount of $244,761.51.

6.6 FINANCE DIRECTOR - Receive Monthly Cash Balances.

6.8 PLANNING
a. Adopt Ordinance No 866 amending Chapters 17.43 of the Anderson Municipal Code regarding the Residential Density Bonus as introduced on February 3, 2026 (first reading).

City Council Meeting
February 17, 2026

b. Adopt the CEQA determination and adopt Ordinance No 867 amending Chapters

17.18 of the Anderson Municipal Code regarding the Residential by-right as introduced on February 3, 2026 (first reading).
c. Adopt the CEQA determination and adopt Ordinance No 868 amending Chapters

17.14, 17.15, 17.16 and 17.30 of the Anderson Municipal Code regarding the Residential by-right as introduced on February 3, 2026 (first reading). d. Adopt Ordinance No 869 amending Chapter 17.02 of the Anderson Municipal Code regarding Continue to Expedite Applications for Residential Development as introduced on February 3, 2026 (first reading).
e. Adopt the CEQA determination and adopt Ordinance No 870 amending Chapter

17.15 of the Anderson Municipal Code regarding the Homeless Services as introduced February 3, 2026 (first reading).

6.10 PUBLIC WORKS - Adopt Ordinance No 871 revising the Anderson Municipal Code Chapter 15 and adopting by reference the 2025 Edition of the California Building Standards Code as introduced on February 3, 2026 (first reading).

END OF CONSENT CALENDAR

6.11 ITEMS (IF ANY) REMOVED FROMTHE CONSENT CALENDAR - Items removed from the Consent Agenda for discussion will be treated as Regular Agenda items and any member of the public may request to address the Council on any such item as it comes up for discussion. Please provide your name and limit your remarks to 3 minutes or less.

REGULAR AGENDA

8.0 REGULAR AGENDA - Regular Agenda Items will be discussed individually and in order.

Any member of the public may request to address the Council on an item as it comes up for discussion. Please provide your name and limit your remarks to 3 minutes or Jess.

CITY MANAGER

8.3 COST RECOVERY POLICY FOR ANDERSON PARKS AND RECREATION PROGRAMS RECOMMENDED ACTION;

1. Receive a Staff Report;

2. Receive Public Comment;

3. Provide direction for changes to the Recreation Cost Recovery Policy or adopt the policy in its current form.

City Council Meeting
February 17, 2026
Page4

FINANACE DIRECTOR

8.Sa 2024-2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT
RECOMMENDED ACTION;

1. Receive a presentation from the City's contracted auditor, Mark Hu of The Pun Group

2. Receive and file the annual financial report.

8.Sb 2025-2026 BUDGET UPDATE
RECOMMENDED ACTION;
No action is requested as this is informational only.

11.0 COUNCIL REPORTS/COMMENTS - City Councilmembers will report on attendance at conferences/meetin9s reimbursed at City expense (Requirement of Assembly Bill 1234.)

12.0 Public Comment on Closed Session ltem(s): Anyone in the audience who wants to address the City Council on a subject which is listed under the Closed Session agenda is now invited to come to the podium. Please provide your name and the subject you wish to discuss. Please limit your remarks to 3 minutes or less.

The City Council will convene to Closed Session.

CLOSED SESSION
C.S.1 CONFERENCE WITH LEGAL COUNSEL- EXISTING LITIGATION(§ 54956,9) Name of Case: (City of Anderson v. Anderson Hospitality, LLC, Case No. 23CV0201890) C.S.2 CONFERENCE WITH LEGAL COUNSEL- EXISTING LITIGATION(§ 54956.9) Name of Case: Lesherv. City of Anderson, Case No. 20 CV 195957 The City Council will reconvene to Open Session.

13.0 CLOSED SESSION ANNOUNCEMENT: The Mayor will announce the results of the Closed Session.

14.0 ADJOURN -The City Council will adjourn to March 3, 2026.

ANDERSON CITY COUNCIL MINUTES
Regular Meeting
February 3, 2026

REGULAR SESSION
The regular session was called to order at 5:30 p.m.

ROLL CALL
Councilmembers present: Councilmember Hale
Councilmember Baugh
Councilmember Gallagher
Vice-Mayor Simmons
Mayor Gallier
DRAFT
Also present: City Manager Joey Forseth-Deshais, City Attorney Collin Bogener, Police Chief Oliver Collins, Public Works Director Adam Whelen, Finance Director Cindy Wheeler and City Clerk Christy White.

INVOCATION
Doug Deese, Neighborhood Church of Anderson/Cottonwood, gave the invocation.

PLEDGE OF ALLEGIANCE
Councilmember Gallagher led the Pledge of Allegiance.

INTRODUCTIONS
Police Chief Oliver Collins introduced new Officers Jared Foster and Austin Lobsinger.

PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA
Diana Ramirez, Waste Management Public Sector Manager, gave Council an update on the organic collection service.

David Maung, PG&E Government Affairs Representative, gave an update on PG&E priorities for 2026.

CONSENT AGENDA
ITEM 6.1 2/17/2026
City Council Meeting
February 17, 2026

By motion made, second (Baugh/Simmons) and carried by a 5-0 vote, Council took the following action.

Approved the minutes of the regular meeting of January 20, 2026 and special meeting of January 23, 2026.

Received and filed warrant 36501 to 36560 in the amount of $578,254.02; Received and filed warrant 36561 to 36598 in the amount of $277,891.94; Received and filed ACH in the amount of $56,224.81; Received and filed Gross Payroll in the amount of $291,698.81.

Adopted Resolution 26-06 approving the Memorandum of Understanding (MOU) among the County of Shasta, City of Redding, and City of Anderson for the replacement of Livescan devices and authorize the Integrated Public Safety (JPS) Board to proceed with the procurement and implementation of the new systems.

AYES:

NOES:

ABSTAIN:

ABSENT:

Councilmembers Baugh, Simmons, Hale, Gallagher and Mayor Gallier.

None.

None.

None.

PUBLIC HEARINGS
ALL NOTICES WERE GIVEN ACCORDING TO THE LAW.

ZONE AMENDMENT (ZA) 25-01 TO UPDATE CHAPTER 17.43 - RESIDENTIAL DENSITY BONUS AS REQUIRED BY HOUSING ELEMENT PROGRAM HE 1.3: DENSITY BONUSES AND

OTHER REGULATORY INCENTIVES
Deputy Public Works Director Peter Wickenheiser along with Planner Lisa Lozier gave a staff report and answered questions from Council.
6:01 pm the Public Hearing was opened, no comments were received, the Public Hearing was closed.

By motion made, seconded (Gallagher/Baugh), and carried by a 5-0 vote, the Council voted to adopt the CEQA determination and adopt an Ordinance (first reading) amending Chapters 17.43 of the Anderson Municipal Code regarding the Residential Density Bonus and set for adoption (second reading) on February 17, 2026.

AYES:

NOES:

ABSTAIN:

ABSENT:

Councilmembers Gallagher, Baugh, Hale, Simmons and Mayor Gallier.

None.

None.

None.

City Clerk read the Ordinance by title only.

City Council Meeting
February 17, 2026

ZONE AMENDMENT (ZA) 25-02 TO UPDATE CHAPTER 17.18 - GENERAL COMMERCIAL DISTRICT AS REQUIRED BY HOUSING ELEMENT PROGRAM HE 2.4 TO ALLOW RESIDENTIAL BY-RIGHT DEVELOPMENT ON DESIGNATED PARCELS IN C-1 DISTRICTS.

Deputy Public Works Director Peter Wickenheiser along with Planner Lisa Lozier gave a staff report and answered questions from Council.
6:21 pm the Public Hearing was opened, no comments were received, the Public Hearing was closed.

By motion made, seconded (Gallagher/Simmons), and carried by a 5-0 vote, the Council voted to adopt the CEQA determination and adopt an Ordinance (first reading) amending Chapters 17.18 of the Anderson Municipal Code regarding the Residential by-right and set for adoption (second reading) on February 17, 2026.

Vote: AYES: Councilmembers Gallagher, Simmons, Hale, Baugh and Mayor Gallier.

NOES: None.

ABSTAIN: None.

ABSENT: None.

City Clerk read the Ordinance by title only.

ZONING TEXT AMENDMENT (ZA) 25-03 TO AMEND TITLE 17 - ZONING ORDINANCE OF THE CITY OF ANDERSON TO UPDATE CHAPTERS 17.14 - RURAL ESTATE, 17.15 - MIXED USE.17.16-AGRICULTURE. AND 17.30- NATURAL RESOURCE DISTRICT.

Deputy Public Works Director Peter Wickenheiser along with Planner Lisa Lozier gave a staff report and answered questions from Council.
6:29 pm the Public Hearing was opened, no comments were received, the Public Hearing was closed.

By motion made, seconded (Gallagher/Baugh), and carried by a 5-0 vote, the Council voted To adopt the CEQA determination and adopt an Ordinance (first reading) amending Chapters 17.14, 17.15, 17.16 and 17.30 of the Anderson Municipal Code regarding the Residential by-right and set for adoption (second reading) on February 17, 2026.

Y2.t.e: AYES:

NOES:

ABSTAIN:

ABSENT:

Councilmembers Gallagher, Baugh, Hale, Simmons and Mayor Gallier.

None.

None.

None.

City Clerk read the Ordinance by title only.

ZONE AMENDMENT (ZA) 25-04 TO UPDATE CHAPTER 17.02 - GENERAL PROVISIONS AS REQUIRED BY HOUSING ELEMENT PROGRAM HE 3.2: CONTINUE TO EXPEDITE

APPLICANTS FOR RESIDENTIAL DEVELOPMENT
City Council Meeting
February 17, 2026

Deputy Public Works Director Peter Wickenheiser along with Planner Lisa Lozier gave a staff report and answered questions from Council.
6:42 pm the Public Hearing was opened, no comments were received, and the Public Hearing was closed.

By motion made, seconded (Baugh/Simmons), and carried by a 5-0 vote, the Council voted to adopt the CEQA determination and adopt an Ordinance (first reading) amending Chapter

17.02 of the Anderson Municipal Code regarding Continue to Expedite Applications for Residential Development and set for adoption (second reading) on February 17, 2026.

AYES:

NOES:

ABSTAIN:

ABSENT:

Councilmembers Baugh, Simmons, Hale, Gallagher and Mayor Gallier.

None.

None.

None.

City Clerk read the Ordinance by title only.

ZONE AMENDMENT (ZA) 25-05 TO UPDATE CHAPTER 17.15 - MIXED USE AS REQUIRED BY HOUSING ELEMENT PROGRAM HE 6.2: HOMELESS SERVICES
Deputy Public Works Director Peter Wickenheiser along with Planner Lisa Lozier gave a staff report and answered questions from Council.
6:50 pm the Public Hearing was opened, no comments were received, and the Public Hearing was closed.

By motion made, seconded (Gallagher/Baugh), and carried by a 4-0 vote, the Council voted to adopt the CEQA determination and adopt an Ordinance (first reading) amending Chapter 17.15 of the Anderson Municipal Code regarding the Homeless Services and set for adoption (second reading) on February 17, 2026.

AYES:

NOES:

ABSTAIN:

ABSENT:

Councilmembers Gallagher, Baugh, Simmons and Mayor Gallier.

Hale.

None.

None.

City Clerk read the Ordinance by title only.

PUBLIC HEARING: ADOPTION OF UPDATED CALIFORNIA BUILDING STANDARDS CODE Public Works Director Adam Whelen gave a staff report and answered questions from Council.
7:00 pm the Public Hearing was opened, no comments were received, and the Public Hearing was closed.

City Council Meeting
February 17, 2026

By motion made, seconded (Baugh/Gallagher), and carried by a 5-0 vote, the Council voted to introduce an Ordinance (First Reading) revising Anderson Municipal Code Chapter 15 and adopting by reference the 2025 Edition of the California Building Standards Code and set for enactment (Second Reading) on February 17, 2026.

Vote: AYES: Councilmembers Baugh, Gallagher, Hale, Simmons and Mayor Gallier.

NOES: None.

ABSTAIN: None.

ABSENT: None.

City Clerk read the Ordinance by title only.

REGULAR AGENDA

CITY MANAGER

COST OF SERVICE FEE STUDY REPORT
City Manager Joey Forseth-Deshais gave a staff report and introduced Eric Johnson with Revenue & Cost Specialists, LLC who gave a fee study presentation.

FINANCE DIRECTOR

REQUEST FOR PROPOSAL FOR AUDIT SERVICES FOR CITY OF ANDERSON FOR FISCAL YEARS ENDING 2026, 2027, AND 2028
Finance Director cindy Wheeler gave a staff report and answered questions from Council.

By motion made, seconded (Hale/Baugh), and carried by a 5-0 vote, the Council voted to publish a Request for Proposal for Auditing Services for the next three Fiscal Years: 2025- 2026, 2026-2027, & 2027-2028, with the option to renew for two subsequent years.

AYES:

NOES:

ABSTAIN:

ABSENT:

Councilmembers Hale, Baugh, Simmons, Gallagher and Mayor Gallier.

None.

None.

None.

COUNCIL REPORTS /COMMENTS
Councilmembers used this time to report on meetings and activities they participated in and to announce upcoming events.

Public Comment on Closed session Items - None.
7:42 p.m.: The City Council convened to Closed Session.

CLOSED SESSION
City Council Meeting
February 17, 2026

8;08 p.m,; The City Council reconvened to Open Session.

C.S.1 CONFERENCE WITH LABOR NEGOTIATORS (54957.6)
* Agency designated representatives: City Manager Joey Forseth-Deshais * Employee organization: APMA
No reportable actions
C.S.2 CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION * Significant exposure to litigation pursuant to§ 54956.9(b): (One Case) The Council voted 5-0 to authorize the City Manager to settle the workers compensation claim of Eric Knight for $30,000.

CLOSED SESSION ANNOUNCEMENT
Mayor Gallier announced that the Council sat in Closed Session with no reportable action.

ADJOURNMENT
8;08 p,m.; The City Council adjourned to February 1 Z 2026.

Dan Gallier, Mayor
ATTEST:

Christy White, City Clerk

AGENDA ITEM
I February 17, 2026 City Council Meeting
To:

Through:

Honorable Mayor and Members of the Anderson City Council Joey Forseth-Deshais, City Manager
From: Cindy Wheeler, Finance Director /Treasurer
Date: February 17, 2026

I SUBJECT
Receive and File Weekly Warrant Registers.

I RECOMMENDATION
Receive and file warrant 36599 to 36668 in the amount of $184,584.26; Receive and file ACH in the amount of $130,444.75; Receive and file ACH in the amount of $55,365.44; Receive and file warrant 36669 to 36713 in the amount of $189,228.53; Receive and file Gross Payroll in the amount of $244,761.51

I ATTACHMENT
Warrant Registers.

ITEM 6.2 PAGE1 2/17/2026

CHECK REGISTER

NAME CHECK CHECK CHECK

VENDOR DESCRIPTION DATE NUMBER AMOUNT
004592 HAVEN HUMANE SOCIETY
PROFESSIONAL SERVICES 1/30/2026 ACH 805.00
1 ACOSTA, VERONICA
US REFUND 1/30/2026 036599 12.07
1 BARTON, CAROLA
US REFUND 1/30/2026 036600 12.07
1 BOWSER, AEGEAN
US REFUND 1/30/2026 036601 131.15
1 GAIA HOTEL & SPA
US REFUND 1/30/2026 036602 790.59
1 GAIA HOTEL & SPA
US REFUND 1/30/2026 036603 778.30
1 HICKEY-WOODCOOK, LAU
US REFUND 1/30/2026 036604 12.07
1 MARLIN, RODERICK
US REFUND 1/30/2026 036605 12.07
1 MCCLELLAN, JAMES
US REFUND 1/30/2026 036606 2.07
l RICKE, LAMYLO
US REFUND 1/30/2026 036607 12.07
l TOOD-KIEFFABER, XAN
US REFUND 1/30/2026 036608 12.07
1 WATKINS, PATRICIA
US REFUND 1/30/2026 036609 2.07
1 WATSON, AMBER
US REFUND 1/30/2026 036610 12.07

NAME CHECK CHECK CHECK

VENDOR DESCRIPTION DATE NUMBER AMOUNT

VOIDED CHECK
PRINTING ERROR 1/30/2026 036611
000017 49ER WATER SERVICES
PROFESSIONAL SERVICES 1/30/2026 036612 1,574.00
000326 AMERICAN LEAK DETECTION
PROFESSIONAL SERVICES 1/30/2026 036613 450.00
000406 ANDERSON FIRE PROTECTION DIST.

INSPECTION/IMPACT FEES 1/30/2026 036614 9,087.25
000462 ANDERSON WALKIN MEDICAL CLINIC
PROFESSIONAL SERVICES 1/30/2026 036615 150.00
000609 AT&T
PHONE CHARGES 1/30/2026 036616 96.24
000615 AT&T CALNET
PHONE CHARGES 1/30/2026 036617 390.60
VOID CHECK 1/30/2026 036618
000909 BATTERIES PLUS - 450
SUPPLIES 1/30/2026 036619 184.17
000922 SUSAN BAUGH
HEALTH INS. REIMBURSEMENT 1/30/2026 036620 202.90
001732 CALIFORNIA DEPT. OF TAX & FEE
USE/SALES TAX FOR 2025 1/30/2026 036621 2,321.00
001732 CALIFORNIA DEPT. OF TAX & FEE
UNDERGROUND STORAGE TAX 1/30/2026 036622 23.27
001635 CAPE
MEMBERSHIP-HUBANKS 1/30/2026 036623 60.00
002142 CINTAS FIRST AID & SAFETY
SUPPLIES 1/30/2026 036624 62.82
Page2

NAME CHECK CHECK CHECK

VENDOR DESCRIPTION DATE NUMBER AMOUNT
002158 CITY OF ANDERSON
UTILITIES 1/30/2026 036625 2,318.18
002157 CITY OF ANDERSON
PETTY CASH REIMBURSEMENT 1/30/2026 036626 47.91
002165 CITY OF REDDING
TRAFFIC SIGNAL MTNC #C4990 1/30/2026 036627 5,160.00
002973 DEPT OF JUSTICE
FINGERPRINT APPLICATIONS 1/30/2026 036628 45,00
002983 DEPT. OF TRANSPORTATION
TRAFFIC SIGNAL MTNC #02-0041 1/30/2026 036629 2,624.25
003534 EWING
SUPPLIES 1/30/2026 036630 1,081.24
003590 FASTENERS INC.

SUPPLIES 1/30/2026 036631 23.62
004028 GAYNOR TELESYSTEMS, INC.

SUBSCRIPTION 1/30/2026 036632 18.06
004096 GILES LOCK & SECURITY SYSTEMS,
SUPPLIES 1/30/2026 036633 209.78
004205 GOODYEAR COMMERCIAL TIRE
PROFESSIONAL SVCS & PARTS 1/30/2026 036634 679.63
004248 GRAINGER
SUPPLIES 1/30/2026 036635 59.80
004492 HARBERT ROOFING, INC.

PROFESSIONAL SERVICES 1/30/2026 036636 63,758.00
005139 INTOXIMETERS
SUPPLIES 1/30/2026 036637 1,127.34
005262 JMB OIL COMPANY
SUPPLIES 1/30/2026 036638 354.77
Page3

NAME CHECK CHECK CHECK

VENDOR DESCRIPTION DATE NUMBER AMOUNT
005445 K & S STAFFING SOLUTIONS, INC.

PROFESSIONAL SERVICES 1/30/2026 036639 471.60
005631 KIRVIN/ROBERT ALLEN
PROFESSIONAL SERVICES 1/30/2026 036640 1.631.20
005889 LAUNDRY WORLD
PROFESSIONAL SERVICES 1/30/2026 036641 2,711.34
007089 SUSAN MURDOCH
CLEANING DEPOSIT REFUND 1/30/2026 036642 350.00
011980 NORCAL PRESORT AND PRINTING
PROFESSIONAL SERVICES 1/30/2026 036643 3,797.80
007379 NORTH VALLEY BUSINESS SYSTEMS
SUPPLIES 1/30/2026 036644 343.41
007381 NORTH VALLEY DISTRIBUTING
SUPPLIES 1/30/2026 036645 87 ,78
007477 OBSIDIAN IT
PROFESSIONAL SERVICES 1/30/2026 036646 7,633.12
007493 ODP BUSINESS SOLUTIONS, LLC
OFFICE SUPPLIES 1/30/2026 036647 194.84
007608 OZZIE'S BMW MOTORCYCLES
PROFESSIONAL SVCS & PARTS 1/30/2026 036648 1,174.38
007618 PACE SUPPLY CORP.

SUPPLIES 1/30/2026 036649 37.76
007630 PACIFIC GAS & ELECTRIC
UTILITIES 1/30/2026 036650 1,801.27
012238 MICHELLE PEPPEL
PER DIEM-TRAINING 1/30/2026 036651 208.00
007967 PLATT
SUPPLIES 1/30/2026 036652 12.97
Page4

NAME CHECK CHECK CHECK

VENDOR DESCRIPTION DATE NUMBER AMOUNT
012245 POINT & PAY LLC
PROFESSIONAL SERVICES 1/30/2026 036653 10.00
008107 PRIME HEALTHCARE SERVICES-SH
SART EXAM (AP025-002270} 1/30/2026 036654 2,000.00
008181 QUADIENT FINANCE USA, tNC.

METERED POSTAGE 1/30/2026 036655 2,633 .44
012143 R3 CONSULTING GROUP INC.

PROFESSIONAL SERVICES 1/30/2026 036656 12,993.95
012570 MARISSA RAMIREZ
CLEANING DEPOSIT REFUND 1/30/2026 036657 350.00
008399 REDDING PRINTING COMPANY.INC
PROFESSIONAL SVCS & SUPPLIES 1/30/2026 036658 123.91
009377 SHASTA CASCADE CHAPTER ICC
ICC 2026 MEMBERSHIPS 1/30/2026 036659 150.00
012042 SHASTA OFFICIALS
PROFESSIONAL SERVICES 1/30/2026 036660 1,661.00
012311 BONNIE SIMMONS
HEALTH INS. REIMBURSEMENT 1/30/2026 036661 282.50
010236 SWRCBFEES
ANNUAL PERMIT FEE #4510001 1/30/2026 036662 13,544.12
010346 TELSTAR INSTRUMENTS, INC.

SUPPLIES 1/30/2026 036663 840.45
010367 THATCHER COMPANY, INC.

SUPPLIES 1/30/2026 036664 16,565.95
010749 US BANK VOYAGER FLEET SYSTEMS
FUEL CHARGES 1/30/2026 036665 10,951.14
010874 VERIZON WIRELESS
PHONE CHARGES 1/30/2026 036666 3,443.11
Pages

NAME CHECK CHECK CHECK

VENDOR DESCRIPTION DATE NUMBER AMOUNT
010881 VESTRA RESOURCES INC.

PROFESSIONAL SERVICES 1/30/2026 036667 720.80
008126 PROFORCE LAW ENFORCEMENT
EQUIPMENT 1/30/2026 036668 3,154.92
01/27/26 ACH PERS $130,444.75 184,584.26

FOR UNFUNDED LIABILITY
01/29/26 ACH PERS $55,365.44
FOR PAYROLL ENDING 01/16/26
~ Date
Page6

CHECK REGISTER

NAME CHECK CHECK CHECK

VENDOR DESCRIPTION DATE NUMBER AMOUNT
000349 AMERICAN TOWER CORPORATION
MONTHLY TOWER RENT 2/6/2026 ACH 975.00
010671 U.S. BANK
FACILITY LEASE: A/C#253252000 2/6/2026 ACH 7,341.82
000017 49ER WATER SERVICES
PROFESSIONAL SERVICES 2/6/2026 036669 1,300.00
000079 ACCU-PRINT
PROFESSIONAL SERVICES 2/6/2026 036670 20.00
000323 AMERICAN FIDELITY ASSURANCE CO
CAFETERIA 125 P/E 1/30/26 2/6/2026 036671 639.21
000615 AT&T CALNET
PHONE CHARGES 2/6/2026 036672 39.83
011776 AXON ENTERPRISES, INC.

YEARLYTASER CERTIFICATION 2/6/2026 036673 16,724.24
012573 BLAIR/PATRICIA
FACILITY RENTAL REFUND 2/6/2026 036674 595.00
001754 CALIFORNIA VISION SERVICE
INSURANCE PREMIUM 2/6/2026 036675 113.75
001874 KYLE CARPENTER
PER DIEM-TRAINING 2/6/2026 036676 680.00
001971 CDW GOVERNMENT. INC.

SUBSCRIPTION 2/6/2026 036677 2,126.45
002101 CHRIS CHIMENTI
PER DIEM-TRAINING 2/6/2026 036678 294.00
002165 CITY OF REDDING
LIBRARY CONTRIBUTION 2/6/2026 036679 4,069.81

NAME

VENDOR DESCRIPTION
002167 CITY OF REDDING

UTILITIES
012237 OLIVER COLLINS

CELL PHONE REIMBURSEMENT
003590 FASTENERS INC.

SUPPLIES
012575 FERGUSON ENTERPRISES LLC 113325

SUPPLIES
003670 TYLER FINCH

REIMBURSEMENT-TRAINING
011976 JOEY FORSETH-DESHAIS

PER DIEM -TRAINING
011883 ADAM FROEBER

CELL PHONE REIMBURSEMENT
003909 G-3 ENGINEERING. INC.

PROFESSIONAL SERVICES
004318 PETER GRIGGS

PROFESSIONAL SERVICES
004448 BEAU HAMILTON

PER DIEM-TRAINING
012572 KELLY HAVEL

KEY DEPOSIT REFUND
004729 STEPHANIE HERNANDEZ

CLEANING DEPOSIT REFUND
012571 INTEGRATED TACTICAL CONCEPTS L

PROFESSIONAL SERVICES
Page2
CHECK
DATE
2/6/2026
2/6/2026
2/6/2026
2/6/2026
2/6/2026
2/6/2026
2/6/2026
2/6/2026
2/6/2026
2/6/2026
2/6/2026
2/6/2026
2/6/2026
CHECK
NUMBER
036680
036681
036682
036683
036684
036685
036686
036687
036688
036689
036690
036691
036692
CHECK
AMOUNT
529.37
75,00

18.11 292.60

60.00 213.00

75.00 750.28
189.00
680.00
10,00
350.00
3,400.00

NAME CHECK CHECK CHECK

VENDOR DESCRIPTION DATE NUMBER AMOUNT
005401 NICHOLAS JONES
CELL PHONE REIMBURSEMENT 2/6/2026 036693 75.00
005445 K & S STAFFING SOLUTIONS, INC.

PROFESSIONAL SERVICES 2/6/2026 036694 3,219.28
006000 LES SCHWAB TIRES
PROFESSIONAL SVCS & PARTS 2/6/2026 036695 831.94
011792 MISSIONSQUARE 302204
PLAN #302204 2/6/2026 036696 4,090.00
007031 MOTOROLA
LICENSE FEE 2/6/2026 036697 1,092.00
007118 MUTUAL OF OMAHA
INSURANCE PREMIUM FEB 26 2/6/2026 036698 1,939.04
007133 N.C.G.T. SECURITY FUND
HEALTH INSURANCE PREMIUM 2/6/2026 036699 112,513.00
011940 QUICK QUACK CAR WASH
CAR WASHES 2/6/2026 036700 650.66
009081 SAN DIEGO POLICE EQUIPMENT.INC
EQUIPMENT 2/6/2026 036701 4,846.60
012311 BONNIE SIMMONS
HEALTH INS. REIMBURSEMENT 2/6/2026 036702 628.00
011972 THE PUN GROUP, LLP
PROFESSIONALS SERVICES 2/6/2026 036703 8,984.00
012410 MARJORIE TRUMAN
CELL PHONE REIMBURSEMENT 2/6/2026 036704 75.00
010732 UPS
SHIPPING FEES 2/6/2026 036705 78.78
010918 VIRTUAL PROJECT MANAGER
PROFESSIONAL SERVICES 2/6/2026 036706 1,250.00

NAME CHECK CHECK CHECK

VENDOR DESCRIPTION DATE NUMBER AMOUNT
011674 WELLS FARGO VENDOR FINANCIALS
MONTHLY LEASE 2/6/2026 036707 357.45
011245 CINDY WHEELER
PER DIEM·TRAINING 2/6/2026 036708 216.00
011858 ADAM WHELEN
CELL PHONE REIMBURSEMENT 2/6/2026 036709 75.00
011260 CHRISTY WHITE
CELL PHONE REIMBURSEMENT 2/6/2026 036710 75.00
011305 PETER WICKENHEISER
CELL PHONE REIMBURSEMENT 2/6/2026 036711 75.00
011335 WILGUS FIRE CONTROL INC.

PROFESIONAL SERVICES 2/6/2026 036712 1,107.72
012574 XEROX BUSINESS SOLUTIONS
PROFESSIONAL SERVICES 2/6/2026 036713 5,487.59
02/05/26 GROSS PAY $244,761.51 189,228.53
FOR PAYROLL ENDING 01/30/26
~ Date
Page4

AGENDA ITEM
I February 17. 2026 City Council Meeting
for Submittal By:

To:

Through:

Honorable Mayor and Members of the Anderson City Council Joey Forseth-Deshais, City Manager
From: Cindy Wheeler, Finance Director/Treasurer
Date: February 17, 2026

I SUBJECT
Receive Monthly Cash Balances.

I DISCUSSION
Separate from the Quarterly Treasurer's Reports, the Finance Director is presenting the month-end cash balances for all cash-on-hand bank accounts. The attached report reflects account balances as of January 31, 2026. Par value represents the actual balances held in the accounts, while book value reflects the general ledger balances, inclusive of outstanding checks and other pending transactions.

I ATTACHMENT
Cash Balance Report
ITEM 6.6 PAGE1 2/17/2026
Checking and Passbook accounts
Primary Checking
Payroll Checking
Checking - City Events
Passbook Savings
REDIP Reserve Acct
Money Market
Subtotal
Certificates of Deposit
Local Agency Investment Fund
Local Agency Investment Fund
Issuer
Tri-Counties Bank
Tri-Counties Bank
Tri-Counties Bank
Tri-Counties Bank
Tri-Counties Bank
Tri-Counties Bank
na
Total Funds Held by the City of Anderson on January 31, 2026 City of Anderson
Cash Balances
Month Ending Janaury 31, 2026
Days to
Rate Maturity
na na
na na
na na

0.01% na

0.01% na

0.40% na

3.930%
Total Balances Held by the City of Anderson on December 31, 2025 Weighted Average Yields 0.435%
Weighted Average Days to Maturity
Percent of
Total
Par Value Book Value Investments
1,569,943 1,257,365
1,000 1,000
100 100
33,291 33,291
21,195 21,195
67,903 67,903
1,693,433 1,380,854 87.20%
0 0 0.00%
202,766 202,766 12.80%
1,896,199 1,583,621 100.0%
1,006,013 623,424
890,186 960,197

AGENDA ITEM
!February 17, 2026 City Council Meetin,d
Lisa Lozier, Senior Planner
To: Honorable Mayor and Members of the Anderson City Council Through: Joey Forseth-Deshais, City Manager
From: Lisa Lozier, Senior Planner
Date: February 17, 2026

I SUBJECT
Zone Amendment (ZA) 25-01 to update Chapter 17.43 - Residential Density Bonus as required by Housing Element Program HE 1.3: Density Bonuses and Other Regulatory Incentives

I RECOMMENDATION
Adopt Ordinance No 866 amending Chapters 17.43 of the Anderson Municipal Code regarding the Residential Density Bonus as introduced on February 3, 2026 (first reading).

I FISCAL IMPACT
There is no fiscal impact.

I DISCUSSION and BACKGROUND
In May 2025, the California Department of Housing and Community Development (HCD) requested that the City of Anderson provide additional information to demonstrate compliance with state housing law, including Housing Element Program HE 1.3 (Density Bonuses and Other Regulatory Incentives). To address this requirement, City Staff have prepared amendments to Section 17.43 to bring it into alignment with the current State Density Bonus Law, Government Code Sections 65915-65918.

ITEM 6.8a PAGE1 2/17/2026
California Government Code Section 65915 mandates that cities and counties grant developers a density bonus, along with other incentives and waivers of development standards, in exchange for including a certain percentage of affordable housing units in their developments. This law encourages the production of housing for very low-, low-, and moderate-income households by allowing for increased density and reducing development costs.

The current version of the Anderson Municipal Code (AMC) Section 17.43 - Residential Density Bonus was codified in 2011 with Ordinance 771. During the review and update of the 6th Cycle Housing Element 2019-2028, it was determined that AMC Section 17.43 was not in compliance with state law. Zone Amendment (ZA 25-01) is proposed to update the AMC Section 17.43 to reflect the current State requirements for California Government Code Section 65915-65918.

Key Aspects of the Density Bonus Law Include:
• Density Bonus: Developers can increase the maximum number of units allowed on a property beyond the amount set by the local General Plan. • Affordable Housing Units: To qualify for the density bonus, a development must include a specified percentage of units affordable to lower-income, very low-income, or moderate-income households.
• Incentives/Concessions: Local governments must grant these cost-reducing incentives, such as reduced parking requirements or open space requirements, unless they can prove a specific adverse impact on public health, safety, or historical resources.
• Waivers of Development Standards: Local governments must also grant waivers or reductions of physical development standards that would otherwise prevent a project from being built at the bonus density.
• Parking Reduction: Developers can receive a reduction in required parking ratios for their projects.

To be eligible for a density bonus, a housing development must include five or more units and include one of the following criteria:

A minimum percentage of units for very low-, low-, or moderate-income households. • Housing for senior citizens, transitional foster youth, disabled veterans, or homeless persons.
• Student housing for low-income students.
• A land donation for affordable housing or the inclusion of a child-care facility.

Proposed Amendments to Chapter 17.43:

The following list includes a summary of the proposed revisions by subsection for Chapter

17.43. • 17.43.010 - Includes an update to the purpose of intent, including language establishing the updated Government Code (GC) sections 65915 - 65918 as may be amended from time to time. This language specifies the GC sections and allows for consideration of GC updates without necessitating multiple ordinance amendments.

ITEM 6.8a PAGE2 2/17/2026
• 17.43.020(F) - Includes an updated definition of "Density Bonus" as an increase of density over the maximum density of the City General Plan consistent with the density qualifications of Government Code Section 65915. • 17.43.020(0) - Spelling correction for low-income.
• 17.43.030 - Implementation section allows for density bonus and incentives based on specific sections of the government code, based on a sliding scale of housing units and percentage of density increase as per Government Code Sections 65915(b)(1),(k), and (I).
• 17.43.030 - Implementation now applies to projects providing affordable units for student housing, Residential Care Facilities for Elderly, Transitional Foster Youth, disabled veterans, and projects that are one-hundred percent affordable. • 17.43.040 - Development Standards language specifically increases the number of years for restricted affordability to fifty-five years to ensure units retain affordability.
• 17.43.040 Development Standards increases the number of concessions/incentives to 4 for one-hundred percent affordable projects (Gov Code §65915(d)).
• 17.43.050 - Development Incentives: Applicants seeking a waiver or modification of development or zoning standards shall show that such waivers or physical modifications are necessary to make the housing development feasible in accordance with Government Code Section 65915(e).
• 17.43.050 - Development Incentives allow Parking standards are reduced as low as

0.5 spaces/unit for 100% affordable units with Government Code Section 65915(p). • 17.43.060 - Application requirements (Gov Code §6591S(a)-(e)) updated procedural requirements will be provided in a public handout to allow flexibility to accommodate changes to permitting procedures without revisions to the City Municipal Code.
• 17.43.070 - Applicants/developers requesting a density bonus for affordable housing shall agree to enter into an affordable housing agreement with the city. The terms of the draft agreement shall be reviewed and revised as appropriate by the planning director, consistent with Government Code Section 65915, who shall formulate a recommendation for final approval to a City official. • Cities are required to grant the density bonuses for compliant applications unless specific written findings are made.

At its October 27th, 2025, meeting, after careful consideration and review, the Planning Commission approved and adopted P.C. Resolution No. 25-04.

ITEM 6.8a PAGE3 2/17/2026
Environmental Determination:

The City of Anderson finds that this Ordinance is not a "project" according to the definition outlined in the California Environmental Quality Act ("CEQA"), and, pursuant to CEQA Guidelines sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15061(b)(3) (there is no possibility the activity in question may have a significant effect on the environment), the adoption of this ordinance is therefore not subject to the provisions requiring environmental review.

PUBLIC NOTICE:

A 20-day public hearing notice of the subject project was published in the RecordSearchlight and in accordance with notice requirements provided in AMC Section

17.54.040 - Zoning Amendments and Government Code Section 65854, requiring a 20-day hearing. The Planning Department received no public comments on the project at the time of this report.

I ATTACHMENTS
Ordinance
ITEM 6.8a PAGE4 2/17/2026
ORDINANCE NO. 866

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANDERSON ADOPTING AN AMENDMENT OF THE ANDERSON MUNICIPAL CODE TO UPDATE CHAPTER 17.43 RESIDENTIAL DENSITY BONUS CONSISTENT WITH GOVERNMENT CODE 65915 - 65918 (CALIFORNIA DENSITY BONUS LAW)
WHEREAS, in June 2011, the City of Anderson enacted Ordinance No. 771 to include Section

17.43 - Residential Density Bonus intended to provide incentives for affordable housing units for very-low, low and moderate-income persons and families consistent with state law; and
WHEREAS, since the inclusion of Chapter 17.43 in 2011, the State of California has enacted additional laws and amended existing laws to further define density bonus to reflect higher bonus percentages, expanded eligibility, and updated Incentives concessions and waivers; and
WHEREAS, the current 2019-2028 Housing Element Program HE.1.3 requires that the City amend its Zoning Ordinance to comply with all state law pertaining to residential density bonuses and other regulatory incentives; and
WHEREAS, City staff have reviewed Chapter 17.43 of the Zoning Ordinance of the City of Anderson, and have determined that Chapter 17.43 is no longer in compliance with state law pertaining to residential density bonuses and regulations; and WHEREAS, on September 29, 2025, the Planning Commission held a duly noticed public hearing to consider the staff report, recommendation by staff, and public testimony concerning this Ordinance. Following the public hearing, the Planning Commission voted to forward the Ordinance to the City Council with a recommendation in favor of its adoption; and
WHEREAS, The City of Anderson finds that this Ordinance is not a "project" according to the definition set forth in the California Environmental Quality Act ("CEQA"), and, pursuant to CEQA Guidelines sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15061(b)(3) (there is no possibility the activity in question may have a significant effect on the environment) based on the Addendum to the certified Environmental Impact Report number 2006092026 and approved 2019-2028 City of Anderson, General Plan Housing Element, for which the addendum was adopted, June 2020.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ANDERSON DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. The recitals in this Resolution are true and correct and incorporated herein.

Attachment B- Residential Density Ordinance
page 1 of 10
SECTION 2. Recommended Approval of the proposed Ordinance based on the entire record before the Planning Commission, all written and oral evidence presented to the Planning Commission, and the findings made in the staff reports and this Resolution, the Planning Commission of the City of Anderson hereby recommends that the City Council adopt the Ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANDERSON

ADOPTING AN AMENDMENT OF THE ANDERSON MUNICIPAL CODE TO UPDATE CHAPTER 17.43 RESIDENTIAL DENSITY BONUS CONSISTENT WITH GOVERNMENT CODE 65915-65918 (CALIFORNIA DENSITY BONUS LAW)
SECTION 3. Chapter 17.43 RESIDENTIAL DENSITY BONUS of Title 17 "ZONING" of the Anderson Municipal Code is amended and replaced to read as follows:

Chapter 17.43 RESIDENTIAL DENSITY BONUS

17.43.010 Purpose and intent.

The purpose of this chapter is to establish policies that implement state housing law under California Government Code Section 65915 through 65918, as may be amended from time to time. Residential Density Bonuses_provide incentives consistent with state law, for the construction of housing units that are affordable to very low-, low-, and moderateincome persons and families. Further, it serves to provide incentives for the construction of housing units that are of unique design quality and configuration ( e.g., clustered housing).

A density bonus is an increase over the otherwise maximum residential density allowable under the zoning ordinance and the general plan. It provides developers an opportunity to increase the number of units within a proposed residential development in exchange for including within the project a specified number of units that are affordable to very low-, low-, or moderate-income persons and families and/or units that are of unique design quality and configuration. State law also allows the city to provide incentives other than, or in addition to, an increase in density for affordable housing if requested by an applicant. Accordingly, the purposes of this chapter are to:

1. Establish procedures for allowing an increase in density above the maximum residential density allowed by the general plan and zoning ordinance.

2. Provide for flexibility in applying zoning regulations and development standards in order to facilitate the development of affordable housing and/ or housing of unique design quality and configuration.

3. Provide incentives to developers to encourage the inclusion of affordable housing within residential projects.

4. Encourage architectural diversity in order to avoid monotonous and repetitive subdivision design and appearance.

5. Preserve and enhance neighborhood appearance through creative building design, use of materials, landscaping, and street layout.

Attachment B - Residential Density Ordinance
page 2 of 10

6. Achieve compatibility within the subdivision design and surrounding neighborhoods.

7. Implement the goals and policies of the general plan relative to providing housing opportunities and meeting community housing needs.

17.43.020 Definitions.

For the purposes of this chapter, the following words and phrases shall have the following meanings:

A. "Affordable housing agreement" means a legally binding agreement between a developer and the city to ensure that the requirements of this chapter are satisfied. The agreement, among other things, shall establish: the number of affordable units, their size, location, terms and conditions of affordability, and production schedule.

B. "Additional incentives" means such regulatory concessions as specified in California Government Code Subsections 65915(d) and (h) to include, but not be limited to, the reduction of site development standards or zoning code requirements, direct financial assistance, approval of mixed use zoning in conjunction with the housing development, or any other regulatory incentive that would result in identifiable cost avoidance or reductions that are offered in addition to a density bonus.

C. "Affordable rent" means monthly housing expenses, including a reasonable allowance for utilities, for affordable units reserved for rent by very low-, low-, and moderate-income persons and families.

D. "Affordable sales price" means a sales price at which very low-, low- and moderate-income persons and families can qualify for the purchase of affordable units, calculated on the basis of underwriting standards of mortgage financing available for the development.

E. "Affordable unit" means a dwelling unit within a housing development which will be reserved for sale or rent to, and affordable to, very low-, low-, and moderateincome persons and families.

F. "Density bonus" means a density increase over the otherwise maximum permitted gross residential density under the land use element of the General Plan in accordance with Government Code Sections 65915 as they may be amended from time to time.

G. "Density bonus units" means those residential units granted pursuant to the provisions of this chapter which exceed the otherwise maximum residential density for the development site.

H. "Equivalent financial incentive" means a monetary contribution, based upon a land cost per dwelling unit value, equal to one of the following:

Created: 2025•01•08 17: 30:09 (EST)
(Supp. No. 21)

1. A density bonus and an additional incentive(s); or

2. A density bonus, where an additional incentive(s) is not requested or is determined to be unnecessary.

I. "Housing cost" means the sum of actual or projected monthly payments for all of the following associated with for-sale affordable units: principal and interest on a mortgage loan, including any loan insurance fees, property taxes and assessments, fire and casualty insurance, property maintenance and repairs, homeowner association fees, and a reasonable allowance for utilities.

J. "Housing development" means construction projects consisting of five or more residential units, including single-family, multifamily, and mobile homes for sale or rent, pursuant to this chapter.

K. "Low-income" means less than eighty percent of the area median income as defined by Section 50079.5 of the California Health and Safety Code.

L. "Low-income unit" means a unit with an affordable rent or payment that does not exceed thirty-five percent of eighty percent of area median income adjusted for family-size appropriate for the unit as established by the State Department of Housing and Community Development.

M. "Lower income household" means households whose income does not exceed the lower income limits applicable to Shasta County, as published and periodically updated by the State Department of Housing and Community Development pursuant to Section 50079.5 of the California Health and Safety Code.

N. "Market-rate unit" means a dwelling unit where the rent or sales price is not restricted either by this chapter or by requirements imposed through other local, state, or federal affordable housing programs.

0. "Maximum residential density" means the maximum number of residential units permitted by the general plan and zoning ordinance at the time of application, excluding the provisions of this chapter. If the housing development is within a planned development overlay zone, the maximum residential density shall be determined on the basis of the general plan and the maximum density of the underlying zone.

P. "Moderate-income" means less than one hundred twenty percent of the area median income as defined in Section 50093 of the California Health and Safety Code.

Q. "Moderate-income unit" means a unit with an affordable housing cost that does not exceed thirty-five percent of one hundred twenty percent of area median income adjusted for family size appropriate for the unit as established by the State Department of Housing and Community Development.

R. "Qualifying resident" means senior citizens or other persons eligible to reside in senior citizen housing.

Attachment B - Residential Density Ordinance
page 4 of 10
S. "Senior citizen housing" means a housing development consistent with the California Fair Employment and Housing Act (Government Code Section 12900 et seq., including 12955.9 in particular), which has been "designed to meet the physical and social needs of senior citizens," and which otherwise qualifies as "housing for older persons" as that phrase is used in the Federal Fair Housing Amendments Act of 1988 (P.L. 100-430) and implementing regulations (24 CFR, part 100, subpart E), and as that phrase is used in California Civil Code Section

51.2 and 51.3.1.

T. "Very low-income" means less than fifty percent of the area median income as defined in Section 50105 of the California Health and Safety Code.

U. "Very low-income unit" means a unit with an affordable rent or payment that does not exceed thirty percent of fifty percent of the area median income adjusted for family-size appropriate for the unit as established by the State Department of Housing and Community Development.

17.43.030 Implementation
A developer of a housing development may qualify for a density bonus and other incentives as provided by this chapter if the developer does one of the following and complies Government Code Sections 65915(b)(1),(k), and (I):

1. Agrees to construct and maintain at least ten percent of the total units of the housing development as units affordable to low-income households; or

2. Agrees to construct and maintain at least five percent of the total units of the housing development as units affordable to very low-income households; or

3. Agrees to construct and maintain a senior citizen housing development or a mobile home park that limits residency to senior citizens.

4. At least ten percent of the total units for moderate-income households in a common interest development.

5. A land donation that meets certain criteria.

6. A student housing, Residential Care Facilities for the Elderly, transitional foster youths, disabled veterans, and homeless persons development that meets specific requirements.

7. A one-hundred percent affordable housing project that meets specific criteria.

The minimum number of density bonus units to be granted pursuant to this section for affordable housing by Government Code Section 65915(f) consistent with Section

17.43.050 of this Chapter.

17.43.040 Development standards.

Affordable units should be constructed concurrently with market-rate units unless both the city and the developer agree within the affordable housing agreement to an alternative schedule for development.

Attachment B - Residential Density Ordinance
page 5 of 10
Affordable units shall remain restricted and affordable to the designated group for a period of fifty-five years ( or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program), under the following circumstances:

1. Both a density bonus and an additional incentive is granted; or

2. An equivalent financial incentive equivalent to a density bonus and an additional incentive is granted.

In determining the maximum affordable rent or affordable sales price of affordable units the following household and unit size assumptions shall be used, unless the housing development is subject to different assumptions imposed by other governmental regulations:

SRO (residential hotel unit): 0.75 person
0 bedroom (studio): 1 person
1 bedroom: 2 persons
2 bedrooms: 3 persons
3 bedrooms: 4 persons
4 bedrooms: 6 persons
Affordable units should be built onsite wherever possible and, when practical, be dispersed within the housing development. Where feasible, the number of bedrooms of the affordable units should be equivalent to the bedroom mix of the market-rate units of the housing development; except that the developer may include a higher proportion of affordable units with more bedrooms. The design and appearance of the affordable units shall be compatible with the design of the total housing development. Housing developments shall comply with all applicable development standards, except those which may be modified as provided by this chapter.

Circumstances may arise in which the public interest would be served by allowing some or all of the affordable units associated with one housing development to be produced and operated at an alternative development site. Where the developer and the city form such an agreement, the resulting linked developments shall be considered a single housing development for purposes of this chapter. Under these circumstances, the developer shall be subject to the same requirements of this chapter for the affordable units to be provided on the alternative site.

An affordable housing agreement shall be made a condition of the discretionary planning permits ( e.g., tract maps, parcel maps, site plans, planned development or conditional use permits, etc.) for all housing developments pursuant to this chapter. The agreement shall be recorded as a restriction on the parcel or parcels on which the affordable units will be constructed. To ensure units retain affordability during the time period of fifty-five years per Government Code Sections 65915 - 65918 as may be amended from time to time.

Attachment B - Residential Density Ordinance
page 6 of 10

17.43.050 Development incentives.

The city may provide a density bonus and an additional incentive, for qualified housing developments, upon the written request of a developer.

The development incentives granted for affordable housing shall contribute significantly to the economic feasibility of providing the affordable units. Applicants seeking a waiver or modification of development or zoning standards shall show that such waivers or physical modifications are necessary to make the housing development ecoRomically feasible in accordance with Government Code Section 65915(e). This requirement may be satisfied by reference to applicable sections of the city's general plan.

The need for incentives will vary for different housing developments. Therefore, the allocation of additional incentives shall be determined on a case-by-case basis. The additional incentives may include, but are not limited to, any of the following:

1. A reduction of site development standards or a modification of zoning code or architectural design requirements which exceed the minimum building standards provided in Part 2.5 ( commencing with Section 18901) of Division 13 of the California Health and Safety Code, and as described in subdivisions (e) and (p) of Government Code Section 65915 as may be amended from time to time.

2. Allow the housing development to include nonresidential uses and/or allow the housing development within a nonresidential zone.

3. Other regulatory incentives or concessions proposed by the developer or the city which result in identifiable cost reductions or avoidance.

4. A density bonus based on the amount of which shall be specified in Government Code Section 6591S(t)

5. Waived, reduced, or deferred planning, plan check, construction permit, and/or development impact fees (e.g., capital facilities, park, or traffic fees).

6. Direct financial aid (e.g., redevelopment set aside, community development block grant funding) in the form of a loan or a grant to subsidize or provide low interest financing for onsite or offsite improvements, land or construction costs.

17.43.060 Application requirements.

An application pursuant to this chapter shall be processed concurrently with any other applications required for the housing development. Final approval or disapproval of an application, with right of appeal to the city council, shall be made by the planning commission unless direct financial assistance is requested. If direct financial assistance is requested, the planning commission shall make a recommendation to the city council, which will have the authority to make the final decision on the application.

An applicant/developer proposing a housing development pursuant to this chapter may submit a preliminary application prior to the submittal of any formal request for approval of a housing development. Applicants are encouraged to schedule a preapplication conference with the planning director or designated staff to discuss and Residential Density Ordinance
page 7 of 10
identify potential application issues, including prospective additional incentives pursuant to Section 17.43.050. No charge will be required for the pre-application conference. A preliminary application shall include the following information:

1. A brief description of the proposed housing development, including the total number of units, affordable units (as applicable), and density bonus units proposed.

2. The zoning and general plan designations and assessor's parcel numbers of the project site.

3. A vicinity map and preliminary site plan, drawn to scale, including building footprints, driveway and parking layout.

4. If an additional incentive is requested, the application should describe why the additional incentive is necessary to provide the affordable units, in accordance with Section 17.43.050.

Within ninety days of receipt of the preliminary application the city shall provide to an applicant/developer, a letter which identifies project issues of concern, (the maximum financial assistance that the planning director can support when making a recommendation to the city council), and the procedures for compliance with this chapter.

The planning director shall inform the applicant/developer that the requested additional incentives shall be recommended for consideration with the proposed housing development, or that alternative or modified additional incentives pursuant to Section

17.43.050 shall be recommended for consideration in lieu of the requested incentives. If alternative or modified incentives are recommended by the planning director, the recommendation shall establish how the alternative or modified incentives can be expected to have an equivalent affordability effect as the requested incentives.

17.43.070 Affordable housing agreement.

Applicants/developers requesting a density bonus for affordable housing shall agree to enter into an affordable housing agreement with the city. The terms of the draft agreement shall be reviewed and revised as appropriate by the planning director consistent with Government Code Section 65915, who shall formulate a recommendation to the planning commission for final approval.

Following execution of the agreement by all parties, the completed affordable housing agreement, or memorandum thereof, shall be recorded and the conditions therefrom filed and recorded on the parcel or parcels designated for the construction of affordable units.

The approval and recordation shall take place prior to final map approval, or, where a map is not being processed, prior to issuance of building permits for such parcels or units. The affordable housing agreement shall be binding to all future owners and successors in interest.

The affordable housing agreement shall include at least the following:

1. The total number of units approved for the housing development, including the number of affordable units.

Residential Density Ordinance
page 8 of 10

2. A description of the household income group to be accommodated by the housing development, as outlined in Section 17.43.030, and the standards for determining the corresponding affordable rent or affordable sales price and housing cost.

3. The location, unit sizes (square feet), and number of bedrooms of affordable units.

4. Tenure of use restrictions for affordable units must be a minimum of fifty-five years in accordance with Section 17.43.040 of this chapter.

5. A schedule for completion and occupancy of affordable units.

6. A description of the additional incentive or equivalent financial incentive being provided by the city.

7. A description of remedies for breach of the agreement by either party (the city may identify tenants or qualified purchasers as third party beneficiaries under the agreement).

8. Other provisions to ensure implementation and compliance with this chapter.

A. In the case of for-sale housing developments, the affordable housing agreement shall provide for the following conditions governing the initial sale and use of affordable units during the applicable use restriction period:

1. Affordable units shall, upon initial sale, be sold to eligible very low- or lower-income persons and families at an affordable sales price and housing cost, or to qualified residents (i.e., maintained as senior citizen housing) as defined by this chapter.

2. Affordable units shall be initially owner-occupied by eligible very lowor lower income persons and families, or by qualified residents in the case of senior citizen housing.

3. The initial purchaser of each affordable unit shall execute an instrument or agreement approved by the city restricting the sale of the affordable unit in accordance with this ordinance during the applicable use restriction period. Such instrument or agreement shall be recorded against the parcel containing the affordable unit and shall contain such provisions as the city may require to ensure continued compliance with this ordinance and the state density bonus law.

8. In the case of rental housing developments, the affordable housing agreement shall provide for the following conditions governing the use of affordable units during the use restriction period:

1. The rules and procedures for qualifying tenants, establishing affordable rent, filling vacancies, and maintaining affordable units for qualified tenants;

2. Provisions requiring owners to verify tenant incomes and maintain books and records to demonstrate compliance with this chapter.

Residential Density Ordinance
page 9 of 10
SECTION 2

3. Provisions requiring owners to submit an annual report to the city, which includes the name, address, and income of each person occupying affordable units, and which identifies the bedroom size and monthly rent or cost of each affordable unit.

If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this Ordinance, or its application to any person or circumstance. The City Council of the City of Anderson hereby declares that it would have adopted each section, subsection subdivision paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more other sections, subsections subdivisions paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable.

SECTION 3
The City of Anderson finds that this Ordinance is not a "project" according to the' definition set forth in the California Environmental Quality Act ("CEQA"), and, pursuant to CEQA Guidelines sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15061(b)(3) (there is no possibility the activity in question may have a significant effect on the environment), the adoption of this ordinance is therefore not subject to the provisions requiring environmental review.

SECTION 4
The City Clerk shall certify to the adoption of this ordinance and shall cause it to be posted and/or published in accordance with the law.

The foregoing ordinance was introduced at a regular meeting of the City Council of the City of Anderson held on the 3rd day of February 2026, and enacted at a regular meeting of the City Council of the City of Anderson held on the 17th day of February 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST:

CHRISTY WHITE, City Clerk
DAN GALLIER, Mayor
Residential Density Ordinance
page 10 of 10

AGENDA ITEM
!February 17, 2026 City Council Meeting!
To: Honorable Mayor and Members of the Anderson City Council Through: Joey Forseth-Deshais, City Manager
From: Lisa Lozier, Senior Planner
Date: February 17, 2026
!SUBJECT
Zone Amendment (ZA) 25-02 to update Chapter 17.18 - General Commercial District as required by Housing Element Program HE 2.4 to allow Residential by-right development on designated parcels in C-1 districts.

I RECOMMENDATION
Adopt the CEQA determination and adopt Ordinance No 867 amending Chapters

17.18 of the Anderson Municipal Code regarding the Residential by-right as introduced on February 3, 2026 (first reading).

I FISCAL IMPACT
There is no fiscal impact.

I DISCUSSION and BACKGROUND
In May 2025, the California Department of Housing and Community Development (HCD) requested that the City provide additional information to demonstrate compliance with state housing law, including Program HE 2.4 (Residential By-Right for Development with 20 Percent Affordable). To address this requirement, City staff have prepared an amendment to Section 17.18.020 to bring Chapter 17.18 into alignment with current State Law.

ITEM 6.8b PAGE1 2/17/2026
Proposed Amendment to Chapter 17.18 - General Commercial District (C-1):

The following text includes the proposed text update for Chapter 17.18 - General Commercial District (C-1)
• 17.18.020(C): Residential development shall be permitted by-right when 20- percent or more of the proposed units are restricted as affordable to lower-income households, in accordance with Government Code Section 65583.Z(c). Parcels subject to the "by-right" development standard will be listed in the Vacant Land Inventory of the current Housing Element under the C-1 zone designation.

At its October 27th, 2025, meeting, after careful consideration and review, the Planning Commission approved and adopted P.C. Resolution No. 25-05.

Environmental Determination:

The City of Anderson finds that this Ordinance is not a "project" according to the definition outlined in the California Environmental Quality Act ("CEQA"), and, pursuant to CEQA Guidelines sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15061(b)(3) (there is no possibility the activity in question may have a significant effect on the environment), the adoption of this ordinance is therefore not subject to the provisions requiring environmental review.

PUBLIC NOTICE:

A 20-day public hearing notice of the subject project was published in the RecordSearchlight and in accordance with notice requirements provided in AMC Section

17.54.040 - Zoning Amendments and Government Code Section 65854, requiring a 20-day hearing. The Planning Department received no public comments on the project at the time of this report.

I ATTACHMENTS
Ordinance
ITEM 6.8b PAGE2 2/17/2026
ORDINANCE NO. 867

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANDERSON AMENDING CHAPTER 17.18 ALLOWING RESIDENTIAL BY-RIGHT FOR DEVELOPMENT ON

PARCELS INDICATED IN THE VACANT LAND INVENTORY OF THE HOUSING ELEMENT IN THE C-1 DISTRICT
WHEREAS, in September 2017, Governor Jerry Brown signed Assembly Bill No. 1397 (AB 1397), amending Government Code Sections 65580, 65583, and 65583.2 to require local jurisdictions to identify realistic and available sites and remove barriers to the development of affordable housing to demonstrate compliance with their housing element programs; and WHEREAS, pursuant to Government Code Sections 65854 and 65855, the Planning Commission has the authority to review and make recommendations regarding any amendments to the Anderson Code to the City Council; and WHEREAS, the current 2019-2028 Housing Element Program HE 2.4 requires that the City amend its Zoning Ordinance to comply with Government Code 65583.2(c), to allow by right for housing developments in which at least 20 percent of the units are affordable to lower income households on parcels indicated in the vacant land inventory of the Housing Element and located in the C-1 zone.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ANDERSON DOES ORDAIN AS FOLLOWS:

SECTION 1.

Chapter 17.18 GENERAL COMMERCIAL (C-1) DISTRICT of Title 17 "ZONING" of the Anderson Municipal Code is amended and replaced to read as follows:

Chapter 17.18 GENERAL COMMERCIAL DISTRICT (C-1)1

17.18.010 Applicability of regulations.

The regulations in this chapter shall apply in all C-1 districts and shall be subject to the provisions of Chapter 17 .02.

17.18.020 Uses permitted.

A The following uses and similar uses of a retail business or service nature are permitted in C-1 districts; provided that all goods are displayed and sold and all services are performed within a completely enclosed building, except as otherwise permitted by the provisions of this section:

Art studio, antique or gift shop;
Automobile parking lot;
Automobile parts supply store (not including installation, machine shop, repair or a warehouse);
Bakery shop (retail only);
Bank or savings and loan or finance offices;
Barber or beauty salon;
Book store;
Bookkeeping service;
Butcher; cold storage;
Camera shop;
Candy store;
Caterers;
Cleaning agency or laundry;
Clinics;
Clothing or apparel store;
Commercial school or hall;
Curio or novelty shop;
Department store;
Drug store or pharmacy;
Financial services;
Florist;
Furniture or interior decorating store;
Garden supply store;
Grocery store;
Hardware or appliance store;
Health club; gym; fitness center;
Hotels; motels;
Household goods;
Jewelry and services;
Key shop; locksmith;
Leather goods shop;
Liquor store (provided no consumption on the premises); Offices of a professional nature;
Office supply or stationery store;
Paint store;
Pet shop; pet grooming;
Photography store, or studio;
Restaurant, cafe or coffee shop (indoor or outdoor);
Self-service laundry, or dry cleaners;
Shoe repair shop;
Sporting goods store;
Tailor shop;
Toy store;
Utility administrative offices.

8. Uses, buildings and structures accessory to any of the above; C. Residential development shall be permitted by-right when 2O-percent or more of the proposed units are restricted as affordable to lower-income households, in ac.;cordance with Government Code Section 65583.Z(c). Parcels subject to the "by-right" development standard will be listed in the Vacant Land Inventory of the current Housing Element under the C-1 zone designation.

D. Other uses which in the opinion of the planning commission are of a similar nature; E. Temporary sales of Christmas trees from November 15 through January 2 are allowed in parking lots provided that traffic is not impeded.

17.18.030 Uses permitted subject to a use permit.

Uses permitted subject to first obtaining a use permit as specified in Chapter 17.50 are as follows:

A. Uses permitted in any R district;
B. Clubs, lodge halls, fraternal organizations, social halls, auditoriums, and private or public assembly halls;
C. Flea markets, secondhand sales, outdoor markets or similar establishments; D. Animal hospital or veterinary clinic;
E. Gasoline service station, auto repair shop, or machine shop; provided all operations are conducted within a building and do not involve dismantling of vehicles or outside storage of parts or vehicles except for occasional customer parking;
F. Drive-in establishments whether in conjunction with a permitted use or otherwise;
G. Bus terminals, car washes, bowling alleys, business colleges; H. New and used car dealerships or sales lots;
I. Pawnshop;
J. Theater;
K. Shopping centers as defined in Section 17.04.710;
L. Commercial developments of over twenty thousand square feet of gross floor area (except hotels and motels);
M. Single-room occupancy units, subject to the following standards:
a. No transient occupancy. Units must be occupied as the primary residence of the tenant;
b. Maximum of thirty units per site;
c. Minimum unit size of two hundred square feet for occupancy by one person and two hundred eighty square feet for occupancy by two persons. No more than two persons per unit;
d. Approval of a management plan that outlines objectives, policies, and procedures;
e. On-site management with a manager's office for nine or fewer units and/or a manager's unit for ten or more units; and
f. Laundry, kitchen, and bathroom facilities must be provided on-site (may be individual or shared);
N. Equipment sales and rentals.

17.18.040 Building site requirements.

For each main building there shall be a minimum area of two thousand square feet.

17.18.050 Maximum building height.

The maximum height of any building shall be fifty feet; provided that a greater height not exceed sixty-five feet may be allowed upon obtaining a use permit.

17.18.060 Yards required.

A Front yards: None, except:

1. Where the frontage in a block is partially in an R district, in which case the front yard shall be the same as required in such R district;

2. Where the site occupies a corner lot, the front yard shall be ten feet or more.

8. Side yard: None, except:

1. Where the side of a lot abuts in an R district, in which case the side yard shall be ten feet or more;

2. Where the site occupies a corner lot, the side yard shall be ten feet or more.

C. Rear yard: none, except where the rear of a lot abuts an R district, in which case the rear yard shall be ten feet or more. 17.18.070 Off-street parking.

Off-street parking shall be provided in an amount not less than set forth in the regulations of Chapter 17.46.

SECTION 2. Severability
If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this Ordinance, or its application to any person or circumstance. The City Council of the City of Anderson hereby declares that it would have adopted each section, subsection subdivision paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more other sections, subsections subdivisions paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable.

Created: 292S-01-98 17:30:03 (EST)
(Supp. No. 21)

SECTION 3. Environmental Determination
the City of Anderson finds this Ordinance exempt from the California Environmental Quality Act ("CEQA") under Public Resources Code section 21080.085, which exempts CEQA review for zoning ordinance amendments that implement programs contained within an approved Housing Element, and 15061(b)(3) (there is no possibility the activity in question may have a significant effect on the environment) based on the Addendum to the certified Environmental Impact Report number 2006092026 and approved 2019-2028 City of Anderson, General Plan Housing Element, for which the addendum was adopted, June 2020.

I HEREBY CERTIFY that the foregoing ordinance was introduced at a regular meeting of the City Council of the City of Anderson held on the 3rd day of February 2026, and enacted at a regular meeting of the City Council of the City of Anderson held on the 17th day of February 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

DAN GALLIER, Mayor
ATTEST:

CHRISTY WHITE, City Clerk
Attachment 8- By-Right Development C-1
page 6 of 6

AGENDA ITEM
!February 17, 2026 City Council Meeting!
for Submittal By:
-Deshais,
Lisa Lozier, Senior Planner
To: Honorable Mayor and Members of the Anderson City Council Through: Joey Forseth-Deshais, City Manager
From: Lisa Lozier, Senior Planner
Date: February 17, 2026

I SUBJECT
Zoning Text Amendment (ZA) 2 5-03 to Amend Title 17 - Zoning Ordinance of the City of Anderson to update Chapters 17.14 - Rural Estate, 17.15 - Mixed Use, 17.16 - Agriculture, and 17 .30 - Natural Resource District.

I RECOMMENDATION
Adopt the CEQA determination and adopt Ordinance No 868 amending Chapters

17.14, 17.15, 17.16 and 17.30 of the Anderson Municipal Code regarding the Residential by-right as introduced on February 3, 2026 (first reading).

I FISCAL IMPACT
There is no fiscal impact.

I DISCUSSION and BACKGROUND
In May 2025, the California Department of Housing and Community Development (HCD) requested that the City provide additional information to demonstrate compliance with state housing law, including Program HE 3.1, to remove unnecessary constraints to the availability of housing for all segments of the population. To address this requirement, City staff have prepared amendments to Rural Estate (R-E), Mixed Use (MU), Agriculture (AG), and Natural Resource (NR) to align with current State Law. The updated ordinances align with state housing law by including transitional and supportive housing as permitted ITEM 6.8c PAGE1 2/17/2026
residential uses, consistent with Senate Bill 2 (SB 2) and its amendments to Government Code Sections 65582-65589.5. The ordinances also update local provisions for farmworker and employee housing to allow up to 12 units or 36 beds without discretionary review, consistent with Health and Safety Code Section 17021.6.

The current version of AMC Section 17.30 - Natural Resource was codified in 1987 with Ordinance 515, AMC Section 17.15 - Mixed Use was codified in 2009 with Ordinance 757, and AMC Sections 17.14- Rural Estate and 17.16-Agriculture were codified in 2011 with Ordinance 711. During the review and update of the 6th Cycle Housing Element 2019-2028, a determination was made that AMC Sections 17.14, 17.15, 17.16, and 17.30 were not fully consistent with current state housing laws. The proposed Zone Amendment (ZA 25-03) updates the AMC Sections 17.14, 17.15, 17.16, and 17.30 to ensure compliance with SB 2 and AB 2162 requirements for transitional and supportive housing.

Key Aspects of SB 2:
• Increases opportunities for transitional and supportive housing by requiring local jurisdictions to allow such housing by right in all zoning districts that permit residential uses.
• Ensures fair access to housing for individuals and families in need of supportive services by removing zoning and permitting barriers that previously restricted these uses.

Key Aspects of AB 2162
• Builds on SB 2 by further clarifying that supportive and transitional housing must be treated as a residential use and allowed by right in zones where multi-family housing is permitted, consistent with Government Code Sections 65650-65656. • Establishes a ministerial approval process for qualifying supportive housing developments, prohibiting cities and counties from imposing additional requirements, standards, or procedures beyond those that apply to other residential uses in the same zone.
• Amends Health and Safety Code Section 17021.6 to ensure that transitional and supportive housing are treated as residential uses subject only to objective standards.

Eligibility Requirements for SB 2 and AB 2162 Projects:
• SB 2: The housing type must meet the definition of transitional and supportive housing under Government Code Section 65582. The project must be treated as a residential use and subject to only the same objective development standards that apply to other residential uses in the same zone.

AB 2162: The project must be supportive housing as defined under Government Code Section 65582 and comply with the ministerial approval process under Government Code ITEM 6.8c PAGE2 2/17/2026
Sections 65650-65656. At least 25% of the total units must be restricted to supportive housing for individuals within target populations defined by state law. Projects may include on-site supportive services and can qualify for density bonuses, land donations, or the inclusions of child-care facilities or other supportive amenities, as allowed under state housing laws.

Proposed Amendments To Chapter 17.14 - Rural Estate:

The following list includes a summary of the proposed revisions by subsection for Chapter

17.14. • 17.14.0ZO(G) - Removes the limit on the number of residents for supportive and transitional housing in accordance with Government Code Sections 65650-65656. • 17.14.0ZO(H) - Increases the maximum occupancy for farmworker/employee housing from 6 persons to up to 12 units or 36 beds, as defined in Health and Safety Code Section 17021.6, ensuring that such housing is regulated under the same objective standards as other residential uses.

Proposed Amendments To Chapter 17.15 - Mixed Use:

The following list includes a summary of the proposed revisions by subsection for Chapter

17.15. • 17.15.050 - Amends Table 17-2: Permitted Uses to include Supportive and Transitional Housing as permitted uses in all areas within the Mixed Use District. • 17.15.050(8)(13) - Provides a definition of Supportive Housing consistent with Government Code Section 65582(n), "Housing with no limit on length of stay, that is occupied by the target population, and that is linked to an onsite or offsite service that assists the supportive housing resident in retaining the housing, improving their health status, and maximizing their ability to live and, when possible, work in the community."

17.15.050(8)(14) - Provides a definition of Transitional Housing consistent with Government Code Section 65582(q), "Buildings configured as rental housing developments, but operated under program requirements that require the termination of assistance and recirculating of the assisted unit to another eligible program recipient at a predetermined future point in time that shall be no less than six months from the beginning of the assistance."
Proposed Amendments To Chapter 17.16 - Agriculture:

The following list includes a summary of the proposed revisions by subsection for Chapter

17.16. • 17.16.020(G) - Increases the maximum occupancy for farmworker/employee housing from 6 persons to up to 12 units or 36 beds, as defined in Health and Safety ITEM 6.8c PAGE3 2/17/2026
Code Section 17021.6, ensuring that such housing is regulated under the same objective standards as other residential uses.
• 17.16.020(H) - Updates the zoning code to include supportive and transitional housing as permitted residential uses, consistent with Government Code Sections 65650-65656, which require such uses to be allowed by right subject only to the same objective standards that apply to other residential uses in the same zone. • 17.16.030 - Removes farmworker housing for more than six employees from the list of uses subject to a Use Permit, consistent with Health and Safety Code Section 17021.6, which requires that qualifying farmworker housing be approved ministerially.

Proposed Amendments To Chapter 17.30 - Natural Resource:

The following list includes a summary of the proposed revisions by subsection for Chapter

17.30. • 17.30.020(F) - Increases the maximum occupancy for farmworker/employee housing from 6 persons to up to 12 units or 36 beds, as defined in Health and Safety Code Section 17021.6, ensuring that such housing is regulated under the same objective standards as other residential uses.
• 17.30.020(G) - Updates the zoning code to include supportive and transitional housing as permitted residential uses, consistent with Government Code Sections 65650- 65656, which require such uses to be allowed by right subject only to the same objective standards that apply to other residential uses in the same zone.

At its November 17th, 2025, meeting, after careful consideration and review, the Planning Commission approved and adopted P.C. Resolution No. 25-08.

Environmental Determination:

The City of Anderson finds that this Ordinance update is exempt from the California Environmental Quality Act (CEQA) pursuant to Public Resources Code section 21080.085, which exempts CEQA review for zoning ordinance amendments that implement programs contained within an approved Housing Element.

PUBLIC NOTICE:

A 20-day public hearing notice of the subject project was published in the RecordSearchlight and in accordance with notice requirements provided in AMC Section

17.54.040 - Zoning Amendments and Government Code Section 65854, requiring a 20-day hearing. The Planning Department received no public comments on the project at the time of this report.

I ATTACHMENTS
Ordinance
ITEM 6.8c PAGE4 2/17/2026
ORDINANCE NO. 868

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANDERSON AMENDING CHAPTERS 17.14- RURAL ESTATE, 17.15-MIXED USE, 17.16-AGRICULTURE, 17.30 - NATURAL RESOURCE TO REMOVE UNECESSARY CONSTRAINTS TO THE

AVAILABILITY OF HOUSING FOR ALL SEGMENTS OF THE POPULATION WHEREAS, in 2007, Governor Schwarzenegger signed Assembly Bill 2 (Cedillo), an act to amend Sections 655820 - 65589.5 of the Government Code to strengthen Housing Element Law and requiring local governments to identify adequate sites and remove zoning barriers for emergency shelters and transitional and supportive housing; and WHEREAS, in 2018, Governor Brown signed Assembly Bill 2162, which specifies that transitional and supportive housing are considered a residential use, and subject to only the restrictions that apply to other residential dwellings in the same zone; and WHEREAS, the current 2019-2028 Housing Element Program HE 3.1 requires that the City amend its Zoning Ordinance to remove unnecessary constraints to the availability of housing for all segments of the population consistent with Senate Bill 2 (SB 2) and Assembly Bill (AB 2162).

WHEREAS, pursuant to Government Code Sections 65854 and 65855, the Planning Commission has the authority to review and make recommendations regarding any amendments to the Anderson Code to the City Council; and WHEREAS, on November 17, 2025, the City of Anderson Planning Commission held a duly noticed public hearing and considered all testimony, information, evidence and recommended that the Anderson City Council adopt the proposed Ordinance amending Sections 17.14 - Rural Estate, 17.15 - Mixed Use, 17.16 - Agriculture, and 17.30 - Natural Resource District as required for compliance with Program HE 3.1 to remove unnecessary constraints to the availability of housing for all segments of the population; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ANDERSON DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. Chapter 17.14 "Rural Estate", Section 17.14.020 "Uses Permitted" of Title 17 "ZONING" of the Anderson Municipal Code is amended to read as follows:

17.14.020 Uses permitted.

The following uses are permitted in the R-E district:

A. Single-family dwellings including private garages, accessory buildings and uses normally incidental to a single-family residence;
B. Agricultural uses; provided that the raising of and keeping of animals is:

1. Conducted by the occupants or lessees of the property, Residential Density Ordinance
page 1 of 8

2. Incidental and accessory to the residential use of the property,

3. In compliance with Section 17.14.045 (number of animals); C. Manufactured housing in accordance with Chapter 17.52; D. Home occupation in accordance with Chapter 17.60;
E. Second units meeting the requirements of Chapter 17.60 of this title.

F. Small family care home (see Section 17.04.350).

G. Supportive and transitional housing as defined by Government Code Sections 65650-65656.

H. Farmworker/employee housing of up to 12 units or 36 beds, as defined by Health and Safety Code Section 17021.6.

Section 2. Chapter 17.15 "Mixed Use", Section 17.15.050 "Allowed Use Regulations" of Title 17 "ZONING" of the Anderson Municipal Code is amended to read as follows:

17.15.050 Allowed use regulations.

The purpose of this section is to list allowed uses according to districts and Downtown zones within the districts. This list is not meant to be exhaustive and does not regulate building character or design, but instead delineates the types of uses allowed within a building. These allowed use regulations are unique to Chapter 17 and are intended to implement the vision of the Anderson General Plan.

Areas within the Downtown area that are zoned C-1 are subject to the applicable regulations in the Zoning Code related to that zoning district. Buildings constructed within Downtown are encouraged to comply with building placement and design standards set forth for the Mixed Use District.

A. Permitted Uses. The following table (Table 17-2) identifies the permitted uses within the Downtown. These allowed use regulations are listed by street type, then by District, as applicable. The uses listed are defined in Section 17.050.B (Definitions of Permitted Uses).

TABLE 17-2: PERMITTED USES
Uses
Attached Single-Family
Residential
Commercial Recreation and
Entertainment
Detached Single-Family
Residential
Institutional/Governmental
Main Service Neighborhood
Street Street Streets

MU-C MU-R
N N N p
C1 p N N
p p p p
p p p C
Residential Density Ordinance
page 2 of 8
Avenues

MU-C MU-R
N N
pl C1
p p
p p
Home Occupation2 p p p p p p
Live/Work Space N p p C N C
Mixed-Use p p p C p C
Multi-Family Residential p3 p3 p3 p p p
Neighborhood Commercial N N N p N p
Offices p3 p p C p p
Retail Commercial pl pl pl N pt pl
Sit-Down Restaurants pt pt pt N pl Cl
Supportive and p p p p p p
Transitional Housing
Notes:

1. Alcohol sales permitted on premises.

2. Subject to Home Occupation standards.

3. Ground floors shall be constructed to accommodate commercial use. Ground floor residential uses may be permitted as interim uses only.

The symbols are defined as: P-Permitted; C-Conditionally Permitted; N-Not Permitted.

B. Definitions of Permitted Uses.

1. Attached Single-Family Residential. A building designed exclusively for occupancy by one family on a single lot that has zero side yard setbacks and shares a party wall with the adjacent building(s) (e.g., townhouse).

2. Commercial Recreation and Entertainment. Establishments providing indoor or outdoor recreation and entertainment services including bars, movie theaters, dance halls, electronic game arcades, bowling alleys, billiard parlors, ice/rolling skating rinks, health clubs.

3. Detached Single-Family Residential. A building designed exclusively for occupancy by one family on a single lot. This classification includes manufactured homes ( defined in California Health and Safety Code Section 18007).

4. Institutional/Governmental. This use includes churches and related facilities, government agency and service facilities (e.g., post office, civic center, police department, fire department), as well as public educational facilities and publicly owned parkland.

5. Home Occupation. The conduct of a business within a dwelling unit or residential site, employing occupants of the dwelling, with the business activity being subordinate to the residential use of the property. Home occupations are typically home office use with a limited number of customers coming to the site. Examples include, but are not limited to, accountants and financial advisors, architects, artists, attorneys, and real estate sales.

Residential Density Ordinance
page 3 of 8

6. Live/Work Unit. An integrated housing unit and working space, occupied and utilized by a single household in a structure, either single-family or multifamily, that has been designed or structurally modified to accommodate joint residential occupancy and work activity, and which includes:
a. Complete kitchen space and sanitary facilities in compliance with the City building code; and
b. Working space reserved for and regularly used by one or more occupants of the unit.
c. The difference between live/work and work/live units is that the "work" component of a live/work unit is secondary to its residential use and may include only commercial activities and pursuits that are compatible with the character of a quiet residential environment, while the work component of a work/live unit is the primary use to which the residential component is secondary.

7. Mixed-Use. Characterized by commercial retail use on the ground floor and office, hotel, or residential uses on the upper floors.

8. Multi-Family Residential. A building designed and intended for occupancy by two or more families living independent of each other, each in a separate dwelling unit, which may be owned individually or by a single landlord (e.g., duplex, triplex, quadplex, apartment, apartment house, condominium).

9. Neighborhood Commercial. A pedestrian-oriented market store oriented to the daily shopping needs of the surrounding residential areas. Neighborhood markets are less than eight thousand square feet in size and operate less than eighteen hours a day. Neighborhood markets may include deli or beverage tasting facilities that are ancillary to the market/grocery portion of the use.

Alcohol sales are allowed for off-site consumption or on-site consumption as part of the beverage tasting facility only.

10. Offices. This use includes businesses providing direct services to consumers (e.g., insurance companies, utility companies), professional offices (e.g., accounting, attorneys, doctors, dentists, employment, public relations), personal services (e.g., barber and beauty shops, shoe repair, tailors), and offices engaged in the production of intellectual property ( e.g., advertising, architectural, computer programming, photography studios).

11. Retail Commercial. Stores and shops selling multiple lines of merchandise.

These stores and lines of merchandise include, but are not limited to, art galleries, bakeries (all production in support of on-site sales), clothing and accessories, collectibles, department stores, drug stores, dry goods, fabrics and sewing supplies, florists and houseplant stores, furniture, home furnishings and equipment, general stores, gift shops, hardware, hobby materials, musical instruments, parts and accessories, newsstands, pet supplies, specialty shops, day spas, sporting goods and equipment, and Residential Density Ordinance
page 4of 8
stationery stores. Thrift stores are allowed with the issuance of a conditional use permit only.

12. Sit-Down Restaurants. A retail business selling food and beverages prepared and/or served on the site, for on-premise consumption where most customers are served food at tables, but may include providing food for takeout. Also includes coffee houses and accessory cafeterias as part of office and industrial uses. Alcohol sales are allowed for on-site consumption only.

13. Supportive Housing. Housing with no limit on length of stay, that is occupied by the target population, and that is linked to an onsite or offsite service that assists the supportive housing resident in retaining the housing, improving their health status, and maximizing their ability to live and, when possible, work in the community as defined by California Government Code Section 65582.

14. Transitional Housing. Buildings configured as rental housing developments but operated under program requirements that require the termination of assistance and recirculating of the assisted unit to another eligible program recipient at a predetermined future point in time that shall be no less than six months from the beginning of the assistance as defined by California Government Code Section 65582.

C. Prohibited Uses. Regardless of zoning designation, unless it is found that the use is compatible with a mixed-use development, the following uses shall be prohibited:

1. Adult-oriented business;

2. Agriculture and commercial nursery;

3. Commercial cleaning plant;

4. Boat, trailer, and vehicle (including parts) sales, service, storage and garages except along West Center and Douglas streets;

5. Camp and trailer park;

6. Carwash;

7. Drive-in/drive-through restaurants;

8. Equipment rental and sales yard;

9. Fuel dealers;

10. Laundry, commercial plant;

11. Recycling center and recyclable material collection facility;

12. Service station; 13. Thrift store. Defined as a shop where more than fifty percent of the sales inventory is used articles except as provided in Section

17.15.050(8) 11.

14. Uses involving hazardous materials or generating high level of noise incompatible with residential uses;
Residential Density Ordinance
page 5 of 8

15. The planning director may deem additional uses to be prohibited based on a finding that the use is similar in nature, function, and operation to the prohibited uses listed in this subsection.

Section 3. Chapter 17.16 "Agriculture", Section 17.16.020 "Uses permitted" and Section

17.16.030 "Uses permitted subject to a use permit" of Title 17 "ZONING" of the Anderson Municipal Code is amended to read as follows:

17.16.020 Uses permitted.

A. Single-family dwellings, including private garages, accessory buildings and uses normally incidental to single-family residence;

8. Agricultural uses and accessory buildings, except as listed in Section 17.16.030; C. Sale of products grown on the premises including a roadside stand of not more than two hundred fifty square feet in gross floor area;
D. Wholesale nurseries or greenhouses of not more than one thousand square feet gross floor area;
E. Home occupation as provided in Chapter 17.60;
F. Second units meeting the requirements of Chapter 17.60 of this title; G. Farmworker/employee housing of up to 12 units or 36 beds, as defined by Health and Safety Code Section 17021.6.

H. Supportive and transitional housing as defined by Government Code Sections 65650- 65656.

17.16.030 Uses permitted subject to a use permit.

The following uses are permitted subject to obtaining a use permit:

A. Group foster home;

8. Dog kennels;
C. Fowl, frog or fur farms;
D. Processing, packing, washing, sorting facility for agricultural products; E. Commercial cattle and hog feed lots; auction and sales yard; F. Riding stable or riding academy;
G. Bed and breakfast guest facility;
H. Roadside sales stands or buildings larger than those provided in subsection C. of Section 17.16.020.

I. Wholesale nurseries or greenhouses larger than those provided in subsection D. of Section 17.16.020.

Residential Density Ordinance
page 6 of 8
Section 4. Chapter 17.30 "Natural Resource District", Section 17.15.020 "Uses permitted" of Title 17 "ZONING" of the Anderson Municipal Code is amended to read as follows:

17.30.020 Uses permitted.

A. Habitat improvement, flood control or open space uses as approved by the Department of Fish and Game;
B. Low intensity recreational uses which require only minor improvements, such as a hunting or fishing club;
C. Agricultural uses and their accessory buildings when conducted with trees and major vegetation kept in a natural state, such as grazing;
D. Single-family dwellings, including private garages, accessory buildings and uses normally incidental to single-family residence;
E. Home occupation as provided in Chapter 17.56.

F. Farmworker /employee housing of up to 12 units or 36 beds, as defined by Health and Safety Code Section 17021.6.

G. Supportive and transitional housing as defined by Government Code Sections 65650- 65656.

Section 5.

If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this Ordinance, or its application to any person or circumstance. The City Council of the City of Anderson hereby declares that it would have adopted each section, subsection subdivision paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more other sections, subsections subdivisions paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable.

Section 6.

The City of Anderson finds that this Ordinance update is exempt from the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.085, which exempts CEQA review for zoning ordinance amendments that implement programs contained within an approved Housing Element.

Section 7.

The City Clerk shall certify to the adoption of this ordinance and shall cause it to be posted and/or published in accordance with the law.

The foregoing ordinance was introduced at a regular meeting of the City Council of the City of Anderson held on the 3rd day of February 2026, and enacted at a regular meeting of the City Council of the City of Anderson held on the 17th day of February 2026, by the following vote:

Residential Density Ordinance
page 7 of 8
AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST:

CHRISTY WHITE, City Clerk
DAN GALLIER, Mayor
Residential Density Ordinance
page 8of 8

AGENDA ITEM
!February 17, 2026 City Council Meetin~
Lisa Lozier, Senior Planner
To: Honorable Mayor and Members of the Anderson City Council Through: Joey Forseth~Deshais, City Manager
From: Lisa Lozier, Senior Planner
Date: February 17, 2026
!SUBJECT
Zone Amendment (ZA) 25-04 to update Chapter 17.02 - General Provisions as required by Housing Element Program HE 3.2: Continue to Expedite Applicants for Residential Development

I RECOMMENDATION
Adopt Ordinance No 869 amending Chapter 17.02 of the Anderson Municipal Code regarding Continue to Expedite Applications for Residential Development as introduced on February 3, 2026 (first reading).

I FISCAL IMPACT
There is no fiscal impact.

I DISCUSSION and BACKGROUND
In May 2025, the California Department of Housing and Community Development (HCD) requested that the City of Anderson provide additional information to demonstrate compliance with state housing law, including Housing Element Program HE 3.2 (Continue to Expedite Applicants for Residential Development). To address this requirement, City staff have prepared amendments to Section 17.02 to bring it into alignment with current State Law, Government Code Section 65913.4.

ITEM 6.8d PAGE1 2/17/2026
California Senate Bill 35 (SB 35) establishes a streamlined, ministerial approval process for qualifying housing developments through Government Code Section 65913.4. Under SB 35, projects that meet specified criteria must be processed ministerially and are not subject to conditional use permits or other discretionary reviews. The City's review is limited to applying objective zoning, design, and subdivision standards that are in effect at the time a complete Notice of Compliance is submitted.

The current version of Anderson Municipal Code (AMC) Section 17.02 - General Provisions was codified in 1987 through Ordinance No. 515. During the review and update of the 6th Cycle Housing Element (2019-2028), the City determined it was appropriate to amend AMC Section 17.02 to encourage pre-application meetings to expedite permit processing for housing development and to incorporate provisions reflecting SB 35. Zone Amendment (ZA 25-04) proposes to update AMC Section 17.02 to align with the requirements of California Government Code§ 65913.4.

Key Aspects of SB 3 5 Streamlined Ministerial Approval Process:
• Streamlined Ministerial Approval: Project meeting SB 35 criteria are processed ministerially, meaning they do not require discretionary permitting approvals such as conditional use permits or design review hearings.
• The California Environmental Quality Act (CEQA): CEQA does not apply to SB 35 projects.
• Objective Standards Still Apply: The City can still check proposed SB 35 projects for compliance with the City's objective standards.
• Processing Times: The City must determine whether a project is eligible for SB 35 within 60 days for projects of 150 units or fewer, and 90 days for projects of more than 150 units. Once a project is deemed eligible, the City must complete its ministerial review within 90 days of application submittal for projects of 150 units or fewer, and within 180 days for projects of more than 150 units.

To be eligible for an SB 35, a project must comply with the following requirements:
• Minimum Affordable Units: At least 50% of the total units must be restricted for low- or very low-income housing for a period of no less than 55 years. • Urban Infill: The property must be in an urban area ( services already available), with 75% of the site's perimeter already developed.
• Minimum Units: At least two residential units must be proposed. • Designated Residential Use: The City's current general plan and zoning designation must allow residential or residential mixed-use with at least two-thirds of the proposed development footprint designated for residential use.

ITEM 6.8d PAGE2 2/17/2026
• Location: The development cannot be located on property within any of the following areas:
o Very or very high fire hazard severity zone;
o Delineated earthquake fault zone;
o Habitat for protected species or wetlands;
o Farmland (prime/statewide significance);
o Under a conservation easement;
o Flood plain/floodway; and
o Hazardous waste site.

No Displacement: SB 35 projects cannot demolish or displace existing affordable housing.

Proposed Amendments To Chapter 17.02:

The following list includes a summary of the proposed revisions by subsection for Chapter

17.02. • 17.02.155: Describes the purpose of pre-application meetings for proposed development and specifies that the City will promptly schedule meetings upon request to help expedite the processing of development projects. • 17.02.160: This new section provides that housing projects eligible for SB 35 may receive an Administrative Use Permit if they comply with the City's objective zoning, subdivision, and design standards. It sets the legally required review timelines to ensure projects are processed efficiently and, if the City does not respond in time, projects are deemed approved. In all cases, California Government Code §65913.4 prevails over any conflicting local standards.

At its November 17th, 2025, meeting, after careful consideration and review, the Planning Commission approved and adopted P.C. Resolution No. 25-09.

Environmental Determination:

The City of Anderson finds that this Ordinance update is exempt from the California Environmental Quality Act (CEQA) pursuant to Public Resources Code section 21080.085, which exempts CEQA review for zoning ordinance amendments that implement programs contained within an approved Housing Element.

PUBLIC NOTICE:

A 20-day public hearing notice of the subject project was published in the RecordSearchlight and in accordance with notice requirements provided in AMC Section

17.54.040 - Zoning Amendments and Government Code Section 65854, requiring a 20-day hearing. The Planning Department received no public comments on the project at the time of this report.

I ATTACHMENTS
Ordinance
ITEM 6.8d PAGE3 2/17/2026
ORDINANCE NO. 869

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANDERSON AMENDING CHAPTER 17.02 (GENERAL PROVISIONS) TO ESTABLISH A STREAMLINED MINISTERIAL APPROVAL PROCESS FOR SB 35 ELIGIBLE PROJECTS WHEREAS, in September 2017, Governor Brown signed Senate Bill No. 35 (SB 35), amending Government Code Sections 65400 and 65582.1 of, and to add and repeal Section 65913.4 to require cities and counties to streamline the review and approval process of certain affordable housing projects; and
WHEREAS, the current 2019-2028 Housing Element Program HE 3.2 requires that the City amend its Zoning Ordinance to encourage pre-application meetings to expedite permit processing for housing development and to comply with Government Code Section 65913.4 to establish a streamlined ministerial process for certain affordable housing projects; and WHEREAS, on November 17, 2025, the City of Anderson Planning Commission held a duly noticed public hearing and considered all testimony, information, evidence and recommended that the Anderson City Council adopt the proposed Ordinance amending Chapter 17.02 in compliance with SB 35; and
WHEREAS, through this ordinance, the City Council seeks to amend Chapter 17- Zoning to add Chapters 17.70 and 17.71 the Anderson Municipal Code to ensure compliance with the requirements of SB 9.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ANDERSON DOES ORDAIN AS FOLLOWS:

Section 1. Chapter 17.02 - "GENERAL PROVISIONS" of Title 17 "Zoning" be amended to add Code Sections 17.02.155 "Pre-application meeting" and 17.02.160 "Infill housing projects eligible for streamlined, ministerial approval process under Government Code section 65913.4 (otherwise known as SB 35 projects)" to the Anderson Municipal Code to read as follows:

17.02.155 Pre-application meeting
Pre-application meetings provide prospective applicants with an opportunity to discuss a proposed project with Planning staff regarding applicable city requirements, the review process, required submittals, and potential incentives. Meetings shall be scheduled promptly upon request, and nothing in this section prohibits a developer from requesting a meeting at any time. The City Council may establish fees for pre-application meetings by resolution.

17.02.160 Infill housing projects eligible for streamlined, ministerial approval process under Government Code section 65913.4 (otherwise known as SB 35 projects)
SB 35 Permit Streamlining
page 1 of 3
A. Administrative use permit. A housing project, including a mixed-use project, will be granted an administrative use permit if it:

1. Qualifies for streamlined, ministerial approval under California Government Code section 65913.4;

2. Complies with the city's objective zoning standards and objective subdivision standards, as defined in California Government Code section 65913.4 and set forth in this code; and

3. Complies with the city's objective design review standards, as defined in California Government Code section 65913.4.

B. Conflicting laws. In the case of a conflict between the city's standards set forth in subsection A above and the standards set forth in California Government Code section 65913.4, the provisions of the California Government Code prevail.

C. Notification of compliance with the standards. If the city determines a project submitted under this section conflicts with any of the requirements set forth in subsection A above, it shall inform the applicant, in writing, of the requirement or requirements the project conflicts with, along with an explanation of all conflicts, in the following timeframes:

1. Within 60 days of submittal of the application if the project contains 150 or fewer dwelling units; or

2. Within 90 days of submittal of the application if the project contains more than 150 dwelling units.

D. Deemed approval. If the city does not provide written notice as required by subsection C above, the project will be deemed to satisfy the requirements specified in subsection A above and must be granted an administrative use permit.

E. Establishment and expiration of the permit. Section 17.50.070 governs the establishment and expiration of an administrative use permit granted under this section, except when that section conflicts with subdivision (f) of California Government Code section 65913.4, in which case the provisions of the California Government Code prevail.

SECTION 2. Severability
If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this Ordinance, or its application to any person or circumstance. The City Council of the City of Anderson hereby declares that it would have adopted each section, subsection subdivision paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more other sections, subsections subdivisions paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable.

SB 35 Permit Streamlining
page 2 of 3
SECTION 3. Environmental Determination
The City of Anderson finds that this Ordinance update is exempt from the California Environmental Quality Act (CEQA) pursuant to Public Resources Code section 21080.085, which exempts CEQA review for zoning ordinance amendments that implement programs contained within an approved Housing Element.

SECTION 4
The City Clerk shall certify to the adoption of this ordinance and shall cause it to be posted and/or published in accordance with the law.

The foregoing ordinance was introduced at a regular meeting of the City Council of the City of Anderson held on the 3rd day of February 2026, and enacted at a regular meeting of the City Council of the City of Anderson held on the 17th day of February 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST:

CHRISTY WHITE, City Clerk
DAN GALLIER, Mayor
SB 35 Permit Streamlining
page 3 of 3

AGENDA ITEM
!February 17, 2026 City Council Meetin~
Approved for Submittal By:

T
To: Honorable Mayor and Members of the Anderson City Council Through: Joey Forseth-Deshais, City Manager
From: Lisa Lozier, Senior Planner
Date: February 17, 2026

I SUBJECT
Zone Amendment (ZA) 25-05 to update Chapter 17.15 - Mixed Use as required by Housing Element Program HE 6.2: Homeless Services

I RECOMMENDATION
Adopt the CEQA determination and adopt Ordinance No 870 amending Chapter 17.15 of the Anderson Municipal Code regarding the Homeless Services as introduced February 3, 2026 (first reading).

I FISCAL IMPACT
There is no fiscal impact.

I DISCUSSION and BACKGROUND
In May 2025, the California Department of Housing and Community Development (HCD) requested that the City of Anderson provide additional information to demonstrate compliance with state housing law, including Housing Element Program HE 6.2 (Homeless Services). To address this requirement, City staff have prepared amendments to Section

17.15 to align it with the current State Housing Law, Government Code Sections 65660- 65666.

ITEM 6.8e PAGE1 2/17/2026
California Assembly Bill 101 (AB 101) establishes Low Barrier Navigation Center development by right in areas zoned for mixed use and nonresidential zones permitting multifamily uses. AB 101 defines Low Barrier Navigation Center as a Housing First, lowbarrier, service-enriched shelter focused on moving people into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing. Under AB 101, projects that meet specified criteria must be processed ministerially and are not subject to conditional use permits or other discretionary reviews.

The current version of the Anderson Municipal Code (AMC) Section 17.15 - Mixed Use was codified in 2009 through Ordinance No. 757. During the review and update of the 6th Cycle Housing Element (2019-2028), the City determined it was appropriate to amend AMC Section 17.15 to allow Low Barrier Navigation Centers by right and to incorporate provisions reflecting AB 101. Zone Amendment (ZA 25-05) proposes to update AMC Section 17.15 to align with the requirements of California Government Code Sections 65660-65666.

Key Aspects of AB 101 Low Barrier Navigation Center development:
• Ministerial Approval: Project meeting AB 101 criteria are processed ministerially, meaning they do not require discretionary permitting approvals such as conditional use permits or design review hearings.
• The California Environmental Quality Act (CEQA): CEQA does not apply to an action taken by a public agency to lease, convey, or encumber land owned by a public entity or to facilitate the lease, conveyance, or encumbrance of land owned by a public agency, or to provide financial assistance to, or otherwise approve, a Low Barrier Navigation Center constructed. Additionally, Low Barrier Navigation Center developments, under certain circumstances, would expand the exemption for the ministerial approval of projects under CEQA.
• Objective Standards Still Apply: The City can still check proposed Low Barrier Navigation Center projects for compliance with the City's objective standards. • Processing Times: AB 101 establishes processing timelines to help streamline the review process. Within 30 days of receiving an application for a Low Barrier Navigation Center development, the City shall notify the applicant whether the application is complete. Within 60 days of receiving a completed application, the City shall take action on the application.

To be eligible for a Low Barrier Navigation Center development, a project must comply with the following requirements per California Government Code Section 65662:
• It provides services designed to connect individuals to permanent housing through a services plan that identifies staffing and the types of services offered.

ITEM 6.8e PAGE2 2/17/2026
• It is linked to a coordinated entry system, allowing staff at the facility or staff collocated there to conduct assessments and connect participants to permanent housing. For purposes of this requirement, a coordinated entry system is a centralized or coordinated assessment system and related procedures that manage participant intake, assessment, and referrals.
• It complies with Chapter 6.5 ( commencing with Section 8255) of Division 8 of the Welfare and Institutions Code.

It maintains a system for recording information on client stays, demographics, income, and exit destinations through the local Homeless Management Information System.

Proposed Amendments To Chapter 17.15:

The following list summarizes the proposed revisions by subsection for Chapter 17.15. • 17.15.050 • Amends Table 17-2: Permitted Uses to include Low Barrier Navigation Center as permitted uses in all areas within the Mixed-Use District. • 17.15.050(B)(9) - Provides a definition of Navigation Centers consistent with Government Code Section 65660, "'Low Barrier Navigation Center' means a Housing First, low-barrier, service-enriched shelter focused on moving people into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing. A Low Barrier Navigation Center may be noncongregate and relocatable." • 17.15.080 - This new section provides definitions, requirements, and application procedures for Low Barrier Navigation Centers consistent with Government Code Sections 65660-65666.

At its December 15th, 2025, meeting, after careful consideration and review, the Planning Commission approved and adopted P.C. Resolution No. 25-11.

Environmental Determination:

The City of Anderson finds that this Ordinance update is exempt from the California Environmental Quality Act (CEQA) pursuant to Public Resources Code section 21080.085, which exempts CEQA review for zoning ordinance amendments that implement programs contained within an approved Housing Element.

PUBLIC NOTICE:

A 20-day public hearing notice of the subject project was published in the Record Searchlight and in accordance with notice requirements provided in AMC Section

17.54.040 - Zoning Amendments and Government Code Section 65854, requiring a 20-day hearing. The Planning Department received no public comments on the project at the time of this report.

I ATTACHMENTS
Ordinance
ITEM 6.8e PAGE3 2/17/2026
ORDINANCE NO. 870

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANDERSON AMENDING CHAPTER 17.15 (MIXED USE) TO ALLOW LOW BARRIER NAVIGATION CENTER

DEVELOPMENT BY RIGHT
WHEREAS, in September 2019, Governor Brown signed Assembly Bill No. 101 (AB 10~), amending Government Code Sections 65660-65666 to require cities and counties to allow Low Barrier Navigation Center development by right in areas zoned for mixed use and nonresidential zones permitting multifamily uses; and
WHEREAS, the current 2019-2028 Housing Element Program HE 6.2 requires that the City amend its Zoning Ordinance to allow Low Barrier Navigational Centers development as a use by right in areas zoned for mixed uses, provided it meets the specified requirements; and WHEREAS, pursuant to Government Code Sections 65854 and 65855, the Planning Commission has the authority to review and make recommendations regarding any amendments to the Anderson Code to the City Council; and WHEREAS, on December 15, 2025, the City of Anderson Planning Commission held a duly noticed public hearing and considered all testimony, information, evidence and recommended that the Anderson City Council adopt the proposed Ordinance amending Chapter 17.15 in compliance with AB 101; and
WHEREAS, through this ordinance, the City Council seeks to amend Anderson Municipal Code Section 17.15.050 and add Section 17.15.080 to ensure compliance with the requirements of Assembly Bill (AB) 101 and consistent with Government Code Sections 65660-65666.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ANDERSON DOES ORDAIN AS FOLLOWS:

SECTION 1. Chapter 17.15 - "MIXED USE DISTRICT" of Title 17 "Zoning" amended to update Section 17.15.050 "Table 17-2: Permitted Uses", Update Section 17.15.050(8) "Definitions of Permitted Uses" and add Code Section 17.15.080 "Low Barrier Navigation Center" to Read as follows:

Section 17.15.050 Allowed use regulations.

TABLE 17-2: PERMITTED USES
Uses Main Service Neighborhood
Street Street Streets

MU-C MU-R
Attached Single-Family N N N p
Residential
Ordinance Update Chapter 17.15 - Mixed Use
page 1 of 6
Avenues

MU-C MU-R
N N
Commercial Recreation and c1 p N N pt C1
Entertainment
Detached Single-Family p p p p p p
Residential
Institutional/Governmental p p p C p p
Home Occupation2 p p p p p p
Live/Work Space N p p C N C
Mixed-Use p p p C p C
Multi-Family Residential p3 p3 p3 p p p
Navigation Centers p p p p p p
Neighborhood Commercial N N N p N p
Offices p3 p p C p p
Retail Commercial pt pt pl N pl pt
Sit-Down Restaurants pt pt pt N pt Cl
Supportive and p p p p p p
Transitional Housing
Section 17.15.050
B) Definitions of Permitted Uses.

1. Attached Single-Family Residential. A building designed exclusively for occupancy by one family on a single lot that has zero side yard setbacks and shares a party wall with the adjacent building(s) (e.g., townhouse).

2. Commercial Recreation and Entertainment. Establishments providing indoor or outdoor recreation and entertainment services including bars, movie theaters, dance halls, electronic game arcades, bowling alleys, billiard parlors, ice/rolling skating rinks, health clubs.

3. Detached Single-Family Residential. A building designed exclusively for occupancy by one family on a single lot. This classification includes manufactured homes (defined in California Health and Safety Code Section 18007).

4. Institutional/Governmental. This use includes churches and related facilities, government agency and service facilities (e.g., post office, civic center, police department, fire department), as well as public educational facilities and publicly owned parkland.

5. Home Occupation. The conduct of a business within a dwelling unit or residential site, employing occupants of the dwelling, with the business activity being subordinate to the residential use of the property. Home occupations are typically home office use with a limited number of customers coming to the site. Examples include, but are not limited to, accountants and financial advisors, architects, artists, attorneys, and real estate sales.

Ordinance Update Chapter 17.15 - Mixed Use
page 2 of 6

6. Live/Work Unit. An integrated housing unit and working space, occupied and utilized by a single household in a structure, either single-family or multifamily, that has been designed or structurally modified to accommodate joint residential occupancy and work activity, and which includes:
a. Complete kitchen space and sanitary facilities in compliance with the City building code; and
b. Working space reserved for and regularly used by one or more occupants of the unit.
c. The difference between live/work and work/live units is that the "work" component of a live/work unit is secondary to its residential use and may include only commercial activities and pursuits that are compatible with the character of a quiet residential environment, while the work component of a work/live unit is the primary use to which the residential component is secondary.

7. Mixed-Use. Characterized by commercial retail use on the ground floor and office, hotel, or residential uses on the upper floors.

8. Multi-Family Residential. A building designed and intended for occupancy by two or more families living independent of each other, each in a separate dwelling unit, which may be owned individually or by a single landlord ( e.g., duplex, triplex, quadplex, apartment, apartment house, condominium).

9. Navigation Centers. "Low Barrier Navigation Center" means a Housing First, low-barrier, service-enriched shelter focused on moving people into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing. A Low Barrier Navigation Center may be non-congregate and relocatable as defined by Government Code Section 65660.

10. Neighborhood Commercial. A pedestrian-oriented market store oriented to the daily shopping needs of the surrounding residential areas. Neighborhood markets are less than eight thousand square feet in size and operate less than eighteen hours a day. Neighborhood markets may include deli or beverage tasting facilities that are ancillary to the market/grocery portion of the use.

Alcohol sales are allowed for off-site consumption or on-site consumption as part of the beverage tasting facility only.

11. Offices. This use includes businesses providing direct services to consumers (e.g., insurance companies, utility companies), professional offices (e.g., accounting, attorneys, doctors, dentists, employment, public relations), personal services ( e.g., barber and beauty shops, shoe repair, tailors), and offices engaged in the production of intellectual property ( e.g., advertising, architectural, computer programming, photography studios).

Ordinance Update Chapter 17.15 - Mixed Use
page 3 of 6

12. Retail Commercial. Stores and shops selling multiple lines of merchandise.

These stores and lines of merchandise include, but are not limited to, art galleries, bakeries (all production in support of on-site sales), clothing and accessories, collectibles, department stores, drug stores, dry goods, fabrics and sewing supplies, florists and houseplant stores, furniture, home furnishings and equipment, general stores, gift shops, hardware, hobby materials, musical instruments, parts and accessories, newsstands, pet supplies, specialty shops, day spas, sporting goods and equipment, and stationery stores. Thrift stores are allowed with the issuance of a conditional use permit only.

13. Sit-Down Restaurants. A retail business selling food and beverages prepared and/or served on the site, for on-premise consumption where most customers are served food at tables, but may include providing food for takeout. Also includes coffee houses and accessory cafeterias as part of office and industrial uses. Alcohol sales are allowed for on-site consumption only.

14. Supportive Housing. Housing with no limit on length of stay, that is occupied by the target population, and that is linked to an onsite or offsite service that assists the supportive housing resident in retaining the housing, improving their health status, and maximizing their ability to live and, when possible, work in the community as defined by California Government Code Section 65582.

15. Transitional Housing. Buildings configured as rental housing developments, but operated under program requirements that require the termination of assistance and recirculating of the assisted unit to another eligible program recipient at a predetermined future point in time that shall be no less than six months from the beginning of the assistance as defined by California Government Code Section 65582.

17.15.080 Low Barrier Navigation Center
A. Purpose and Intent. The purpose of this section is to allow operation of low barrier navigation centers to help people in need of housing that are temporarily homeless and to implement the provisions of Government Code Section 65660 relating to low barrier navigation centers.

B. Definitions. For purposes of this section, the following definitions shall apply, as defined by Government Code Section 65660.

1. Coordinated entry system. A centralized or coordinated assessment system developed pursuant to the applicable provisions of the Code of Federal Regulations as specified in Government Code Section 65662, and any related requirements, designed to coordinate program participant intake, assessment, and referrals.

2. Low Barrier. Best practices to reduce barriers to entry, and may include, but is not limited to, the following:

Ordinance Update Chapter 17.15- Mixed Use
page 4of 6
a. The presence of partners if it is not a population-specific site, such as for survivors of domestic violence or sexual assault, women, or youth.
b. Pets.
c. The storage of possessions.
d. Privacy, such as partitions around beds in a dormitory setting or in larger rooms containing more than two beds, or private rooms.

C. Requirements. A Low Barrier Navigation Center shall meet the following requirements:

1. It offers services to connect people to permanent housing through a services plan that identifies services staffing.

2. It is linked to a coordinated entry system, so that staff in the interim facility or staff who colocate in the facility may conduct assessments and provide services to connect people to permanent housing.

3. It complies with Chapter 6.5 ( commencing with Section 8255) of Division 8 of the Welfare and Institutions Code.

4. It has a system for entering information regarding client stays, client demographics, client income, and exit destination through the local Homeless Management Information System as defined by Section 578.3 of Title 24 of the Code of Federal Regulations.

D. Application Procedure and Review.

1. Within 30 days of receipt of an application for a Low Barrier Navigation Center development, the local jurisdiction shall notify a developer whether the developer's application is complete pursuant to Section 65943.

2. The city shall act within 60 days of receipt of a completed application.

SECTION 2. Severability
If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this Ordinance, or its application to any person or circumstance. The City Council of the City of Anderson hereby declares that it would have adopted each section, subsection subdivision paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more other sections, subsections subdivisions paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable.

Ordinance Update Chapter 17.15- Mixed Use
page S of 6
SECTION 3. Environmental Determination
The City of Anderson finds that this Ordinance update is exempt from the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.085, which exempts CEQA review for zoning ordinance amendments that implement programs contained within an approved Housing Element.

SECTION 4. The City Clerk shall certify to the adoption of this ordinance and shall cause it to be posted and/or published in accordance with the law.

The foregoing ordinance was introduced at a regular meeting of the City Council of the City of Anderson held on the 3rd day of February 2026, and enacted at a regular meeting of the City Council of the City of Anderson held on the 17th day of February 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

DAN GALLIER, Mayor
ATTEST:

CHRISTY WHITE, City Clerk
Ordinance Update Chapter 17 .15 - Mixed Use
page 6 of 6

AGENDA ITEM
I February 17, 2026, City Council Meetina
Adam Whelen, Public Works Director
To:

Through:

Honorable Mayor and Members of the Anderson City Council Joey Forseth-Deshais, City Manager
From: Adam Whelen, Public Works Director
Date: February 17, 2026
lsueJECT
California Building Standards Code

I RECOMMENDATION
Adopt Ordinance No 871 revising the Anderson Municipal Code Chapter 15 and adopting by reference the 2025 Edition of the California Building Standards Code as introduced on February 3, 2026 {first reading).

I FISCAL IMPACT
The adoption of the 2025 California Building Codes will have no fiscal impact.

I DISCUSSION and BACKGROUND
In January 2026, the State Building Standards Commission adopted the 2025 California Building Standards Code (CBSC) with State amendments. It was published in July 2025 and became effective throughout the State in January 2026.

Building Codes are typically updated every three years and adopted by the State with amendments. The State mandates through the Health and Safety Code that the CBSC be enforced by local jurisdictions. Local jurisdictions may not adopt lesser construction standards than those ITEM 6.10 PAGE1 2/17/2026
mandated by the State; however, they may adopt more stringent standards when based on findings of fact for climatic, geographical, or topographical reasons.

The three-year cycle is now complete, and the California Building Standards Commission has revised and published the 2025 California Building Standards Code. Jurisdictions throughout the state are required to adopt the 2025 CBSC.

Although the 2025 CBSC will entail many changes in the way buildings and structures are constructed, staff does not recommend additional modifications to the code.

I ATTACHMENT

1. Ordinance
ITEM 6.10 PAGE2 2/17/2026
ORDINANCENO. 871

AN ORDINANCE OFTHECITYCOUNCILOFTHECITYOF ANDERSON
REPEALING AND REENACTING CERTAINCHAPTERSANDSECTIONS OF CHAPTER 15 OF THE ANDERSON MUMCIPAL CODE, ADOPTING BY REFERENCE THE 2025 EDITION OFTHE

CALIFORNIA BUILDING STANDARDS CODE, KNOWN AS THE CALIFORNIA CODE OF REGULATIONS, TITLE24
The City Council of the City of Anderson does ordain as follows:

SECTION 1-REPEAL
Sections 15.02.020, 15.02.025, and 15.20.010 of the Anderson Municipal Code are hereby repealed in their entirety.

SECTION 2 -PURPOSE AND AUTHORITY
The purpose of this ordinance is to adopt by reference the 2025 edition of the California Building Standards Code, Title 24 of the California Code of Regulations, subject to the definitions, clarifications, and amendments set forth in this ordinance. The purpose of this ordinance is also to provide minimum requirements and standards for the protection of the public safety, health, property, and welfare of the City of Anderson. This ordinance is adopted under the authority of California Government Code Section 5002 2.2 and California Health and Safety Code Section 18941.5.

SECTION 3-BUILDING CODE
Section 15.02.020 of the Anderson Municipal Code is enacted to read:
"15.02.020 Adoption of Uniform Codes.

The 2025 California Building Standards Code, Title 24 of the California Code of Regulations, including all parts, appendices, and standards as adopted and amended by the California Building Standards Commission, is hereby adopted by reference and incorporated into this Code, except as expressly amended or superseded by the provisions of this Chapter.

A copy of the California Building Standards Code is on file in the office of the Building Official for examination and use by the public.

Ordinance No.

SECTION 4-rnAI7fER1,BUILDINGCODE
Section 15.02.025 of the Anderson Municipal Code is hereby reenacted to read:
"As provided for in Section 15.02.020, the city adopts Chapter 1 of the 2025 Edition of the California Building Code, based upon the 2025 International Building Code, in its entirety." SECTION 5 - FIRE CODE
Section 15.20.010 of the Anderson Municipal Code is enacted to read:
"The 2025 Edition of the California Fire Code, based upon the 2025 International Fire Code, as published by the International Code Council, as amended and adopted by the California Building Standards Commission in the California Building Standards Code, Part 9, Title 24 of the California Code of Regulations, and the accompanying non-building and administrative regulations, are hereby adopted by reference." A copy of said code is on file in the office of the Building Official for examination and use by the public.

SECTION 6 ~ SEVERABILITY
The provisions of this ordinance are severable, and the invalidity, unenforceability or unconstitutionality of any section, portion or part of this ordinance shall not affect the validity of the remainder of the ordinance.

SECTION 7 -CEQA
The City Council hereby finds and determines that it can be seen with certainty that there is no possibility that this ordinance may have a significant adverse effect on the environment, since it adopts updated building and safety standards, which the City had previously adopted in substantial form. Thus, the adoption of this ordinance is exempt from the requirements of the California Environmental Quality Act ("CEQA") pursuant to Section 15061(b)(3) of the CEQA Guidelines.

SECTION 8 • EFFECTIVE DATE AND SUMMARY PUBLICATION
This Ordinance shall be published in the Record Searchlight, a newspaper of general Ordinance No.

circulation in the City of Anderson, in the manner provided by Section 36933 of the Government Code of the State of California, and shall be effective thirty (30) days after its passage.

The foregoing ordinance was introduced at a regular meeting of the City Council of the City of Anderson on February 3 rd, 2026, and enacted at a regular meeting of the City Council of the City of Anderson held on February 17, 2026, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Dan Gallier, Mayor of the City of Anderson
ATTEST:

Christy White, City Clerk

AGENDA ITEM
Council Meetin
Joe
To: Honorable Mayor and Members of the Anderson City Council From:

Date:
!SUBJECT
Joey Forseth-Deshais, City Manager
February 17, 2026
Cost Recovery Policy for Anderson Parks and Recreation Programs !RECOMMENDATION
Staff recommends that the City Council:

1. Receive a Staff Report;

2. Receive Public Comment;

3. Provide direction for changes to the Recreation Cost Recovery Policy or adopt the policy in its current form.

I FISCAL IMPACT
Adoption of the Cost Recovery Policy is expected to improve cost recovery for Parks and Recreation programs over time while maintaining affordability and access for the community. The policy establishes an overall cost recovery target of 50% for recreation programs, with adjusted targets for specific services such as aquatics. Updated program fees associated with this policy will increase revenue to better offset direct program costs and partially reduce reliance on the General Fund. Some programs and community events will continue to operate below cost recovery or at no cost where significant public benefit is provided.

ITEM 8.3 PAGE1 2/17/2026
I DISCUSSION and BACKGROUND
The Parks and Recreation Department provides a wide range of programs, classes, events, and amenities that serve community needs. Rising personnel costs, materials, and operational expenses, combined with fluctuating participation levels, make it increasingly important to evaluate how programs are funded and priced.

The proposed Cost Recovery Policy establishes clear targets and expectations for how recreation programs should balance user fees with public subsidy. Rather than requiring each individual program to meet a fixed recovery rate, the policy sets an overall departmental target, allowing flexibility to price programs based on market conditions, community need, and accessibility.

Key elements of the policy include:
• Establishing a 50% overall cost recovery target for recreation programs based on direct costs.
• Applying a standardized 15% administrative fee to partially offset overhead costs. • Recognizing free and community-wide events as exempt from cost recovery expectations.
• Allowing flexibility for new and pilot programs to operate below target during initial offerings.
• Establishing lower cost recovery goals for aquatics due to public safety, accessibility, and community benefit.
• Providing guidance for contract classes, vendor fees, and special programs such as the Community Bench Program.

The policy also formalizes an evaluation process to review program performance annually and provides staff with direction on when fee adjustments, program modifications, or discontinuation should be considered.

Historically, Parks and Recreation program fees have been adjusted on a case-by-case basis without a formally adopted cost recovery framework. Changes in wages, operational costs, and participation trends have made it increasingly difficult to maintain consistency and transparency in how fees are established.

The Cost Recovery Policy was developed to:
• Create a clear, equitable approach to setting and adjusting recreation fees. • Ensure programs remain financially responsible.
• Provide staff with guidance during annual fee reviews and budget development. • Align recreation funding decisions with the City's broader fiscal goals and community values.

Adopting this policy provides a foundation for consistent decision-making, clearer communication with the public, and long-term sustainability of Parks and Recreation services.

ITEM 8.3 PAGE2 2/17/2026
!ATTACHMENT

1. Cost Recovery Policy for the Recreation Department

2. Current and Proposed Fees with Market Comparisons

3. Cost Recover Analysis of Current and Proposed Fees
ITEM 8.3 PAGE3 2/17/2026

CITY OF ANDERSON

ADMINISTRATIVE POLICY AND PROCEDURE MANUAL
SUBJECT: COST RECOVERY POLICY FOR THE RECREATION DEPARTMENT APPROVED:

NUMBER:

EFFECTIVE DATE:

AUTHORITY:

SUPERSEDES: ALL PREVIOUS WRITTEN AND VERBAL DIRECTION

BACKGROUND
The City of Anderson's Parks and Recreation Department offers a variety of programs and events to the community. Changes in wages and participation rates directly affect the cost of providing these programs. In order to maintain a cost-recovery ratio that is reasonable, and within budgeted funds, flexibility is needed to make adjustments as needed.

PURPOSE
The purpose of this policy is to establish cost recovery targets for services provided by the Anderson Parks and Recreation Department and to define a consistent methodology for calculating cost recovery levels moving forward. These targets provide clear guidance on how programs and services are funded, balancing user fees with public funding to ensure programs remain accessible while supporting long-term financial sustainability. Adoption of this policy will guide staff in evaluating, adjusting, and recommending program and service fees during the annual fee review to ensure consistency with the City's adopted cost recovery targets.

POLICY
It is the policy of the Anderson Parks and Recreation Department that:

Recreation class and program fees shall be established to target an overall cost recovery rate of 50% of direct costs across all recreation programs.

Recreation Cost Recovery Policy Pagel of 4
Direct costs are defined as materials, supplies, and part-time personnel costs required to conduct the specific class, program or event. Department personnel, overhead costs, and facilities are not included.
1) Program pricing shall consider market rates, community affordability, and anticipated participation levels. In some cases, market conditions of community need may justify pricing that does not strictly meet the cost recovery target. • Adult Volleyball
• Youth Basketball
• SNAP Basketball
• Summer Camp
• Ice Rink
• Newly established recreation programs
A fifteen percent (15%) administrative fee of programs direct costs shall be charged and included in the program cost to partially offset overhead costs for all programs, except free programs and events identified by this policy.

Free programs and events include the following and are excluded from expected cost recovery rate:
• Easter Egg Hunt
• Special Needs Easter Egg Hunt
• Food Truck or Treat
• Christmas in Anderson Lighted Parade
• Mosquito Serenade Concert Series
2) New programs, pilot programs, and special classes or events shall be established using a structured evaluation process to ensure fiscal responsibility while allowing flexibility for innovation and community responsiveness.

When establishing fees for new programs, staff shall consider the following factors:
• Estimated direct costs, including staffing, materials, supplies, equipment, and contracted services
• Anticipated participation levels and enrollment capacity • Comparable market rates offered by neighboring jurisdictions, private providers, or similar agencies
• Community benefit, accessibility, and alignment with Department goals
• Whether the program is intended as a one-time offering, seasonal program, or ongoing service
Recreation Cost Recovery Policy Page 2 of 4
New programs may be introduced with introductory or pilot pricing, which may result in a cost recovery rate below the Department's standard targets during the initial offering period. This flexibility allows staff to assess demand, refine program delivery, and identify opportunities for operational efficiencies.

Following the completion of the initial season, session, or pilot period, staff shall evaluate the program's performance, including:
• Actual revenues and expenses
• Cost recovery rate achieved
• Participation levels and waitlists
• Community feedback and program outcomes
Based on this evaluation, staff may recommend one or more of the following actions:
• Adjusting fees to better align with established cost recovery targets • Modifying program structure, staffing, or materials to improve efficiency
• Continuing the program with revised pricing
• Discontinuing the program if it is not financially or operationally sustainable
Unless otherwise approved by the City Manager, ongoing new programs shall be adjusted over time to align as closely as practicable with the Department's established cost recovery targets.
3) The Anderson Parks and Recreation Department Aquatics program provides a substantial community-wide benefit including drowning prevention, public safety education and promotion of lifelong fitness.

As a result, the program is not intended to operate on a full cost recovery basis.

Given the high fixed and variable costs of aquatics operations, the Anderson Parks and Recreation Department establishes a cost recovery goal of 25% for the swim program. The level of cost recovery reflects the City's commitment to prioritizing safety, accessibility, and community well-being over revenue generation.
4) The Anderson Synthetic Ice Rink is a seasonal recreational amenity that provides significant community benefit, including family-oriented activities, seasonal activation of public space, and access to a unique recreational experience that would otherwise require travel outside the region. Due to the high cost of operating and low market tolerance for high skating fees, City's intent to provide a seasonal amenity that prioritizes participation, community enjoyment, and downtown Anderson activation rather than full cost recovery.

Recreation Cost Recovery Policy Page 3 of 4
5) Contract classes shall operate under a revenue-sharing model in which registration fee revenue is allocated on a 70/30 basis, with 70% paid to the contracted instructor and 30% retained by the City.
6) Food vendor fees shall be established based on market rates for comparable events, locations, and services. Fees are intended to reflect typical costs associated with vendor participation and are designed to be competitive. Market rates may be based on factors including, but not limited to, event size and duration, anticipated attendance, vendor demand, location, and the scope of services provided. Fees may be adjusted periodically to remain consistent with current market conditions.
7) The Community Bench Program is structured as a deposit-based program and is not intended to generate revenue for the City. All funds collected through this program shall be deposited into a designated account and used exclusively for the purchase, installation, and ongoing maintenance of the community bench.

The established cost for a Community Bench is $2,400, which reflects 100% cost recovery of all associated expenses, including staff time, materials, installation, and maintenance fees. No portion of the fee is intended to subsidize other City programs or operations. The Community Bench Program fee shall be reviewed annually to ensure continued full cost recovery and alignment with actual expenses. Any adjustments to the fee shall require approval by the City Manager.

PROCEDURE
The Recreation Department shall regularly monitor program revenues and expenses and conduct an annual evaluation of the fee schedule and cost recovery performance.

Based on this evaluation, staff may recommend fee adjustments or revised recovery targets as appropriate. All fees and proposed changes shall be reviewed and approved annually by the City Manager.

Recreation Cost Recovery Policy Page 4 of 4
City of Anderson Parks and Recreation
Current and Proposed Recreation Fees for Program and Events Pro.2ram/Event Current Fee Proposed New Fee
Adult Volleyball $150/team registration $215
Youth Basketball $45 $80
SNAP Basketball $22.50 $45
Summer Camp $50 (1 Week) 8 hrs./day $115
Ice Rink $5/oerson
Ice Rink Private Rental $200
Ice Rink - Additional Hour $50
Ice Rink - Fire Pits and Heaters $100/event
Group Swim Lessons $45 (8 lessons) $55
Private Lesson $25 fl lesson) $30
Diverse Ability Lesson $25 (! lesson) $30
Ooen Swim Entrance Fee $2.00/oerson
Individual Swim Pass $30
Family Swim Pass ( up to 4 people) $75
Mosquito Serenade Food Vendor $50 - Non-Profit $75 - Non-Profit Per concert $75 - Drink/Snack Vendor $115 - Drink/Snack Vendor $150 - Food Vendor $225 - Food Vendor
City Event Food Vendor Fee $50
Special Needs Easter Egg Hunt $0
Community Easter Egg Hunt $0
Food Truck or Treat $0
Christmas in Anderson - Parade Entry $0
Community Bench Program $0 $2400
Market Comparisons
Pro.2ram/Event Chico {CARD) Citv of Reddin.2 Reddin.2 YMCA Red Bluff Adult Vollevball $325 $260 X $125
Youth $105 $138 X $100
Basketball
Summer Camp $233 (4 days) $260/week- 9 hrs. - NR $1 25/week- 10 hrs. $234 Resident
Group Lesson $70 (8 lessons) $30 (4 lessons) $52 ( 4 lessons) $50 (8 lessons) Private Lesson $120 (8 lessons) $85 ( 4 lessons) $50 (! lesson) $120 (8 lessons) Diverse Ability $100 (8 lessons) X $238 (8 lessons) X
Ice Rink $15 X X X
Recreation Current and Proposed Fees

ANDERSON PARKS AND RECREATION AQUATICS PROGRAM
$ $ 4,088.30 $ 55,150.00 $ 4,515.00 S 63,753.30 $ 9,647.10 $ 64,797.10 23% Z 5% Recovery Goal
$ $ 4,088.30 $ 55,150.00 $ 5,503.50 S 64,741.80 S 64,741.80 S 18,345.00 28% 2 5% Recovery Goal
•• Aquatlc:s Progr.im "Other" · 30% of revenue Is paid to YMCA ::a-mount will change depending on revenues received

ANDERSON PARKS AND RECREATION COMMUNITY EVENTS
CHRISTMAS IN ANDERSON PARADE Revenues• Food Vendor Fe es 2.1% s S 10,076.82 $ 6,735.78 S • $ 16,812.60 $ $ 550.00 3%
$ $ 8,460.70 $ 84,781.00 $ • $ 93,241.70 $ $ 75,198.40 81%

ANDERSON PARKS AND RECREATION COMMUNITY BENCH PROGRAMS
100% Recovery Goal

ANDERSON PARKS AND RECREATION PROGRAMS
I,,, 5.00 2,625.00 23%
!SUMMER CAMP 20,000.0, $ 50.00 SL000.00 25%
$ 37,648.02 $ 6,350.00 $ 4,000.00 $ • $ 47,998.02 $ 18,912.50 39% SO% Recovery Goal
CURRENT FEES+ Vi% DIR~CT COSTS
srnnu. STAHJNG SLJPPLI ES co:-; f"R,\C r OTlll·.R !,lJH·'IO r,\I. 1:,% ,\dmin - REGIST R \TION FE!: :-.on~ hJPMIJ 1 COST RECO\'ERY •D $ 3,248.02 $ 300.00 $ 48.0 4080 ·o.oo • • 850.00 0%
!YOUTH BASKETBALL $ 4,000.00 $ 4,000.00 $ 4,000.00 $ • $ 12,000.00 $ 1,800.00 $ 13,800.00 $ 45.00 180 participants max $ 8,100.00 59% SNAP BASKETBALL l$ 400.00 $ 400.00 $ - $ - $ 800.00 $ 120.00 $ 920.00 $ 22.50 avg 15 participants $ 337.50 37% ICE RINK I $ 11,000.00 $ 650.00 $ - $ • $ 11,650.00 $ 1,747.50 $ 13,397.50 $ 5.00 $ 2,750.00 21% SUMMER CAMP l s 19,000.00 $ 2,000.00 $ - $ . $ 21,000.00 $ 3,150.00 $ 24,150.00 $ 50.00 ave 25/wk • 4 weeks $ 5,000.00 21% $ 37,648.02 $ 7,350.00 $ 4,000.00 $ • $ 48,998.02 $ 7,349.70 $ 56,347.72 $ 19,037.50 34% 50% Recovery Goal
1,800.00
SNAP BASKETBALL $ 400.00 120.00
ICE RINK $ 11,000.00 1,747.50
!SUMMER CAMP $ 19,000.00 3.150.00 115.00
$ 37,648.02 $ 7,350.00 $ 4,000.00 $ $ 48,998.02 $ 7,349.70 $ 56,347.72 $ 33,410.00 S9o/e 500/4 Recovery Goal
To:

Through:

From:

Date:

I SUBJECT

AGENDA ITEM
!February 17, 2026, City Council Meeting!
To Be Presented By:

Cindy Wheeler, Finance Director
Honorable Mayor and Members of the Anderson City Council Joey Forseth-Deshais, City Manager
Cindy Wheeler, Finance Director
February 17, 2026
2024-2025 Annual Comprehensive Financial Report

I RECOMMENDATION
The Finance Director recommends that the City Council:

1. Receive a presentation from the City's contracted auditor, Mark Hu of The Pun Group

2. Receive and file the annual financial report.

I FISCAL IMPACT
There is no fiscal impact of the proposed receive and file action.

ITEM 8.5a PAGE1 2/17/26
I DISCUSSION and BACKGROUND
Introduction
Each year, the City Finance Director prepares an Annual Comprehensive Financial Report, or Annual Report, to serve multiple purposes, including the presentation of financial data to the City Council and many other interested parties. The Pun Group (TPG) audited these financial statements.

Audit Committee
On April 18, 2006, the City Council adopted Ordinance No. 740, establishing an Audit Committee. In accordance with this ordinance, the Mayor and Vice Mayor are members of the Audit Committee. Also, following this ordinance, the City Manager appointed the Auditor-Controller for Shasta County, as the third member of the Audit Committee to serve as the outside member of the Audit Committee with expertise in public accounting and finance. Nolda Short, the Auditor-Controller, attended the Audit Committee meeting. Also, attending the Audit Committee meeting this year were TPG Associate Manager Mark Hu, the Finance Director, and the Accountant. The audit committee met on February 9, 2026.

The items discussed were the City's financial statements for the year ended June 30, 2025, and the accompanying management discussion and analysis. 2024-202 5 Hi&}tli&}tts
The Finance Director would like to take this opportunity to briefly review the highlights of the Annual Report for the fiscal year ended June 30, 2025, with the City Council. A public review copy of the Annual Report is also available in the City Clerk's Office.

Highlights of the 2024-2025 Annual Report include:
• Clean Audit Opinion. Independent auditing firm, The Pun Group, audited the City's financial statements for the fiscal year ending June 30, 2025. TPG provided the City with an unqualified audit opinion letter, indicating that the financial statements fairly reflect the City's financial condition on June 30, 2025. TPG will be attending the Council meeting this evening if there are any questions for Mark Hu about the audit services provided.
• General Fund Results. For purposes of financial statement presentation, the General Fund is comprised of the following funds: General, Mosquito Serenade, Teen Center, PEG Fees. General Fund expenditures exceeded General Fund revenues by $388,096, which resulted in a decrease to General Fund Reserves. The year-end General Fund reserve decreased to $1,812,995, of which $268,421 is non-spendable, $337,873 is assigned, and $1.2 million is unassigned. Expressed as a percentage of annual General Fund expenditures of $12,250,700, the unassigned General Fund reserve balance stood at 9.9% on June 30, 2025, below the Council goal of 20% to 25% of expenditures. • This decrease in General Fund reserves is largely due to decreases in Transient Occupancy Tax, licensing and permits, and charges for services in addition to the inflationary costs of equipment, services, and utilities. However, this decrease is 18%, or $1.8 million less than the 2023/2024 decrease to the reserve balance of $2,183,757.

ITEM 8.5a PAGE 2 2/17 /26
■ Overall, Sales Tax revenues increased from the 2024-2025 fiscal year by 7%, Transient Occupancy Tax decreased by 3.6% in 2024-2025, and Property Tax revenue increased by 8.9% in 2024-2025. Assessed property values increased by about 4.5% as well in 2024-2025.
■ Gas Tax Fund Results. Gas Tax Fund expenditures exceeded Gas Tax Fund revenues net transfers by $527,311 in fiscal year 2024-2025. The year-end Gas Tax Fund balance decreased to $691,098.
■ Former Anderson Redevelopment Agency Funds. The Anderson Redevelopment Agency (ARA) was dissolved as of January 31, 2012, per AB lX 26. For more information and details, please see Note 12 of the Financial Statements. ■ Proprietary Funds Results. Proprietary funds experienced a change in net position before contributions and transfers as follows:

Water Fund
Sewer Fund
Internal Service Funds
$(79,954) Total Net Position $3,955,839
$(1,036,473) Total Net Position $3,907,913
$ (38,473) Total Net Position $(2,200,182)
Due to the new GASB 101 standard implemented and retroactively booked back to 2023/2024, the Internal Services funds took a large hit; therefore, causing the net position to decrease instead of the efforts to bring these funds to a net zero plus 5% reserve when possible.
• GASB 68. The City is reporting a Net Pension Liability of $16,919,510. This is a decrease of $7,035 from the prior year. To gain perspective on this liability, the City of Anderson reports a Net Position of $37,561,886; the Miscellaneous Group reported a Net Pension Liability of $10,283,875, and the Safety Group reported $6,635,635. The City also reported a pension expense of $3,105,564. TPG will provide additional details on the reporting of the Net Pension Liability or GASB 68. Please see Note 8 in the financial statement for more information regarding pension reporting. • GASB 87. In the fiscal year 2021-2022, the City implemented GASB Statement 87, Leases. GASB 87 requires financial reporting of certain lease assets and liabilities. For information on GASB 87 see Note 6.
• GASB 96. In the fiscal year 2023-2024, the City implemented GASB Statement 96, Subscription-Based Information Technology Arrangements (SBITA). GASB 96 requires financial reporting of certain SBITAs for government end users. For information on GASB 96 see Note 6.
• GASB 91, 94, & 99. These GASB standards implemented in the fiscal year 2022-2023 were to report Conduit Debt Obligations, Public-Private and Private-Public Partnerships, and Availability Payment Arrangements, and Omnibus 2022, respectively.

These four standards are discussed further in Note 1 Section V., as well as Notes 5 & 6.

ITEM 8.Sa PAGE3 2/17/26
• GASB 101. Implemented in 2024-2025, this new liability covers compensated absences in terms of sick leave liability. Although the city does not pay out this leave balance upon separation, the standard was put into place to recognize and measure the liability of compensated absences of employees while employed.
• Recommendations in Management Letters. In the fiscal year 2024-2025 audit, TPG found multiple funds with a deficit in fund balances and net position. Recommendations were to reevaluate the internal service funds cost drivers, increase budgetary controls, and continue to evaluate the City's cash position. The City's responses to these matters can be found in the GAS AU-C 265 Letter: attachment 2 of this staff report.

Thanks and Appreciation
The Finance Director would like to take this opportunity to thank The Pun Group audit personnel and the employees of the Finance Department for their work in the preparation of the financial statements, in addition to planning and performing the annual audit. The Finance Director would also like to thank Mayor Gallier, Vice Mayor Simmons, City Manager Forseth•Deshais, and Auditor-Controller Nolda Short for their valuable contributions to the Audit Committee.
!ATTACHMENTS

1. Annual Comprehensive Financial Report for Fiscal Year Ended June 30, 2025.

2. Letter to the Audit Committee.

ITEM 8.Sa PAGE4 2/17/26
City of

ANDERSON
Annual Comprehensive Financial Report
Fiscal Year 2024-2025

City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
Page
INTRODUCTORY SECTION (Unaudited)
Letter of Transmittal ................................................................................................................................................ i Organization Chart ................................................................................................................................................. v Officials of the City of Anderson, California ........................................................................................................ vi

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

Government-Wide Financial Statements:

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

Governmental Fund Financial Statements:

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

Statement of Net Position ................................................................................................................. 34 Statement of Revenues, Expenses, and Changes in Net Position ..................................................... 37 Statement of Cash Flows ................................................................................................................... 38 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position ................................................................................................. 43 Statement of Changes in Fiduciary Net Position .............................................................................. 44 Index to Notes to the Basic Financial Statements .......................................................................................... 47 Notes to the Basic Financial Statements ..................................................................................................... 49 City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents (Continued)
Page
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited):

Budgetary Comparison Schedule – General Fund ......................................................................................... 85 Budgetary Comparison Schedule – Gas Tax Special Revenue Fund ............................................................. 86 Budgetary Comparison Schedule – ADAP and Home Special Revenue Fund .............................................. 87 Budgetary Comparison Schedule – CDBG Special Revenue Fund ............................................................... 88 Budgetary Comparison Schedule – Low and Moderate Income Housing Special Revenue Fund ................ 89 Notes to the Budgetary Comparison Schedule ............................................................................................... 91 Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios ....................... 92 Schedule of Contributions – Pensions ............................................................................................................ 94

Supplementary Information:

Budgetary Comparison Schedule – Parks Capital Projects Fund ............................................................ 99

Nonmajor Governmental Funds:

Combining Balance Sheet ..................................................................................................................... 102 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ............................. 106 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:

Street Lighting Special Revenue Fund ............................................................................................ 111 COPS and LLEBG Grants Special Revenue Fund ......................................................................... 112 EDBG Special Revenue Fund ......................................................................................................... 113 South Ridge Assessment District Special Revenue Fund ............................................................... 114 Vineyard Lighting and Landscape Special Revenue Fund ............................................................. 115 Silvergate Sanitary Assessment District Special Revenue Fund .................................................... 116 Police Facility and Corp Yard Capital Projects Fund ..................................................................... 117 Drainage Capital Projects Fund ...................................................................................................... 118 Traffic Capital Projects Fund .......................................................................................................... 119 I-5/Deschutes Offramp Capital Projects Fund ................................................................................ 120 Internal Service Funds:

Combining Statement of Net Position ................................................................................................... 122 Combining Statement of Revenues, Expenses, and Changes in Net Position ....................................... 124 Combining Statement of Cash Flows .................................................................................................... 126 Custodial Funds:

Combining Statement of Fiduciary Net Position ................................................................................... 131 Combining Statement of Changes Fiduciary Net Position .................................................................... 132 City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents (Continued)
STATISTICAL SECTION (Unaudited)
Financial Trends:

Net Assets – Accrual Basis of Accounting .................................................................................................. 136 Changes in Net Asset – Accrual Basis of Accounting ................................................................................. 138 Fund Balances of Governmental Funds – Modified Accrual Basis of Accounting ..................................... 142 Changes in Fund Balances of Governmental Funds – Modified Accrual Basis of Accounting .................. 144 General Fund Balance Compared to Annual Appropriations – Last Ten Fiscal Years................................ 146 General Fund Revenues by Source – Last Ten Fiscal Years ....................................................................... 147 General Fund Tax Revenues by Source – Last Ten Fiscal Years ................................................................ 148 Governmental Funds Expenditures by Function – Last Ten Fiscal Years ................................................... 149 Special Assessment Billings and Collections – Last Ten Fiscal Years ........................................................ 150 Revenue Capacity:

Property Tax - Rates (Direct and Overlapping Governments) and City Levies and Collections – Last Ten Fiscal Years ..................................................................... 151 Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ....................... 152 Principal Secured Property Taxpayers – Current Year and Nine Years Ago .............................................. 153 Property Value and Construction – Last Ten Fiscal Years .......................................................................... 155 Debt Capacity:

Ratio of Outstanding Debt by Type – Last Ten Fiscal Years ...................................................................... 156 Ratio of General Bonded Debt Outstanding – Last Ten Fiscal Years.......................................................... 158 Ratio of Net Bonded Debt to Assessed Value and Net
Bonded Debt per Capita – Last Ten Fiscal Years ........................................................................... 159 Ratio of Annual Debt Service for Bonded Debt to
Total General Expenditures – Last Ten Fiscal Years ...................................................................... 160 Direct and Overlapping Governmental Activities Debt – June 30, 2025 ..................................................... 161 Computation of Legal Debt Margin – Last Ten Fiscal Years ...................................................................... 162 Pledged Revenue Coverage – Last Ten Fiscal Years ................................................................................... 164 Demographic and Economic Information:

General Information as of June 30, 2025 ..................................................................................................... 165 Principal Employers – Current Year and Nine Years Ago .......................................................................... 166 Economic Information – Last Ten Fiscal Years ........................................................................................... 167 Operating Information:

Operating and Capital Indicators – Last Ten Fiscal Years ........................................................................... 169 Authorized Full-Time Equivalent Employees by Department – Last Ten Fiscal Years .............................. 170 Water and Sewer Rates – Last Ten Fiscal Years ......................................................................................... 172 City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
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i
February 13, 2026
Honorable Mayor and Members of the City
Council and Citizens of the City of Anderson
(“City):

State law requires that all general-purpose local
governments publish a complete set of financial
statements presented in conformity with
accounting principles generally accepted in the
United States of America (GAAP) and audited
in accordance with generally accepted auditing
standards by a firm of licensed certified public
accountants. Pursuant to that requirement, we
hereby issue for the City the Annual
Comprehensive Financial Report for the fiscal
year ended June 30, 2025.

This report consists of management’s
representations concerning the finances of the
City. Consequently, management assumes full
responsibility for the completeness and
reliability of all of the information presented in
this report. To provide a reasonable basis for
making these representations, management of
the City has established a comprehensive
internal control framework that is designed both
to protect the government’s assets from loss,
theft, or misuse and to compile sufficient
reliable information for the preparation of the
City’s financial statements in conformity with
GAAP. Because the cost of internal controls
should not outweigh their benefits, the City’s
comprehensive framework of internal controls
has been designed to provide reasonable rather
than absolute assurance that the financial
statements will be free from material
misstatement. As management, we assert that,
to the best of our knowledge and belief, this
financial report is complete and reliable in all
material respects.

The City’s financial statements have been
audited by The Pun Group, a firm of licensed
certified public accountants. The goal of the
independent audit was to provide reasonable
assurance that the financial statements of the
City for the fiscal year ended June 30, 2025, are
free of material misstatement. The independent
audit involved examining, on a test basis,
evidence supporting the amounts and disclosures
in the financial statements; assessing the
accounting principles used and significant
estimates made by management; and evaluating
the overall financial statement presentation. The
independent auditor concluded, based upon the
audit, that there was a reasonable basis for
rendering an unqualified opinion that the City’s
financial statements for the fiscal year ended
June 30, 2025, are fairly presented in conformity
with GAAP. The independent auditor’s report is
presented as the first component of the financial
section of this report.

GAAP requires that management provide a
narrative introduction, overview, and analysis to
accompany the basic financial statements in the
form of Management’s Discussion and Analysis
(MD&A). This letter of transmittal is designed
to complement MD&A and should be read in
conjunction with it. The City’s MD&A can be
found immediately following the report of the
independent auditors.

General Information
The City has a population of 10,967 and is
located on the west bank of the Sacramento
River in southern Shasta County. It is ten miles
south of Redding, population 93,534, and twenty
miles north of Red Bluff, population 14,466
Anderson is situated along Interstate 5 and is
150 miles north of Sacramento, the state capital.

The City was incorporated January 16, 1956, as
a general law city and it employs the councilmanager form of government. The governing council is responsible, among other things for
passing ordinances, adopting the budget and
appointing committees. The Council appoints a
ii
City Attorney as legal counsel and a City
Manager who is the administrative head of the
government. The City Manager is responsible
for carrying out the policies and ordinances of
the governing council, for overseeing day-to-day
operations of the government, and for appointing
the heads of the various departments. The
council is elected on a non-partisan basis.

Council members serve four-year staggered
terms, with either two or three council members
elected every two years. The council from its
members selects a Mayor and Vice-mayor.

The City provides a full range of services,
including police, the maintenance of streets and
other infrastructure, recreational activities and
cultural events. The City also provides water
and sewer services to its citizens.

Factors Affecting Financial Condition
The information presented in the financial
statements is perhaps best understood when it is
considered from the broader perspective of the
specific environment within which the City
operates.

Local Economy
Historically, the Anderson local economy has
been primarily influenced by wood and lumberrelated industries. Of the 13 largest manufacturers in 1990, ten were directly
involved in wood products processing and
accounted for 2,000 of the total 2,112
manufacturing-related jobs in the greater
Anderson area. Mill closures culminating in the
2001 closure of the Shasta Paper Company
resulted in the elimination of many of these jobs;
however, numerous jobs have been created in
retail and tourist-related businesses. Also, many
new jobs have been developed in non-timberrelated manufacturing. While timber is still very important and the City continues to actively
promote the unique characteristics of the
community that make it attractive to timber
product industries, the local economy is
increasingly influenced by non-timber-related
businesses.

In 1999, the City annexed 186 acres of
industrially zoned property in the Ox Yoke Road
area with the intention of encouraging the
diversification of manufacturing.

In 2000, the Anderson Redevelopment Agency
formed the Southwest Redevelopment Project
Area. Since that time, the City has actively used
redevelopment funding to make substantial
improvements to the downtown area, facilitate
private development through land acquisition
and sale, and construction of infrastructure
improvements. In 2011, the California Supreme
Court upheld AB1X 26 dissolving
Redevelopment Agencies. Note 12 contains
detailed information about Redevelopment
Dissolution.

Supply chain constraints and inflation are
concerns that we will continue monitoring
closely in the next fiscal year. The City is
experiencing a slowdown in single-family home
sales, and new construction projects; however,
for vehicle and equipment sales, fuel stations,
restaurants, and a national equipment rental
chain are holding steady. Several projects are
also being completed in our planning
department, including hotels, manufacturing,
fuel stations, and affordable housing.

Accounting, Budgetary and Loss Control
Fund Accounting
The City’s accounting system is organized and
operated on a “fund basis.” A fund is defined as
a fiscal accounting entity with a self-balancing
set of accounts. Individual funds are used for
the purpose of carrying on specific activities or
attaining certain objectives. The accounting
system has been developed to make it possible
to present fairly and with full disclosure the
financial position and results of financial
operations of each fund. Additional information
about the City’s use of fund accounting is in
Note 1 to the financial statement.
iii
Internal Control
The City’s general policies and procedures are
designed to reasonably safeguard its assets,
check the reliability of its accounting data and
promote operational efficiency. We believe that
the city’s internal accounting controls
adequately safeguard assets and provide
reasonable assurance of proper recording of all
financial transactions.

Budgetary Control
In June of odd numbered years, the City Council
considers and adopts a budget plan for the
coming two fiscal years. In June of each fiscal
year, appropriations are adopted for the
upcoming fiscal year for each fund and for
departmental units within each fund. Budgetary
control is maintained at the fund level; the City
Manager may transfer appropriations between
accounts in each fund. However, any revision
that alters the total expenditure level of a fund
must be approved by the City Council.

Additional information about the City’s budget
policies can be found in notes to the budgetary
comparison schedule in the required
supplementary information.

Cash Management
The City follows the practice of pooling
temporarily idle cash during the year. Monies
not required for immediate expenditure are
invested in accordance with State law and the
City’s formal investment policy. These monies
were invested in demand deposits, U.S.

Government securities, and the Local Agency
Investment fund. Notes 1 and 2 to the financial
statements contain additional information.

Fiduciary Operations
The City maintains a number of fiduciary funds,
which contain assets held in trust for other
agencies.

Capital Assets
The general capital assets of the City are those
fixed assets used in the performance of general
governmental functions and exclude the capital
assets of Enterprise fund. As of June 30, 2025,
the City’s capital assets, including both
governmental and business-type, amounted to
$38,176,260. Note 5 to the financial statements
contain additional information about capital
assets.

Debt Obligations
The City uses lease-purchase financing and
certificates of participation, as well as traditional
debt instruments, when deemed appropriate.

The City has neither outstanding general
obligation bonds nor authorized but unused
general obligations bonds at this time. A
complete description of all outstanding debts can
be found in note 6 to the financial statements.

Risk Management
The City is a member of the Northern California
Cities Self-Insurance Fund, a Joint Powers
Authority providing its member cities a shared
risk plan for worker’s compensation and liability
insurance. The City’s Workers’ Compensation
Program comprises a banking or deductible
layer for claims up to $100,000 and a shared risk
pool for claims from $100,000 to $500,000.

Excess coverage is provided for claims over the
shared risk layer up to the statutory limit. The
Liability Program comprises a banking or
deductible layer for claims up to $50,000, and a
shared risk pool for claims from $50,000 to
$750,000. Excess coverage is provided for
claims over the shared risk layer up to
$40,000,000. A complete discussion of the
City’s worker’s compensation and liability
insurance programs is in note 7 to the financial
statements.

Pension Benefits
The City contributes to the California Public
Employees Retirement System (CalPERS), a
cost-sharing multiple-employer public employee
defined benefit pension plan. PERS provides
retirement and disability benefits, annual costof-living adjustments and death benefits to plan members and beneficiaries. A complete
discussion of the City’s retirement plan is in
note 8 to the financial statements.
iv
Acknowledgements
The City's fiscal condition remains strong. This
is not achieved without the commitment and
leadership of the City Council and City
Manager, as well as the cooperation of all
department heads and employees. I would
especially like to thank the entire staff of the
Finance Department for their dedication to
processing the daily fiscal transactions of the
City in an efficient manner. Without their hard
work and dedication, this Annual
Comprehensive Financial Report would not be
possible.

Cindy Wheeler
Finance Director/Treasurer
City of Anderson

CITIZENS OF ANDERSON

MAYOR & CITY COUNCIL

CITY ATTORNEY BOARDS & COMMISSIONS

CITY MANAGER

CITY CLERK

FINANCE POLICE RECREATION PUBLIC
WORKS

DEVELOPMENT

SERVICES
Public InformationCity Council SupportPersonnelRisk Management PurchasingUtility BillingFinancePayroll TreasuryInformation Systems Grant Administration RedevelopmentHousing Operational ServicesPatrolInvestigation CommunicationsAnimal Control RecreationSenior ServicesYouth Programs
EngineeringStreetsWaterWastewaterVehicle MaintainanceParks Building Community Development PlanningZoning
v
vi
City of Anderson Officials
City Council
Susie Baugh, Mayor
Dan Gallier, Vice Mayor
Darin Hale, Councilmember
Mike Gallagher, Councilmember
Bonnie Simmons, Councilmember
Administrative Personnel
City Manager – Joey Forseth-Deshais
City Attorney – Collin Bogener
City Clerk – Christy White
Finance Director/Treasurer – Cindy Wheeler
Police Chief – Oliver Collins
Public Works Director – Adam Whelen
6 Hutton Centre Drive, Suite 1200
Santa Ana, California 92707
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and the Members of the City Council of the City of Anderson
Anderson, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Anderson, California (the “City”), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

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

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

Emphasis of Matter
As discussed in Notes 1 and 14 to the financial statements, the City adopted new accounting principle, GASB Statement No. 101, Compensated Absences during the year ended June 30, 2025. The adoption of this standard resulted in the restatement of the City’s net position as of June 30, 2024. Our opinion is not modified with respect to this matter.

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. (Yllll
www.pungroup.cpa g
ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000 To the Honorable Mayor and the Members of the City Council of the City of Anderson
Anderson, California

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

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

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

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

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

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

3 Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The Combining and Individual Fund Financial Statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the Combining and Individual Fund Financial Statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

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

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

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 13, 2026, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Santa Ana, California
February 13, 2026
and Analysis
4 City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
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5 MANAGEMENT’S DISCUSSION AND ANALYSIS
6 City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
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City of Anderson
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
June 30, 2025
7 INTRODUCTION
This section of the Annual Comprehensive Financial Report provides a narrative overview and analysis of the financial activities of the City of Anderson (the “City”) for the fiscal year ended June 30, 2025. This should be read in conjunction with the transmittal letter and the financial statements.

FINANCIAL HIGHLIGHTS
 The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources on June 30, 2025, by $37.97 million (net position). Due to the implementation of GASB 68, net pension liabilities are reported on the financial statements. Reporting of the City’s net pension liability of $16.92 million resulted in an unrestricted net deficit of $12 million in Governmental Activities.  Total net position decreased by $3.00 million, with a decrease of $1.89 million in net assets of governmental activities, and a decrease of $1.11 million in business-type activities.  Governmental funds reported combined June 30, 2025, fund balances of $16.36 million, a decrease of $ 2.38 million in comparison to the previous fiscal year. These fund balances are largely reserved for various purposes.  As of June 30, 2025, the General Fund had a year-end unassigned fund balance of $1.21 million, a decrease of 33% over the prior year's fund balance of $1.8 million. The decrease is largely due to the continued increase in goods and services during this fiscal year; this trend has begun to slow, and together with cost-saving measures, the decrease at June 30, 2024, was much higher at 51% of the prior year. The unassigned General Fund balance on June 30, 2025, represented 9.9% of 2024-2025 General Fund expenditures of $12.25 million.  As of June 30, 2025, the Gas Tax Fund had a year-end restricted fund balance of $0.15 million. The restricted Gas Tax Fund balance at June 30, 2025, represented 8% of 2024-2025 Gas Tax Fund expenditures of $1.81 million. The restricted Gas Tax Fund balance decreased by $0.54 million, from June 30, 2024, to June 30, 2025. This decrease is due to less road construction and maintenance needed to restore the city’s roadways.  During the fiscal year ending June 30, 2025, the City’s net long-term liabilities increased by $3.40 million with an ending long-term liability balance of $25.13 million (See Note 6).

City of Anderson
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) (CONTINUED) June 30, 2025
8 OVERVIEW OF THE FINANCIAL HIGHLIGHTS
The basic financial statements are comprised of three components:

1. Government-wide financial statements,

2. Fund financial statements, and

3. Notes to the financial statements.

This report also includes other supplementary information section that presents required reports on internal controls and compliance with laws and regulations.

GOVERNMENT-WIDE FINANCIAL STATEMENTS
This set of statements is designed to provide readers with a broad overview of the City’s finances, like a private-sector business.

The Statement of Net Position (Statement 1) presents information on all the City’s assets and liabilities, 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 is improving or declining.

The Statement of Activities (Statement 2) 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 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, such as uncollected taxes and earned, but not yet used vacation time.

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 manner (business-type activities). The governmental activities include general government, public safety, public works, planning, community development, recreation and cultural. The business-type activities of the City are water and sewer.

The government-wide financial statements include not only the City itself (known as the primary government) but also its component units, entities for which the government is considered to be financially responsible. Blended component units, although legally separate entities are in substance, part of the government’s operations and so data from these units are combined with data of the primary government.

On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 dissolving all redevelopment agencies in the State of California. (See Note 13 for detailed information on the reporting of the former Anderson Redevelopment Agency). The City elected to become the Successor Agency to the dissolved Anderson Redevelopment Agency. Information on Successor Agency Funds are reported as a component unit of the City.

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

City of Anderson
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) (CONTINUED) June 30, 2025
9 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 funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impacts of the government’s near-term decisions. Both the governmental fund balance sheet and the government fund 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 21 individual governmental funds. Information is presented separately in the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, the Gas Tax Fund, the ADAP and Home Fund, the CDBG Fund, the Low and Mod Income Housing Fund, and the Parks Capital Projects Fund, and all of which are considered major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report.

The City adopts annual appropriations for its major governmental funds. As required supplementary statements, budgetary comparison statements have been provided for the General Fund and Major Special Revenue Funds to demonstrate compliance with adopted appropriations. The basic governmental fund financial statements can be found on pages 25-32 of this report.

Proprietary Funds. The City maintains enterprise and internal service proprietary funds.

Enterprise funds are used to report the same functions as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its water and sewer enterprises. Both of the City’s enterprise funds are considered major funds.

Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses its Internal Service Fund to account for public works charges to other departments, maintenance of the City’s vehicle fleet, maintenance of the City’s buildings and equipment, maintenance of the City’s computer systems, and charges for workers’ compensation and general liability insurance. Because these services primarily benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements.

Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The City’s Enterprise and Internal Service Fund are shown in detail on pages 33-39 of this report.

Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that use for proprietary funds. The basic fiduciary fund financial statements can be found on pages 41-44 of this report.

Notes to the Financial Statements. The notes provide additional important information that is essential to the reader for a full understanding of the data provided in the government-wide and fund financial statements.

City of Anderson
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) (CONTINUED) June 30, 2025
10 GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net position may serve over time as a useful indicator of a government’s financial position. For the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $37.97 million on June 30, 2025. Net position decreased by $3.26 million from Fiscal Year 2023-2024.

The City’s net position decreased in both the governmental activities and the business-type activities during the 2024- 2025 fiscal year. Net positions in governmental activities decreased by $2.15 million, and business-type activities decreased by $1.12 million.

Net Position
The following table is a summary of the Statement of Net Position as of June 30, 2025 (2025) and June 30, 2024 (2024). 2025 2024 2025 2024 2025 2024
Assest
Current and other assets $ 17,280,701 $ 19,068,530 $ 5,494,615 $ 3,247,096 $ 22,775,316 $ 22,315,626 Capital assets 27,423,557 27,415,973 10,752,703 10,139,024 38,176,260 37,554,997 Total assets 44,704,258 46,484,503 16,247,318 13,386,120 60,951,576 59,870,623 Deferred outflows of resources 4,728,677 6,162,481 368,141 486,037 5,096,818 6,648,518 Liabilities
Long-term liabilities 17,636,172 17,982,284 7,498,038 3,755,497 25,134,210 21,737,781 Other liabilities 1,050,105 1,390,842 1,203,283 1,038,955 2,253,388 2,429,797 Total liabilities 18,686,277 19,373,126 8,701,321 4,794,452 27,387,598 24,167,578 Deferred inflows of resources 640,084 1,020,161 50,386 97,526 690,470 1,117,687 Net position
Net investments in capital assets 26,041,431 25,537,977 8,532,203 7,792,024 34,573,634 33,330,001 Restricted 16,067,614 17,404,171 - 16,067,614 58 17,404,229 Unrestricted (deficit) (12,002,471) (10,688,451) (668,451) 1,188,097 (12,670,922) (9,500,354) Total net position $ 30,106,574 $ 32,253,697 $ 7,863,752 $ 8,980,179 $ 37,970,326 $ 41,233,876 * Note: a change in accounting estimate is treated prospectively, prior periods are not restated Governmental Activities Business-type Activities Total Primary Government A large portion of the City‘s net position $34.57 million, reflects the City’s investment in capital assets (e.g., land, buildings, machinery and equipment), less any related debt used to acquire those assets that are still outstanding. The City uses these assets to serve its citizens and businesses; consequently, these assets are not available for spending.

Although the City‘s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

Another large portion of the City’s net position, $16.07 million, represents resources subject to external restrictions on how they may be used. Due to the implementation of GASB 68, the City is required to report net pension liability.

Reporting of net pension liability resulted in a ($12.00) million deficit in governmental activities unrestricted net position. Business-type activities reported ($0.67) million in unrestricted net position at year-end.

City of Anderson
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) (CONTINUED) June 30, 2025
11 Change in Net Position
The following table reflects the summary of changes in net position for governmental and business-type activities as of June 30, 2025 (2025) and June 30, 2024 (2024).
2025 2024 2025 2024 2025 2024
Revenues
Program revenues:

Charges for services $ 1,436,084 $ 1,074,286 $ 4,225,822 $ 3,678,350 $ 5,661,906 $ 4,752,636 Operating grants and contributions 3,121,112 2,961,327 1,066,604 109,632 4,187,716 3,070,959 Capital grants and contributions - - 68,236 115,241 68,236 115,241 General revenues:

Taxes:

Sales taxes 6,242,613 6,794,008 - 6,242,613 - 6,794,008 Property taxes 3,079,135 2,810,845 - 3,079,135 - 2,810,845 Motel taxes 516,775 535,915 - - 516,775 535,915
Franchise taxes 429,809 413,489 - - 429,809 413,489
Other taxes 71,318 72,086 - - 71,318 72,086
Investment earnings 28,821 43,722 20,943 31,322 49,764 75,044 Total revenues 14,925,667 14,705,678 5,381,605 3,934,545 20,307,272 18,640,223 Expenses
General government 1,659,938 1,949,018 - 1,659,938 - 1,949,018 Public safety 9,328,140 9,382,999 - 9,328,140 - 9,382,999 Public works 2,587,045 2,754,245 - 2,587,045 - 2,754,245 Planning 326,288 402,448 - - 326,288 402,448
Community development 1,365,694 1,571,906 - 1,365,694 - 1,571,906 Recreation and cultural 1,532,764 1,856,139 - 1,532,764 - 1,856,139 Water - - 3,546,208 2,109,082 3,546,208 2,109,082
Sewer - - 2,941,481 2,736,287 2,941,481 2,736,287
Interest and fiscal charges 17,803 20,108 - - 17,803 20,108 Total expenses 17,936,863 16,817,672 6,487,689 4,845,369 23,305,361 22,782,232 Changes in net position (1,892,005) (3,231,185) (1,106,084) (910,824) (2,998,089) (4,142,009) Net Position July 1, as previously reported 35,484,882 32,253,697 8,980,179 9,891,003 41,233,876 45,375,885 Change in accounting principle (GASB 101)* (255,118) - (10,343) - (265,461) - Net position July 1 - as restated 35,484,882 31,998,579 8,969,836 9,891,003 40,968,415 45,375,885 Net position June 30 $ 32,253,697 30,106,574 $ 7,863,752 $ 8,980,179 $ 37,970,326 $ 41,233,876 $ Governmental Activities Business-type Activities Total Primary Government Governmental Activities. Primary Governmental activity expenses totaled $16.82 million in Fiscal Year 2024-2025.

Program revenues totaled $4.56 million. General revenues and transfers totaled $10.37 million. Sales tax revenue of $6.24 (60 percent) represented the largest share of general revenues and transfers.

Public safety activity expenses of $9.33 million represented the largest portion of governmental activity expenses (55 percent). Community development activity expenses of $1.37 million accounted for another 8 percent. Public works activity expenses of $2.59 million represented 15.4 percent. General government activity expenses of $1.66 million represented 10 percent, recreation and cultural activity expenses of $1.53 million represented 9 percent, and planning activity expenses of $0.326 million represented 2 percent. Lastly, interest and fiscal charge expenses of nearly $0.02 million represented less than 1 percent.

Business-type Activities. Business-type activity expenses totaled $6.49 million in Fiscal Year 2024-2025. Charges for services totaled $4.23 million. Water enterprise expenses totaled $3.55 million, with charges for water services totaling $2.49 million. Sewer enterprise expenses totaled $2.94 million, with charges for sewer services totaling $1.73 million.

FINANCIAL ANALYSIS OF THE CITY’S FUNDS
As noted earlier in this discussion and analysis, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. These funds have been classified as governmental or proprietary.

City of Anderson
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) (CONTINUED) June 30, 2025
12 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. In particular, unreserved fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

As of June 30, 2025, the City’s governmental funds reported a combined ending fund balance of $16.36 million.

General Fund. The General Fund is the chief operating fund of the City. In 2024-2025, the City experienced a deficit in General Fund revenues and other financing sources over General Fund expenditures and other financing uses in the amount of $0.39 million. This decreased the year-end General Fund balance to $1.81 million, of which $0.27 million is nonspendable, $0.34 million is assigned, and $1,206,701 is unassigned.

Expressed as a percentage of annual expenditures, the unassigned General Fund balance stood at 9.9% of expenditures on June 30, 2025. The City’s unassigned General Fund balance is below the Council’s target of 20 - 25%.

General Fund revenues. The Bradley-Burns Sales and Use Tax revenues decreased by 8.1% in the 2024-2025 fiscal year from 2023-2024. The Transaction and Use Tax (Measure A) decreased by 12% in 2024-2025. Property tax revenues increased by 9.5%. Assessed property values increased by 4.5% in 2024-2025. Transient occupancy (motel) taxes showed a 81.9% increase in 2024-2025, compared to a 57.3% drop from the 22/23 to the prior fiscal year.

Licenses and permits increased 17.8%, and the category of fines, forfeitures, and penalties decreased by 5.4%.

Intergovernmental revenues also decreased by .04%. Charges for services increased by 62%.

Overall, general fund revenues increased, from $11.51 million in Fiscal Year 2023-2024 to $11.86 million in Fiscal Year 2024-2025, largely due to increases in permitting and property values generating higher property tax revenues.

General Fund expenditures. General Fund expenditures totaled $12.25 million in 2024-2025. This was a decrease of

11.6% compared to 2023-2024 General Fund expenditures of $13.85 million. This decrease is due to consistent efforts in cost-saving measures and overall conservative spending practices.

Proprietary funds. The City’s two enterprise funds provide the same type of information found in the governmentwide financial statements but with more detail. Highlights of the annual activity for these funds have already been provided in the discussion of the business-type activities.

GENERAL FUND BUDGETARY HIGHLIGHTS
A detailed budgetary comparison schedule for the year ended June 30, 2025, is presented as a basic financial statement found on page 85.

City of Anderson
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) (CONTINUED) June 30, 2025
13 CAPITAL ASSET AND DEBT ADMINISTRATION
Capital assets. The City‘s investment in capital assets for its governmental and business-type activities as of June 30, 2025, amounted to $38.18 million (net of accumulated depreciation and amortization). This investment in capital assets includes land, park improvements, buildings and improvements, vehicles and equipment, streets, bikeways, water, sewer, storm drain systems, and construction in progress. 2025 2024 2025 2024 2025 2024
Land $ 2,902,940 $ 2,902,940 $ - $ 2,902,940 - $ $ 2,902,940 Construction in Progress 33,192 119,350 949,813 261,895 983,005 381,245 Budings, net 1,641,533 1,740,588 155,994 199,723 1,797,527 1,940,311 Improvements, net 20,733,988 19,985,888 9,109,984 9,335,188 29,843,972 29,321,076 Equipment, net 1,391,140 1,567,310 536,912 342,218 1,928,052 1,909,528 Intangible Assets, net 720,764 1,099,897 - - 720,764 1,099,897 Total Capital Assets $ 27,415,973 27,423,557 $ 10,752,703 $ 10,139,024 $ 38,176,260 $ 37,554,997 $ Governmental Activities Business-type Activities Total Primary Government Additional information on the City’s capital assets may be found in Note 5 to the basic financial statements.

Long-term debt. At June 30, 2025, the City had $ 2 million in governmental activity debt outstanding. In addition, the City had outstanding $6.2 million in business-type activity debt. Net long-term debt increased by $3.1 million during Fiscal Year 2024-2025 due to new loan issuance.
2024 2024 2024
2025 (As restated) 2025 (As restated) 2025 (As restated) Revenue Bonds $ - $ - $ 760,000 $ 830,000 $ 760,000 $ 830,000 Limited Obligation Bonds - 1,310,000 - 1,361,000 1,310,000 1,361,000 Financing Purchase 729,660 901,463 4,000,495 156,000 4,730,155 1,057,463 Lease Liabilities 624,849 922,642 - - 624,849 922,642
Subscription Liabilities 27,617 53,891 - - 27,617 53,891 Compensated Absences 661,746 754,491 100,333 97,210 762,079 851,701 Total Long-Term Debt $ 2,632,487 2,043,872 $ 6,170,828 $ 2,444,210 $ 8,214,700 $ 5,076,697 $ Governmental Activities Business-type Activities Total Primary Government Additional information about the nature and type of long-term debt can be found in Note 6 to the basic financial statements.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES
Annually, each May, the State Department of Finance releases its January 1 population estimates for all California cities and counties. The State Department of Finance estimated that Anderson’s population was 10,967 as of January 1, 2025, a 0.7 percent decrease from the prior year.

Low spending, slow construction, and inflation continue to be a concern that we will be monitoring closely in next the fiscal year. The building of Single-Family homes has slowed significantly in the City generally due to rising interest rates and national economic pressures. In return this has had a substantial negative impact on the License and Permit fee revenues. Transient Occupancy Tax revenues are also significantly less than projections due to less travelers and one hotel owing 14 quarters of due taxes. However, the City is still experiencing stable revenues in Property Tax, Bradley-Burns Sales and Use Tax.

During the 2025/2026 fiscal year, the city is having a revenue cost study for service fees conducted by an outside agency that will be presented to the City Council for adoption. Any changes to cost of service fees are intended to be implemented by July 1, 2026.

City of Anderson
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) (CONTINUED) June 30, 2025
14 The City’s Wastewater Division completed a comprehensive rate study in 2024/25 that implemented a rate increase of 65% at July 1, which will reflect in the 2025/26 sewer charges.

REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City‘s financial condition for all those with an interest in the City’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Director/Treasurer, City of Anderson, 1887 Howard Street, Anderson, California 96007.

BASIC FINANCIAL STATEMENTS
15 City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
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16 GOVERNMENT-WIDE

FINANCIAL STATEMENTS
17 Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:

Cash and investments 2,858,260 $ 554,600 $ 3,412,860 $
Restricted cash 3,849,995 - 3,849,995
Taxes receivable 1,939,170 - 1,939,170
Accounts receivable 923,012 450,462 1,373,474
Interest receivable 2,733,387 - 2,733,387
Due from other governments 869,179 332,022 1,201,201
Internal balances (244,407) 244,407 -
Lease receivable, due within one year 10,166 - 10,166
Inventories and prepaid items 324,803 51,174 375,977
Total current assets 9,413,570 5,482,660 14,896,230
Noncurrent assets:

Loans receivable 7,646,290 11,955 7,658,245
Lease receivable, due in more than one year 220,841 - 220,841 Capital assets:

Capital assets, nondepreciable 2,936,132 949,813 3,885,945 Capital assets, depreciable and amortizable, net 24,487,425 9,802,890 34,290,315 Total capital assets 27,423,557 10,752,703 38,176,260
Total noncurrent assets 35,290,688 10,764,658 46,055,346 Total assets 44,704,258 16,247,318 60,951,576

DEFERRED OUTFLOWS OF RESOURCES
Pension related 4,728,677 368,141 5,096,818
Total deferred outflows of resources 4,728,677 368,141 5,096,818 Primary Government
City of Anderson
Statement of Net Position
June 30, 2025
See accompanying Notes to the Basic Financial Statements. 18 Governmental Business-Type
Activities Activities Total

LIABILITIES
Current liabilities:

Accounts payable 296,860 277,282 574,142
Accrued payroll and benefits 198,212 35,287 233,499
Accrued interest 21,534 21,020 42,554
Deposits payable 120,523 78,120 198,643
Unearned revenue 412,976 791,574 1,204,550
Compensated absences, due within one year 165,437 25,083 190,520 Long-term debt, due within one year 459,658 130,000 589,658 Total current liabilities 1,675,200 1,358,366 3,033,566 Noncurrent liabilities:

Compensated absences, due in more than one year 496,310 75,250 571,560 Long-term debt, due in more than one year 922,468 5,940,495 6,862,963 Net pension liabilities 15,592,300 1,327,210 16,919,510 Total noncurrent liabilities 17,011,078 7,342,955 24,354,033 Total liabilities 18,686,277 8,701,321 27,387,598

DEFERRED INFLOWS OF RESOURCES
Lease related 215,185 - 215,185
Pension related 424,899 50,386 475,285
Total deferred inflows of resources 640,084 50,386 690,470

NET POSITION
Net investment in capital assets 26,041,431 8,532,203 34,573,634 Restricted for:

Capital improvements 4,350,329 - 4,350,329
Transportation 147,951 - 147,951
Public safety 364,144 - 364,144
Community development 11,201,973 11,201,973 -
Other 3,217 - 3,217
Total restricted 16,067,614 16,067,614 -
Unrestricted (deficit) (12,002,471) (668,451) (12,670,922) Total net position $ 30,106,574 $ 7,863,752 $ 37,970,326 Primary Government
City of Anderson
Statement of Net Position (Continued)
June 30, 2025
See accompanying Notes to the Basic Financial Statements. 19 Operating Capital Total
Charges for Grants and Grants and Program
Functions/Programs Expenses Services Contributions Contributions Revenues Governmental activities:

General government $ 1,659,938 $ 6,378 $ 98,436 $ 104,814 - $ Public safety 9,328,140 234,217 328,439 562,656 -
Public works 2,587,045 422,767 1,700,159 2,122,926 -
Planning 326,288 662,272 - 662,272 -
Community development 1,365,694 3,545 994,078 997,623 - Recreation and cultural 1,532,764 106,905 - 106,905 -
Interest and fiscal charges 17,803 - - - -
Total governmental activities 16,817,672 1,436,084 3,121,112 4,557,196 - Business-type Activities:

Water 3,546,208 2,495,003 949,776 3,444,779 -
Sewer 2,941,481 1,730,819 116,828 68,236 1,915,883
Total business-type activities 6,487,689 4,225,822 1,066,604 68,236 5,360,662 Total primary government $ 5,661,906 23,305,361 $ $ 4,187,716 $ 68,236 $ 9,917,858 City of Anderson
Statement of Activities
For the Year Ended June 30, 2025
Program Revenues
See accompanying Notes to the Basic Financial Statements. 20 Governmental Business-Type
Functions/Programs Activities Activities Total
Governmental activities:

General government (1,555,124) $ - $ (1,555,124) $
Public safety (8,765,484) (8,765,484) -
Public works (464,119) (464,119) -
Planning 335,984 335,984 -
Community development (368,071) (368,071) -
Recreation and cultural (1,425,859) (1,425,859) -
Interest and fiscal charges (17,803) - (17,803)
Total governmental activities (12,260,476) (12,260,476) - Business-type Activities:

Water (101,429) - (101,429)
Sewer (1,025,598) - (1,025,598)
Total business-type activities (1,127,027) - (1,127,027) Total primary government (1,127,027) (12,260,476) (13,387,503) General revenues:

Taxes:

Sales taxes - 6,242,613 6,242,613
Property taxes 3,079,135 - 3,079,135
Motel taxes - 516,775 516,775
Franchise taxes 429,809 - 429,809
Other taxes - 71,318 71,318
Total taxes 10,339,650 - 10,339,650
Investment earnings 28,821 20,943 49,764
Total general revenues 20,943 10,368,471 10,389,414
Changes in net position (1,106,084) (1,892,005) (2,998,089) Net position:

Beginning of year, as previously presented 8,980,179 32,253,697 41,233,876 Change in accounting principle (GASB 101) (255,118) (10,343) (265,461) Beginning of year, as restated (Note 14) 8,969,836 31,998,579 40,968,415 End of year $ 7,863,752 30,106,574 $ 37,970,326 $
Net (Expense) Revenue and
Changes in Net Position
City of Anderson
Statement of Activities (Continued)
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements. 21 City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
(This page is intentionally left blank)
22 FUND FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
23 City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
(This page is intentionally left blank)
24 Low and Moderate Income Housing Special Revenue Fund - To account for all activities resulting from the elimination of the Redevelopment Agency's low and moderate housing function. Primarily, this Fund utilizes program income from loan payments to provide for the development and assistance for low income households.

Parks Capital Projects Fund - To account for impact fees that are restricted for improvements to the City's parks and grounds.

GOVERNMENTAL FUND

FINANCIAL STATEMENTS
General Fund - To account for and report all financial resources of the general government, except those required to be accounted for in in another fund.

ADAP and Home Special Revenue Fund - To account for the operating and financing of funds provided by Federal Housing and Urban Development for the rehabilitation and financing of homes through ADAP and Home funding.

Gas Tax Special Revenue Fund - To account for State funds received to use in providing construction and maintenance of the Street system of the City.

CDBG Special Revenue Fund - To account for funds provided by Federal Housing and Urban Development for the rehabilitation of homes and government structures through CDBG funding in addition to accounting for program income from closed grants/loans. 25 General Gas Tax ADAP and CDBG
Fund Fund Home Fund Fund
ASSETS
Cash and investments $ 34,876 $ 91,930 $ 578,431 $ 925,712 Taxes receivable 1,918,644 17,705 - -
Accounts receivable 846,832 - - -
Lease receivable 231,007 - - -
Interest receivable - - 1,615,303 743,390
Loans receivable - - 4,485,238 1,642,572
Due from other governments 155,743 53,712 - 82,244
Due from other funds 2,922,385 - 1,114,945 16,523
Inventories and prepaid items 268,421 - - -
Advances to other funds - - - -
Total assets $ 6,377,908 $ 163,347 $ 7,793,917 $ 3,410,441

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities $ 192,988 $ 15,396 $ 37 $ 155 Accrued payroll and benefits 160,689 - - 605
Deposit payable 120,523 - - -
Unearned revenue - - 13,601 -
Due to other funds 2,871,000 - - 397,107
Advances from other funds - - - -
Total liabilities 3,345,200 15,396 13,638 397,867
Deferred inflows of resources:

Leases 215,185 - - -
Unavailable revenues 1,004,528 - - -
Total deferred inflows of resources 1,219,713 - - -
Fund balances:

Nonspendable 268,421 - - -
Restricted - 147,951 7,780,279 3,012,574
Assigned 337,873 - - -
Unassigned (deficit) 1,206,701 - - -
Total fund balances 1,812,995 147,951 7,780,279 3,012,574 Total liabilities, deferred inflows of
resources, and fund balances $ 6,377,908 $ 163,347 $ 7,793,917 $ 3,410,441 (Continued)
Major Funds
City of Anderson
Balance Sheet
Governmental Funds
June 30, 2025
See accompanying Notes to the Basic Financial Statements. 26 Low and Parks Nonmajor Total
Mod Income Capital Projects Governmental Governmental
Housing Fund Fund Funds Funds
ASSETS
Cash and investments $ - $ - $ 1,170,888 $ 2,801,837
Taxes receivable - - 2,821 1,939,170
Accounts receivable - 11,382 61,711 919,925
Lease receivable - - - 231,007
Interest receivable 374,152 - 542 2,733,387
Loans receivable 1,452,510 - 65,970 7,646,290
Due from other governments - 550,287 27,193 869,179
Due from other funds - - 3,612,963 7,666,816
Inventories and prepaid items - - - 268,421
Advances to other funds - - 50,892 50,892
Total assets $ 1,826,662 $ 561,669 $ 4,992,980 $ 25,126,924

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities $ - $ - $ 20,861 $ 229,437 Accrued payroll and benefits 404 - - 161,698
Deposit payable - - - 120,523
Unearned revenue - - 399,375 412,976
Due to other funds 1,102,523 628,548 256,141 5,255,319
Advances from other funds 815,449 - - 815,449
Total liabilities 1,918,376 628,548 676,377 6,995,402
Deferred inflows of resources:

Leases - - - 215,185
Unavailable revenues - 550,287 - 1,554,815
Total deferred inflows of resources - 550,287 - 1,770,000 Fund balances:

Nonspendable - - - 268,421
Restricted - - 4,576,523 15,517,327
Assigned - - - 337,873
Unassigned (deficit) (91,714) (617,166) (259,920) 237,901 Total fund balances (91,714) (617,166) 4,316,603 16,361,522 Total liabilities, deferred inflows of
resources, and fund balances $ 1,826,662 $ 561,669 $ 4,992,980 $ 25,126,924 (Concluded)
Major Funds
City of Anderson
Balance Sheet
Governmental Funds (Continued)
June 30, 2025
See accompanying Notes to the Basic Financial Statements. 27 City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
(This page is intentionally left blank)
28 Total Fund Balances - Total Governmental Funds $ 16,361,522 Amounts reported for governmental activities in the statement of net position are different because:

Capital assets, not being depreciated/amortized 2,936,132 $ Capital assets, net of accumulated depreciation/amortized 24,487,425 Less: Amount reported in the Internal Service Fund (1,923,265) 25,500,292 (15,311)
(73,924)
(524,580)
(133,694)
(401,084)
4,244,640
(13,847,270)
(358,651)
1,554,815
(2,200,182)
Net position of governmental activities $ 30,106,574
Pension related deferred inflows of resources, net of $(66,248) reported in the Internal Service Funds Internal Service Fund is used by management to charge the costs of data processing, customer service, maintenance, insurance, and fleet management services to individual funds. The assets and liabilities of the internal service fund are included in the governmental activities in the Government-Wide Statement of Net Position.

Long-term debt, due in more than one year, net of $(397,888) reported in the Internal Service Funds Compensated absences, due within one year, net of $(31,743) reported in the Internal Service Funds Compensated absences, due in more than one year, net of $(95,226) reported in the Internal Service Funds Net pension liability and the related deferred outflows of resources and deferred inflows of resources are not due and payable in the current period or not available for current expenditures and are not reported in the governmental fund financial statements:

Pension related deferred outflows of resources, net of $484,037 reported in the Internal Service Funds Aggregate net pension liabilities, net of $(1,745,030) reported in the Internal Service Funds Revenues earned but not available to pay for current expenditures for governmental funds are unavailable.

Long-term debt, due within one year, net of $(385,734) reported in the Internal Service Funds City of Anderson
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2025
Capital assets used in governmental activities are not financial resources and are not reported in the funds:

Amount reported in government-wide statement of position:

Interest is recognized when due, and therefore, interest payable is not reported in the governmental funds, net of $(6,223) reported in the Internal Service Funds.

Long-term liabilities were not due and payable in the current period. Therefore, they were not reported in the Governmental Funds' Balance Sheet.

See accompanying Notes to the Basic Financial Statements. 29 General Gas Tax ADAP and CDBG
Fund Fund Home Fund Fund
REVENUES:

Sales taxes $ 6,242,613 $ - $ - $ -
Property taxes 3,079,135 - - -
Motel taxes 516,775 - - -
Franchise taxes 429,809 - - -
Licenses and permits 319,861 - - -
Fines, forfeitures, and penalties 41,303 - - -
Use of money and property 28,821 25,597 118,575 45,130
Intergovernmental revenue 123,673 1,246,938 - 146,608
Charges for current services 892,264 - - -
Other revenues 188,350 11,656 10,605 -
Total revenues 11,862,604 1,284,191 129,180 191,738
EXPENDITURES:

Current:

General government 1,565,673 - - -
Public safety 8,260,412 - - -
Public works - 1,588,343 - -
Planning 314,123 - - -
Community development 480,517 - - 186,282
Recreation and cultural 1,387,517 - - -
Capital outlay 203,974 223,159 - -
Debt service:

Principal 36,582 - - -
Interest and fiscal charges 1,902 - - -
Total expenditures 12,250,700 1,811,502 - 186,282
Excess (deficiency) of revenues over
expenditures (388,096) (527,311) 129,180 5,456
OTHER FINANCING SOURCES (USES):

Transfers in - - - -
Transfers out - (15,836) - -
Total other financing sources (uses) - (15,836) - -
NET CHANGES IN FUND BALANCES (388,096) (543,147) 129,180 5,456 FUND BALANCES (DEFICITS):

Beginning of year, previously reported 2,452,814 691,098 7,651,099 3,007,118 Correction of error (Note 14) (251,723) - - -
Change with financial reporting entity
(major and non-major fund classification) (Note 14) - - - - Beginning of year, as restated (Note 14) 2,201,091 691,098 7,651,099 3,007,118 End of year $ 1,812,995 $ 147,951 $ 7,780,279 $ 3,012,574 (Continued)
Major Funds
City of Anderson
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements. 30 Low and Parks Nonmajor Total
Mod Income Capital Projects Governmental Governmental
Housing Fund Fund Funds Funds
REVENUES:

Sales taxes $ - $ - $ - $ 6,242,613
Property taxes - - - 3,079,135
Motel taxes - - - 516,775
Franchise taxes - - - 429,809
Licenses and permits - 15,847 113,235 448,943
Fines, forfeitures, and penalties - - 81,201 122,504
Use of money and property 26,420 - 50,814 295,357
Intergovernmental revenue - - 270,977 1,788,196
Charges for current services - - - 892,264
Other revenues - - 160,658 371,269
Total revenues 26,420 15,847 676,885 14,186,865
EXPENDITURES:

Current:

General government - - - 1,565,673
Public safety - - 424,745 8,685,157
Public works - - 242,732 1,831,075
Planning - - - 314,123
Community development 40,768 - - 707,567
Recreation and cultural - 6,665 - 1,394,182
Capital outlay - 586,973 967,585 1,981,691
Debt service:

Principal - 34,750 - 71,332
Interest and fiscal charges - 17,965 - 19,867
Total expenditures 40,768 646,353 1,635,062 16,570,667
Excess (deficiency) of revenues over
expenditures (14,348) (630,506) (958,177) (2,383,802)
OTHER FINANCING SOURCES (USES):

Transfers in - - 15,836 15,836
Transfers out - - - (15,836)
Total other financing sources (uses) - - 15,836 -
NET CHANGES IN FUND BALANCES (14,348) (630,506) (942,341) (2,383,802) FUND BALANCES (DEFICITS):

Beginning of year, previously reported (77,366) - 5,272,284 18,997,047 Correction of error (Note 14) - - - (251,723)
Change with financial reporting entity
(major and non-major fund classification) (Note 14) - 13,340 (13,340) - Beginning of year, as restated (Note 14) (77,366) 13,340 5,258,944 18,745,324 End of year $ (91,714) $ (617,166) $ 4,316,603 $ 16,361,522 (Concluded)
Major Funds
City of Anderson
Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Governmental Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements. 31 Net change in fund balances - total governmental funds: $ (2,383,802) Amounts reported for governmental activities in the Statement of Activities are different because:
1,825,545
(1,271,915)
2,064
69,766
(948,263)
Principal repayments of long-term debt, net of $424,538 reported in the Internal Service Funds 71,332 4,466
738,802
Change in net position of governmental activities $ (1,892,005) Unavailable revenue is not recognized as revenue in the governmental funds since the revenue is not available to fund expenditures of the current year.

Interest accrued on long-term debt is reported in the Statement of Activities, but does not require the use of current financial resources. Therefore, accrued interest is not reported as an expenditure in governmental funds. This amount represents the change in accrued interest from the prior year.

Compensated absences were reported in the Government-Wide Statement of Activities, but they did not require the use of current financial resources. Therefore, compensated absences were not reported as expenditures in the governmental funds, net of $22,979 reported in the Internal Service Funds.

Pension expenses were reported in the Government-Wide Statement of Activities, but it did not require the use of current financial resources. Therefore, the increase in net pension liabilities were not reported as an expenditure in the governmental funds.

Some expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds:

Internal Service Fund was used by management to account for the costs of data processing, customer service, maintenance, insurance, and fleet management services to individual funds. The net revenue of the internal service fund was reported with governmental activities.

Depreciation and amortization expenses, net of $593,136 reported in the internal service fund Capital outlay expenditures, net of $156,146 reclassified to functional expenses, and $47,090 reporeted in internal service funds
City of Anderson
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities and Changes in Net Position For the Year Ended June 30, 2025
Governmental Funds report capital outlays as expenditures. However, in the Statement of Activities, the portion of the cost attributed to capital assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense. The remaining amounts are expensed and allocated to the programs they support.

See accompanying Notes to the Basic Financial Statements. 32 Internal Service Fund - To account for the costs of data processing, customer service, maintenance, insurance, and fleet management services to individual funds.

PROPRIETARY FUND

FINANCIAL STATEMENTS
Water Enterprise Fund - To account for accounts for the operation and maintenance of the City's water utility.

Sewer Enterprise Fund - To account for accounts for the operation and maintenance of the City's waste water utility. 33 Governmental
Activities
Internal
Water Sewer Total Service Funds
ASSETS
Current assets:

Cash and investments 18,949 $ 535,651 $ 554,600 $ 56,423 $ Restricted cash - 3,849,995 3,849,995 -
Accounts receivable 418,404 32,058 450,462 3,087
Due from other governments 264,646 67,376 332,022 -
Due from other funds - 723,407 723,407 366,159
Inventories and prepaid items 45,963 5,211 51,174 56,382 Total current assets 5,213,698 747,962 5,961,660 482,051 Noncurrent assets:

Loans receivable - 11,955 11,955 -
Advances to other funds - 764,557 764,557 -
Capital assets:

Capital assets, nondepreciable 949,813 - 949,813 20,000 Capital assets, depreciable and amortizable, net 4,142,739 5,660,151 9,802,890 1,903,265 Total capital assets 5,092,552 5,660,151 10,752,703 1,923,265 Total noncurrent assets 6,436,663 5,092,552 11,529,215 1,923,265 Total assets 11,650,361 5,840,514 17,490,875 2,405,316

DEFERRED OUTFLOWS OF RESOURCES
Pension related 105,045 263,096 368,141 484,037
Total deferred outflows of resources 263,096 105,045 368,141 484,037 (Continued)
Business-Type Activities
City of Anderson
Statement of Net Position
Proprietary Funds
June 30, 2025
Enterprise Funds
See accompanying Notes to the Basic Financial Statements. 34 Governmental
Activities
Internal
Water Sewer Total Service Funds

LIABILITIES
Current liabilities:

Accounts payable 215,037 62,245 277,282 67,423
Accrued payroll and benefits 14,391 20,896 35,287 36,514 Accrued interest - 21,020 21,020 6,223
Customer/employee deposits 78,120 - 78,120 -
Due to other funds 1,243,557 - 1,243,557 2,257,506
Unearned revenue - 791,574 791,574 -
Compensated absences, due within one year 11,383 13,700 25,083 31,743 Bonds, loans, and lease payable, due within one year - 130,000 130,000 385,734 Total current liabilities 1,039,435 1,562,488 2,601,923 2,785,143 Noncurrent liabilities:

Compensated absences, due in more than one year 34,150 41,100 75,250 95,226 Bonds, loans, and lease payable, due in more than one year - 5,940,495 5,940,495 397,888 Net pension liability 378,705 948,505 1,327,210 1,745,030 Total noncurrent liabilities 6,930,100 412,855 7,342,955 2,238,144 Total liabilities 7,969,535 1,975,343 9,944,878 5,023,287

DEFERRED INFLOWS OF RESOURCES
Pension related 14,377 36,009 50,386 66,248
Total deferred inflows of resources 14,377 36,009 50,386 66,248

NET POSITION
Net investment in capital assets 5,092,552 3,439,651 8,532,203 1,139,643 Unrestricted (deficit) (1,136,713) 468,262 (668,451) (3,339,825) Total net position $ 3,907,913 3,955,839 $ 7,863,752 $ (2,200,182) $ (Concluded)
Enterprise Funds
Business-Type Activities
June 30, 2025
City of Anderson
Proprietary Funds
Statement of Net Position (Continued)
See accompanying Notes to the Basic Financial Statements. 35 City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
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36 Governmental
Activities
Internal
Water Sewer Total Service Funds
OPERATING REVENUES:

Wastewater and water charges 2,424,594 $ 1,730,819 $ 4,155,413 $ - $ Internal service fund charges - - - 4,149,500
Rental revenue 11,903 - 11,903 -
Other 58,506 - 58,506 1,246,966
Total operating revenues 1,730,819 2,495,003 4,225,822 5,396,466 OPERATING EXPENSES:

Cost of sales and service 2,159,083 1,334,474 3,493,557 4,779,280 Administrative services 1,131,502 1,216,611 2,348,113 - Depreciation and amortization 255,623 283,364 538,987 593,136 Total operating expenses 2,834,449 3,546,208 6,380,657 5,372,416 OPERATING INCOME (LOSS) (1,103,630) (1,051,205) (2,154,835) 24,050 NONOPERATING REVENUES (EXPENSES):

Intergovernmental revenue 949,776 116,828 1,066,604 -
Gain on sale of assets - - - 12,060
Investment income 3,959 16,984 20,943 -
Interest expense - (107,032) (107,032) (31,644)
Total nonoperating revenues (expenses) 26,780 953,735 980,515 (19,584)

INCOME (LOSS) BEFORE
CAPITAL CONTRIBUTION (1,076,850) (97,470) (1,174,320) 4,466 CAPITAL CONTRIBUTION:

Developer impact fee 20,129 48,107 68,236 -
Total capital contribution 20,129 48,107 68,236 -
CHANGES IN NET POSITION (77,341) (1,028,743) (1,106,084) 4,466 NET POSITION (DEFICIT):

Beginning of year, as previously reported 4,035,793 4,944,386 8,980,179 (2,161,709) Change in accounting principle (GASB 101) (2,613) (7,730) (10,343) (42,939) Beginning of year, as restated (Note 14) 4,033,180 4,936,656 8,969,836 (2,204,648) End of year $ 3,955,839 $ 3,907,913 $ 7,863,752 $ (2,200,182) Enterprise Funds
City of Anderson
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2025
Business-Type Activities
See accompanying Notes to the Basic Financial Statements. 37 Governmental
Activities
Internal
Water Sewer Total Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers and users 2,380,961 $ 1,790,854 $ 4,171,815 $ 5,417,635 $ Cash paid to employees (including employee benefits) (638,338) (1,144,828) (1,783,166) (2,124,329) Cash paid to suppliers (2,504,897) (1,369,189) (3,874,086) (2,572,202) Net cash provided by (used in) operating activities (723,163) (762,274) (1,485,437) 721,104

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Cash received from other funds 680,025 - - 680,025
Payments made to other funds - (680,648) (680,648) (218,255) Intergovernmental noncapital grants received 687,211 781,620 94,409 - Net cash provided by (used in)
noncapital financing activities (586,239) 1,367,236 780,997 (218,255)

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition of capital assets (937,121) (215,545) (1,152,666) (47,090) Proceeds from disposal of property - - - 12,060
Proceeds from issuance of debt 3,849,995 - 3,849,995 -
Principal payments on long term debt - (126,500) (126,500) (424,538) Developer impact fee received 20,129 68,236 48,107 -
Interest paid - (107,845) (107,845) (36,085)
Net cash provided by (used in) capital
and related financing activities 3,448,212 (916,992) 2,531,220 (495,653) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest received 3,959 16,984 20,943 -
Net cash provided by investing activities 3,959 16,984 20,943 - Net change in cash and cash equivalents (308,071) 2,155,794 1,847,723 7,196 CASH AND CASH EQUIVALENTS:

Beginning of year 327,020 2,229,852 2,556,872 49,227
End of year $ 4,385,646 18,949 $ 4,404,595 $ 56,423 $
CASH AND CASH EQUIVALENTS:

Cash and investments 18,949 535,651 554,600 635,920
Restricted cash - 3,849,995 3,849,995 -
End of year $ 4,385,646 18,949 $ 4,404,595 $ 635,920 $
(Continued)
City of Anderson
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025
Business-Type Activities
Enterprise Funds
See accompanying Notes to the Basic Financial Statements. 38 Governmental
Activities
Internal
Water Sewer Total Service Funds

RECONCILIATION OF OPERATING (LOSS)

TO NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES:

Operating income (loss) (1,051,205) $ (1,103,630) $ (2,154,835) $ 24,050 $ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

Depreciation and amortization expenses 255,623 283,364 538,987 593,136 (Increase) decrease in:

Accounts receivable (114,383) 194 (114,189) 21,169
Prepaid expense - - - 2,471
Deferred outflows from pensions 17,026 100,870 117,896 151,883 Increase (decrease) in:

Accounts payable 84,123 8,184 92,307 (8,310)
Accrued payroll and benefits 7,435 5,217 12,652 5,201
Deposits payable 1,895 - 1,895
Compensated absences payable 2,113 1,010 3,123 (22,979) Unearned revenue (1,554) 59,841 58,287 -
Net pension liability 46,770 (41,190) 5,580 15,836
Deferred inflows of resources - pensions (10,117) (37,023) (47,140) (61,353) Total adjustments 288,931 380,467 669,398 697,054
Net cash provided by (used in) operating activities $ (723,163) (762,274) $ (1,485,437) $ 721,104 $ (Concluded)
City of Anderson
Enterprise Funds
Business-Type Activities
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements. 39 City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
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40 FIDUCIARY FUND

FINANCIAL STATEMENTS
Custodial Fund - To account for assets held by the City in a purely custodial capacity for individuals, private organizations, and/or other governments. These funds include the Shasta Interagency Narcotics Task Force (SINTF) Fund and the County Seizure Fund.

Private-Purpose Trust Fund - To report trust arrangements under which principal and income benefit other governments. This fund reports the assets, liabilities, and activities of the City of Anderson Redevelopment Agency Successor Agency (Successor Agency). 41 City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
(This page is intentionally left blank)
42 Private
Purpose Trust Custodial
Fund Fund
ASSETS:

Cash and investments $ 63,870 $ 178,016
Land held for resale 48,774 -
Restricted cash and investments with trustee 513,105 -
Total assets 625,749 178,016
LIABILITIES:

Accounts payable and accrued liabilities 1,412 57,071
Accrued interest 85,783 -
Long-term liabilities:

Due in one year 285,000 -
Due in more than one year 4,726,067 -
Total liabilities 5,098,262 57,071
NET POSITION:

Restricted for Successor Agency, individual, organization and other government (4,472,513) 120,945 Total net position (deficit) $ (4,472,513) $ 120,945
City of Anderson
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
See accompanying Notes to the Basic Financial Statements. 43 Private
Purpose Trust Custodial
Fund Fund
ADDITIONS:

Redevelopment property taxes trust fund $ 535,203 $ -
Investment income (loss) 23,718 (1,740)
Total additions 558,921 (1,740)
DEDUCTIONS:

Community development 70,238 -
Interest expense 190,138 -
Total deductions 260,376 -
Changes in net position 298,545 (1,740)
NET POSITION (DEFICIT):

Beginning of year (4,771,058) 122,685
End of year $ (4,472,513) $ 120,945
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2025
City of Anderson
See accompanying Notes to the Basic Financial Statements. 44 45

NOTES TO THE BASIC

FINANCIAL STATEMENTS
46 City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
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City of Anderson
Index to the Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
47 Page
Note 1 – Summary of Significant Accounting Policies ............................................................................................ 49 A. Financial Reporting Entity ........................................................................................................................ 49 B. Basis of Accounting and Measurement Focus .......................................................................................... 50 C. Cash, Cash Equivalents, and Investments ................................................................................................. 52 D. Receivables ............................................................................................................................................... 53 E. Interfund Transactions .............................................................................................................................. 53 F. Restricted Assets ....................................................................................................................................... 53 G. Inventories and Prepaid Items ................................................................................................................... 53 H. Capital Assets ............................................................................................................................................ 54 I. Deferred Outflows and Inflows of Resources ........................................................................................... 54 J. Interest Payable ......................................................................................................................................... 54 K. Unearned Revenue and unavailable revenue ............................................................................................ 55 L. Compensated Absences ............................................................................................................................. 55 M. Leases ........................................................................................................................................................ 55 N. Subscription Based Information Technology Arrangements (SBITAs) ................................................... 56 O. Pensions .................................................................................................................................................... 57 P. Long-Term Debt ....................................................................................................................................... 57 Q. Property Taxes .......................................................................................................................................... 58 R. Net Position and Fund Balances ............................................................................................................... 58 S. Use of Estimates........................................................................................................................................ 59 T. Reclassification ......................................................................................................................................... 59 U. Implementation of New GASB Pronouncements ..................................................................................... 59 Note 2 – Cash and Investments ................................................................................................................................. 60 A. Deposits ..................................................................................................................................................... 60 B. Investments ............................................................................................................................................... 61 C. Local Agency Investments Fund (“LAIF”) ............................................................................................... 61 D. Risk Disclosures ........................................................................................................................................ 61 Note 3 – Interfund Transactions ............................................................................................................................... 62 A. Due From/To Other Funds ........................................................................................................................ 62 B. Advances From/To Other Funds ............................................................................................................... 63 C. Transfers ................................................................................................................................................... 63 Note 4 – Lease Receivable .......................................................................................................................................... 63 Note 5 – Capital Assets ............................................................................................................................................... 64 A. Governmental Activities ........................................................................................................................... 64 B. Business-Type Activities .......................................................................................................................... 65 Note 6 – Long-Term Liabilities ................................................................................................................................. 66 A. Governmental Activities ........................................................................................................................... 66 B. Business-Type Activities .......................................................................................................................... 68 City of Anderson
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025
48 Page
Note 7 – Self-Insurance Programs............................................................................................................................. 70 Note 8 – Defined Benefit Pension Plans .................................................................................................................... 71 A. General Information about the Pension Plan ............................................................................................ 71 B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension ................................................................................... 73 Note 9 – Deferred Compensation Plan ...................................................................................................................... 77 Note 10 – Net Position and Fund Balances ............................................................................................................... 77 A. Government-Wide Financial Statements .................................................................................................. 77 B. Fund Financial Statements ........................................................................................................................ 78 Note 11 – Stewardship, Compliance and Accountability ........................................................................................ 78 A. Deficit Fund Balance/Net Position ........................................................................................................... 78 B. Excess of Expenditures over Appropriations ............................................................................................ 79 Note 12 – Successor Agency Trust for Assets of the Former Redevelopment Agency ......................................... 80 Note 13 – Commitments and Contingencies ............................................................................................................. 81 Note 14 – Restatement of Beginning Net Positions and Fund Balances ................................................................ 82 City of Anderson
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
49 Note 1 – Summary of Significant Accounting Policies
The basic financial statements of the City of Anderson, California, (the “City”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as applied to governmental agencies. The Governmental Accounting Standards Board (“GASB”) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the significant policies:

A. Financial Reporting Entity
The City was incorporated January 16, 1956, under the General Laws of the State of California. The City is governed by an elected five-member council.

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

Management determined that the following component unit should be blended based on the criteria above:

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

Anderson Public Financing Authority - The Anderson Public Financing Authority (the “Authority”) was created primarily to facilitate the financing of public improvements, as well as other facilities and improvements which can be funded through the issuance of tax-exempt bonds. The Authority is authorized, among other things, to issue bonds pursuant to the provisions of the Marks-Roos Local Bond Pooling Act of 1985 for the purpose of financing facilities and improvements. The members of the City Council serves as the governing board of the Authority and there is a financial benefit or burden relationship between them and the Authority. The Authority does not issue separate financial statements.

The City had no discretely presented component units.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
50 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. City resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Government-Wide Financial Statements
The Government-Wide Financial Statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. Fiduciary activities are not included in these statements.

Certain types of transactions are reported as program revenues for the City in three categories:
 Charges for services
 Operating grants and contributions
 Capital grants and contributions
Certain eliminations have been made in regards to interfund activities, payables and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal service fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:
 Due from and to other funds
 Advances to and from other funds
 Transfers in and out
Governmental Fund Financial Statements
All governmental funds are accounted for on a spending or “current financial resources” measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expenditures and Changes in Fund Balances present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balances.

Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.

Revenues are recognized as soon as they are both “measurable” and “available”. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For these purposes, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property taxes, other local taxes, franchise fees, forfeitures and penalties, motor license fees, rents and concessions, interest revenue, and state and federal grants and subventions. Expenditures are recorded in the accounting period in which the related fund liability is incurred.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
51 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Governmental Fund Financial Statements (Continued)
Reconciliations of the fund financial statements to the Government-Wide Financial Statements are provided to explain the differences.

Certain indirect costs are included as part of the program expenses reported for individual functions and activities.

The City reports the following major governmental funds:
 General Fund – The General Fund is the City’s primary operating fund and accounts for all financial resources of the general government, except those required to be accounted for in another fund.  Gas Tax Special Revenue Fund – The Gas Tax Fund accounts for state funds received for use in providing construction and maintenance of the street system of the City.  ADAP and Home Special Revenue Fund – The ADAP and Home Fund accounts for the operating and financing of funds provided by Federal Housing and Urban Development for the rehabilitation and financing of homes through ADAP and Home funding.
 CDBG Special Revenue Fund – The CDBG Fund accounts for funds provided by Federal Housing and Urban Development for the rehabilitation of homes and government structures through CDBG funding in addition to accounting for program income from closed grants/loans.  Low and Mod Income Housing Special Revenue Fund – The Low and Moderate Income Housing Fund accounts for all activities resulting from the elimination of the Redevelopment Agency’s low and moderate housing function. Primarily, this Fund utilizes program income from loan payments to provide for the development and assistance for low‐income households.
 Parks Capital Projects Fund – The Parks Capital Projects Fund for impact fees that are restricted for improvements to the City's parks and grounds.

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

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the proprietary funds are charges to customers for sales and services. Operating expenses for the proprietary funds include the costs of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

A separate column representing internal service fund is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities and business-type activities in the Government-Wide Financial Statements.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
52 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Proprietary Fund Financial Statements (Continued)
The City reports the following major proprietary funds:
 Water Enterprise Fund – The Water Fund accounts for the operation and maintenance of the City’s water utility.
 Sewer Enterprise Fund – The Sewer Fund accounts for the operation and maintenance of the City’s wastewater utility.

Additionally, the City reports the following fund types:
 Internal Service Funds – Internal Service Funds accounts for the costs of public works department, vehicle maintenance, building and equipment, customer services, computer, workers compensation, and liability insurance services charged to individual funds.

Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a statement of fiduciary net position and a statement of changes in fiduciary net position. The City’s fiduciary fund represent private purpose trust fund and custodial funds. The private purpose trust funds are reported using the economic resources measurement focus and the full accrual basis of accounting where the assets associated with the activity are controlled by the City and the assets are not derived 1) solely from the government’s own-source revenues or 2) from government-mandated nonexchange transactions or voluntary nonexchange transactions.

The City reports the following fiduciary fund types:
 Private‐purpose Trust Fund – The Private Purpose Trust Fund is a fiduciary fund type used by the City to report trust arrangements under which principal and income benefit other governments. This fund reports the assets, liabilities, and activities of the City of Anderson Redevelopment Agency Successor Agency (the “Successor Agency”).
 Custodial Funds – Custodial Funds account for assets held by the City in a purely custodial capacity for individuals, private organizations, and/or other governments. These funds include the Shasta Interagency Narcotics Task Force (SINTF) Fund and the County Seizure Fund.

C. Cash, Cash Equivalents, and Investments
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three months or less from the date of acquisition. All cash and investments of proprietary funds are held in the City's investment pool. These cash pools have the general characteristics of a demand deposit account, therefore, all cash and investments in the proprietary funds are considered cash and cash equivalents for Statement of Cash Flows purposes.

Investments are stated at fair value.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
53 Note 1 – Summary of Significant Accounting Policies (Continued) D. Receivables
Accounts receivable consist of water and sewer billings and other miscellaneous billings. The water and sewer departments record service fees when earned with a corresponding receivable. The City also records receivables for other miscellaneous user fees and charges. Management records an allowance for doubtful accounts for all receivables which they deem uncollectible. Management determined there were no material uncollectible receivables at June 30, 2025.

Loans receivable consist of loans to individuals for housing rehabilitation and to businesses for construction and business loans. Management considers all loans receivable to be collectible.

Taxes receivable consist of various sales and use taxes, property taxes, and special assessments. Management considers all taxes receivable to be collectible.

E. Interfund Transactions
During the course of operations, numerous transactions that constitute reimbursements to a fund for expenditures/expenses initially made from one fund that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. In addition, on a less occasional basis, the City incurs transactions that constitute quasi‐external transactions between funds. These transactions are accounted for as revenues, expenditures, or expenses in the funds involved in these transactions.

All other interfund transactions are reported as transfers.

Fund transfers are necessary to properly account for cash increases/decreases in the appropriate funds. Transfers include, but are not limited to, the following:
 To allocate funds for operations;
 To allocate funds for equipment replacement;
 To allocate funds for capital projects.

These transactions result in short‐term interfund receivables and payables that are classified as “due from other funds” or “due to other funds” and in long‐term interfund receivables and payables that are classified as “advances to other funds” or “advances from other funds” on the balance sheet – governmental funds and statement of net position – proprietary funds. Any residual balances outstanding between the governmental activities and business‐ type activities are reported in the government‐wide financial statements as “internal balances.” F. Restricted Assets
Certain proceeds of debt issues, as well as certain reserves set aside for their repayment, are classified as restricted assets on the statement of net position and balance sheets because their use is limited by applicable bond covenants.

G. Inventories and Prepaid Items
Proprietary fund inventories are adjusted to annual physical counts and are valued at cost, which approximates market, utilizing the weighted average method of valuation. The costs of governmental fund‐type inventories are recorded as expenditures when consumed rather than when purchased.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
54 Note 1 – Summary of Significant Accounting Policies (Continued) G. Inventories and Prepaid Items (Continued)
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements by using purchase method.

A nonspendable fund balance has been reported in the governmental funds to show that inventories and prepaid items do not constitute “available spendable resources,” even though they are a component of current assets.

H. Capital Assets
In the Government-Wide Financial Statements, capital assets are recorded at cost where historical records are available and at an estimated original cost where no historical records exist. Donated capital assets are valued at their acquisition value.

Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method.

The lives used for depreciation purposes are as follows:

Buildings Primarily 25 to 30 years
Improvements Primarily 10 to 30 years
Equipment Primarily 5 to 10 years
Vehicles Primarily 5 to 10 years
Furniture and fixtures Primarily 7 years
It is the policy of the City to capitalize all land, buildings, improvements, equipment, vehicles, furniture, and fixtures, except assets costing less than $5,000. The costs of normal maintenance and repairs that do not add to the value of the assets or materially extend asset lives are not capitalized. Costs of assets sold or retired (and related amounts of accumulated depreciation) are eliminated from the accounts in the year of sale or retirement and the resulting gain or loss is included in the operating statement of the related fund. Major outlays for capital assets and improvements are capitalized as projects are constructed.

I. Deferred Outflows and Inflows of Resources
The statement of net position and balance sheet – governmental funds reports separate sections for deferred outflows of resources and deferred inflows of resources, when applicable.

Deferred Outflows of Resources represent a consumption of net assets that applies to future periods.

Deferred Inflows of Resources represent an acquisition of net assets that applies to future periods.

J. Interest Payable
In the Government-wide Financial Statements, interest payable on long-term debt is recognized as the liability incurred for governmental activities and business-type activities.

In the Fund Financial Statements, only proprietary fund types recognize the interest payable when the liability is incurred.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
55 Note 1 – Summary of Significant Accounting Policies (Continued) K. Unearned Revenue and unavailable revenue
Unearned revenue is recognized for transactions for which revenue has not yet been earned. Typical transactions recorded as unearned revenues are prepaid charges for services and grants received but not yet earned.

In the governmental fund financial statements, unavailable revenue is reported when transactions have not yet met the revenue recognition criteria based on the modified accrual basis of accounting. The City reports unavailable revenue when an asset is reported in governmental fund financial statements but the revenue is not available.

L. Compensated Absences
Compensated absences are liabilities for leave attributable to services already rendered that accumulate and are more likely than not to be paid or used. Compensated absences primarily consist of vacation and sick leave. The City’s liability for compensated absences is recorded in governmental or business-type activities, as appropriate.

The liability for compensated absences is recognized as leave is earned, based on the employee’s pay rate in effect at the financial statement date, including any applicable salary-related costs. The liability includes only amount attributable to services already rendered that are more likely than not to be paid or used. Amounts expected to be liquidated with expendable available financial resources are reported as fund liabilities, while the remaining balance is reported as a long-term liability in the Statement of Net Position.

M. Leases
Lessee
The City has a policy to recognize a lease liability and a right-to-use asset (lease asset) in the financial with a lease term greater than one year. Variable payments based on future performance or usage of the underlying assets are not included in the measurement of the lease liability.

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

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

Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.  The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.
 The lease term includes the noncancelable period of the lease, plus any option periods that are reasonably certain to be exercised.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
56 Note 1 – Summary of Significant Accounting Policies (Continued) M. Leases (Continued)
Lessee (Continued)
 Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise. The City monitors changes in circumstances that would require a remeasurement of a lease and will remeasure any lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.

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

Lessor
The City is a lessor for leases of buildings and recognizes lease receivables and deferred inflows of resources in the financial statements. Variable payments based on future performance or usage of the underlying asset are not included in the measurement of the lease receivable.

At the commencement of a lease, the lease receivable is measured at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflows of resources are initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflows of resources are recognized as revenue over the life of the lease term in a systematic and rational method.

Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.  The City uses the incremental borrowing rate (IBR) provided by the financial institution during implementation for existing leases or the current rate at the time a new lease is executed or modified.  The lease term includes the noncancelable period of the lease plus any option periods that are likely to be exercised.
 Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

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

N. Subscription Based Information Technology Arrangements (SBITAs) The City recognizes subscription liabilities with a subscription term greater than one year in the government-wide and proprietary fund financial statements. Variable payments based on future performance of the City, usage of the underlying IT assets, or number of user seats are not included in the measurement of the subscription liability.

At the commencement of a subscription, the City initially measures the subscription liability at the present value of subscription payments expected to be made during the subscription term. Subsequently, the lease liability is reduced by the principal portion of subscription payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for subscription payments made at or before the subscription commencement date, plus certain initial direct costs. Subsequently, the subscription asset is amortized on a straightline basis over its useful life.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
57 Note 1 – Summary of Significant Accounting Policies (Continued) N. Subscription Based Information Technology Arrangements (SBITAs) (Continued) Key estimates and judgments related to subscription liabilities include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments.
 The City uses the interest rate charged by the SBITA vendor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for subscription liabilities.
 The subscription term includes the noncancellable period of the SBITA. Subscription payments included in the measurement of the subscription liability are composed of fixed payments.

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

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

The following timeframes are used for pension reporting:

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

P. Long-Term Debt
In the Government-Wide Financial Statements and Proprietary Fund Financial Statements, long-term debt and other long-term obligations are reported as liabilities in the appropriate activities. Bond premium and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are expensed when incurred.

The governmental fund financial statements do not present long-term liabilities. Consequently, long-term debt is shown as a reconciling item in the Reconciliation of the Governmental Funds Balance Sheet to the GovernmentWide Statement of Net Position.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
58 Note 1 – Summary of Significant Accounting Policies (Continued) Q. Property Taxes
Under California law, property taxes are assessed and collected by the counties for up to 1% of assessed property value, plus other increases approved by the voters. Property taxes collected are pooled and then allocated to the cities based on complex formulas. The following are key dates pertaining to property taxes:

Lien Date January 1
Levy Date June 30
Due Dates November 1 and February 1
Collection Dates December 10 and April 10
R. Net Position and Fund Balances
In the Government-Wide Financial Statements and proprietary fund financial statements, net position is classified as follows:

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

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

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

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

In the Governmental Fund Financial Statements, fund balances are classified as follows:

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

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

Committed – Committed fund balances encompass the portion of net fund resources, the use of which is constrained by limitations that the government imposes upon itself at its highest level of decision making, normally the governing body, and that remain binding unless removed in the same manner. The City Council is considered the highest authority for the City. Adoption of a resolution by the City Council is required to commit resources or to rescind the commitment.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
59 Note 1 – Summary of Significant Accounting Policies (Continued) R. Net Position and Fund Balances (Continued)
Assigned – Assigned fund balances encompass the portion of net fund resources reflecting the government’s intended use of resources. Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose. The City Council has authorized by resolution the City Manager or the City Fiscal Officer for that purpose.

Unassigned – This amount is for any portion of the fund balances that do not fall into one of the above categories. The General Fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.

The City Council establishes (and modifies or rescinds) fund balance commitments by passage of an ordinance or resolution. This is typically done through adoption and amendment of the budget. A fund balance commitment is further indicated in the budget document as a designation or commitment of the fund (such as for special incentives).

Assigned fund balance is established by the City Council through adoption or amendment of the budget as intended for specific purpose (such as the purchase of fixed assets, construction, debt service, or for other purposes).

When an expenditure is incurred for purposes for which both restricted and unrestricted resources are available, the City considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the City considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the City Council has provided otherwise in its commitment or assignment actions.

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

T. Reclassification
Certain reclassification have been made to the 2024 financial statements to conform to the 2025 presentation.

U. Implementation of New GASB Pronouncements
GASB Statement No. 101 – In June 2022, the GASB issued Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The requirements of this Statement are effective for fiscal years beginning after December 15, 2023, and all reporting periods thereafter. Implementation of this Statement resulted in a restatement of the beginning net position as of July 1, 2024, as presented in Note 14.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
60 Note 1 – Summary of Significant Accounting Policies (Continued) U. Implementation of New GASB Pronouncements (Continued) GASB Statement No. 102 – In December 2023, the GASB issued Statement No. 102, Certain Risk Disclosures.

The objective of this Statement is to provide users of government financial statements with information about risks related to a government’s vulnerabilities due to certain concentrations or constraints that is essential to their analyses for making decisions or assessing accountability. The requirements of this Statement are effective for fiscal years beginning after June 15, 2024, and all reporting periods thereafter. Implementation of this Statement did not have a significant effect on the City’s financial statements for the fiscal year ended June 30, 2025.

Note 2 – Cash and Investments
Cash and investments as of June 30, 2025, are classified in the accompanying financial statements as follows:

Statement of
Governmental Business-Type Fiduciary
Activities Activities Net Position Total
Unrestricted assets:

Cash and investments 2,858,260 $ 554,600 $ 241,886 $ $ 3,654,746 Restricted cash 3,849,995 - 3,849,995 -
Cash and investments with fiscal agents - 513,105 - 513,105 Total cash and investments $ 2,858,260 $ 4,404,595 $ 754,991 $ 8,017,846 Statement of Net Position
Cash and investments at June 30, 2025 consisted of the following:

Cash:

Petty cash 850 $
Demand deposits 5,819,376
Total cash and cash equivalents 5,820,226
Investments:

Local Agency Investment Fund 1,684,515
Total investments 1,684,515
Total cash and investments 7,504,741
Cash and investments with fiscal agents:

Demand deposits 513,105
Total $ 8,017,846
A. Deposits
The carrying amounts of the City’s demand deposits were $5,819,376 at June 30, 2025. Bank balances at that date were $5,963,989, the total amount of which was collateralized or insured with accounts held by the pledging financial institutions in the City’s name as discussed below.

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

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
61 Note 2 – Cash and Investments (Continued)
A. Deposits (Continued)
The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City may waive collateral requirements for cash deposits, deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation (“FDIC”). The City did not waive the collateral requirement for deposits insured by FDIC.

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

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

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

Maximum Percentage Investment in
Authorized Investment Type Maturity of Portfolio One Issuer United states treasury obligations 5 years No Limit None Bankers' acceptances 180 days 15% None
Negotiable certificates of deposit 5 years 30% None
Commercial paper 270 days 15% 5%
Medium-term notes 5 years 15% None
Money market mutual funds N/A 20% None
Local Agency Investment Fund ("LAIF") N/A No Limit None N/A - Not Applicable
C. Local Agency Investments Fund (“LAIF”)
The City is a participant in LAIF which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. As of June 30, 2025, the City had $1,684,515 invested in LAIF.

LAIF determines fair value on its investment portfolio based on market quotations for those securities where market quotations are readily available and based on amortized cost or best estimate for those securities where market value is not readily available. LAIF is reported at amortized cost, which approximates fair value.

D. Risk Disclosures
Interest Rate Risk – While the City’s investment policy does not address interest rate risk, the City manages its exposure to interest rate risks through reliance on the managers of LAIF.

Custodial Credit Risk – For deposits, custodial credit risk is the risk that, in the event of the failure of a depository financial institution, the City will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer), the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. At June 30, 2025, none of the City’s deposits or investments were exposed to custodial credit risk.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
62 Note 2 – Cash and Investments (Continued)
D. Risk Disclosures (Continued)
Credit Risk – Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. To be eligible to receive City money, a bank, savings association, federal association, or federally insured industrial loan company shall have received an overall rating of not less than "satisfactory" in its most recent evaluation by the appropriate federal financial supervisory agency of its record of meeting the credit needs of California's communities, including low-and-moderate income neighborhoods. At June 30, 2025, the City’s credit risks, expressed on a percentage basis, were as follows:

Moody's S&P's % of Investments
Credit Credit with Interest
Investment Type Rating Rating Rate Risk
Local Agency Investment Fund Not Rated Not Rated 100.00% Note 3 – Interfund Transactions
A. Due From/To Other Funds
The following is a summary of due to and due from other funds as of June 30, 2025:

Due from Other Funds General Fund
CDBG
Special
Revenue
Fund
Low and Mod
Income Housing
Special Revnue
Fund
Parks Capital
Projects Fund
Nonmajor
Governmental
Funds
Water
Enterprise
Fund
Internal
Service
Funds Total
Governmental Funds:

General Fund $ 18,046$ - $ 1,025,432 $ 101,897 $ 225,070 267,785$ $ 2,922,385 1,284,155 ADAP and Home Special Revenue Fund 1, 010,001 64,323 40,621 - - - - 1,114,945 CDBG Special Revenue Fund - - - 16,523 - - - 16,523
Nonmajor Governmental Funds 1,179,412 314,738 9,198 526,651 975,772 - 607,192 3,612,963 Proprietary Fund:

Sewer Enterprise Fund 681,587 - 27,272 14,548 - - - 723,407 Internal Service Funds - - - - - 366,159 - 366,159
Total $ 2,871,000 $ 397,107 $ 1,102,523 $ 628,548 $ 256,141 $ 2,257,506 1,243,557 $ 8,756,382 $ Governmental Funds
Due to Other Funds
Proprietary Funds
The interfund balances resulted from borrowing of cash for temporary purposes. For nonmajor governmental funds, balances are expected to be reimbursed when received fund from Grantor or when assessment revenue can cover the operating expenditures for the assessment districts. For internal service funds, the City intends to recover fund by increasing interfund service charges.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
63 Note 3 – Interfund Transactions (Continued)
B. Advances From/To Other Funds
At June 30, 2025, the City had the following advances:

Governmental Fund Proprietary Fund
Advances to Other Funds
Low and Mod
Income Housing
Special Revenue
Fund
Customer Service
Internal Service
Fund
Governmental Funds:

Nonmajor Governmental Funds 50,892 $ - $
Proprietary Fund:

Sewer Enterprise Fund 764,557 -
Building & Equipment
Internal Service Fund - 21,836
Total $ 21,836 815,449 $
Advances from Other Funds
The advances is to fund the outstainding LINC & Seasons Low-income housing loans in the Low and Mod Income Housing Speical Revenue Fund with matuirty dates within the fiscal year of 2057 and 2058. The related interest income will be used to pay back these advances.

C. Transfers
For the year ended June 30, 2025, the City had the following transfers:

Transfers In
Transfers Out Nonmajor Governmental
Funds
Governmental Funds:

Gas Tax Special Revenue Fund 15,836 $
Governmental Funds
The City’s transfers from Gas Tax Fund to Street Light Fund to support the City street light maintenance.

Note 4 – Lease Receivable
The City leases various types of property including land, and buildings. Leases receivable consist of agreements with other entities for the “right–to–use” the underlying assets at various locations owned by the City. The remaining terms of the agreements range from 6 to 11 years. The interest rates used calculated the net present value of the lease receivable ranged from 1.569% to 2.092%.

For the fiscal year ended June 30, 2025, the City recognized $13,517 in lease revenue and $4,932 in interest revenue, and the outstanding net present value of the lease receivable amount is $231,007. At June 30, 2025, the City reported deferred inflows of resources related to leases of $215,185.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
64 Note 4 – Lease Receivable (Continued)
Future annual lease receivables as of June 30, 2025 are as follows:

Fiscal Year Principal Interest Total
2026 10,166 $ 4,736 $ 14,902 $
2027 10,366 4,536 14,902
2028 10,570 4,332 14,902
2029 12,563 4,125 16,688
2030 12,813 3,875 16,688
2031 - 2035 59,674 15,872 75,546
2036 - 2040 69,541 9,164 78,705
2041 - 2044 45,314 1,909 47,223
Total $ 48,549 231,007 $ 279,556 $
Note 5 – Capital Assets
A. Governmental Activities
A summary of changes in the capital assets for the governmental activities for the year ended June 30, 2025 is as follows:

Balance Balance
July 1, 2024 Additions Deletions Transfers June 30, 2025 Capital assets, not being depreciated:

Land $ 2,902,940 $ - $ - $ 2,902,940 - $
Construction in progress 119,350 - (86,158) - 33,192
Total capital assets, not being depreciated 3,022,290 - (86,158) - 2,936,132 Capital assets, being depreciated/amortized:

Buildings 5,129,436 - - 5,129,436 -
Improvements 34,239,286 1,763,974 86,158 - 36,089,418
Equipment 5,008,862 108,661 (6,650) 5,110,873 -
Right-to-use leased equipment 144,728 - - 144,728 -
Right-to-use leased vehicles 1,525,391 (116,998) - 1,408,393 - Right-to-use subscription assets 79,890 - - 79,890 -
Total capital assets, being depreciated/amortized 46,127,593 1,872,635 (123,648) 86,158 47,962,738 Less accumulated depreciation/amortization for:

Buildings (3,388,848) (99,055) - (3,487,903) -
Improvements (14,253,398) (1,102,032) - (15,355,430) -
Equipment (3,441,552) (284,831) 6,650 (3,719,733) -
Right-to-use leased equipment (58,348) (19,868) - (78,216) - Right-to-use leased vehicles (575,616) (332,621) 116,998 (791,239) - Right-to-use subscription assets (16,148) (26,644) - (42,792) - Total accumulated depreciation/amortization (21,733,910) (1,865,051) 123,648 (23,475,313) - Total capital assets, being depreciated/amortized, net 7,584 24,393,683 - 86,158 24,487,425 Governmental activities capital assets, net $ 27,415,973 $ 7,584 $ - $ 27,423,557 - $ City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
65 Note 5 – Capital Assets (Continued)
A. Governmental Activities (Continued)
Depreciation and amortization expenses were charged to functions/programs of the governmental activities for the fiscal year ended June 30, 2025 as follows:

Depreciation Amortization
General government 265,623 $ 46,512 $
Public safety 61,804 332,621
Public works 381,340 -
Community development 600,245 -
Recreation and cultural 176,906 -
Total depreciation and amortization expense $ 1,485,918 $ 379,133 B. Business-Type Activities
A summary of changes in the capital assets for the business-type activities for the year ended June 30, 2025 is as follows:

Balance
July 1, 2024 Balance
(As Reclassified) Additions Deletions Transfers June 30, 2025 Capital assets, not being depreciated:

Construction in progress 261,895 $ 687,918 $ - $ - $ 949,813 $ Total capital assets, not being depreciated 261,895 687,918 - 949,813 - Capital assets, being depreciated:

Buildings 968,380 9,235 - 977,615 -
Improvements 23,102,218 206,310 - 23,308,528 -
Equipment 983,613 249,203 - 1,232,816 -
Total capital assets, being depreciated 25,054,211 464,748 - 25,518,959 - Less accumulated depreciation:

Buildings (802,572) (19,049) - (821,621) -
Improvements (13,733,115) (465,429) - (14,198,544) -
Equipment (641,395) (54,509) - (695,904) -
Total accumulated depreciation (15,177,082) (538,987) - (15,716,069) - Total capital assets, being depreciated, net 9,877,129 (74,239) - 9,802,890 - Business-type activities capital assets, net $ 10,139,024 $ 613,679 $ - $ 10,752,703 - $ Depreciation expense for business-type activities for the year ended June 30, 2025 was charged as follows:

Water enterprise fund $ 255,623
Sewer enterprise fund 283,364
Total depreciation expense $ 538,987
City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
66 Note 6 – Long-Term Liabilities
A. Governmental Activities
A summary of changes in long-term liabilities for governmental activities for the year ended June 30, 2025 is as follows:

Balance
July 1, 2024 Balance Due within Due in more
(As Restated) Additions Deletions June 30, 2025 One Year One Year Financing purchase:

California Infrastructure and Economic
Development Bank 545,772 $ - $ (34,750) $ 511,022 $ $ 475,198 35,824 $ Tri-Counties Bank 43,009 (14,818) - 28,191 15,808 12,383 Municipal Finance Corporation (Sweeper) 126,186 (62,314) - 63,872 63,872 - Municipal Finance Corporation (Vactor truck) 186,496 (59,921) - 126,575 62,137 64,438 Other liabilities:

Lease liabilities - 922,642 (297,793) 624,849 254,400 370,449 Subscription payable 53,891 (26,274) - 27,617 27,617 -
Compensated absences 754,491 * (92,745) 661,746 - 165,437 496,310 Total $ 2,632,487 $ (92,745) (495,870) $ 2,043,872 $ 625,095 $ 1,418,778 * The change in the compensated absences liability is presented as a net change.

California Infrastructure and Economic Development Bank Issued September 1, 2006, for the purpose of the construction, acquisition, and installation of the Anderson Teen Center/Shasta County Public Health Building. The balance is due in annual installments of $20,715 to $50,068 through August 1, 2036, bearing an interest rate of 3.09% payable semi‐annually on February 1 and August 1. The amount outstanding at June 30, 2025 was $511,022.

The future debt service payments as of June 30, 2025, are as follows:

Fiscal Year Principal Interest Total
2026 $ 35,824 $ 15,237 $ 51,061
2027 36,931 14,113 51,044
2028 38,072 12,954 51,026
2029 39,249 11,760 51,009
2030 40,461 10,528 50,989
2031-2035 221,851 34,337 256,188
2036-2037 98,634 12,056 110,690
Total $ 511,022 $ 110,985 $ 622,007
Financing Purchase – Tri‐Counties Bank
Issued February 28, 2023, for the purpose of the purchase of a Ford Expedition SUV. The balance is due in monthly installments of $1,431 through March 7, 2027, bearing an interest rate of 6.49%, payable monthly on the 7th day of the month. The financing purchase is collateralized by the vehicles. The amount outstanding at June 30, 2025 was $28,191.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
67 Note 6 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
Financing Purchase – Tri‐Counties Bank (Continued)
The future debt service payments as of June 30, 2025, are as follows:

Fiscal Year Principal Interest Total
2026 $ 15,808 $ 1,365 $ 17,173
2027 12,383 334 12,717
Total $ 28,191 $ 1,699 $ 29,890
Financing Purchase – Municipal Finance Corporation (Sweeper) Issued October 16, 2020, for the purpose of the purchase of a sweeper truck. The balance is due in annual installments of $65,469 through January 22, 2026, bearing an interest rate of 2.50%, payable annually on January 22. The financing purchase is collateralized by the sweeper truck. The amount outstanding at June 30, 2025 was $63,872.

The future debt service payments as of June 30, 2025, are as follows:

Fiscal Year Principal Interest Total
2026 $ 63,872 $ 1,597 $ 65,469
Financing Purchase – Municipal Finance Corporation (Vactor Truck) In June 2023, the City entered into a five-year finance purchase agreement for the Vactor Truck with Municipal Financing Corporation at a 3.7% annual interest rate with an annual payment ranging from $55,721 to $64,437 due on June 21 of each year from 2023 through 2027. The outstanding balance at June 30, 2025 was $126,575.

The future debt service payments as of June 30, 2025, are as follows:

Fiscal Year Principal Interest Total
2026 $ 62,137 $ 4,683 $ 66,820
2027 64,438 2,384 66,822
Total $ 126,575 $ 7,067 $ 133,642
Lease Liability
The City has entered into leases for infrastructure, equipment and vehicle uses. The terms of the agreements are between 1 year and 6 years with a range of an implicit rate from 0.5740% to 3.7950%. Principal and interest to maturity are as follows:

Fiscal Year Principal Interest Total
2026 $ 254,400 $ 17,007 $ 271,407
2027 163,845 10,235 174,080
2028 129,796 4,636 134,432
2029 59,935 1,113 61,048
2030 11,203 196 11,399
2031 5,670 28 5,698
Total $ 624,849 $ 33,215 $ 658,064
City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
68 Note 6 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
Subscription Liability
The City has entered into subscriptions for information technology arrangements. The terms of the arrangements is 1 years with a range of an implicit rate from 0.00% to 3.041%. Principal and interest to maturity are as follows:

Fiscal Year Principal Interest Total
2026 $ 27,617 $ 384 $ 28,001
B. Business-Type Activities
The following is a summary of changes in long-term liabilities for business-type activities for the year ended June 30, 2025:

Balance
July 1, 2024 Balance Due within Due in more
(As Restated) Additions Deletions June 30, 2025 One Year One Year Public offering:

CSDA Wastewater Revenue Bonds,
Series 2007A 830,000 $ - $ (70,000) $ 760,000 $ 70,000 $ 690,000 $ Direct borrowings:
2001 Wastewater System Improvements
Certificate of Participation 156,000 - (5,500) 150,500 6,000 144,500 USDA Loan 1,361,000 - (51,000) 1,310,000 54,000 1,256,000 HPCC Finance Purchase Loan - 3,849,995 - 3,849,995 - 3,849,995 Total direct borrowings: 1,517,000 3,849,995 (56,500) 5,310,495 60,000 5,250,495 Compensated absences 97,210 3,123 * - 100,333 25,083 75,250 Total $ 3,853,118 2,444,210 $ $ (126,500) $ 6,170,828 $ 155,083 $ 6,015,745 California Statewide Communities Development Authority (CSDA) Wastewater Revenue Bonds, Series 2007A
Issued December 1, 2007, to finance the construction of additional emergency storage capacity of an additional 3 million gallons, payable from sewer usage charges levied with property tax assessments. The balance is due in annual installments of $35,000 to $100,000 through October 1, 2033, bearing interest rates of 4.000% to 4.700% payable semi‐annually on April 1 and October 1.

The amount outstanding at June 30, 2025 totaled $760,000. The annual debt service requirements on these bonds are as follows:

Fiscal Year Principal Interest Total
2026 $ 70,000 $ 33,545 $ 103,545
2027 75,000 30,283 105,283
2028 75,000 26,908 101,908
2029 80,000 23,420 103,420
2030 85,000 19,623 104,623
2031-2034 375,000 36,073 411,073
Total $ 760,000 $ 169,850 $ 929,850
City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
69 Note 6 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
Wastewater System Improvements Certificates of Participation Issued November 1, 2001, for the purpose of financing capital improvements to the wastewater system, payable from pledged sewer usage charges. The balance is payable in annual installments of $2,070 to $12,500 through September 2, 2041, bearing an interest rate of 4.750% payable semi‐annually on March 2 and September 2.

Principal and interest paid for the current year was $12,779 while total pledged revenues were $1,730,819. Total principal and interest remaining on the certificates is $219,316 which is the amount of the remaining sewer usage charges pledged. The amount outstanding at June 30, 2025 was $150,500.

Fiscal Year Principal Interest Total
2026 $ 6,000 $ 7,006 $ 13,006
2027 6,000 6,721 12,721
2028 6,500 6,424 12,924
2029 7,000 6,104 13,104
2030 7,000 5,771 12,771
2031-2035 41,000 23,323 64,323
2036-2040 52,500 12,291 64,791
2041-2042 24,500 1,176 25,676
Total $ 150,500 $ 68,816 $ 219,316
USDA Loan
Borrowed on November 14, 2001 from the U.S. Department of Agriculture (“USDA”), for the purpose of installation and construction of certain sewer and storm drain improvements in the Riverside Avenue Assessment District, payable from pledged property tax assessments and secured by sewer revenues. The balance is due in annual installments of $39,358 to $106,000 through September 2, 2041, bearing an interest rate of 4.375% payable semi‐annually on March 2 and September 2. Total pledged revenues were $1,730,819. The amount outstanding at June 30, 2025 was $1,310,000.

The annual debt service requirements to maturity are as follows:

Fiscal Year Principal Interest Total
2026 $ 54,000 $ 56,131 $ 110,131
2027 56,000 53,725 109,725
2028 58,000 51,231 109,231
2029 61,000 48,628 109,628
2030 64,000 45,894 109,894
2031-2035 361,000 166,666 527,666
2036-2040 448,000 96,119 544,119
2041-2042 208,000 9,188 217,188
Total $ 527,582 1,310,000 $ 1,837,582 $
City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
70 Note 6 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
HPCC Finance Purchase Loan
The City entered into a financing purchase agreement with Huntington Public Capital Corporation on June 26, 2025 for the purpose of installation and construction of a ground mounted solar PV array for the City’s Wastewater Treatment Plant. The total financing amount is $3,849,995. The balance is due in semi-annual installments of $4,239 to $273,447 through March 1, 2045, bearing an interest rate of 4.7% payable semi‐annually on March 1 and September 1. The amount outstanding at June 30, 2025 was $3,849,995.

The annual debt service requirements to maturity are as follows:

Fiscal Year Principal Interest Total
2026 $ 168,384 - $ $ 168,384
2027 77,160 133,999 211,158
2028 15,623 177,142 192,765
2029 29,043 176,252 205,295
2030 43,925 174,714 218,639
2031-2035 503,190 822,578 1,325,768
2036-2040 1,177,500 638,914 1,816,414
2041-2045 2,003,554 259,656 2,263,210
Total $ 3,849,995 $ 2,551,638 $ 6,401,633
Note 7 – Self-Insurance Programs
The City is a member of the Northern California Cities Workers’ Compensation Fund, a Joint Powers Authority (“JPA”), for the purpose of providing a banking plan for member cities to provide their own workers’ compensation insurance. In July 1981, the JPA instituted a program for the provision of liability insurance. In 1987, the JPA was rewritten and renamed the Northern California Cities Self Insurance Fund to combine and update the coverages of the plans. There has been no significant reduction in any of the insurance coverages from the prior year. Settled claims resulting from these programs have not exceeded insurance coverage in each of the past three fiscal years.

The current agreement is as follows:

The Workers’ Compensation Program comprises a banking or deductible layer for claims up to $100,000 and a shared risk pool for claims up to $500,000. Excess coverage is provided for claims over the shared risk layer up to the statutory limit for workers’ compensation and $5,000,000 for employers’ liability. The liability program comprises a banking or deductible layer for claims up to $50,000 and a shared risk pool for claims up to $750,000. Excess coverage is provided for claims over the shared risk layer up to $40,000,000.

Each member city is assessed a contribution which is intended to cover its share of the JPA’s claims, operating costs and claim settlement expenses. Contributions are based on an actuarially determined rate for each coverage layer (pool), based on an estimate of the probable losses and expenses to be borne by that pool for the claim year. Additional cash contributions may be assessed on the basis of adverse loss experience. Refunds to members may be made if funds are determined to be surplus as a result of an actuarial study.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
71 Note 7 – Self-Insurance Programs (Continued)
The banking or deductible layer is the member’s deductible portion of each claim. As part of its services to members, a portion of the members’ contributions is used to pay their deductibles. If a member’s balance is insufficient, the JPA advances the necessary amounts and bills the member in the following year. Excess balances may likewise be used to offset subsequent year contributions.

The City uses internal service fund to account for the costs of self‐insurance. While the ultimate amount of the costs of self‐insurance through June 30, 2025, is dependent on future developments, City management believes that the aggregate premiums paid to the JPA are adequate to cover the City’s losses through June 30, 2025, including incurred but not reported claims (IBNRs). Claims expenses (credits) for the workers’ compensation and general liability programs for the fiscal year ended June 30, 2025, were $199,200 and ($32,516), respectively.

As of June 30, 2025, the JPA reported that the City has a surplus in its workers’ compensation program and general liability program in the amount of $5,877 and $259,537, respectively.

Note 8 – Defined Benefit Pension Plans
A. General Information about the Pension Plan
Plan Description
The City contributes to the California Public Employees’ Retirement System (“CalPERS”), a cost-sharing multipleemployer defined benefit pension plan. CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. CalPERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by State statute and City ordinance. Copies of the CalPERS annual financial report may be obtained from https://www.calpers.ca.gov/page/forms-publications.

Employees Covered by Benefit Terms
At June 30, 2023, valuation date, the following employees were covered by the benefit terms:

Misc Safety
Active employees 50 24
Transferred and terminated employees 53 25
Retired employees and beneficiaries 93 34
Total 196 83
Benefit Provided
CalPERS provide retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Classic miscellaneous members become eligible for service retirement upon attainment of age 55 with at least 5 years of credited service. Public Employee Pension Reform Act (PEPRA) miscellaneous members become eligible for service retirement upon attainment of age 62 with at least 5 years of service. The service retirement benefit is a monthly allowance equal to the product of the benefit factor, years of service, and final compensation.

Following are the benefit provisions for each plan:
 Miscellaneous: 2.0% or 2.7% (at age 55) of the highest paid consecutive 12 months’ compensation City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
72 Note 8 – Defined Benefit Pension Plans (Continued)
A. General Information about the Pension Plan (Continued) Benefit Provided (Continued)
 Miscellaneous Second Tier: 2.0% (at age 55) of the highest paid consecutive 36 months’ compensation  Miscellaneous PEPRA: 2.0% (at age 62) of the highest paid consecutive 36 months’ compensation  Safety Police: 3.0% (at age 50) of the highest paid consecutive 12 months’ compensation  Safety Police Second Tier: 3.0% (at age 55) of the highest paid consecutive 36 months’ compensation  Safety PEPRA: 2.7% (at age 57) of the highest paid consecutive 36 months’ compensation Participant is eligible for non-industrial disability retirement if becomes disabled and has at least 5 years of credited service. There is no special age requirement. The standard non-industrial disability retirement benefit is a monthly allowance equal to 1.8% of final compensation, multiplied by service. Industrial disability benefits are not offered to miscellaneous employees.

An employee's beneficiary may receive the basic death benefit if the employee dies while actively employed. The employee must be actively employed with the City to be eligible for this benefit. An employee's survivor who is eligible for any other pre-retirement death benefit may choose to receive that death benefit instead of this basic death benefit. The basic death benefit is a lump sum in the amount of the employee's accumulated contributions, where interest is currently credited at 6 percent per year, plus a lump sum in the amount of one month's salary for each completed year of current service, up to a maximum of six months' salary. For purposes of this benefit, one month's salary is defined as the member's average monthly full-time rate of compensation during the 12 months preceding death.

Upon the death of a retiree, a one-time lump sum payment of $500 will be made to the retiree's designated survivor(s), or to the retiree's estate.

Benefit terms provide for annual cost-of-living adjustments to each employee’s retirement allowance. Beginning the second calendar year after the year of retirement, retirement and survivor allowances will be annually adjusted on a compound basis by 2 percent.

Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (“PERL”) 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. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is based on the estimated amount necessary to pay the Plan's allocated share of the risk pool's costs of benefits earned by employees during the year, and any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the measurement period ended June 30, 2024 (the measurement date), the contribution rates were as follows:

Active Employee Employer
Plans Contribution Rate Contribution Rate
Miscellaneous 8.000% 15.950%
Miscellaneous Second Tier 7.000% 11.840%
Miscellaneous PEPRA 7.750% 7.680%
Safety Police 9.000% 25.650%
Safety Police Second Tier 9.000% 22.830%
Safety Police PEPRA 13.750% 13.540%
City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
73 Note 8 – Defined Benefit Pension Plans (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension
Actuarial Methods and Assumptions Used to Determine Total Pension Liability The June 30, 2023 valuation was rolled forward to determine June 30, 2024 total pension liability based on the following actuarial methods and assumptions:

Actuarial Cost Method
Actuarial Assumptions:

Discount Rate 6.90%
Price Inflation Salary Increases 2.30%
Salary Increases
Mortality Rate Table1 Derived using CalPERS’ Membership Data for all Funds Post Retirement Benefit Increase
Entry Age Actuarial Cost Method
The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter Varies by Entry Age and Service
1 The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report from November 2021 that can be found on the CalPERS website.

Change of Assumption
For the measurement period June 30, 2024, there was no change of assumption.

Discount Rate
The discount rate used to measure the total pension liability 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.

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

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
74 Note 8 – Defined Benefit Pension Plans (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension (Continued)
Long-term Expected Rate of Return (Continued)
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 basis points. The expected real rates of return by asset class are as follows:

Asset Class1
Assumed Asset
Allocation
Real Return
Years 1 - 101, 2
Global Equity - Cap-weighted 30.00% 4.54%
Global Equity - Non-cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
100%
1 An expected inflation of 2.30% used for this period.
2 Figures are based on the 2021 Asset Liability Management study.

Sensitivity of the City’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 6.90%, 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 (5.90%) or 1 percentagepoint higher (7.90%) than the current rate:

Discount Rate - 1% Current Discount Discount Rate + 1%
(5.90%) Rate (6.90%) (7.90%)
Miscellaneous Plan $ 14,967,748 $ 10,283,875 $ 6,428,359 Safety Plan 10,247,879 6,635,635 3,681,328
Plan's Net Pension Liability
Pension Plan Fiduciary Net Position
Detail information about the plan’s fiduciary net position is available in the separately issued CalPERS financial report and can be obtained from CalPERS’ website under Forms and Publications.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
75 Note 8 – Defined Benefit Pension Plans (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension (Continued)
Proportionate Share of Net Pension Liability and Pension Expense The following table shows the plan’s proportionate share of the risk pool collective net pension liability over the measurement period:

Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability
(a) (b) (c) = (a) - (b)
Miscellaneous
Balance at June 30, 2023 (Valuation Date) 33,860,691 $ 23,648,324 $ 10,212,367 Balance at June 30, 2024 (Measurement Date) 34,710,678 24,426,803 10,283,875 Net Changes during 2023-2024 849,987 778,479 71,508
Safety
Balance at June 30, 2023 (Valuation Date) 23,886,373 $ 17,172,195 $ 6,714,178 $ Balance at June 30, 2024 (Measurement Date) 26,444,136 19,808,501 6,635,635 Net Changes during 2023-2024 2,557,763 2,636,306 (78,543) Increase (Decrease)
The following is the approach established by the plan actuary to allocate the net pension liability and pension expense to the individual employers within the risk pool. (1) In determining a cost-sharing plan’s proportionate share, total amounts of liabilities and assets are first calculated for the risk pool as a whole on the valuation date (June 30, 2023). The risk pool’s fiduciary net position (“FNP”) subtracted from its total pension liability (“TPL”) determines the net pension liability (“NPL”) at the valuation date.
(2) Using standard actuarial roll forward methods, the risk pool TPL is then computed at the measurement date (June 30, 2024). Risk pool FNP at the measurement date is then subtracted from this number to compute the NPL for the risk pool at the measurement date. For purposes of FNP in this step and any later reference thereto, the risk pool’s FNP at the measurement date denotes the aggregate risk pool’s FNP at June 30, 2024 less the sum of all additional side fund (or unfunded liability) contributions made by all employers during the measurement period (2023-2024).
(3) The individual plan’s TPL, FNP and NPL are also calculated at the valuation date. TPL is allocated based on the rate plan’s share of the actuarial accrued liability. FNP is allocated based on the rate plan’s share of the fair value assets.
(4) Two ratios are created by dividing the plan’s individual TPL and FNP as of the valuation date from (3) by the amounts in step (1), the risk pool’s total TPL and FNP, respectively. (5) The plan’s TPL as of the Measurement Date is equal to the risk pool TPL generated in (2) multiplied by the TPL ratio generated in (4). The plan’s FNP as of the Measurement Date is equal to the FNP generated in (2) multiplied by the FNP ratio generated in (4) plus any additional side fund (or unfunded liability) contributions made by the employer on behalf of the plan during the measurement period. (6) The plan’s NPL at the Measurement Date is the difference between the TPL and FNP calculated in (5).

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
76 Note 8 – Defined Benefit Pension Plans (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension (Continued)
Proportionate Share of Net Pension Liability and Pension Expense (Continued) Deferred outflows of resources, deferred inflows of resources, and pension expense is allocate based on the City’s share of contributions during measurement period.

The City’s proportionate share of the net pension liability was as follows:

Miscellaneous Safety
June 30, 2023 0.206707% 0.090272%
June 30, 2024 0.212626% 0.091013%
Change - Increase (Decrease) 0.005919% 0.000741%
The expected average remaining service lifetime (“EARSL”) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired). The EARSL for the miscellaneous and the safety risk pool for the 2023-24 measurement period is 3.8 years, which was obtained by dividing the total service years of 630,177 (the sum of remaining service lifetimes of the active employees) by 166,163 (the total number of participants: active, inactive, and retired).

For the year ended June 30, 2025, the City recognized pension expenses for miscellaneous plan and safety plan in the amounts of $1,655,680 and $1,449,884, respectively. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred OutflowsDeferred InflowsDeferred OutflowsDeferred Inflows of Resources of Resources of Resources of Resources
Pension contribution made after measurement date 1,070,501 $ - $ 935,383 $ - $ Changes of assumptions 264,317 - 163,489 -
Difference between expected and actual experience 889,135 (34,693) 541,527 (17,607) Difference between projected and actual investment
earnings 592,030 320,736 - -
Differences between Employer's Contributions
and Proportionate Share of Contributions 23,240 (72,520) 183,060 (64,734) Change in Employer's Proportion 13,317 (283,201) 100,083 (2,530) Total $ (390,414) 2,852,540 $ 2,244,278 $ (84,871) $
Miscellaneous Safety
City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
77 Note 8 – Defined Benefit Pension Plans (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension (Continued)
Proportionate Share of Net Pension Liability and Pension Expense (Continued) Deferred outflows of resources related to pensions resulting from the City’s contributions made subsequent to the measurement date in the amount of $1,070,501 and $935,383 for the miscellaneous and safety plans, respectively, will be recognized as a reduction of the collective net pension liability in the year ending June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Deferred Outflows/ Deferred Outflows/
Measurement Period (Inflows) of Resources (Inflows) of Resources Ended June 30 Miscellaneous Plan Safety Plan
2025 $ 337,418 $ 476,764
2026 1,271,111 831,658
2027 (14,022) 25,343
2028 (202,882) (109,741)
2029 - -
Thereafter - -
$ 1,391,625 $ 1,224,024
Note 9 – Deferred Compensation Plan
The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portion of their salaries until future years. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency.

The plan assets are under the participants control. The plan assets are not included in the accompanying financial statements. At June 30, 2025, the amount held by the City for employees is $2,533,774.

Note 10 – Net Position and Fund Balances
A. Government-Wide Financial Statements
Net Investment in Capital Assets
The following is the calculation of net investment in capital assets at June 30, 2025:

Governmental Business-Type
Activities Activities Total
Capital assets, net of
accumulated depreciation and amortization 27,423,557 $ 10,752,703 $ 38,176,260 $ Unspent loan proceed - 3,849,995 3,849,995
Less: outstanding principal on capital related debt (1,382,126) (6,070,495) (7,452,621) Net investments in capital assets 26,041,431 $ 8,532,203 $ 34,573,634 $ City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
78 Note 10 – Net Position and Fund Balances
B. Fund Financial Statements
Fund Balance Classification:

At June 30, 2025, fund balances are classified in the governmental funds as follows:

Low and
GAS Tax ADAP and CDBG Mod Income Parks Nonmajor Total
General Special Home Special Special Housing Special Capital Projects Governmental Governmental Fund Revenue Fund Revenue Fund Revenue Fund Revenue Fund Fund Funds Funds Nonspendable:

Inventories and prepaid items 268,421 $ $ - $ - $ - $ - $ - $ 268,421 - $ Total nonspendable 268,421 - - - - - 268,421 -
Restricted:

Public Safety Grants - - - - - 364,144 - 364,144
Community Development
Grants - 7,780,279 - 3,012,574 - 409,120 - 11,201,973
Transportation 147,951 - - - - - 147,951 -
Capital Improvements - - - - - 3,800,042 - 3,800,042
Other purposes - - - - - 3,217 - 3,217
Total restricted 147,951 - 7,780,279 3,012,574 - 4,576,523 - 15,517,327 Assigned:

Teen Center Maintenance and
Charter - PEG Fees 337,873 - - - - - 337,873 -
Total assigned 337,873 - - - - - 337,873 -
Unassigned (Deficit): 1,206,701 - - (91,714) - (617,166) (259,920) 237,901 Total fund balance $ 1,812,995 $ 147,951 $ 7,780,279 $ 3,012,574 $ (91,714) $ (617,166) $ 4,316,603 $ 16,361,522 Note 11 – Stewardship, Compliance and Accountability
A. Deficit Fund Balance/Net Position
In the Government-Wide Financial Statements, the City had a deficit unrestricted net position at June 30, 2025 for its governmental activities of $(12,002,471). The deficit was mainly due to the reporting of the net pension liability in the amount of $15,592,300.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
79 Note 11 – Stewardship, Compliance and Accountability (Continued) A. Deficit Fund Balance/Net Position (Continued)
The following funds had deficit balances as of June 30, 2025:

Funds Deficit
Major Governmental Fund:

Low and Mod Income Housing Special Revenue Fund $ (91,714) Parks Capital Projects Fund (617,166)
Nonmajor Governmental Funds:

Street Lighting Special Revenue Fund (185,222)
Vineyards Lighting and Landscape District Special Revenue Fund (43,589) Silvergate Sanitary Assessment District Special Revenue Fund (31,109) Internal Service Funds:

Department Public Works Fund (1,128,349)
Vehicle Maintenance Fund (232,109)
Building & Equipment Fund (227,085)
Customer Services Fund (518,429)
Computer Fund (149,644)
Liability Insurance Fund (347,189)
Fiduciary Funds:

Private Purpose Trust Fund (4,472,513)
County Seizure Fund (10,412)
The City is closely monitoring these funds and will begin transferring monies from the General Fund to slowly bring these funds to zero. The City remains committed to addressing the negative fund balances through continued annual reviews, assessment adjustments, and vigilant expense management, anticipating gradual improvement in the financial status of the affected Special Revenue Funds and Internal Service Fund.

The deficit in Private Purpose Trust Fund will be eliminated upon receiving Recognized Obligation Payment Schedule (“ROPS”) payments to repay the bonds.

B. Excess of Expenditures over Appropriations
Total expenditures exceeded budgeted appropriations in the following funds:

Expenditures
in Excess of
Appropriations Expenditures Appropriations
Major Governmental Funds:

Gas Tax Special Revenue Fund 1,655,697 $ 1,811,502 $ (155,805) $ CDBG Special Revenue Fund 117,940 186,282 (68,342)
Parks Capital Projects Fund 43,894 646,353 (602,459)
Nonmajor Governmental Funds:

COPS and LLEBG Grants Special Revenue Fund 131,600 317,487 (185,887) Southridge Assessment District Special Revenue Fund 8,645 10,361 (1,716) Vineyard Lighting and Landscape Special Revenue Fund 25,255 33,063 (7,808) Silvergate Sanitary Assessment District Special Revenue Fund 11,015 21,673 (10,658) Traffic Capital Projects Fund 828,991 983,542 (154,551) I-5/Deschutes Offramp Capital Project Fund 6,283 11,333 (5,050) City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
80 Note 12 – Successor Agency Trust for Assets of the Former Redevelopment Agency On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provided for the dissolution of all redevelopment agencies in the State of California. 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 Bill provided that upon dissolution of a redevelopment agency, either the city or another unit of local government would 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 17, 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 12‐03.

The Department of Finance of the State of California granted a “Finding of Completion” on November 8, 2013, to the City of Anderson Successor Agency. The Successor Agency is now allowed to place loan agreements between the former redevelopment agency and sponsoring entity on the Recognized Obligation Payment Schedule and utilize remaining bond proceeds. 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.

The City’s position on this issue is not a position of settled law and there is considerable legal uncertainty regarding this issue. It is reasonably possible that a legal determination may be made at a later date by an appropriate judicial authority that would resolve this issue unfavorably to the City.

Long-Term Liabilities
A summary of changes in long-term liabilities of the Successor Agency for the year ended June 30, 2025 is as follows:

Balance Balance Due within Due in more
July 1, 2024 Additions Deletions June 30, 2025 One Year One Year 2015 Tax Allocation Refunding Bonds $ 5,405,000 $ (275,000) - $ $ 5,130,000 $ 285,000 $ 4,845,000 2015 Tax Allocation Refunding Bonds Discount (127,423) - 8,490 (118,933) (118,933) - Total $ 5,277,577 $ (266,510) - $ $ 5,011,067 $ 285,000 $ 4,726,067 Successor Agency to the Anderson Redevelopment Agency Tax Allocation Refunding Bonds, Series 2015 In July of 2015 the City issued 2015 Tax Allocation Refunding Bonds to refinance the Anderson Redevelopment Agency Tax Allocation Bonds, Series 2005 and 2008. The issuance resulted in an estimated economic gain of $1,142,256. The bonds were issued at a discount of $203,833 which will be amortized over the life of the bonds of $8,490 per year. The Bonds are payable from future property tax increment in redevelopment project areas in annual installments of $210,000 to $470,000 through August 1, 2038, and bearing interest rates of 2.000% to 4.125% payable semi‐annually on February 1 and August 1. The outstanding balance at June 30, 2025 is $5,130,000.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
81 Note 12 – Successor Agency Trust for Assets of the Former Redevelopment Agency (Continued) Long-Term Liabilities (Continued)
Successor Agency to the Anderson Redevelopment Agency Tax Allocation Refunding Bonds, Series 2015 (Continued)
The debt service requirements to maturity for the tax allocation bonds are as follows:

Fiscal Year Principal Interest Total
2026 $ 285,000 $ 195,709 $ 480,709
2027 295,000 186,094 481,094
2028 305,000 175,403 480,403
2029 315,000 163,969 478,969
2030 330,000 151,875 481,875
2031-2035 1,840,000 550,638 2,390,638
2036-2039 1,760,000 149,069 1,909,069
Total $ 1,664,325 5,130,000 $ 7,664,169 $
Note 13 – Commitments and Contingencies
The City participates in a number of federal and state assisted grant programs, which are subject to program compliance audits by the grantors or their representatives. Final closeout audits of these programs have not yet been completed.

Accordingly, the City’s ultimate compliance with applicable grant requirements will be established at some future date.

Expenditures, if any, which may be disallowed by the granting agencies cannot be determined at this time, although the City expects such amounts, if any, to be immaterial.

The City is currently a party to various claims and legal proceedings. In management’s opinion, the ultimate liabilities, if any, resulting from such claims and proceedings, will not materially affect the City’s financial position.

City of Anderson
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
82 Note 14 – Restatement of Beginning Net Positions and Fund Balances During fiscal year 2025, changes to or within the financial reporting entity restatements and error corrections of beginning net position and fund net position are as follows:

June 30, 2024 Change to or within the
As Previously Change in Accounting Financial Reporting Correction June 30, 2024 Reported Principle (a) Entity (b) of Error (c) As Restated Government-Wide
Governmental Activities $ 32,253,697 $ (255,118) $ - $ 31,998,579 - $ Business-Type Activities 8,980,179 (10,343) - - 8,969,836 Total primary government $ 41,233,876 $ (265,461) $ - $ 40,968,415 - $ Governmental Funds
Major Funds
General Fund $ 2,452,814 $ - $ - $ (251,723) $ 2,452,814 Gas Tax Fund 691,098 - - - 691,098
ADAP and Home Fund 7,651,099 - - - 7,651,099
CDBG Fund 3,007,118 - - - 3,007,118
Low and Mod Income Housing Fund (77,366) - - - (77,366) Parks Capital Project Fund - - 13,340 - 13,340
Non-major Governmental Funds 5,272,284 - (13,340) - 5,258,944 Total Governmental Funds $ 18,997,047 $ - $ - $ (251,723) $ 18,997,047 Enterprise Funds:

Water Enterprise Fund $ 4,035,793 $ (2,613) $ - $ - $ 4,033,180 Sewer Enterprise Fund 4,944,386 (7,730) - - 4,936,656
Total Enterprise Funds $ 8,980,179 $ (10,343) $ - $ - $ 8,969,836 Internal Service Funds: $ (2,161,709) $ (42,939) $ - $ - $ (2,204,648) (a) Implementation of GASB Statement No. 101, Compensated Absences Effective for the fiscal year ended June 30, 2025, the City implemented GASB Statement No. 101, Compensated Absences. This statement establishes accounting and financial reporting standards for compensated absences, including vacation, sick leave, and other paid time off. The implementation of GASB 101 resulted in a change in accounting principle, and prior year amounts have been restated accordingly.

Under GASB 101, a liability must be recognized for leave that is attributable to services already rendered, accumulates and carries forward to future periods, and is more likely than not to be used or paid. This represents a shift from previous guidance, particularly in how likelihood and eligibility are assessed. The effect of the restatement is as shown above. (b) Changes to or within the Financial Reporting Entity The Parks Capital Projects Fund was previously reported as a nonmajor fund, but due to the City receiving more funds, the fund met the quantitative threshold requiring the fund to be reported as a major fund for the fiscal year ended June 30, 2025.
(c) Correction of Error
The General Fund beginning fund balance was restated to report $251,723 unavailable revenue, which uncollected transient occupancy tax was not deferred previously.

REQUIRED SUPPLEMENTARY

INFORMATION (UNAUDITED)
83 City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
(This page is intentionally left blank)
84 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Sales taxes 6,492,600 $ 6,492,600 $ 6,242,613 $ (249,987) $ Property taxes 2,839,108 2,961,108 3,079,135 118,027
Motel taxes 665,900 665,900 516,775 (149,125)
Franchise taxes 399,131 399,131 429,809 30,678
Licenses and permits 298,880 298,880 319,861 20,981
Fines, forfeitures, and penalties 34,825 34,895 41,303 6,408 Use of money and property 31,750 31,750 28,821 (2,929)
Intergovernmental revenue 38,503 38,503 123,673 85,170
Charges for current services 691,178 691,178 892,264 201,086 Other revenues 203,017 203,017 188,350 (14,667)
Total revenues 11,816,962 11,694,892 11,862,604 45,642
EXPENDITURES:

Current:

General government 1,229,538 1,301,538 1,565,673 (264,135) Public safety 8,137,150 8,546,150 8,260,412 285,738
Planning 314,769 314,769 314,123 646
Community development 776,715 776,715 480,517 296,198
Recreation and cultural 1,279,401 1,342,401 1,387,517 (45,116) Capital outlay 192,818 192,818 203,974 (11,156)
Debt service:

Principal - - 36,582 (36,582)
Interest and fiscal charges - - 1,902 (1,902)
Total expenditures 12,474,391 11,930,391 12,250,700 223,691 Excess (deficiency) of revenues
over expenditures (657,429) (235,499) (388,096) 269,333 OTHER FINANCING SOURCES (USES):

Transfers in 15,500 15,500 - (15,500)
Total other financing sources (uses) 15,500 15,500 - (15,500) NET CHANGE IN FUND BALANCE $ (641,929) (219,999) $ (388,096) 253,833 $ FUND BALANCE:

Beginning of year, previously reported 2,452,814
Restatement (Note 14) (251,723)
Beginning of year, as restated (Note 14) 2,201,091
End of year $ 1,812,995
City of Anderson
Budgetary Comparison Schedule
General Fund
For the Year Ended June 30, 2025
Required Supplementary Information (Unaudited)
85 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Use of money and property 750 $ 750 $ 25,597 $ 24,847 $ Intergovernmental revenue 1,276,573 1,276,573 1,246,938 (29,635) Other revenues 20,000 20,000 11,656 (8,344)
Total revenues 1,297,323 1,297,323 1,284,191 (13,132)
EXPENDITURES:

Current:

Public works 1,575,697 1,655,697 1,588,343 67,354
Capital outlay - - 223,159 (223,159)
Total expenditures 1,655,697 1,575,697 1,811,502 (155,805) Excess (deficiency) of revenues
over expenditures (358,374) (278,374) (527,311) (168,937) OTHER FINANCING (USES):

Transfers out - - (15,836) (15,836)
Total other financing (uses) - - (15,836) (15,836)
NET CHANGE IN FUND BALANCE $ (358,374) (278,374) $ (543,147) (184,773) $ FUND BALANCE:

Beginning of year 691,098
End of year $ 147,951
City of Anderson
Required Supplementary Information (Unaudited)
Gas Tax Special Revenue Fund
For the Year Ended June 30, 2025
Budgetary Comparison Schedule (Continued)
86 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Use of money and property 16,000 $ 16,000 $ 118,575 $ 102,575 $ Other revenues - - 10,605 10,605
Total revenues 16,000 16,000 129,180 113,180
EXPENDITURES:

Current:

Community development 7,840 7,840 - 7,840
Debt service:

Principal 100,000 100,000 - 100,000
Total expenditures 107,840 107,840 - 107,840
NET CHANGE IN FUND BALANCE $ (91,840) (91,840) $ 129,180 221,020 $ FUND BALANCE:

Beginning of year 7,651,099
End of year $ 7,780,279
City of Anderson
Required Supplementary Information (Unaudited)
ADAP and Home Special Revenue Fund
For the Year Ended June 30, 2025
Budgetary Comparison Schedule (Continued)
87 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Use of money and property 10,000 $ 10,000 $ 45,130 $ 35,130 $ Intergovernmental revenue - - 146,608 146,608
Total revenues 10,000 10,000 191,738 181,738
EXPENDITURES:

Current:

Community development 67,940 67,940 186,282 (118,342)
Debt service:

Principal 50,000 50,000 - 50,000
Total expenditures 117,940 117,940 186,282 (68,342)
NET CHANGE IN FUND BALANCE $ (107,940) (107,940) $ 5,456 113,396 $ FUND BALANCE:

Beginning of year 3,007,118
End of year $ 3,012,574
City of Anderson
Required Supplementary Information (Unaudited)
CDBG Special Revenue Fund
For the Year Ended June 30, 2025
Budgetary Comparison Schedule (Continued)
88 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Use of money and property - $ - $ 26,420 $ 26,420 $
Total revenues - - 26,420 26,420
EXPENDITURES:

Current:

Community development 50,498 50,498 40,768 9,730
Total expenditures 50,498 50,498 40,768 9,730
NET CHANGE IN FUND BALANCE $ (50,498) (50,498) $ (14,348) 36,150 $ FUND BALANCE (DEFICIT):

Beginning of year (77,366)
End of year $ (91,714)
City of Anderson
Required Supplementary Information (Unaudited)
Low and Moderate Income Housing Special Revenue Fund
For the Year Ended June 30, 2025
Budgetary Comparison Schedule (Continued)
89 City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
(This page is intentionally left blank)
90 Budget and Budgetary Accounting
Budgets for the General Fund, special revenue funds and capital project funds are adopted on a basis consistent with U.S. GAAP.

Formal budgetary integration is employed as a management control device during the year for these funds. Proprietary fund budgeting parallels that of private business enterprises. Expenditures may not legally exceed budgeted appropriations at the fund level. The City Manager is authorized to make budget transfers within any fund (the legal level). All revisions must be reported to the City Council before the end of the fiscal year. All unencumbered and unexpended appropriations lapse at the end of the fiscal year. Encumbrances are reappropriated in the ensuing year’s budget.

The budgetary comparison schedules are not presented for the Asset Forfeiture Special Revenue Fund, Parking District Special Revenue Fund, Redevelopment Special Revenue Fund, Curbs, Gutters & Sidewalk Capital Projects Fund, and Shatec Project Area Capital Projects Fund.

City of Anderson
Required Supplementary Information (Unaudited)
Notes to the Budgetary Comparison Schedule
For the Year Ended June 30, 2025
In June of odd numbered years, the City Council considers and adopts a budget plan for the coming two fiscal years. In June of each fiscal year, appropriations are adopted for the upcoming fiscal year for each fund and for departmental units within each fund.

Budgetary control is maintained at the fund level; the City Manager may transfer appropriations between accounts in each fund.

However, any revision that alters the total expenditure level of a fund must be approved by the City Council. 91 Measurement Date June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 City's Proportion of the Net Pension Liability 0.21263% 0.08602% 0.08382% 0.10096% 0.19849% City's Proportionate Share of the Net Pension Liability 10,283,875 $ 10,212,367 $ 9,681,762 $ 5,460,213 $ 8,372,308 $ City's Covered Payroll 3,372,335 $ 3,434,779 $ 2,480,261 $ 2,412,690 $ 2,344,535 $ City's Proportionate Share of the Net Pension Liability as a Percentage of its Covered Payroll 32.79% 33.63% 25.62% 226.31% 357.10% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Total Pension Liability 70.37% 69.84% 69.65% 81.85% 71.52% Measurement Date June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 City's Proportion of the Net Pension Liability 0.09101% 0.05524% 0.05253% 0.05998% 0.07797% City's Proportionate Share of the Net Pension Liability 6,635,635 $ 6,714,178 $ 6,067,828 $ 3,243,741 $ 5,194,699 $ City's Covered Payroll 2,944,107 $ 3,066,350 $ 2,221,452 $ 1,874,269 $ 1,583,986 $ City's Proportionate Share of the Net Pension Liability as a Percentage of its Covered Payroll 44.37% 45.67% 36.61% 173.07% 327.95% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Total Pension Liability 74.91% 71.89% 71.95% 83.17% 71.93% City of Anderson
Required Supplementary Information (Unaudited)
Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios California Public Employees' Retirement System ("CalPERS") Safety Plan For the Year Ended June 30, 2025
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") Miscellaneous Plan 92 Measurement Date June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 City's Proportion of the Net Pension Liability 0.19487% 0.19153% 0.18600% 0.18336% 0.17936% City's Proportionate Share of the Net Pension Liability 7,803,688 $ 7,218,039 $ 7,332,084 $ 6,369,732 $ 4,979,414 $ City's Covered Payroll 2,198,530 $ 2,014,295 $ 2,011,939 $ 2,014,220 $ 1,883,404 $ City's Proportionate Share of the Net Pension Liability as a Percentage of its Covered Payroll 354.95% 358.34% 364.43% 316.24% 264.38% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Total Pension Liability 72.40% 73.25% 71.97% 73.16% 78.07% Measurement Date June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 City's Proportion of the Net Pension Liability 0.07558% 0.07399% 0.07163% 0.07158% 0.07403% City's Proportionate Share of the Net Pension Liability 4,717,818 $ 4,341,322 $ 4,280,292 $ 3,707,485 $ 2,847,939 $ City's Covered Payroll 1,614,882 $ 1,445,381 $ 1,337,391 $ 1,346,753 $ 1,235,687 $ City's Proportionate Share of the Net Pension Liability as a Percentage of its Covered Payroll 292.15% 300.36% 320.05% 275.29% 230.47% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Total Pension Liability 73.31% 73.55% 73.00% 73.93% 79.05% City of Anderson
Required Supplementary Information (Unaudited)
Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios (Continued) California Public Employees' Retirement System ("CalPERS") Safety Plan For the Year Ended June 30, 2025
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") Miscellaneous Plan 93 Fiscal year 2024-25 2023-24 2022-23 2021-22 2020-21
Actuarially Determined Contribution 1,070,501 $ 963,913 $ 949,111 $ 841,610 $ 803,993 $ Contribution in Relation to the
Actuarially Determined Contribution (1,070,501) (963,913) (949,111) (841,610) (803,993) Contribution Deficiency (Excess) - $ - $ - $ - $ - $
Covered Payroll1 $ 3,372,335 3,466,760 $ 3,434,779 $ 2,480,261 $ 2,412,690.00 Contributions as a Percentage
of Covered Payroll 30.88% 28.58% 27.63% 33.93% 33.32%
Fiscal year 2024-25 2023-24 2022-23 2021-22 2020-21
Actuarially Determined Contribution 935,383 $ 886,973 $ 827,679 $ 696,062 $ 642,053 $ Contribution in Relation to the
Actuarially Determined Contribution (935,383) (886,973) (827,679) (696,062) (642,053) Contribution Deficiency (Excess) - $ - $ - $ - $ - $
Covered Payroll1 $ 2,944,107 3,026,542 $ 3,066,350 $ 2,221,452 $ 1,874,269 $ Contributions as a Percentage
of Covered Payroll 30.91% 30.13% 26.99% 31.33% 34.26%
Valuation Date June 30, 2022
Methods and Assumptions Usedto Determine Contribution Rates:

Actuarial cost method Entry Age Actuarial Cost Method
Amortization method For details, see June 30, 2022 Funding Valuation Report.

Asset valuation method Fair Value of Assets.

Inflation 2.30%
Salary increases Varies by entry age and service
Payroll Growth 2.80%
Investment rate of return 6.80% net of pension plan investment and administrative expenses; includes inflation.

Retirement age
Mortality
California Public Employees' Retirement System ("CalPERS") Safety Plan For the Year Ended June 30, 2025
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") Miscellaneous Plan City of Anderson
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions
1 Includes one year’s payroll growth using 2.80 percent payroll assumption for fiscal year 2024-25.

Notes to Schedule:

The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries.

The probabilities of retirement are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.
94 Fiscal year 2019-20 2018-19 2017-18 2016-17 2015-16
Actuarially Determined Contribution 721,746 $ 624,031 $ 529,589 $ 480,390 $ 429,631 $ Contribution in Relation to the
Actuarially Determined Contribution (721,746) (624,031) (529,589) (480,390) (429,631) Contribution Deficiency (Excess) - $ - $ - $ - $ - $
Covered Payroll1 $ 2,198,530 2,344,535 $ 2,014,295 $ 1,883,404 $ 1,832,170 $ Contributions as a Percentage
of Covered Payroll 30.78% 28.38% 26.29% 25.51% 23.45%
Fiscal year 2019-20 2018-19 2017-18 2016-17 2015-16
Actuarially Determined Contribution 549,851 $ 483,835 $ 408,103 $ 360,756 $ 305,203 $ Contribution in Relation to the
Actuarially Determined Contribution (549,851) (483,835) (408,103) (360,756) (305,203) Contribution Deficiency (Excess) - $ - $ - $ - $ - $
Covered Payroll1 $ 1,614,882 1,583,986 $ 1,445,381 $ 1,346,753 $ 1,235,687 $ Contributions as a Percentage
of Covered Payroll 34.71% 29.96% 28.23% 26.79% 24.70%
California Public Employees' Retirement System ("CalPERS") Safety Plan For the Year Ended June 30, 2025
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") Miscellaneous Plan City of Anderson
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions (Continued)
95 City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
(This page is intentionally left blank)
96 SUPPLEMENTARY INFORMATION
97 (This page is intentionally left blank)
City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
98 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Licenses and permits 22,764 $ 22,764 $ 15,847 $ (6,917) $ Total revenues 22,764 22,764 15,847 (6,917)
EXPENDITURES:

Current:

Recreational and cultural 7,506 7,506 6,665 841
Capital outlay - - 586,973 (586,973)
Debt service:

Principal 52,715 36,388 34,750 1,638
Interest and fiscal charges - - 17,965 (17,965)
Total expenditures 43,894 60,221 646,353 (602,459)
NET CHANGE IN FUND BALANCE $ (21,130) (37,457) $ (630,506) (609,376) $ FUND BALANCE (DEFICIT):

Beginning of year 13,340
End of year $ (617,166)
City of Anderson
Budgetary Comparison Schedule
Parks Capital Projects Fund
For the Year Ended June 30, 2025
99 City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
(This page is intentionally left blank)
100
Police Facility and Corp Yard Expansion Capital Projects Fund - To account for impact fees that are restricted for improvements to the City's public facilities.

Drainage Capital Projects Fund - To account for impact fees that are restricted for improvements to the City's drainage system.

Shastec Project Area Fund - To account for projects related to the redevelopment activities in the Shastec Project Area.

Traffic Capital Projects Fund - To account for impact fees that are restricted to add or improve City streets and roads.

I 5/Deschutes Offramp Fund - To account for impact fees that are restricted to the development of the I 5/Deschutes interchange.

NONMAJOR

GOVERNMENTAL FUNDS
EDBG Special Revenue Fund - To account for EDBG program income and grants provided for acquisition of real property, business assistance loans, and business assistance infrastructure.

Street Lighting Special Revenue Fund - To account for special assessment revenue and expenditures of City owned street lights.

Asset Forfeiture Special Revenue Fund - To account for expenditures and revenues of funds received from seizures and forfeitures.

Curbs, Gutters, and Sidewalks Capital Projects Fund - To account for the revenues received for the construction of curbs, gutters, and sidewalks by the City.

South Ridge Assessment District Special Revenue Fund - To account for the assessment district's expenditures and revenues of South Ridge Landscape Assessment District.

Vineyards Lighting and Landscape District Special Revenue Fund - To account for assessment district's revenue and expenditures related to maintenance of lighting and landscaping in the Vineyards housing subdivision.

COPS and LLEBG Special Revenue Fund - To account for law enforcement grant revenues and related expenses.

Redevelopment Special Revenue Fund - To account for housing funds related to the Shastec Project Area.

Silvergate Sanitary Assessment District Special Revenue Fund - To account for assessment district's expenditures and revenues of Silvergate Sanitary Assessment District.

Parking District Special Revenue Fund - To account for the expenditure and receipts of parking related funds. 101
COPS and
Street LLEBG Asset Parking
Lighting Grants Forfeiture District
ASSETS
Cash and investment - $ 532,731 $ 210,811 $ 11,268 $
Accounts receivable - - - -
Taxes receivable 2,182 - - -
Interest receivable - - - -
Loans receivable - - - -
Due from other governments - 27,193 - -
Due from other funds - - - -
Advances to other funds - - - -
Total assets $ 559,924 2,182 $ 210,811 $ 11,268 $
Liabilities:

Accounts payable and accrued liabilities 4,541 $ 7,216 $ - $ - $ Unearned revenue - 399,375 - -
Due to other funds 182,863 - - -
Total liabilities 406,591 187,404 - -
Fund Balances:

Restricted - 153,333 210,811 11,268
Unassigned (deficit) (185,222) - - -
Total fund balances 153,333 (185,222) 210,811 11,268
Total liabilities and fund balances $ 559,924 2,182 $ 210,811 $ 11,268 $ (Continued)
Special Revenue Funds
June 30, 2025
City of Anderson
Combining Balance Sheet
Nonmajor Governmental Funds

LIABILITIES AND FUND BALANCES
102
Vineyards
South Ridge Lighting and
Assessment Landscape
EDBG Redevelopment District District
ASSETS
Cash and investment - $ 16,602 $ 4,009 $ 1 $
Accounts receivable - - - -
Taxes receivable - - - 639
Interest receivable 542 - - -
Loans receivable 65,970 - - -
Due from other governments - - - -
Due from other funds 314,738 - - -
Advances to other funds - - - -
Total assets $ 16,602 381,250 $ 4,009 $ 640 $
Liabilities:

Accounts payable and accrued liabilities - $ - $ 792 $ 2,022 $ Unearned revenue - - - -
Due to other funds - - - 42,207
Total liabilities - - 792 44,229
Fund Balances:

Restricted 381,250 16,602 3,217 -
Unassigned (deficit) - - - (43,589)
Total fund balances 16,602 381,250 3,217 (43,589)
Total liabilities and fund balances $ 16,602 381,250 $ 4,009 $ 640 $ (Continued)
Nonmajor Governmental Funds
June 30, 2025
Special Revenue Funds

LIABILITIES AND FUND BALANCES
City of Anderson
Combining Balance Sheet (Continued)
103
Special
Revenue Funds
Silvergate
Sanitary Curbs, Police Facility
Assessment Gutters and and Corp
District Sidewalks Yard Expansion Drainage
ASSETS
Cash and investment - $ 12,656 $ 105,066 $ 1 $
Accounts receivable - - 7,698 5,417
Taxes receivable - - - -
Interest receivable - - - -
Loans receivable - - - -
Due from other governments - - - -
Due from other funds - - 456,032 975,772
Advances to other funds - - - -
Total assets $ 12,656 - $ 568,796 $ 981,190 $
Liabilities:

Accounts payable and accrued liabilities 38 $ - $ - $ 6,252 $ Unearned revenue - - - -
Due to other funds 31,071 - - -
Total liabilities - 31,109 - 6,252
Fund Balances:

Restricted - 12,656 568,796 974,938
Unassigned (deficit) (31,109) - - -
Total fund balances 12,656 (31,109) 568,796 974,938
Total liabilities and fund balances $ 12,656 - $ 568,796 $ 981,190 $ (Continued)
City of Anderson
Capital Projects Funds
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2025

LIABILITIES AND FUND BALANCES
104
Total
Nonmajor
I-5/Deschutes Shastec Governmental
Traffic Offramp Project Area Funds
ASSETS
Cash and investment 2 $ 263,186 $ 14,555 $ 1,170,888 $
Accounts receivable 36,011 12,585 - 61,711
Taxes receivable - - - 2,821
Interest receivable - - - 542
Loans receivable - - - 65,970
Due from other governments - - - 27,193
Due from other funds 1,339,770 - 526,651 3,612,963
Advances to other funds 50,892 - - 50,892
Total assets $ 275,771 1,426,675 $ 541,206 $ 4,992,980 $ Liabilities:

Accounts payable and accrued liabilities - $ - $ - $ 20,861 $ Unearned revenue - - - 399,375
Due to other funds - - - 256,141
Total liabilities - - - 676,377
Fund Balances:

Restricted 1,426,675 275,771 541,206 4,576,523
Unassigned (deficit) - - - (259,920)
Total fund balances 275,771 1,426,675 541,206 4,316,603 Total liabilities and fund balances $ 275,771 1,426,675 $ 541,206 $ 4,992,980 $ (Concluded)
June 30, 2025
Capital Projects Funds
City of Anderson
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds

LIABILITIES AND FUND BALANCES
105
COPS and
Street LLEBG Asset Parking
Lighting Grants Forfeiture District
REVENUES:

Licenses and permits - $ - $ - $ - $
Fines, forfeits, and penalties - - 81,201 -
Use of money and property - 4,207 1,835 127
Intergovernmental revenue 63,981 206,996 - -
Other revenues 101,105 - - -
Total revenues 312,308 63,981 83,036 127
EXPENDITURES:

Current:

Public safety 317,487 - 55,015 -
Public works 112,708 - - -
Recreation and cultural - - - -
Capital outlay - - - -
Total expenditures 317,487 112,708 55,015 -
Excess (deficiency) of revenues over
expenditures (5,179) (48,727) 28,021 127
OTHER FINANCING SOURCES:

Transfers in 15,836 - - -
Total other financing sources - 15,836 - -
NET CHANGES IN FUND BALANCES (5,179) (32,891) 28,021 127 FUND BALANCES (DEFICITS):

Beginning of year, as previously reported (152,331) 158,512 182,790 11,141 Change with financial reporting entity
(major and non-major fund classification) (Note 14) - - - - Beginning of year, as restated (Note 14) (152,331) 158,512 182,790 11,141 End of year $ 153,333 (185,222) $ 210,811 $ 11,268 $
(Continued)
For the Year Ended June 30, 2025
City of Anderson
Special Revenue Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds
106
Vineyards
South Ridge Lighting and
Assessment Landscape
EDBG Redevelopment District District
REVENUES:

Licenses and permits - $ - $ - $ - $
Fines, forfeits, and penalties - - - -
Use of money and property 3,545 - 14 -
Intergovernmental revenue - - - -
Other revenues - - 14,000 39,408
Total revenues - 3,545 14,014 39,408
EXPENDITURES:

Current:

Public safety - - - -
Public works - - 10,361 33,063
Recreation and cultural - - - -
Capital outlay - - - -
Total expenditures - - 10,361 33,063
Excess (deficiency) of revenues over
expenditures - 3,545 3,653 6,345
OTHER FINANCING SOURCES:

Transfers in - - - -
Total other financing sources - - - -
NET CHANGES IN FUND BALANCES - 3,545 3,653 6,345
FUND BALANCES (DEFICITS):

Beginning of year, as previously reported 377,705 16,602 (436) (49,934) Change with financial reporting entity
(major and non-major fund classification) (Note 14) - - - - Beginning of year, as restated (Note 14) 377,705 16,602 (436) (49,934) End of year $ 16,602 381,250 $ 3,217 $ (43,589) $
(Continued)
City of Anderson
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2025
Special Revenue Funds
107
Special
Revenue Funds
Silvergate
Sanitary Curbs, Police Facility
Assessment Gutters & and
District Sidewalk Corp Yard Drainage
REVENUES:

Licenses and permits - $ - $ 14,715 $ 18,807 $
Fines, forfeits, and penalties - - - -
Use of money and property - 257 6,652 11,060
Intergovernmental revenue - - - -
Other revenues 6,145 - - -
Total revenues 257 6,145 21,367 29,867
EXPENDITURES:

Current:

Public safety - - 52,243 -
Public works 21,673 - 14,698 22,939
Recreation and cultural - - - -
Capital outlay - - - -
Total expenditures - 21,673 66,941 22,939
Excess (deficiency) of revenues over
expenditures 257 (15,528) (45,574) 6,928
OTHER FINANCING SOURCES:

Transfers in - - - -
Total other financing sources - - - -
NET CHANGES IN FUND BALANCES 257 (15,528) (45,574) 6,928 FUND BALANCES (DEFICITS):

Beginning of year, as previously reported (15,581) 12,399 614,370 968,010 Change with financial reporting entity
(major and non-major fund classification) (Note 14) - - - - Beginning of year, as restated (Note 14) (15,581) 12,399 614,370 968,010 End of year $ 12,656 (31,109) $ 568,796 $ 974,938 $
(Continued)
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Capital Projects Funds
City of Anderson
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
108
I-5/Deschutes Shastec
Traffic Offramp Project Area Parks
REVENUES:

Licenses and permits 58,783 $ 20,930 $ - $
Fines, forfeits, and penalties - - -
Use of money and property 20,136 2,981 -
Intergovernmental revenue - - -
Other revenues - - -
Total revenues 23,911 78,919 -
EXPENDITURES:

Current:

Public safety - - -
Public works 15,957 11,333 -
Recreation and cultural - - -
Capital outlay 967,585 - -
Total expenditures 11,333 983,542 -
Excess (deficiency) of revenues over
expenditures 12,578 (904,623) -
OTHER FINANCING SOURCES:

Transfers in - - -
Total other financing sources - - -
NET CHANGES IN FUND BALANCES 12,578 (904,623) -
FUND BALANCES (DEFICITS):

Beginning of year, as previously reported 2,331,298 263,193 541,206 13,340 Change with financial reporting entity
(major and non-major fund classification) (Note 14) - - - (13,340) Beginning of year, as restated (Note 14) 2,331,298 263,193 541,206 - End of year $ 275,771 1,426,675 $ 541,206 $ - $
Capital Projects Funds
City of Anderson
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2025
109
Total
Nonmajor
Governmental
Funds
REVENUES:

Licenses and permits $ 113,235
Fines, forfeits, and penalties 81,201
Use of money and property 50,814
Intergovernmental revenue 270,977
Other revenues 160,658
Total revenues 676,885
EXPENDITURES:

Current:

Public safety 424,745
Public works 242,732
Recreation and cultural -
Capital outlay 967,585
Total expenditures 1,635,062
Excess (deficiency) of revenues over
expenditures (958,177)
OTHER FINANCING SOURCES:

Transfers in 15,836
Total other financing sources 15,836
NET CHANGES IN FUND BALANCES (942,341)
FUND BALANCES (DEFICITS):

Beginning of year, as previously reported 5,272,284
Change with financial reporting entity
(major and non-major fund classification) (Note 14) (13,340) Beginning of year, as restated (Note 14) 5258944
End of year $ 4,316,603
(Concluded)
City of Anderson
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2025
110
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental revenue 65,482 $ 65,482 $ 63,981 $ (1,501) $ Total revenues 65,482 65,482 63,981 (1,501)
EXPENDITURES:

Current:

Public works 147,456 177,457 112,708 64,749
Total expenditures 177,457 147,456 112,708 64,749
Excess (deficiency) of revenues over
expenditures (111,975) (81,974) (48,727) 63,248
OTHER FINANCING SOURCES:

Transfers in 15,836 15,836 15,836 -
Total other financing sources 15,836 15,836 15,836 -
NET CHANGE IN FUND BALANCE $ (96,139) (66,138) $ (32,891) 63,248 $ FUND BALANCE (DEFICIT):

Beginning of year (152,331)
End of year $ (185,222)
City of Anderson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Street Lighting Special Revenue Fund
For the Year Ended June 30, 2025
111
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental revenue 100,000 $ 100,000 $ 206,996 $ 106,996 $ Other revenues - - 101,105 101,105
Use of money and property - - 4,207 4,207
Total revenues 100,000 100,000 312,308 212,308
EXPENDITURES:

Current:

Public safety 131,600 131,600 317,487 (185,887)
Total expenditures 131,600 131,600 317,487 (185,887)
NET CHANGE IN FUND BALANCE $ (31,600) (31,600) $ (5,179) 26,421 $ FUND BALANCE:

Beginning of year 158,512
End of year $ 153,333
City of Anderson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual COPS and LLEBG Grants Special Revenue Fund
For the Year Ended June 30, 2025
112
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Use of money and property 1,101 $ 1,101 $ 3,545 $ 2,444 $ Total revenues 1,101 1,101 3,545 2,444
NET CHANGE IN FUND BALANCE $ 1,101 1,101 $ 3,545 2,444 $ FUND BALANCE:

Beginning of year 377,705
End of year $ 381,250
City of Anderson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual EDBG Special Revenue Fund
For the Year Ended June 30, 2025
113
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Miscellaneous revenue 14,000 $ 14,000 $ 14,000 $ - $
Use of money and property - - 14 14
Total revenues 14,000 14,000 14,014 14
EXPENDITURES:

Current:

Public works 8,645 8,645 10,361 (1,716)
Total expenditures 8,645 8,645 10,361 (1,716)
NET CHANGE IN FUND BALANCE $ 5,355 5,355 $ 3,653 (1,702) $ FUND BALANCE (DEFICIT):

Beginning of year (436)
End of year $ 3,217
City of Anderson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual South Ridge Assessment District Special Revenue Fund
For the Year Ended June 30, 2025
114
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Miscellaneous revenue 39,408 $ 39,408 $ 39,408 $ - $
Total revenues 39,408 39,408 39,408 -
EXPENDITURES:

Current:

Public works 25,255 25,255 33,063 (7,808)
Total expenditures 25,255 25,255 33,063 (7,808)
NET CHANGE IN FUND BALANCE $ 14,153 14,153 $ 6,345 (7,808) $ FUND BALANCE (DEFICIT):

Beginning of year (49,934)
End of year $ (43,589)
City of Anderson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Vineyard Lighting and Landscape Special Revenue Fund
For the Year Ended June 30, 2025
115
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Miscellaneous revenue 11,051 $ 11,051 $ 6,145 $ (4,906) $ Total revenues 11,051 11,051 6,145 (4,906)
EXPENDITURES:

Current:

Public works 17,215 11,015 21,673 (10,658)
Total expenditures 11,015 17,215 21,673 (10,658)
NET CHANGE IN FUND BALANCE $ 36 (6,164) $ (15,528) (15,564) $ FUND BALANCE (DEFICIT):

Beginning of year (15,581)
End of year $ (31,109)
City of Anderson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Silvergate Sanitary Assessment District Special Revenue Fund For the Year Ended June 30, 2025
116
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Licenses and permits 52,650 $ 52,650 $ 14,715 $ (37,935) $ Use of money and property 5,050 5,050 6,652 1,602
Total revenues 57,700 57,700 21,367 (36,333)
EXPENDITURES:

Current:

Public safety 150,001 150,001 52,243 97,758
Public works 6,795 6,795 14,698 (7,903)
Total expenditures 156,796 156,796 66,941 89,855
NET CHANGE IN FUND BALANCE $ (99,096) (99,096) $ (45,574) 53,522 $ FUND BALANCE:

Beginning of year 614,370
End of year $ 568,796
City of Anderson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Police Facility and Corp Yard Capital Projects Fund
For the Year Ended June 30, 2025
117
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Licenses and permits 28,366 $ 28,366 $ 18,807 $ (9,559) $ Use of money and property 4,040 4,040 11,060 7,020
Total revenues 32,406 32,406 29,867 (2,539)
EXPENDITURES:

Current:

Public works 184,833 184,833 22,939 161,894
Total expenditures 184,833 184,833 22,939 161,894
NET CHANGE IN FUND BALANCE $ (152,427) (152,427) $ 6,928 159,355 $ FUND BALANCE:

Beginning of year 968,010
End of year $ 974,938
City of Anderson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Drainage Capital Projects Fund
For the Year Ended June 30, 2025
118
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Licenses and permits 93,930 $ 93,930 $ 58,783 $ (35,147) $ Use of money and property 10,100 10,100 20,136 10,036
Total revenues 104,030 104,030 78,919 (25,111)
EXPENDITURES:

Current:

Public works 66,991 66,991 15,957 51,034
Capital outlay - 762,000 967,585 (205,585)
Total expenditures 828,991 66,991 983,542 (154,551)
NET CHANGE IN FUND BALANCE $ (724,961) 37,039 $ (904,623) (179,662) $ FUND BALANCE:

Beginning of year 2,331,298
End of year $ 1,426,675
City of Anderson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Traffic Capital Projects Fund
For the Year Ended June 30, 2025
119
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Licenses and permits 25,200 $ 25,200 $ 20,930 $ (4,270) $ Use of money and property - - 2,981 2,981
Total revenues 25,200 25,200 23,911 (1,289)
EXPENDITURES:

Current:

Public works 6,283 6,283 11,333 (5,050)
Total expenditures 6,283 6,283 11,333 (5,050)
NET CHANGE IN FUND BALANCE $ 18,917 18,917 $ 12,578 (6,339) $ FUND BALANCE:

Beginning of year 263,193
End of year $ 275,771
City of Anderson
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual I-5/Deschutes Offramp Capital Projects Fund
For the Year Ended June 30, 2025
120
Vehicle Maintenance - To account the amount of cars usage in a department and gallons of fuel used.

Building and Equipment - used to provide building maintenance services to all City departments.

Customer Service - used to account for the City's customer service department activities.

Liability Insurance - used to account for the City's general liability insurance, including claims, legal and other expenses.

INTERNAL SERVICE FUNDS
The Internal Service Fund accounts for financing of goods and services provided by one department to other departments of the City on a cost-reimbursement basis.

Internal Service Funds include:

Computer - to account for the City's centralized data processing activities and future technological infrastructure improvements.

Workers' Compensation - used to account for the City's workers' compensation insurance costs, including claims, legal and other expenses.

Department Public Works - To account the public works department salaries and related expenses allocation into different departments.
121
Department Vehicle Building and Customer
Public Works Maintenance Equipment Service
ASSETS
Current Assets:

Cash and investments - $ - $ 1 $ - $
Accounts receivable - 1,923 1,164 -
Due from other funds - - - -
Inventories and prepaid items 11,754 37,024 - 7,604
Total current assets 38,947 11,754 1,165 7,604
Noncurrent assets:

Advances to other funds - - 21,836 -
Capital assets, not being depreciated - 20,000 - -
Capital assets, being depreciated/amortized, net 33,198 1,509,306 280,059 - Total noncurrent assets 1,529,306 33,198 301,895 -
Total assets 1,568,253 44,952 303,060 7,604

DEFERRED OUTFLOW OF RESOURCES
Pension related 337,932 45,351 11,822 74,395
Total deferred outflows of resources 45,351 337,932 11,822 74,395

LIABILITIES
Current liabilities:

Accounts payable 7,897 12,989 39,503 5,045
Accrued payroll and benefits 24,810 3,368 1,025 6,462
Accrued interest - 6,223 - -
Due to other funds 151,160 841,735 456,032 263,691
Compensated absences, due within one year 15,704 8,882 292 6,252 Bonds, loans, lease, and subscription payable,
due within one year - 380,302 - -
Total current liabilities 1,253,499 199,571 496,852 281,450 Noncurrent liabilities:

Advances from other funds - - - 21,836
Compensated absences, due in more than one year 47,112 26,645 876 18,755 Bonds, loans, and lease payable, due in more than one year 395,865 - - - Net pension liabilities 1,218,299 163,497 42,621 268,205 Total noncurrent liabilities 586,007 1,265,411 43,497 308,796 Total liabilities 1,839,506 1,464,982 540,349 590,246

DEFERRED INFLOWS OF RESOURCES
Pension related 46,251 6,207 1,618 10,182
Total deferred inflows of resources 6,207 46,251 1,618 10,182

NET POSITION
Net investment in capital assets 33,198 753,139 280,059 - Unrestricted (deficit) (1,161,547) (985,248) (507,144) (518,429) Total net position $ (232,109) (1,128,349) $ (227,085) $ (518,429) $ (Continued)
City of Anderson
Combining Statement of Net Position
Internal Service Funds
June 30, 2025
122
Workers' Liability
Computer Compensation Insurance Total
ASSETS
Current Assets:

Cash and investments 988 $ 36,464 $ 18,970 $ 56,423 $
Accounts receivable - - - 3,087
Due from other funds - 366,159 - 366,159
Inventories and prepaid items - - - 56,382
Total current assets 402,623 988 18,970 482,051
Noncurrent assets:

Advances to other funds - - - 21,836
Capital assets, not being depreciated - - - 20,000
Capital assets, being depreciated/amortized, net 80,702 - - 1,903,265 Total noncurrent assets - 80,702 - 1,945,101
Total assets 402,623 81,690 18,970 2,427,152

DEFERRED OUTFLOW OF RESOURCES
Pension related 14,537 - - 484,037
Total deferred outflows of resources - 14,537 - 484,037

LIABILITIES
Current liabilities:

Accounts payable 1,989 - - 67,423
Accrued payroll and benefits 849 - - 36,514
Accrued interest - - - 6,223
Due to other funds 178,729 - 366,159 2,257,506
Compensated absences, due within one year 613 - - 31,743 Bonds, loans, lease, and subscription payable,
due within one year 5,432 - - 385,734
Total current liabilities - 187,612 366,159 2,785,143
Noncurrent liabilities:

Advances from other funds - - - 21,836
Compensated absences, due in more than one year 1,838 - - 95,226 Bonds, loans, and lease payable, due in more than one year - 2,023 - 397,888 Net pension liabilities 52,408 - - 1,745,030
Total noncurrent liabilities - 56,269 - 2,259,980
Total liabilities - 243,881 366,159 5,045,123

DEFERRED INFLOWS OF RESOURCES
Pension related 1,990 - - 66,248
Total deferred inflows of resources - 1,990 - 66,248

NET POSITION
Net investment in capital assets 73,247 - - 1,139,643
Unrestricted (deficit) (222,891) 402,623 (347,189) (3,339,825) Total net position $ 402,623 (149,644) $ (347,189) $ (2,200,182) $ (Concluded)
City of Anderson
Combining Statement of Net Position (Continued)
Internal Service Funds
June 30, 2025
123
Department Vehicle Building & Customer
Public Works Maintenance Equipment Service
OPERATING REVENUES:

Charges for services
Internal service fund charges 1,953,608 $ 1,030,663 $ 379,142 $ 538,420 $ Other 1,223 105 - -
Total operating revenues 1,030,768 1,954,831 379,142 538,420 OPERATING EXPENSES:

Cost of sales and service 2,131,382 508,329 345,339 404,195 Depreciation and amortization 9,072 529,311 32,868 -
Total operating expenses 1,037,640 2,140,454 378,207 404,195 OPERATING INCOME (LOSS) (6,872) (185,623) 935 134,225
NONOPERATING REVENUES (EXPENSES):

Gain on disposal of assets - 12,060 - -
Interest expense - (31,526) - -
Total nonoperating revenues (expenses) (19,466) - - -
CHANGES IN NET POSITION (26,338) (185,623) 935 134,225
NET POSITION:

Beginning of year, as previously reported (939,446) (176,198) (228,020) (644,013) Change in accounting principle (GASB 101) (3,280) (29,573) - (8,641) Beginning of year, as restated (Note 14) (942,726) (205,771) (228,020) (652,654) End of year $ (232,109) (1,128,349) $ (227,085) $ (518,429) $ (Continued)
City of Anderson
Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds
For the Year Ended June 30, 2025
124
Workers' Liability
Computer Compensation Insurance Total
OPERATING REVENUES:

Charges for services
Internal service fund charges 247,667 $ - $ - $ 4,149,500 $ Other - 389,110 856,528 1,246,966
Total operating revenues 389,110 247,667 856,528 5,396,466 OPERATING EXPENSES:

Cost of sales and service 172,144 380,333 837,558 4,779,280 Depreciation and amortization 21,885 - - 593,136
Total operating expenses 380,333 194,029 837,558 5,372,416 OPERATING INCOME (LOSS) 8,777 53,638 18,970 24,050
NONOPERATING REVENUES (EXPENSES):

Gain on disposal of assets - - - 12,060
Interest expense (118) - - (31,644)
Total nonoperating revenues (expenses) - (118) - (19,584) CHANGES IN NET POSITION 8,777 53,520 18,970 4,466
NET POSITION:

Beginning of year, as previously reported (201,719) 393,846 (366,159) (2,161,709) Change in accounting principle (GASB 101) (1,445) - - (42,939) Beginning of year, as restated (Note 14) (203,164) 393,846 (366,159) (2,204,648) End of year $ 402,623 (149,644) $ (347,189) $ (2,200,182) $ (Concluded)
City of Anderson
Combining Statement of Revenues, Expenses, and Changes in Net Position (Continued) Internal Service Funds
For the Year Ended June 30, 2025
125
Department Vehicle Building & Customer
Public Works Maintenance Equipment Service
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers and users 1,954,831 $ 1,051,664 $ 379,142 $ 538,420 $ Cash paid to employees (including employee benefits) (1,464,621) (162,427) (60,417) (389,529) Cash paid to suppliers (477,144) (362,841) (270,018) (100,588) Net cash provided by (used in) operating activities 526,396 13,066 48,707 48,303

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Payments made to other funds (76,576) (33,391) (48,863) (48,386) Net cash provided by (used in)
noncapital financing activities (76,576) (33,391) (48,863) (48,386)

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Payments for the purchase of capital assets - (11,903) - - Proceeds from disposal of capital assets 12,060 - - -
Principal payments on long term debt (414,927) - - -
Interest paid (35,967) - - -
Net cash used in capital
and related financing activities (450,737) - - -
Net change in cash and cash equivalents (917) (20,325) (156) (83) CASH AND CASH EQUIVALENTS:

Beginning of year 20,325 917 157 83
End of year $ - - $ 1 $ - $

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

Operating income (loss) (185,623) $ (6,872) $ 935 $ 134,225 $ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

Depreciation and amortization expenses 9,072 529,311 32,868 - (Increase) decrease in:

Accounts receivable 20,896 - -
Prepaid items 2,471
Deferred outflows from pensions 39,810 15,448 3,648 80,003 Increase (decrease) in:

Accounts payable 928 (19,179) 11,292 3,511
Accrued payroll and benefits 674 730 193 3,472
Compensated absences payable (13,395) (6,116) 703 (2,946) Net pension liability 191,145 (1,829) 554 (151,634)
Deferred inflows of resources - pensions (29,545) (5,993) (1,486) (20,799) Total adjustment 198,689 533,268 47,772 (85,922)
Net cash provided by (used in) operating activities $ 526,396 13,066 $ 48,707 $ 48,303 $ (Continued)
City of Anderson
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2025
126
Workers' Liability
Computer Compensation Insurance Total
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers and users 247,940 $ 389,110 $ 856,528 $ 5,417,635 $ Cash paid to employees (including employee benefits) (47,335) - - (2,124,329) Cash paid to suppliers (143,720) (380,333) (837,558) (2,572,202) Net cash provided by (used in) operating activities 8,777 56,885 18,970 721,104

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Payments made to other funds (11,039) - - (218,255)
Net cash provided by (used in)
noncapital financing activities - (11,039) - (218,255)

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Payments for the purchase of capital assets (35,187) - - (47,090) Proceeds from disposal of capital assets - - - 12,060
Principal payments on long term debt - (9,611) - (424,538) Interest paid - (118) - (36,085)
Net cash used in capital
and related financing activities - (44,916) - (495,653) Net change in cash and cash equivalents 8,777 930 18,970 7,196 CASH AND CASH EQUIVALENTS:

Beginning of year 58 27,687 - 49,227
End of year $ 36,464 988 $ 18,970 $ 56,423 $

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

Operating income (loss) 53,638 $ 8,777 $ 18,970 $ 24,050 $ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

Depreciation and amortization expenses 21,885 - - 593,136 (Increase) decrease in:

Accounts receivable 273 - - 21,169
Prepaid items - - - 2,471
Deferred outflows from pensions 12,974 151,883
Increase (decrease) in:

Accounts payable (4,862) - - (8,310)
Accrued payroll and benefits 132 - - 5,201
Compensated absences payable (1,225) - - (22,979)
Net pension liability (22,400) 15,836
Deferred inflows of resources - pensions (3,530) (61,353) Total adjustment 3,247 - - 697,054
Net cash provided by (used in) operating activities $ 8,777 56,885 $ 18,970 $ 721,104 $ (Concluded)
For the Year Ended June 30, 2025
City of Anderson
Combining Statement of Cash Flows (Continued)
Internal Service Funds
127
City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
(This page is intentionally left blank)
128

CUSTODIAL FUNDS

FINANCIAL STATEMENTS
SINTF Custodial Fund - this fund accounts for funds held for Shasta Interagency Narcotics Task Force (SINTF) program.

County Seizure Custodial Fund - this fund accounts for the seized assets held on behalf of the County of Shasta.

Custodial funds are used to account for assets held by the City as an agent for individuals, private organizations, other governments, and/or other funds.
129
City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
(This page is intentionally left blank)
130
County
SINTF Seizure
Fund Fund Total
ASSETS:

Cash and investments 140,548 $ 37,468 $ 178,016 $
Total additions 37,468 140,548 178,016
LIABILITIES:

Accounts payable 47,880 9,191 57,071
Total liabilities 47,880 9,191 57,071
NET POSITION (DEFICIT):

Restricted for:

Individual, organization and other government 131,357 $ (10,412) $ 120,945 $ City of Anderson
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2025
131
County
SINTF Seizure
Fund Fund Total
ADDITIONS:

Investment income (loss) 5,985 $ (7,725) $ (1,740) $
Total additions (7,725) 5,985 (1,740)
Changes in net position (7,725) 5,985 (1,740)
NET POSITION (DEFICIT):

Beginning of year 125,372 (2,687) 122,685
End of year $ (10,412) 131,357 $ 120,945 $
City of Anderson
For the Year Ended June 30, 2025
Custodial Funds
Combining Statement of Changes in Fiduciary Net Position 132

STATISTICAL SECTION
133
City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
(This page is intentionally left blank)
134
Financial Trends:

Net Assets – Accrual Basis of Accounting 136
Changes in Net Asset – Accrual Basis of Accounting 138
Fund Balances of Governmental Funds – Modified Accrual Basis of Accounting 142 Changes in Fund Balances of Governmental Funds – Modified Accrual Basis of Accounting 144 General Fund Balance Compared to Annual Appropriations – Last Ten Fiscal Years 146 General Fund Revenues by Source – Last Ten Fiscal Years 147 General Fund Tax Revenues by Source – Last Ten Fiscal Years 148 Governmental Funds Expenditures by Function – Last Ten Fiscal Years 149 Special Assessment Billings and Collections – Last Ten Fiscal Years 150 Revenue Capacity:

Property Tax - Rates (Direct and Overlapping Governments) and City Levies and Collections – Last Ten Fiscal Years 151 Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years 152 Principal Secured Property Taxpayers – Current Year and Nine Years Ago 153 Property Value and Construction – Last Ten Fiscal Years 155 Debt Capacity:

Ratio of Outstanding Debt by Type – Last Ten Fiscal Years 156 Ratio of General Bonded Debt Outstanding – Last Ten Fiscal Years 158 Ratio of Net Bonded Debt to Assessed Value and Net Bonded Debt per Capita – Last Ten Fiscal Years 159 Ratio of Annual Debt Service for Bonded Debt to Total General Expenditures – Last Ten Fiscal Years 160 Direct and Overlapping Governmental Activities Debt – June 30, 2025 161 Computation of Legal Debt Margin – Last Ten Fiscal Years 162 Pledged Revenue Coverage – Last Ten Fiscal Years 164
Demographic and Economic Information:

General Information as of June 30, 2025 165
Principal Employers – Current Year and Nine Years Ago 166 Economic Information – Last Ten Fiscal Years 167
Operating Information:

Operating and Capital Indicators – Last Ten Fiscal Years 168 Authorized Full-Time Equivalent Employees by Department – Last Ten Fiscal Years 170 Water and Sewer Rates – Last Ten Fiscal Years 172

STATISTICAL SECTION
135
2016 2017 2018 2019 2020
Governmental activities:

Net investment in capital assets $ 21,566,442 $ 20,157,484 $ 20,289,058 $ 20,734,804 $ 20,626,615 Restricted 13,891,292 13,992,482 14,181,409 14,643,213 15,101,783 Unrestricted (deficit) (3,028,302) (1,006,264) (2,188,418) (3,615,378) (4,164,289) Total governmental activities net assets $ 33,143,702 32,429,432 $ 32,282,049 $ 31,762,639 $ 31,564,109 $ Business-type activities:

Net investment in capital assets 10,876,569 $ 10,654,855 $ 10,247,557 $ 9,829,717 $ 9,984,064 $ Restricted - 13,891,292 - - -
Unrestricted (deficit) 984,100 (12,557,186) 1,687,814 1,967,127 1,147,636 Total business-type activities net assets $ 11,988,961 11,860,669 $ 11,935,371 $ 11,796,844 $ 11,131,700 $ Primary Government:

Net investment in capital assets $ 32,443,011 $ 30,812,339 $ 30,536,615 $ 30,561,521 $ 30,610,679 Restricted 13,891,292 27,913,774 14,181,409 14,643,213 15,101,783 Unrestricted (deficit) (2,044,202) (13,563,450) (500,604) (1,648,251) (3,016,653) Total primary government net assets $ 45,162,663 44,290,101 $ 44,217,420 $ 43,556,483 $ 42,695,809 $ (Continued)
Last Ten Fiscal Years
City of Anderson
Net Assets
(Accrual Basis of Accounting)
136
2021 2022 2023 2024 2025
Governmental activities:

Net investment in capital assets $ 21,185,706 $ 21,885,257 $ 23,355,757 $ 25,537,977 $ 26,041,431 Restricted 15,790,158 16,142,307 16,512,022 17,404,171 16,067,614 Unrestricted (deficit) (4,948,948) (2,104,858) (5,420,740) (10,688,451) (12,002,471) Total governmental activities net assets $ 35,922,706 32,026,916 $ 34,447,039 $ 32,253,697 $ 30,106,574 $ Business-type activities:

Net investment in capital assets 10,253,676 $ 10,642,392 $ 10,197,811 $ 7,792,024 $ 8,532,203 $ Restricted - - - - -
Unrestricted (deficit) 852,867 259,161 (489,962) 1,188,155 (668,451) Total business-type activities net assets $ 10,901,553 11,106,543 $ 9,707,849 $ 8,980,179 $ 7,863,752 $ Primary Government:

Net investment in capital assets $ 31,439,382 $ 32,527,649 $ 33,553,568 $ 33,330,001 $ 34,573,634 Restricted 15,790,158 16,142,307 16,512,022 17,404,171 16,067,614 Unrestricted (deficit) (4,096,081) (1,845,697) (5,910,702) (9,500,296) (12,670,922) Total primary government net assets $ 46,824,259 43,133,459 $ 44,154,888 $ 41,233,876 $ 37,970,326 $ (Concluded)
Last Ten Fiscal Years
City of Anderson
Net Assets (Continued)
(Accrual Basis of Accounting)
137
2016 2017 2018 2019 2020
Expenses:

Governmental activities:

General government $ 1,271,913 $ 1,020,615 $ 1,294,519 $ 686,594 $ 895,797 Public safety 4,833,530 4,402,297 5,098,330 5,624,597 6,130,653 Public works 1,814,825 1,430,663 1,294,411 1,670,015 1,298,170 Planning 142,533 159,883 243,745 224,552 321,879
Community development 1,315,390 1,553,231 1,502,302 1,963,182 1,333,566 Recreation and cultural 891,470 958,595 1,509,288 2,154,909 1,725,343 Interest and fiscal charges - - - - -
Total governmental activities expenses 9,525,284 10,269,661 10,942,595 12,323,849 11,705,408 Business-type activities:

Water 1,314,695 1,292,758 1,363,931 1,408,063 1,731,822 Sewer 1,698,260 1,520,512 1,728,242 1,821,554 2,242,422 Total business-type activities expenses 2,813,270 3,012,955 3,092,173 3,229,617 3,974,244 Total primary government expenses 12,338,554 13,282,616 14,034,768 15,553,466 15,679,652 Program Revenues:

Governmental activities:

Charges for services:

General government 158,226 131,821 310,007 554,504 61,767 Public safety 156,305 122,058 149,100 126,067 266,210
Public works 81,771 110,290 73,369 196,628 142,637
Planning 26,445 202,125 17,106 23,832 26,411
Community development 346,695 176,907 189,900 328,235 433,687 Recreation and cultural 148,028 200,433 216,850 192,152 122,308 Operating grants and contributions 858,463 269,659 234,529 232,497 267,338 Capital grants and contributions 965,697 10,096 20,266 4,850 31,466 Total governmental activities program revenues 2,741,630 1,223,389 1,211,127 1,658,765 1,351,824 Business-type activities:

Charges for services:

Water 1,194,625 1,319,081 1,406,386 1,398,403 1,533,396 Sewer 1,682,722 1,717,921 1,723,331 1,736,749 1,809,363 Operating grants and contributions - - - - -
Capital grants and contributions - - - - -
Total business-type activities program revenues 3,037,002 2,877,347 3,129,717 3,135,152 3,342,759 Total primary government program revenues 5,618,977 4,260,391 4,340,844 4,793,917 4,694,583 Net (expense)/revenue:

Governmental activities (7,528,031) (8,301,895) (9,731,468) (10,665,084) (10,353,584) Business-type activities (135,608) 223,732 37,544 (94,465) (631,485) Total primary government net expense (7,663,639) (8,078,163) (9,693,924) (10,759,549) (10,985,069) (Continued)
City of Anderson
(Accrual Basis of Accounting)
Changes in Net Assets
Last Ten Fiscal Years
138
2016 2017 2018 2019 2020
General Revenues and Other Changes in Net Assets:

Governmental activities:

Taxes:

Sales taxes 3,980,194 3,922,831 4,120,223 4,863,981 4,756,805 Property taxes 1,770,933 1,863,102 1,983,148 2,128,355 2,268,220 Motel taxes 518,685 540,262 538,098 661,406 469,789
Special gas taxes 788,112 665,531 730,184 962,747 1,049,857 Franchise taxes 285,836 297,547 316,718 323,879 336,627 Other taxes 40,900 49,348 51,668 53,026 56,210
Motor vehicle license fees 4,143 - - - -
Impact fees 1,059,516 939,240 741,721 825,982 693,381
Gain/Loss on sale of asset - 16,000 25 - -
Investment earnings 263,199 225,203 240,312 220,747 421,697 Miscellaneous items - - - - -
Transfers 103,578 106,667 117,718 102,551 105,468
Total governmental activities 8,625,731 8,815,096 8,839,815 10,142,674 10,158,054 Business-type activities:

Investment earnings 5,976 11,227 26,584 58,489 61,493
Gain/Loss on sale of asset - - - - 10,316
Transfers (103,578) (106,667) (117,718) (102,551) (105,468) Total business-type activities (95,440) (97,602) (91,134) (44,062) (33,659) Total primary government 8,530,291 8,717,494 8,748,681 10,098,612 10,124,395 Change in Net Position:

Governmental activities 1,287,065 323,836 (891,653) (522,410) (195,530) Business-type activities (233,210) 128,292 (53,590) (138,527) (665,144) Total primary government $ 452,128 1,053,855 $ (945,243) $ (660,937) $ (860,674) $ (Continued)
Last Ten Fiscal Years
City of Anderson
Changes in Net Assets (Continued)
(Accrual Basis of Accounting)
139
2021 2022 2023 2024 2025
Expenses:

Governmental activities:

General government $ 789,199 $ 483,958 $ 1,230,322 $ 1,948,368 $ 1,659,938 Public safety 6,331,573 6,599,310 8,409,590 9,382,999 9,328,140 Public works 1,395,954 1,853,992 1,848,060 2,754,245 2,587,045 Planning 304,883 311,585 446,859 402,448 326,288
Community development 1,498,679 1,480,569 1,418,179 1,572,556 1,365,694 Recreation and cultural 2,564,278 1,668,672 1,699,234 1,856,139 1,532,764 Interest and fiscal charges - - 20,108 - 17,803
Total governmental activities expenses 12,398,086 12,884,566 15,052,244 17,936,863 16,817,672 Business-type activities:

Water 1,874,231 1,648,906 2,149,391 2,109,082 3,546,208 Sewer 2,125,372 2,326,461 2,323,665 2,736,287 2,941,481 Total business-type activities expenses 3,975,367 3,999,603 4,473,056 4,845,369 6,487,689 Total primary government expenses 16,373,453 16,884,169 19,525,300 22,782,232 23,305,361 Program Revenues:

Governmental activities:

Charges for services:

General government 108,417 68,993 6,755 7,394 6,378
Public safety 265,144 148,905 246,922 171,691 234,217
Public works 355,895 212,204 846,068 473,156 422,767
Planning 37,872 21,044 377,775 327,809 662,272
Community development 557,269 552,814 5,777 4,626 3,545 Recreation and cultural 161,518 210,919 64,589 89,610 106,905 Operating grants and contributions 205,563 225,122 3,658,039 2,961,327 3,121,112 Capital grants and contributions 24,682 2,723,406 - - - Total governmental activities program revenues 1,716,360 4,163,407 5,205,925 4,035,613 4,557,196 Business-type activities:

Charges for services:

Water 1,565,871 1,622,131 1,518,420 1,967,849 2,495,003 Sewer 1,796,444 1,764,539 1,787,397 1,825,742 1,730,819 Operating grants and contributions - - - 1,066,604 -
Capital grants and contributions - - 109,632 - 68,236
Total business-type activities program revenues 3,386,670 3,362,315 3,305,817 3,903,223 5,360,662 Total primary government program revenues 5,078,675 7,550,077 8,511,742 7,938,836 9,917,858 Net (expense)/revenue:

Governmental activities (11,168,206) (8,234,679) (9,846,319) (13,901,250) (12,260,476) Business-type activities (637,288) (588,697) (1,167,239) (942,146) (1,127,027) Total primary government net expense (8,823,376) (11,805,494) (11,013,558) (14,843,396) (13,387,503) (Continued)
City of Anderson
Changes in Net Assets (Continued)
(Accrual Basis of Accounting)
Last Ten Fiscal Years
140
2021 2022 2023 2024 2025
General Revenues and Other Changes in Net Assets:

Governmental activities:

Taxes:

Sales taxes 5,700,165 6,231,941 6,667,218 6,794,008 6,242,613 Property taxes 2,386,054 2,630,485 2,761,360 2,810,845 3,079,135 Motel taxes 647,746 775,875 665,909 535,915 516,775
Special gas taxes 1,140,165 1,200,065 - - -
Franchise taxes 353,287 389,396 392,561 413,489 429,809 Other taxes 62,224 63,872 69,678 72,086 71,318
Motor vehicle license fees - - - - -
Impact fees 1,006,884 643,803 - - -
Gain/Loss on sale of asset - - - - -
Investment earnings 231,272 89,379 63,581 43,722 28,821 Miscellaneous items - - 288,716 -
Transfers 103,216 105,653 49,362 - -
Total governmental activities 12,130,469 11,631,013 10,958,385 10,670,065 10,368,471 Business-type activities:

Investment earnings 15,567 6,149 22,897 31,322 20,943
Gain/Loss on sale of asset 699,780 - - - -
Transfers (103,216) (105,653) (49,362) -
Total business-type activities (99,504) 612,131 (26,465) 31,322 20,943 Total primary government 12,030,965 12,243,144 10,931,920 10,701,387 10,389,414 Change in Net Position:

Governmental activities 462,807 3,895,790 1,112,066 (3,231,185) (1,892,005) Business-type activities (25,157) (688,201) (1,193,704) (910,824) (1,106,084) Total primary government $ 3,207,589 437,650 $ (81,638) $ (4,142,009) $ (2,998,089) $ (Concluded)
Last Ten Fiscal Years
City of Anderson
Changes in Net Assets (Continued)
(Accrual Basis of Accounting)
141
2016 2017 2018 2019 2020
General Fund:

Nonspendable $ 4,309 $ 109,068 $ 141,119 $ 340,254 $ 324,612 Assigned 90,001 204,136 160,108 180,978 211,789
Unassigned 2,402,284 3,221,552 2,796,985 3,419,503 3,521,655 Total general fund $ 3,534,756 2,496,594 $ 3,098,212 $ 3,940,735 $ 4,058,056 $ All Other Governmental Funds:

Nonspendable $ 9,686,821 9,775,359 $ 191,505 $ 156,522 $ 120,485 $ Restricted 5,528,618 5,806,266 15,379,669 15,588,585 16,122,019 Committed - - - 322,680 211,789
Unassigned (deficit) (2,016,995) (2,171,729) (1,729,391) (2,417,756) (2,785,932) Total all other governmental funds $ 13,321,358 13,286,982 $ 13,841,783 $ 13,650,031 $ 13,668,361 $ (Continued)
Last Ten Fiscal Years
City of Anderson
Fund Balances of Governmental Funds
(Modified Accrual Basis of Accounting)
142
2021 2022 2023 2024 2025
General Fund: ( as restated)
Nonspendable $ 140,764 $ 81,212 $ 285,815 $ 118,225 $ 268,421 Assigned 233,163 255,672 275,688 275,688 337,873
Unassigned 2,751,335 5,612,910 4,164,589 1,807,178 1,206,701 Total general fund $ 5,949,794 3,125,262 $ 4,726,092 $ 2,201,091 $ 1,812,995 $ All Other Governmental Funds:

Nonspendable $ 120,485 $ 120,485 $ 120,485 $ - $ -
Restricted 16,839,020 17,375,540 16,391,537 16,839,881 15,517,327 Committed - - - - -
Unassigned (deficit) (2,245,385) (5,612,910) (971,315) (295,648) (968,800) Total all other governmental funds $ 11,883,115 14,714,120 $ 15,540,707 $ 16,544,233 $ 14,486,342 $ (Concluded)
Last Ten Fiscal Years
City of Anderson
Fund Balances of Governmental Funds (Continued)
(Modified Accrual Basis of Accounting)
143
2016 2017 2018 2019 2020
Revenues:

Sales tax $ 3,988,454 $ 3,922,831 $ 4,120,223 $ 4,863,981 $ 4,756,805 Property tax 1,760,138 1,852,514 1,972,450 2,117,585 2,257,302 Motel tax 518,685 540,262 538,098 661,406 469,789
Franchise tax 285,836 297,547 316,718 323,879 336,627
Licenses and permits 1,384,687 870,843 1,143,308 1,522,891 1,165,378 Fines, forfeitures and penalties 90,737 50,589 50,905 60,643 123,345 Use of money and property 91,550 113,471 206,139 275,671 303,718 Intergovernmental revenue 2,365,158 962,649 991,158 1,211,117 1,329,097 Charges for current services 481,639 448,907 470,675 432,913 359,681 Other revenues 484,537 294,306 243,019 837,408 372,019
Total revenues 9,353,919 11,451,421 10,052,693 12,307,494 11,473,761 Expenditures:

Current:

General government 761,925 843,383 841,031 786,310 995,621 Public safety 3,990,220 4,101,522 4,624,618 5,072,072 5,490,433 Public works 739,067 685,557 442,817 474,655 662,133
Planning 128,632 157,129 213,048 171,055 275,044
Community development 658,100 726,289 781,417 1,645,972 842,289 Recreation and cultural 690,389 779,373 903,991 1,480,625 928,622 Capital outlay 1,180,820 278,970 1,302,281 1,279,305 1,558,154 Debt Service:

Principal 516,247 536,965 574,579 607,531 680,826
Interest and fiscal charges 289,581 278,860 242,640 220,879 191,434 Total expenditures 8,388,048 8,954,981 9,926,422 11,738,404 11,624,556 Excess (deficiency) of revenues
over (under) expenditures 965,871 2,496,440 126,271 569,090 (150,795) Other financing sources (uses):

Insurance of subscription liabilities - - - - -
Operating transfers in 103,578 123,459 931,718 116,691 119,820 Operating transfers out (16,792) - (814,000) (14,140) (14,352) Leases (as lessee) - - - - -
Total other financing sources (uses) 106,667 103,578 117,718 102,551 105,468 Net change in fund balance $ 1,072,538 2,600,018 $ 243,989 $ 671,641 $ (45,327) $ Debt service as a percentage of non capital expenditures 10.37% 10.06% 9.48% 7.92% 8.67% Last Ten Fiscal Years
City of Anderson
Changes in Fund Balances of Governmental Funds
(Modified Accrual Basis of Accounting)
144
2021 2022 2023 2024 2025
Revenues: (as restated)
Sales tax $ 5,700,165 $ 6,231,941 $ 6,667,218 $ 6,794,008 $ 6,242,613 Property tax 2,375,358 2,619,583 2,761,360 2,810,845 3,079,135 Motel tax 647,746 775,875 665,909 284,192 516,775
Franchise tax 353,287 389,396 392,561 413,489 429,809
Licenses and permits 1,380,911 1,344,021 981,406 492,855 448,943 Fines, forfeitures and penalties 150,587 42,983 130,262 129,478 122,504 Use of money and property 163,228 110,754 933,027 379,381 295,357 Intergovernmental revenue 1,412,573 4,134,242 2,360,795 2,155,289 1,788,196 Charges for current services 495,178 572,314 482,247 550,492 892,264 Other revenues 546,314 423,022 707,838 587,775 371,269
Total revenues 16,644,131 13,225,347 16,082,623 14,597,804 14,186,865 Expenditures:

Current:

General government 1,121,006 1,149,565 1,095,068 1,893,830 1,565,673 Public safety 5,739,343 6,891,974 8,252,590 8,981,380 8,685,157 Public works 564,374 852,627 1,423,762 2,350,233 1,831,075 Planning 296,316 302,893 437,659 395,498 314,123
Community development 751,389 1,026,687 849,916 942,499 707,567 Recreation and cultural 1,107,679 1,438,555 1,503,574 1,650,909 1,394,182 Capital outlay 2,596,524 1,570,386 2,046,337 1,024,432 1,981,691 Debt Service:

Principal 637,184 345,633 156,206 76,756 71,332
Interest and fiscal charges 168,620 143,394 126,686 20,530 19,867 Total expenditures 13,721,714 12,982,435 15,891,798 17,336,067 16,570,667 Excess (deficiency) of revenues
over (under) expenditures 2,922,417 242,912 190,825 (2,738,263) (2,383,802) Other financing sources (uses):

Insurance of subscription liabilities - - 79,890 - -
Operating transfers in 2,117,516 120,053 117,954 317,480 15,836 Operating transfers out (2,014,300) (14,400) (68,592) (317,480) (15,836) Issuance of lease liabilities 100,221 - - - -
Total other financing sources (uses) 205,874 103,216 49,362 79,890 - Net change in fund balance $ 3,128,291 346,128 $ 240,187 $ (2,658,373) $ (2,383,802) $ Debt service as a percentage of non capital expenditures 7.76% 4.02% 2.04% 0.60% 0.62% Last Ten Fiscal Years
City of Anderson
Changes in Fund Balances of Governmental Funds (Continued) (Modified Accrual Basis of Accounting)
145
Unassigned Annual Balance as % of
Fiscal Year Fund Balance Appropriations Appropriations
2015-2016 2,402,284 $ 6,359,308 $ 37.8%
2016-2017 3,221,552 6,760,668 47.7%
2017-2018 2,796,985 7,638,488 36.6%
2018-2019 3,419,503 8,664,567 39.5%
2019-2020 3,521,655 8,928,286 39.4%
2020-2021 2,751,335 9,245,798 29.8%
2021-2022 5,612,910 11,149,926 50.3%
2022-2023 4,164,589 12,284,619 33.9%
2023-2024 1,807,178 11,746,751 15.4%
2024-2025 1,206,701 11,515,735 10.5%
Source: City of Anderson Financial Report
City of Anderson
General Fund Balance Compared to Annual Appropriations
Last Ten Fiscal Years
146
Fines,
Licenses Charges for Forfeitures,
Fiscal Year Taxes and Permits Intergovernmental Services and Penalties Miscellaneous Total 2015-2016 6,444,845 $ 325,171 $ 160,931 $ 481,639 $ 25,980 $ 132,912 $ 7,571,478 $ 2016-2017 6,501,252 471,513 119,524 448,907 33,251 224,383 7,798,830 2017-2018 6,834,106 319,514 150,279 470,675 39,779 187,591 8,001,944 2018-2019 7,855,393 361,237 131,946 432,913 58,414 667,277 9,507,180 2019-2020 7,709,244 471,290 136,047 359,681 116,724 252,621 9,045,607 2020-2021 8,963,486 504,309 113,865 495,178 37,949 198,217 10,313,004 2021-2022 9,904,551 520,603 2,631,683 572,314 42,025 203,061 13,874,237 2022-2023 10,374,218 436,785 171,496 446,293 31,580 443,397 11,903,769 2023-2024 10,302,534 271,457 124,128 550,492 43,640 221,676 11,513,927 2024-2025 10,268,332 319,861 123,673 892,264 41,303 217,171 11,862,604 Note: The schedule above includes only those revenues recorded in the General Fund.

Source: City of Anderson Financial Report
General Fund Revenues by Source
City of Anderson
Last Ten Fiscal Years
147
Transient
General Sales and Occupancy Property
Fiscal Year Property Tax Use Tax Tax Transfer Tax Franchise Tax Total Revenues 2015-2016 1,642,105 $ 3,988,454 $ 518,685 $ 9,765 $ 285,836 $ 6,444,845 $ 2016-2017 1,708,040 3,922,831 540,262 32,572 297,547 6,501,252 2017-2018 1,983,148 4,120,223 538,098 36,304 316,718 6,994,491 2018-2019 1,968,856 4,863,981 661,406 37,271 323,879 7,855,393 2019-2020 2,102,068 4,756,805 469,789 43,955 336,627 7,709,244 2020-2021 2,210,712 5,700,165 647,746 51,576 353,287 8,963,486 2021-2022 2,441,482 6,231,941 775,875 65,857 389,396 9,904,551 2022-2023 2,614,350 6,012,849 470,200 34,180 392,561 9,524,140 2023-2024 2,776,866 6,794,008 284,192 33,979 413,489 10,302,534 2024-2025 3,039,842 6,242,613 516,775 39,293 429,809 10,268,332 Note: The schedule above includes only those revenues recorded in the General Fund.

Note: This revenue includes Property Tax in Lieu VLF which in prior years has been reclassified separately.

Source: City of Anderson Financial Report
Last Ten Fiscal Years
General Fund Tax Revenues by Source
City of Anderson
148
Recreation
General Community Public Public Parks and Capital Debt
Fiscal Year Government Planning Development Safety Works Cultural Outlay Service Total 2015-2016 761,925$ $ 658,100 128,632 $ $ 3,990,220 739,067$ 690,389$ $ 1,180,820 $ 8,954,981 805,828 $ 2016-2017 843,383 157,129 726,289 4,101,522 685,557 779,373 278,970 815,825 8,388,048 2017-2018 841,031 213,048 781,417 4,624,618 442,817 903,991 1,302,281 817,219 9,926,422 2018-2019 786,310 171,055 1,645,972 5,072,072 474,655 1,480,625 1,279,305 828,410 11,738,404 2019-2020 995,621 275,044 842,289 5,490,433 662,133 928,622 1,558,154 872,260 11,624,556 2020-2021 1,121,006 296,316 751,389 5,739,343 564,374 1,107,679 2,596,524 805,804 12,982,435 2021-2022 1,149,565 302,893 1,026,687 6,891,974 852,627 1,438,555 1,570,386 489,027 13,721,714 2022-2023 1,095,068 437,659 849,916 8,252,590 1,423,762 1,503,574 2,046,337 282,892 15,891,798 2023-2024 1,893,830 395,498 942,499 8,981,380 2,350,233 1,650,909 1,024,432 97,286 17,336,067 2024-2025 1,565,673 314,123 707,567 8,685,157 1,831,075 1,394,182 1,981,691 91,199 16,570,667 The schedule above includes only those expenditures recorded in the general fund, special revenue, debt service and capital projects funds.

Source: City of Anderson Financial Report
City of Anderson
Governmental Funds Expenditures by Function
Last Ten Fiscal Years
149
Special Special
Assessment Assessment
Fiscal Year Billings Collected
2015-2016 $ 144,618 $ 148,660
2016-2017 134,584 136,115
2017-2018 144,567 149,931
2018-2019 146,494 145,761
2019-2020 149,966 147,373
2020-2021 150,018 149,538
2021-2022 162,049 163,438
2022-2023 168,042 167,136
2023-2024 166,383 164,210
2024-2025 181,002 176,381
City of Anderson
Special Assessment Billings and Collections
Last Ten Fiscal Years
150
City of Anderson
City of Anderson Rates Overlapping Rates Levies and Collections Shasta
Anderson Tehama Total Percent of
Basic Total Union High Trinity Direct and of Current
Countywide Direct School Community Overlapping Total Tax Current Tax Taxes Fiscal Year Levy* City* Tax Rate* District College Rates Levy Collections** Collected** 2015-2016 1.0000% 0.0000% 1.0000% 0.0000% 0.0000% 1.0000% 601,822$ $ 589,872 98.01% 2016-2017 1.0000% 0.0000% 1.0000% 0.0089% 0.0057% 1.0146% 622,695 611,615 98.22% 2017-2018 1.0000% 0.0000% 1.0000% 0.0198% 0.0082% 1.0280% 745,892 735,272 98.58% 2018-2019 1.0000% 0.0000% 1.0000% 0.0191% 0.0037% 1.0228% 829,873 742,504 89.47% 2019-2020 1.0000% 0.0000% 1.0000% 0.0157% 0.0033% 1.0190% 871,098 778,729 89.40% 2020-2021 1.0000% 0.0000% 1.0000% 0.0000% 0.0000% 1.0000% 940,210 838,257 89.16% 2021-2022 1.0000% 0.0000% 1.0000% 0.0000% 0.0000% 1.0000% 1,006,930 896,498 89.03% 2022-2023 1.0000% 0.0000% 1.0000% 0.0000% 0.0000% 1.0000% 1,088,314 968,101 88.95% 2023-2024 1.0000% 0.0000% 1.0000% 0.0000% 0.0000% 1.0000% 1,142,628 1,016,186 88.93% 2024-2025 1.0000% 0.0000% 1.0000% 0.0000% 0.0000% 1.0000% 1,193,192 1,054,285 88.36% * On June 6, 1978, California voters approved an amendment to Article XIIIA of the State Constitution. The amendment, commonly known as Proposition 13, limits the taxing power of California public agencies. The California Legislature enacted legislation to implement Article XIIIA (Statues of 1978, Chapter 292, as emended) providing that local agencies may not levy any property tax except to pay debt service on indebtedness approved by voters prior to July 1, 1978, and that each county will levy the maximum tax permitted of $1.00 per $100 of full assessed value.
** Amounts effected by alternate method of apportioning. Participating agencies are paid 100% of the current levy adjusted by file maintenance.

Source: Shasta County Auditor/Controller's Office
City of Anderson
Property Tax - Rates (Direct and Overlapping Governments) and City Levies and Collections Last Ten Fiscal Years
151
Total
Secured Roll Unsecured Roll Gross Net
Assessed Assessed Assessed Less Assessed
Fiscal Year Value Value Value Exemptions Value
2015-2016 682,636,291 $ 36,765,633 $ 719,401,924 $ 79,221,746 $ 640,180,178 $ 2016-2017 722,596,581 36,894,132 759,490,713 76,031,062 683,459,651 2017-2018 779,006,947 40,718,848 819,725,795 80,416,865 739,308,930 2018-2019 833,176,488 41,516,362 874,692,850 94,799,699 779,893,151 2019-2020 878,800,142 44,044,388 922,844,530 97,350,106 825,494,424 2020-2021 938,268,416 58,430,840 996,699,256 99,020,421 897,678,835 2021-2022 1,014,950,740 55,473,824 1,070,424,564 104,794,948 965,629,616 2022-2023 1,094,897,128 66,074,941 1,160,972,069 96,833,312 1,064,138,757 2023-2024 1,150,134,971 73,525,388 1,223,660,359 105,059,393 1,118,600,966 2024-2025 1,198,145,758 83,692,091 1,281,837,849 106,255,243 1,175,582,606 Source: Shasta County Assessor's Annual Report
Note:

In 1978, the voters of the State of California passed Proposition 13 which limited property taxes to a maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed valuation may be increased by an "inflation factor" (limited to a maximum increase of 2%). With some exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.

These are Gross Taxable Values.

City of Anderson
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
152
2025 2016
Percentage Percentage
2025 of Total 2016 of Total
Type of 2025 Assessed Assessed 2016 Assessed Assessed
Taxpayer Business Rank Valuation Valuation Rank Valuation Valuation Walmart Real Estate Trust Retail Store 1 21,400,000 $ 1.95% 1 17,500,000 $ 3.47% Paradise 3941 LLC Etal Retail Outlets 2 12,668,454 1.15% 2 12,388,618 2.46% Legerity Group, LLC. Apartments 3 10,607,932 0.97% 7 6,300,000 1.25% Anderson Property Corporation Medical/Dental/Labs 4 9,207,783 0.84% n/a - 0.00% Regency Senior Apartments Apartments 5 8,738,081 0.80% 3 7,347,133 1.46% Safeway Holdings, Inc Grocery 6 7,892,129 0.72% 6 6,434,084 1.28% Anderson Pacific Associates Apartments 7 7,625,275 0.69% 8 5,953,180 1.18% Anderson Regency II Associates Apartments 8 7,226,030 0.66% 5 6,830,198 1.35% Izabella Investment, LLC Commercial 9 6,875,000 0.63% 9 5,300,000 1.05% Realty Income Properties Retail Sales 10 6,579,489 0.60% n/a - 0.00% Anderson Shasta Comm. Partners, LP Apartments n/a - 0.00% 10 4,813,720 0.95% MJ Properties Investment Property n/a - 0.00% - 0.00%
HPD Anderson LP Apartments n/a - 0.00% 4 7,314,861 1.45% Top Ten Secured Valuation 98,820,173 9.00% 80,181,794 15.90% Other Secured 999,056,925 91.00% 424,056,014 84.10%
Total Secured - Net of Exemptions 1,097,877,098 $ 100.00% 504,237,808 $ 100.00% Sources: Shasta County Assessor's Annual Report; City of Anderson Development Services Department Assessor's Annual Report for 1-1 Secured Less Exemptions.

City of Anderson
Principal Secured Property Taxpayers
Current Year and Nine Years Ago
153
City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
(This page is intentionally left blank)
154
Commercial Construction
Number of Number of
Fiscal Year Permits Value Permits Value
2015-2016 5 3,846,141 $ 39 7,630,526 $
2016-2017 82 14,822,496 344 12,707,058
2017-2018 48 2,602,443 379 12,655,783
2018-2019 90 5,904,829 844 11,807,209
2019-2020 105 6,238,291 502 18,179,065
2020-2021 202 28,015,930 497 3,167,455
2021-2022 59 5,204,334 581 17,537,493
2022-2023 70 8,683,437 625 18,250,477
2023-2024 77 2,702,462 484 9,115,152
2024-2025 52 1,558,250 497 10,027,194
Source: City of Anderson Development Services Department Residential and commercial construction reflect new and additions to building activity only.

New construction residential includes both single family and multifamily dwellings Residential Construction
Property Value and Construction
City of Anderson
Last Ten Fiscal Years
155
General Tax Total
Obligation Allocation Financing Governmental
Fiscal Year Bonds Bonds Loans Purchase Activities Debt
-$ $ 2,943,935 - $ $ 944,581 $ - $ 3,888,516 - $
- 1,874,889 - 911,806 - 2,786,695 -
- 1,959,111 - 857,837 - 2,816,948 -
- 1,413,286 - 864,811 - 2,278,097 -
- - 794,871 791,656 - 1,586,527 -
- - 221,197 1,020,531 - 1,241,728 -
- - - 884,893 765,156 1,650,049 -
- - 1,074,550 - 631,987 42,745 1,749,282
- - - 901,463 922,642 53,891 1,877,996
- - - 729,660 624,849 27,617 1,382,126
Source: City of Anderson Financial Report
U.S. Census Bureau
State of California, Department of Finance, Demographic Research Unit (1) This information is not available for the City of Anderson.

Lease
Liabilities
Governmental Activities
Subscription
Liabilities
City of Anderson
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
2015-2016
2016-2017
2017-2018
2018-2019
2019-2020
2020-2021
2021-2022
2022-2023
2023-2024
2024-2025
156
Special Total Total Percentage Debt
Revenue Finance Assessment Business-Type Primary of Personal Per Fiscal Year Bonds Loans Purchase Bonds Activities Debt Government Population Income (1) Capita 2015-2016 193,000 $ 398,062 $ -$ 2,975,000 $ 3,566,062 $ $ 7,454,578 10,485 - 711 2016-2017 189,000 338,521 - 2,889,000 3,416,521 6,203,216 10,450 - 594 2017-2018 185,000 272,949 - 2,801,000 3,258,949 6,075,897 10,370 - 586 2018-2019 180,500 200,889 - 2,711,000 3,092,389 5,370,486 10,476 - 513 2019-2020 176,000 120,938 - 2,615,000 2,911,938 4,498,465 10,671 - 422 2020-2021 171,500 34,507 - 2,517,000 2,723,007 3,964,735 10,702 - 370 2021-2022 166,500 1,457,000 955,000 - 2,578,500 4,228,549 11,133 - 380 2022-2023 161,500 1,410,000 895,000 - 2,466,500 4,215,782 11,164 - 378 2023-2024 156,000 1,361,000 830,000 - 2,347,000 4,224,996 11,323 - 373 2024-2025 150,500 1,310,000 760,000 3,849,995 6,070,495 7,452,621 10,967 - 680 Source: City of Anderson Financial Report
U.S. Census Bureau
State of California, Department of Finance, Demographic Research Unit ((1) This information is not available for the City of Anderson.

City of Anderson
Ratio of Outstanding Debt by Type (Continued)
Last Ten Fiscal Years
`
157
Less: Amount
General Available in Percentage Net
Obligation Debt Service of Assessed Per City Assessed
Fiscal Year Debt Fund Total Value Capita Population Value 2015-2016 $ - $ - $ - $ - $ - 10,485 $ 640,180,178
2016-2017 - - - - - 10,450 683,459,651
2017-2018 - - - - - 10,370 739,308,930
2018-2019 - - - - - 10,476 779,893,151
2019-2020 - - - - - 10,671 825,494,424
2020-2021 - - - - - 10,702 897,678,835
2021-2022 - - - - - 11,133 965,629,616
2022-2023 - - - - - 1,064,138,757 11,164
2023-2024 - - - - - 1,118,600,966 11,323
2024-2025 - - - - - 1,175,582,606 10,967
Source: Shasta County Assessor's Annual Report
City of Anderson Finance Department
City of Anderson
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
158
Percentage of
Debt Net Bonded Net
Gross Payable from Net Total Debt to Bonded
Estimated Bonded Enterprise Bonded Assessed Assessed Debt per Fiscal Year Population Debt Revenue Debt Valuation Value Capita 2015-2016 10,485 7,454,578 $ 591,062 $ 6,863,516 $ 640,180,178 $ 1.07% 655 $ 2016-2017 10,450 6,799,112 527,521 6,271,591 683,459,651 0.92% 600 2017-2018 10,370 6,075,897 457,949 5,617,948 739,308,930 0.76% 542 2018-2019 10,476 5,370,486 381,389 4,989,097 779,893,151 0.64% 476 2019-2020 10,671 4,498,465 296,938 4,201,527 825,494,424 0.51% 394 2020-2021 10,702 3,964,735 206,007 3,758,728 897,678,835 0.42% 351 2021-2022 11,133 3,463,393 166,500 3,296,893 965,629,616 0.34% 296 2022-2023 11,164 3,897,537 161,500 3,736,037 1,064,138,757 0.35% 335 2023-2024 11,323 3,095,127 156,000 2,939,127 1,118,600,966 0.26% 260 2024-2025 10,967 3,004,122 150,500 2,853,622 1,175,582,606 0.24% 260 Source: City of Anderson Financial Report
City of Anderson
Ratio of Net Bonded Debt to Assessed Value and Net Bonded Debt per Capita Last Ten Fiscal Years
159
Ratio of Debt
Total Total Service to
Bonded Debt General General
Fiscal Year Debt Service Expenditures Expenditures
2015-2016 6,863,516 $ 805,828 $ 8,954,981 $ 9.00%
2016-2017 6,271,591 815,825 8,388,048 9.73%
2017-2018 5,617,948 817,219 9,926,422 8.23%
2018-2019 4,989,097 828,410 11,738,404 7.06%
2019-2020 4,201,527 872,260 11,624,556 7.50%
2020-2021 3,758,728 805,804 12,982,435 6.21%
2021-2022 3,296,893 489,027 13,721,714 3.56%
2022-2023 3,897,537 282,892 13,073,879 2.16%
2023-2024 3,095,127 97,286 13,850,963 0.70%
2024-2025 3,004,122 91,199 12,250,700 0.74%
Source: City of Anderson Financial Report
City of Anderson
Ratio of Annual Debt Service for Bonded Debt to Total General Expenditures Last Ten Fiscal Years
160
Net General
Obligation Percentage
Bonded Debt Applicable City Share
Jurisdiction Outstanding to City of Debt
Overlapping Debt Repaid with Property Tax:

Anderson High School 10,595,073 $ 21.28% 2,254,632 $
Cottonwood School District 313,340 92.30% 289,213
Cascade 62.39% 12,546,359 20,109,568
Shasta College 127,205,000 4.10% 5,215,405
Shasta Joint Powers Financing Authority 14,590,000 4.09% 596,731 Total overlapping debt 172,812,981 20,902,340
City of Anderson direct debt:

Anderson Redevelopment Agency 2015 5,130,000 100.00% 5,130,000 Discount on 2015 Series Bond (118,933) 100.00% (118,933) Total direct debt 5,011,067 5,011,067
Total direct and overlapping debt 177,824,048 $ 25,913,407 $ Source: Shasta County Auditor/Controller's Office
City of Anderson Financial Report
City of Anderson
Direct and Overlapping Governmental Activities Debt
June 30, 2025
161
2025 2024 2023 2022 2021
Net Assessed Value $ 1,281,837,849 $ 1,223,660,359 $ 1,160,972,069 $ 965,629,616 $ 897,678,835 Plus Exempt Property (106,255,243) (105,059,393) (96,833,312) (104,794,948) (99,020,421) Total Assessed Value $ 1,175,582,606 $ 1,118,600,966 $ 1,064,138,757 $ 860,834,668 $ 798,658,414 Debt Limit
15% of Total Assessed Value $ 176,337,391 $ 167,790,145 $ 159,620,814 $ 129,125,200 $ 119,798,762 Less Outstanding General
Obligation Debt 596,731 671,987 745,198 837,428 927,408 Legal Debt Margin $ 167,118,158 175,740,660 $ 158,875,616 $ 108,650,200 $ 97,123,762 $ Source: Shasta County Auditor's Office and City of Anderson Financial Report City of Anderson
Computation of Legal Debt Margin
Last Ten Fiscal Years
162
2020 2019 2018 2017 2016
Net Assessed Value $ 825,494,424 $ 779,893,151 $ 739,308,930 $ 683,459,651 $ 640,180,178 Plus Exempt Property (97,350,106) (94,799,699) (80,416,865) 76,031,062 79,221,746 Total Assessed Value $ 728,144,318 $ 685,093,452 $ 658,892,065 $ 759,490,713 $ 719,401,924 Debt Limit
15% of Total Assessed Value $ 109,221,648 $ 102,764,018 $ 98,833,810 $ 113,923,607 $ 107,910,289 Less Outstanding General
Obligation Debt 1,014,729 1,099,801 1,182,419 6,271,591 6,863,516 Legal Debt Margin $ 75,874,018 84,411,648 $ 69,923,810 $ 107,652,016 $ 101,046,773 $ Source: Shasta County Auditor's Office and City of Anderson Financial Report City of Anderson
Computation of Legal Debt Margin (Continued)
Last Ten Fiscal Years
163
Tax Allocation Bonds Special Assessment Bonds
Tax Debt Service Tax Debt Service
Fiscal Year Increment Principal Interest Coverage Increment Principal Interest Coverage 2015-2016 668,168 $ 160,000 $ 366,597 $ 1.27 108,268 $ 35,000 $ 74,641 $ 0.99 2016-2017 752,585 210,000 257,638 1.61 111,902 36,000 86,147 0.92 2017-2018 702,868 230,000 251,038 1.46 113,383 38,000 71,427 1.04 2018-2019 734,768 235,000 244,063 1.53 111,458 40,000 69,692 1.02 2019-2020 493,237 245,000 236,863 1.02 111,279 41,000 67,904 1.02 2020-2021 601,200 250,000 225,884 1.26 113,070 43,000 66,040 1.04 2021-2022 577,252 260,000 225,263 1.19 112,244 45,000 64,085 1.03 2022-2023 562,596 270,000 212,125 1.17 112,830 47,000 62,045 1.03 2023-2024 591,039 275,000 204,288 1.23 109,632 49,000 60,616 1.00 2024-2025 535,203 285,000 195,709 1.11 116,828 51,000 58,428 1.07 City of Anderson
Pledged Revenue Coverage
Last Ten Fiscal Years
164
Date of Incorporation January 16, 1956 Fire Protection Public Elementary Schools 4 Population 10,967 1 Classrooms 66
Number of Registered Voters 6,847 13 Teachers 67.00
Area in Acres 4,323 0 Students 1,013
Form of Government Council/Manager 0 High Schools 6
Employees 0 Classrooms 117
Full-time 40 Police Protection Teachers 90
Part-time 8 1 Students 1,528
Miles of Streets 56.21 22
Number of Street Lights 531 10
0 Recreational Services Water and Sewer Facilities
Community Center 1 Water System Care Center (Nursing Home) 1 Meeting Hall - Scout Hall 1 3,617 Number of patient beds 143 Parks 3 2.16 MGD Number of staff members 211
Parks acreage (improved) 136 57.13 Fairgrounds 1
Parks acreage (unimproved) 318 Wastewater System Number of full-time staff 3 Dog Park 1 5,296 Number of part-time staff 3
Skate Park 1 43.96 Number of acres 65
Splash Pad 1
Disc Golf Course 1
Baseball Fields 5
Soccer Fields 1
Basketball Courts 2
Bocce Ball Courts 3
Pickleball Courts 4
Tennis Courts 1
Miscellaneous Information Public Safety Services Educational Facilities Other Community Facilities
City of Anderson
General Information as of June 30, 2025
165
2025
Percentage of Percentage of
Total City Total City
Employer Employees Rank Employment Employees Rank Employment Walmart Supercenter 318 1 6.8% 303 1 7.2%
Oak River (Rehab Specialties) Inn 201 4 4.3% 205 2 4.9% Anderson Union High School District 200 3 4.3% 200 3 4.8% Cascade Union Elementary School District 210 2 4.5% 122 4 2.9% Harbert Roofing Inc 85 6 1.8% - - 0.0%
Safeway 105 5 2.2% 113 5 2.7%
City of Anderson 56 - 1.2% 56 7 1.3%
Stier's RV 61 7 0.0% 43 9 1.0%
Voorwood Company - - 0.0% 47 8 1.1%
Byerly's Restaurant Inc - - 0.0% 41 10 0.0%
Pre-Employ.com - - 0.0% 87 6 2.1%
McDonalds (Maxime Nisus LLC) 45 9 0.0% - - 0.0%
Big Time Pest Control 50 8 0.0% - - 0.0%
Burger King (Quikserve Restaurants Inc) 43 10 0.0% - - 0.0% Total Employment, City of Anderson 4,700 4,200
Source: City Business License records and California Employment Development Department City of Anderson
Principal Employers
2016
Current Year and Nine Years Ago
166
Per Capital
Unemployment Personal Personal
Year Population Rate (1) Income (2) Income (2)
10,485 8.0% $ - $ -
10,450 6.9% - -
10,370 7.2% - -
10,476 5.8% - -
10,671 7.3% - 46,113
10,702 4.2% - 51,514
11,133 4.2% - 54,972
11,164 4.2% - 54,120
11,323 5.3% - 57,637
10,967 5.5% - 57,637
Notes: (1) The California Employment Development Department unemployment rates for the City of Anderson through June 2025. (2) This data is not available for the City of Anderson. Data shown is taken as a percentage of per capita income for Shasta County, consistent with US Census ratios in the 2020 census. Data is only available through 2021.

Source: California Department of Finance, California Employment Development Department, 2020 US Census, US Department of Commerce, Bureau of Economic Analysis
2022
2023
2024
2025
City of Anderson
Economic Information
2016
2018
2017
2019
2020
2021
Last Ten Fiscal Years
167
City of Anderson
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
(This page is intentionally left blank)
168
Year Area in Acres Street Miles
Park Acreage
(improved) Water Connections
Sewer
Connections
Police Calls for
Service
2016 4,323 55.4 136 3,410 4,714 29,333
2017 4,323 55.4 136 3,443 4,739 29,546
2018 4,323 55.4 136 3,443 4,739 22,883
2019 4,323 55.4 136 3,550 4,805 23,605
2020 4,323 55.4 136 3,566 4,843 13,310
2021 4,323 55.4 136 3,615 4,843 13,382
2022 4,323 55.4 136 3,615 4,843 14,101
2023 4,323 55.4 136 3,604 4,880 15,701
2024 4,323 55.4 136 3,610 5,027 16,876
2025 4,323 56.2 136 3,617 5,296 15,403
Source: California Department of Finance and City of Anderson records Operating and Capital Indicators
City of Anderson
Last Ten Fiscal Years
169
June 30, 2025 June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 Department FTE FTE FTE FTE FTE
City Attorney 0.50 0.50 0.50 - -
Planning - 1.00 3.00 2.00 4.00
City Manager, City Clerk, and Personnel 2.00 2.00 2.00 3.00 2.00 Finance 5.00 5.00 4.41 4.40 5.41
Parks and Recreation 2.00 2.00 2.00 1.00 1.00
Public Works 31.00 30.00 29.00 24.00 20.00
Police 31.50 30.50 33.82 27.00 27.82
Total City 71.00 72.00 74.73 61.40 60.23
Source: City of Anderson Personnel Department
City of Anderson
Authorized Full-time Equivalent Employees by Department Last Ten Fiscal Years
170
June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 Department FTE FTE FTE FTE FTE
City Attorney - - - - -
Planning 2.50 5.00 4.50 2.50 0.50
City Manager, City Clerk, and Personnel 3.00 4.00 3.00 3.00 3.00 Finance 4.41 4.41 4.41 4.41 4.82
Parks and Recreation 1.00 2.00 1.00 1.00 1.14
Public Works 22.00 21.41 19.64 19.64 21.64
Police 28.23 30.05 29.78 27.00 23.55
Total City 66.87 61.14 62.33 57.55 54.65
Source: City of Anderson Personnel Department
City of Anderson
Authorized Full-time Equivalent Employees by Department (Continued) Last Ten Fiscal Years
171
Monthly Rate per Monthly Rate per
Base cu.ft over the Base 100 cu. Ft. of
Rate 1000 cu. ft base Rate water consumed

12.30 1.19 22.44 1.52

12.30 1.19 22.44 1.52

12.30 1.19 22.44 1.52

12.30 1.19 22.44 1.52

12.30 1.19 22.44 1.52

13.02 1.27 22.44 1.52

13.56 1.34 22.44 1.52

14.22 1.41 22.44 1.52

14.85 1.48 22.44 1.52

21.73 2.41 22.44 1.52
Notes: Rates are based on a 3/4" or 5/8" meter, which is a standard household meter size.

Source: City of Anderson Public Works Department
Fiscal Year
2020-2021
2019-2020
2018-2019
2024-2025
2015-2016
2016-2017
2017-2018
2023-2024
2022-2023
2021-2022
City of Anderson
Water and Sewer Rates
Last Ten Fiscal Years
Water Sewer
172
City of Anderson
Anderson, California
Report on Internal Control over Financial Reporting and On Compliance and Other Matters
Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards
For the Year Ended June 30, 2025
THE II

PUNGOOUP
ACCO LI N fA '.JI S & ADVISOR S
City of Anderson
Table of Contents
Report on Internal Control Over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards .................................................................................... I Schedule of Findings and Responses:

Material Weakness:

Finding 2025-001 - Deficit Fund Balances and Net Position ............................................................................ 3 This page intl!utiott«lb• l~Jt blonk.

II THE
PUNGR.OUP

ACCOUNTANTS & ADVISORS
6 Hutton
Santa
Centre
Ana,
Drive,
California
Suite
92707
1200 ~ ~
www.pungroup.cpa (g

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND

OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Independent Auditor's Report
To the Honorable Mayor and the Members of City Council
of the City of Anderson
Anderson, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States ("Government Auditing Standards"), the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Anderson, California (the "City"), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated February 13, 2026.

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

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

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We identified certain deficiency in internal control, described in the accompanying schedule of findings and responses as item 2025-001 that we consider to be material weaknesses.

ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREH • LAS VEGAS • PHOENIX To the Honorable Mayor and the Members of City Council
of the City of Anderson
Anderson, California