Agenda packet — Atwater City Council, June 8, 2026 (part 2 of 3)

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17.37.030 Accessory uses.

Accessory uses and buildings customarily incidental to an approved use. (Ord. CS 569, 1984)

17.37.040 Lot area, setbacks, and height of structures.

The following minimum area requirements shall be observed, except where increased for conditional use:

A. Five acre minimum which can be reduced by the Planning Commission for just cause.

B. Smaller lots, existing at the time this ordinance became effective, shall not be considered nonconforming and may be developed, but not split to a smaller size. Combination of adjacent lots is strongly encouraged for better development with less curb cuts and combined parking facilities, which are mandatory along certain streets.

C. A ten-foot front yard setback shall be required. Side and rear yard setbacks will be set or waived during use permit approval by the Planning Commission. See exceptions below.

A. Development standards:

Minimum lot area 10,000 square feet
Minimum yards (setbacks):

Front or exterior side 10 feet. However, if property is abutting a major arterial, setback shall be 65 feet from the center of the public right-of-way, except Winton Way south of Elm
Avenue, where the setback shall be 10 feet from the
property line, and except along Atwater Boulevard,
where the setback shall be 25 feet from the property
line, except from Sierra Vista to First Street where the setback shall be 0 feet from the property line.

Rear or Side (interior) 10 feet.

DB. Building height limits: No building constructed in this zone shall exceed a height of 35 feet unless the following has occurred:

1. The Fire Marshal and Chief Building Official, or designees, have both approved the site plans, improvement plans, and/or other required submittals for the project; and

2. The Planning Commission finds, based on the applicant’s submitted study, that the project will not result in adverse visual, air quality, light, or privacy impacts on adjacent or surrounding properties.The Planning Commission makes all of the following findings:

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D. The project's proximity to railroads, airports, major freeways or highways, or other transportation hubs, stations, or centers will not interfere, impede, or otherwise disturb such transit services;
E. The project is consistent and compatible with the City's General Plan, Zoning Code, and other adopted specific plans and/or master plans;
F. Intended use of the project will enhance or promote the standard of living for City residents, and/or the local economy;
G. The project's proposed height would not adversely affect visual blockage of light, air, or cause intrusion of privacy to adjacent and surrounding properties; H. The project is not detrimental to the health, safety, peace, comfort, and general welfare of persons or property in the neighborhood and surrounding environs, including without limitation, it will not affect emergency response times or services, nor seismic and/or structural integrity; and
I. The project's proposed building height does not impede pedestrian or vehicular accessibility along any public or private pathways, sidewalks, driveways or roadways, visually impede any safe use of the same, or otherwise present a hazard to pedestrian or vehicular use of the same.

Additional conditions of approval may be imposed by the Planning Commission relative to the project as it relates to this section.
(Ord. CS 569, 1984; Ord. CS 950, § 1, 3-10-2014; Ord. CS 1056, § 1, 1-23-2023)

17.37.050 Development standardsOther required conditions.

All development in this district shall also comply with the following:

The following items are minimum requirements unless noted otherwise:

A. A minimum of ten percent landscaping shall be provided on every property.Ten percent of the lot area shall be landscaped, especially the front yard setback; B. Street trees are to be planted in compliance with adopted City standards.; C. Landscaping shall comply with City landscaping standards.

D. Parking and loading as described elsewhere in this title.; E. A six-foot high solid wall or solid fence shall be required on the interior property line abutting a residential zone or land designated in the General Plan for future residential use.; F. Trash and recycling receptacles to be located in an enclosure and screened from view. All enclosures must meet applicable building-related standards.;
G. All utilities are to be installed underground.;
H. Refer to Section 17.03.110 100 for requirements for collection and loading recyclable materials in development projects.
(Ord. CS 569, 1984; Ord. CS 667, 1990; Ord. CS 721, 3-27-1995)

17.37.060 ExceptionsReserved.

The following exceptions shall apply:

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A. Setbacks to be enforced as adopted with Section 17.34.060 if abutting residential areas or fronting on certain streets.
(Ord. CS 569, 1984)

17.37.070 SignsReserved.

All proposed signs shall comply with the regulations elsewhere in this title. (Ord. CS 569, 1984)

17.37.080 Site plan and design review.

All uses in the C-T zone shall submit the required drawings forrequire site plan and design review, to the extent required at the time the use permit is applied for, as described elsewhere in this title. (Ord. CS 569, 1984; Ord. CS 1059, § 1, 3-27-2023)

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Exhibit B - Redline
Title 17 - ZONING
CHAPTER 17.38 C-G, GENERAL COMMERCIAL DISTRICT
Atwater, California, Code of Ordinances Created: 2026-02-23 08:35:35 [EST] (Supp. No. 12, Update 1)

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CHAPTER 17.38 C-G, GENERAL COMMERCIAL DISTRICT

17.38.010 Purpose.

To provide a location for the retail, wholesale, and heavy commercial uses and services necessary within the City, but not suited to other commercial districts and too small for the M-1 area. (Ord. CS 568, 1984)

17.38.015 Principal permitted uses.

The following shall be permitted uses:

A. Retail establishments.

B. Banking and financial institutions.

C. Business, professional and medical offices.

D. Massage establishment/therapist.

E. Personal service establishments.

F. Restaurants and cafes.

G. Any other use determined by the Community Development Director to be of a similar general character and intensity as the above permitted uses, and is consistent with the purpose of this zone as described in 17.38.010.
(Ord. CS 606, 1986; Ord. CS 768, 3-8-1999)

17.38.020 Conditional uses.

The following shall require a use permit by the Planning Commission:

A. Seed and feed stores;
B. Agricultural and automotive equipment;
C. New and used car sales;
D. Truck, trailer and car rentals;
E. Retail plumbing and repair electric or electronic retail and repair; F. Mobile home and RV sales;
G. Bakeries and creameries;
H. Laundries, cleaning and dyeing establishments;
I. Millinery stores, shoemakers, and upholsterers;
J. Lumber and contractor yards;

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K. Carpentry and cabinet making;
L. Any other commercial or light manufacturing uses the Planning commission finds to be consistent with the purpose of this district;
M. Off-site alcoholic beverage sales;
N. Uses as identified as Conditional in the Central Commercial District, listed in Section 17.36.040; O. Uses otherwise identified in Section 17.38.015 as principal permitted uses, when located adjacent to an existing use allowed as a conditional use.

P. Any other use determined by the Community Development Director to be of a similar general character and intensity as the above conditional uses, and is consistent with the purpose of this zone as described in 17.38.010.
(Ord. CS 568, 1984; Ord. CS 606, 1986; Ord. CS 780, 2-28-2000; Ord. CS 782, 5-8-2000)

17.38.030 Accessory uses.

Any accessory uses incidental to the main use of the property. (Ord. CS 568, 1984)

17.38.040 Development standards.

All development in this district shall also comply with the following:

A. A minimum of ten percent landscaping shall be provided on every property.

B. Landscaping shall comply with City landscape standards.

C. Street trees are to be planted in compliance with adopted City standards.

D. Parking to be in compliance with requirements elsewhere in this title.

E. Loading zones required in addition to alleys shall be not less than ten feet wide, 20 feet deep, with a clearance height of not less than 14 feet, and shall provide space for vehicles loading and unloading while at the same time not in any way blocking the alley to moving traffic.

F. A six-foot high solid fence or wall shall be required on the property line abutting any residential zone or land designated for future residential use in the General Plan. Fences in exterior yards to comply with residential requirements.

G. Trash and recycling receptacles shall be located in an enclosure and screened from view. All enclosures must meet building-related standards.

H. All utilities shall be installed underground.

I. Refer to Section 17.03.110 100 for requirements for collection and loading recyclable materials in development projects.
(Ord. CS 568, 1984; Ord. CS 667, 1990; Ord. CS 721, 3-27-1995)

17.38.050 Lot area, setbacks, building height.

A. Development standards:

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Minimum lot area 10,000 square feet
Minimum yards (setbacks):

Rear or Side (interior) None. However, if adjacent to a residential zone or General Plan designation, then 10 feet.

No lot shall be created that would be smaller than 10,000 square feet. All existing lots that are smaller shall be developed in compliance with this chapter.

Setbacks: Exterior setback: ten feet.

Interior and rear yard setback as required by Building or Fire Code.

B. Building height: No building constructed in this zone shall exceed a height of 35 feet unless the following has occurred:

1. The Fire Marshal and Chief Building Official, or designees, have both approved the site plans, improvement plans, and/or other required submittals for the project; and

A. The applicant has adequately demonstrated a need for the project to exceed 35 feet in building height that is related to the project's benefit to the community, or due to site constraints, or in order to achieve desired architectural qualities;
B. The project will be exemplary in its design;
C. The project design will complement and be compatible with the setting and the character of the neighboring properties with sensitivity to any adjacent federal, state, and City or other historic landmarks;
D. The project's proximity to railroads, airports, major freeways or highways, or other transportation hubs, stations, or centers will not interfere, impede, or otherwise disturb such transit services; E. The project is consistent and compatible with the City's General Plan, Zoning Code, and other adopted specific plans and/or master plans;
F. Intended use of the project will enhance or promote the standard of living for City residents, and/or the local economy;
G. The project's proposed height would not adversely affect visual blockage of light, air, or cause intrusion of privacy to adjacent and surrounding properties;
H. The project is not detrimental to the health, safety, peace, comfort, and general welfare of persons or property in the neighborhood and surrounding environs, including without limitation, it will not affect emergency response times or services, nor seismic and/or structural integrity; and

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I. The project's proposed building height does not impede pedestrian or vehicular accessibility along any public or private pathways, sidewalks, driveways or roadways, visually impede any safe use of the same, or otherwise present a hazard to pedestrian or vehicular use of the same.

Additional conditions of approval may be imposed by the Planning Commission relative to the project as it relates to this section.
(Ord. CS 568, 1984; Ord. CS 950, § 1, 3-10-2014; Ord. CS 1056, § 1, 1-23-2023)

17.38.060 ExceptionsReserved.

Setbacks listed in Section 17.38.050 shall not apply in the following instances:

A. If the property is abutting a major arterial, setback shall be 65 feet from the center of the public rightof-way, except Winton Way south of Elm Avenue, where it has to conform with the established building setback, and along Atwater Boulevard, where the setback shall be 25 feet from the property line, except from Sierra Vista to First Street where the established setback shall be complied with.

B. If property is abutting a residential zone or land designated for residential uses in the General Plan, a ten foot setback shall be required.
(Ord. CS 568, 1984)

17.38.070 Sign RegulationsReserved.

All proposed signs shall comply with the regulations elsewhere in this title. (Ord. CS 568, 1984)

17.38.080 Site plan and design review.

All uses in the C-G zone shall require site plan approval and design review, to the extent required as described elsewhere in this title.
(Ord. CS 568, 1984; Ord. CS 1059, § 1, 3-27-2023)

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Exhibit C - Original
Title 17 - ZONING
CHAPTER 17.34 C-O, OFFICE COMMERCIAL
Atwater, California, Code of Ordinances Created: 2026-02-23 08:35:34 [EST] (Supp. No. 12, Update 1)

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CHAPTER 17.34 C-O, OFFICE COMMERCIAL

17.34.010 Purpose.

To provide a district for medical and professional offices and related uses. (Ord. CS 565, 1984)

17.34.020 Permitted uses.

Medical, dental, business and professional offices, banks and financial institutions, and any other office or professional use which is determined by the Planning commission to be of the same general character. (Ord. CS 565, 1984)

17.34.030 Accessory uses.

Single story accessory buildings, garages and parking lots incidental to the principal use are permitted subject to site plan review.
(Ord. CS 565, 1984; Ord. CS 1059, § 1, 3-27-2023)

17.34.040 Conditional uses.

The following uses may be approved with a conditional use permit by the Planning Commission:

A. Public and quasi-public uses appropriate to the district such as hospitals, convalescent or nursing homes, professional, business and technical schools;
B. Schools and studios for arts and crafts, photography, music and dance; C. Medical and dental labs; pharmacies and drug stores; D. Barber and beauty shops;
E. Public parking lots;
F. Existing residential dwellings may be reconstructed, repaired or enlarged.

G. Any other use the Planning Commission finds of the same general character as the above. (Ord. CS 565, 1984; Ord. CS 780, 2-28-2000; Ord. CS 805, 8-12-2002)

17.34.050 Lot area, setbacks, building heights.

Minimum lot area 7,500 square feet
Minimum yards (setbacks):

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Front 10 feet
Side (interior) 5 feet
Side (exterior) 10 feet
Rear none
No building constructed in this zone shall exceed a height of 35 feet unless the following has occurred:

1. The Fire Marshal and Chief Building Official, or designees, have both approved the site plans, improvement plans, and/or other required submittals for the project; and

2. The Planning Commission makes all of the following findings:

A. The applicant has adequately demonstrated a need for the project to exceed 35 feet in building height that is related to the project's benefit to the community, or due to site constraints, or in order to achieve desired architectural qualities;
B. The project will be exemplary in its design;
C. The project design will complement and be compatible with the setting and the character of the neighboring properties with sensitivity to any adjacent federal, state, and City or other historic landmarks;
D. The project's proximity to railroads, airports, major freeways or highways, or other transportation hubs, stations, or centers will not interfere, impede, or otherwise disturb such transit services;
E. The project is consistent and compatible with the City's General Plan, Zoning Code, and other adopted specific plans and/or master plans;
F. Intended use of the project will enhance or promote the standard of living for City residents, and/or the local economy;
G. The project's proposed height would not adversely affect visual blockage of light, air, or cause intrusion of privacy to adjacent and surrounding properties; H. The project is not detrimental to the health, safety, peace, comfort, and general welfare of persons or property in the neighborhood and surrounding environs, including without limitation, it will not affect emergency response times or services, nor seismic and/or structural integrity; and
I. The project's proposed building height does not impede pedestrian or vehicular accessibility along any public or private pathways, sidewalks, driveways or roadways, visually impede any safe use of the same, or otherwise present a hazard to pedestrian or vehicular use of the same.

Additional conditions of approval may be imposed by the Planning Commission relative to the project as it relates to this section.
(Ord. CS 565, 1984; Ord. CS 950, § 1, 3-10-2014; Ord. CS 1056, § 1, 1-23-2023)

17.34.060 Exceptions.

Setbacks listed in Section 17.34.050 shall not apply in the following instances:

A. If property is abutting a major arterial, setback shall be 65 feet from the center of the public right-ofway, except Winton Way south of Elm Avenue, where it has to conform with the established building

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setback, and along Atwater Boulevard, where the setback shall be 25 feet from the property line, except from Sierra Vista to First Street where the established setback shall be complied with.

B. If property is abutting a residential zone or land designated for residential uses in the General Plan, a ten-foot setback shall re required.
(Ord. CS 565, 1984)

17.34.070 Other required conditions.

All development in this district shall also comply with the following:

A. A minimum of ten percent landscaping shall be provided on every property.

B. Landscaping shall comply with City landscape standards.

C. Street trees are to be planted in compliance with adopted City standards.

D. Parking to be in compliance with requirements elsewhere in this title.

F. A six-foot high solid fence or wall shall be required on the property line abutting any residential zone or land designated for future residential use in the General Plan. No fences are permitted in exterior yards.

G. Trash receptacles shall be screened from view.

H. All utilities shall be installed underground.

I. Refer to Section 17.03.110 for requirements for collection and loading recyclable materials in development projects.
(Ord. CS 565, 1984; Ord. CS 667, 1990; Ord. CS 721, 3-27-1995)

17.34.080 Site plan and design review.

All uses in the C-O zone shall require site plan approval and design review as described elsewhere in this title. (Ord. CS 565, 1984; Ord. CS 1059, § 1, 3-27-2023)

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Exhibit C - Original
Title 17 - ZONING
CHAPTER 17.35 C-N, NEIGHBORHOOD COMMERCIAL
Atwater, California, Code of Ordinances Created: 2026-02-23 08:35:34 [EST] (Supp. No. 12, Update 1)

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CHAPTER 17.35 C-N, NEIGHBORHOOD COMMERCIAL

17.35.010 Purpose.

To provide attractive areas for the day to day shopping needs of the residential neighborhoods. Small shopping centers are preferred to individual establishments because they provide better parking facilities without creating traffic hazards caused by too many curb cuts. Combination of several small lots therefore is more desirable.
(Ord. CS 566, 1984)

17.35.020 Permitted uses.

Any retail business or service establishment, such as a grocery store, bake shop, drug store, barber and beauty shop, laundry and dry-cleaning pickup station, child care center, business or professional office or financial institution, supply commodities, performing services for residents of the neighborhood, and any other retail or service establishment which is determined by the Commission to be of the same general character as the above permitted uses.
(Ord. CS 566, 1984)

17.35.030 Accessory uses.

Accessory uses and buildings customarily appurtenant to a permitted use such as parking and incidental storage facilities and telephone booths.
(Ord. CS 566, 1984)

17.35.040 Conditional uses.

The following uses may be considered by the Planning Commission through the use permit procedure:

A. Restaurants, cafes, soda fountains, not including entertainment or dancing, or sale of liquor, beer or other alcoholic beverages for consumption on the premises; B. Public and quasi-public uses;
C. Social halls, lodges, fraternal organizations and clubs; D. Uses not in enclosed buildings;
E. Off-site alcoholic beverage sales.

F. Any other use determined by the Planning Commission to be of the same general character suitable in a neighborhood commercial district.
(Ord. CS 566, 1984; Ord. CS 780, 2-28-2000; Ord. CS 782, 5-8-2000)

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17.35.050 Lot area, setbacks, building heights.

No lot shall be created that would be smaller than 7,500 square feet. All existing lots that are smaller shall be developed in compliance with this chapter.

Setbacks:
exterior setback 10 feet
interior setback none
rear yard none
No building constructed in this zone shall exceed a height of 35 feet unless the following has occurred:

1. The Fire Marshal and Chief Building Official, or designees, have both approved the site plans, improvement plans, and/or other required submittals for the project; and

2. The Planning Commission makes all of the following findings:

A. The applicant has adequately demonstrated a need for the project to exceed 35 feet in building height that is related to the project's benefit to the community, or due to site constraints, or in order to achieve desired architectural qualities;
B. The project will be exemplary in its design;
C. The project design will complement and be compatible with the setting and the character of the neighboring properties with sensitivity to any adjacent federal, state, and City or other historic landmarks;
D. The project's proximity to railroads, airports, major freeways or highways, or other transportation hubs, stations, or centers will not interfere, impede, or otherwise disturb such transit services;
E. The project is consistent and compatible with the City's General Plan, Zoning Code, and other adopted specific plans and/or master plans;
F. Intended use of the project will enhance or promote the standard of living for City residents, and/or the local economy;
G. The project's proposed height would not adversely affect visual blockage of light, air, or cause intrusion of privacy to adjacent and surrounding properties; H. The project is not detrimental to the health, safety, peace, comfort, and general welfare of persons or property in the neighborhood and surrounding environs, including without limitation, it will not affect emergency response times or services, nor seismic and/or structural integrity; and
I. The project's proposed building height does not impede pedestrian or vehicular accessibility along any public or private pathways, sidewalks, driveways or roadways, visually impede any safe use of the same, or otherwise present a hazard to pedestrian or vehicular use of the same.

Additional conditions of approval may be imposed by the Planning Commission relative to the project as it relates to this section.
(Ord. CS 566, 1984; Ord. CS 950, § 1, 3-10-2014; Ord. CS 1056, § 1, 1-23-2023)

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17.35.060 Exceptions.

Setbacks listed in Section 17.35.050 shall not apply in the following instances:

B. If property is abutting a residential zone or land designated for residential uses in the General Plan, a ten-foot setback shall be required.
(Ord. CS 566, 1984)

17.35.070 Other required conditions.

All development in this district shall also comply with the following:

A. A minimum of ten percent landscaping shall be provided on every property.

B. Landscaping shall comply with City landscape standards.

C. Street trees are to be planted in compliance with adopted City standards.

D. Parking to be in compliance with requirements elsewhere in this title.

G. Trash receptacles shall be screened from view.

H. All utilities shall be installed underground.

I. Refer to Section 17.03.110 for requirements for collection and loading recyclable materials in development projects.
(Ord. CS 566, 1984; Ord. CS 667, 1990; Ord. CS 721, 3-27-1995)

17.35.080 Site plan and design review.

All uses in the C-N zone shall require site plan approval and design review as described elsewhere in this title. (Ord. CS 566, 1984; Ord. CS 1059, § 1, 3-27-2023)

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Exhibit C - Original
Title 17 - ZONING
CHAPTER 17.36 C-C, CENTRAL COMMERCIAL DISTRICT
Atwater, California, Code of Ordinances Created: 2026-02-23 08:35:34 [EST] (Supp. No. 12, Update 1)

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CHAPTER 17.36 C-C, CENTRAL COMMERCIAL DISTRICT

17.36.010 Purpose.

To facilitate development and redevelopment of the central commercial core as an area of "pedestrian priority" by encouraging a broad mix of retail, service, financial, office and specialty uses with few constraints, but in compliance with the overall theme of the revitalization of this core area.

The Central Commercial District is to maintain and enhance the physical and economic vitality of the central City, both as a self-contained unit and as the focus of the community's commercial, financial, cultural and administrative activities. The district encourages development of a well balanced mix of uses, including some residential; creation of an attractive and inviting atmosphere and identity of the area; emphasis upon pedestrian convenience, safety and enjoyment, and minimizing the adverse effects of traffic.

This district is intended to prevent the development of uses which could disrupt or hinder the fulfillment of this broad purpose, but is not intended for general application throughout the City. (Ord. CS 567, 1984)

17.36.020 Principal permitted uses.

The following shall be permitted uses:

A. Retail establishments;
B. Banking and financial institutions;
C. Business, professional and medical offices;
D. Personal service establishments;
E. Restaurants and cafes;
F. Occasional sidewalk sales and similar promotional events by existing business; G. Uses not listed above, but found to be compatible with the above. (Ord. CS 567, 1984)

17.36.030 Accessory uses.

Incidental warehousing, storage and accessory uses, including repairs, operations and services, provided that such uses shall be clearly incidental to the sale of products at retail on the premises, and shall be so located, constructed and operated as not to be offensive or objectionable because of dust, gas, smoke, noise, fumes, odors, vibrations, appearance or otherwise.
(Ord. CS 567, 1984)

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17.36.040 Uses requiring conditional use permit.

The following uses shall require a conditional use permit:

A. Dwelling units on other than ground floor;
B. Theaters;
C. Hotels and motels
D. Service stations and other highway related uses;
E. Minor manufacturing, where a minimum of 75 percent of the fabricated items is sold at the premises; F. Uses for public assembly;
G. Sidewalk cafes and other uses not totally inside an enclosed building; H. Cocktail lounges;
I. Massage establishment/therapist;
I. Existing residential dwellings may be reconstructed, repaired or enlarged; J. Any other uses the Planning Commission finds to be consistent with the purpose of this district, and which will not impair the present or potential use of nearby properties. (Ord. CS 567, 1984; Ord. CS 767, 3-8-1999; Ord. CS 780, 2-28-2000; Ord. CS 782, 5-8-2000; Ord. CS. 805, 8-12-2002)

17.36.045 Prohibited uses.

The following uses shall be prohibited in this district:

A. Warehouses;
B. Arcades;
C. Automobile repair, except when incidental to a service station or a car sales business and conducted totally within an enclosed building;
D. Any similar use the Planning Commission finds not consistent with the purpose of this district. (Ord. CS 567, 1984)

17.36.050 Parking requirements.

Parking is required as specified elsewhere in this title, with the following exceptions:

A. On properties with mixed uses, if one use clearly does not need the parking facilities during the same hours as the other use does, the Planning Commission at their discretion may require the number of parking spaces for the one use requiring the higher number of spaces; B. Properties located within 300 feet of a public off-street parking lot shall have the option of paying $1,500 per parking space in lieu of providing the required parking.

The 300 feet shall be measured by the most direct route along a public right-of-way. (Ord. CS 567, 1984)

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17.36.060 Signs.

Signs shall comply with regulations elsewhere in this title. (Ord. CS 567, 1984)

17.36.070 Development standards.

No new lots shall be created smaller than 7,500 square feet, and all new development shall comply with the following minimum requirements:

A. Setbacks: none, except as specified in Section 17.34.060.

B. Building height limits: No building constructed in this zone shall exceed a height of 35 feet unless the following has occurred:

1. The Fire Marshal and Chief Building Official, or designees, have both approved the site plans, improvement plans, and/or other required submittals for the project; and

2. The Planning Commission makes all of the following findings:

A. The applicant has adequately demonstrated a need for the project to exceed 35 feet in building height that is related to the project's benefit to the community, or due to site constraints, or in order to achieve desired architectural qualities;
B. The project will be exemplary in its design;
C. The project design will complement and be compatible with the setting and the character of the neighboring properties with sensitivity to any adjacent federal, state, and City or other historic landmarks;
D. The project's proximity to railroads, airports, major freeways or highways, or other transportation hubs, stations, or centers will not interfere, impede, or otherwise disturb such transit services;
E. The project is consistent and compatible with the City's General Plan, Zoning Code, and other adopted specific plans and/or master plans;
F. Intended use of the project will enhance or promote the standard of living for City residents, and/or the local economy;
G. The project's proposed height would not adversely affect visual blockage of light, air, or cause intrusion of privacy to adjacent and surrounding properties; H. The project is not detrimental to the health, safety, peace, comfort, and general welfare of persons or property in the neighborhood and surrounding environs, including without limitation, it will not affect emergency response times or services, nor seismic and/or structural integrity; and
I. The project's proposed building height does not impede pedestrian or vehicular accessibility along any public or private pathways, sidewalks, driveways or roadways, visually impede any safe use of the same, or otherwise present a hazard to pedestrian or vehicular use of the same.

Additional conditions of approval may be imposed by the Planning Commission relative to the project as it relates to this section.

C. Landscaping shall comply with City landscape standards.

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D. Refer to Section 17.03.110 for requirements for collection and loading recyclable materials in development projects.
(Ord. CS 567, 1984; Ord. CS 667, 1990; Ord. CS 721, 3-27-1995; Ord. CS 950, § 1, 3-10-2014; Ord. CS 1056, § 1, 1- 23-2023)

17.36.080 Other required conditions.

All principal permitted uses shall be conducted wholly within a completely enclosed building, except for occasional sidewalk sales and similar promotional events by several businesses at the same time.

A six-foot high solid fence or wall shall be required on the property line abutting any residential zone or land designated for future residential use.
(Ord. CS 567, 1984)

17.36.090 Site plan and design review.

All proposed construction or remodeling, and all signs in the C-C zone shall require site plan approval and/or design review as specified elsewhere in this title.
(Ord. CS 567, 1984; Ord. CS 1059, § 1, 3-27-2023)

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Exhibit C - Original
Title 17 - ZONING
CHAPTER 17.37 C-T, THOROUGHFARE COMMERCIAL
Atwater, California, Code of Ordinances Created: 2026-02-23 08:35:35 [EST] (Supp. No. 12, Update 1)

Page 1 of 3 ends

CHAPTER 17.37 C-T, THOROUGHFARE COMMERCIAL

17.37.010 Purpose.

To provide for retail commercial, entertainment, and transient residential uses, which are appropriate to thoroughfare locations and dependent upon the traveling public.

Any visitor-related use permitted shall not only be established for the convenience of the travelers, but most of all shall be aesthetically pleasing, beautifying the area, and serve as an invitation to strangers to "stop in Atwater and stay a while."
C-T areas shall be established as designated in the General Plan, which is in the general vicinity of highways, freeways, on service drives thereof and in proximity to Castle Air Museum, Castle Air Force Base, golf course or similar tourist attracting facilities.

Qualifying areas are preferred to be zoned P-D.
(Ord. CS 569, 1984)

17.37.020 Conditional uses.

All uses permissible in the C-T zone shall require approval of a conditional use permit by the Planning Commission.

A. Hotels, motels, and similar transient residential complexes; B. Public or commercial recreational facilities, such as swimming pools, bowling alleys, skating rinks and golf driving ranges;
C. Restaurants, drive-in restaurants, cocktail lounges* and refreshment stands; (*Bars, not incidental to a restaurant, also need City Council approval.)
D. Curio, souvenir and similar retail shops developed as part of a complex, if possible; E. Public and quasi-public uses;
F. Shopping centers;
G. Automobile service stations with minor repair as an incidental use; H. Truck stops or RV parks;
I. Off-site alcoholic beverage sales.

J. Any other retail business or service establishment determined by the Planning Commission to be of the same general character as uses listed above, catering mainly to the motoring public, and being consistent with the intent of this zone as described in Section 17.37.010. (Ord. CS 569, 1984; Ord. CS 780, 2-28-2000; Ord. CS 782, 5-8-2000)

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Created: 2026-02-23 08:35:34 [EST]
(Supp. No. 12, Update 1)

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17.37.030 Accessory uses.

Accessory uses and buildings customarily incidental to an approved use. (Ord. CS 569, 1984)

17.37.040 Lot area, setbacks, and height of structures.

The following minimum area requirements shall be observed, except where increased for conditional use:

A. Five acre minimum which can be reduced by the Planning Commission for just cause.

C. A ten-foot front yard setback shall be required. Side and rear yard setbacks will be set or waived during use permit approval by the Planning Commission. See exceptions below.

D. Building height limits: No building constructed in this zone shall exceed a height of 35 feet unless the following has occurred:

1. The Fire Marshal and Chief Building Official, or designees, have both approved the site plans, improvement plans, and/or other required submittals for the project; and

2. The Planning Commission makes all of the following findings:

A. The applicant has adequately demonstrated a need for the project to exceed 35 feet in building height that is related to the project's benefit to the community, or due to site constraints, or in order to achieve desired architectural qualities;
B. The project will be exemplary in its design;
C. The project design will complement and be compatible with the setting and the character of the neighboring properties with sensitivity to any adjacent federal, state, and City or other historic landmarks;
D. The project's proximity to railroads, airports, major freeways or highways, or other transportation hubs, stations, or centers will not interfere, impede, or otherwise disturb such transit services;
E. The project is consistent and compatible with the City's General Plan, Zoning Code, and other adopted specific plans and/or master plans;
F. Intended use of the project will enhance or promote the standard of living for City residents, and/or the local economy;
G. The project's proposed height would not adversely affect visual blockage of light, air, or cause intrusion of privacy to adjacent and surrounding properties; H. The project is not detrimental to the health, safety, peace, comfort, and general welfare of persons or property in the neighborhood and surrounding environs, including without limitation, it will not affect emergency response times or services, nor seismic and/or structural integrity; and

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Created: 2026-02-23 08:35:35 [EST]
(Supp. No. 12, Update 1)

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17.37.050 Development standards.

The following items are minimum requirements unless noted otherwise:

A. Ten percent of the lot area shall be landscaped, especially the front yard setback; B. Street trees are to be planted in compliance with adopted City standards; C. Landscaping shall comply with City landscaping standards.

D. Parking and loading as described elsewhere in this title; E. A six-foot high wall or solid fence shall be required on the interior property line abutting a residential zone or land designated in the General Plan for future residential use; F. Trash receptacles to be screened from view;
G. All utilities are to be installed underground;
H. Refer to Section 17.03.110 for requirements for collection and loading recyclable materials in development projects.
(Ord. CS 569, 1984; Ord. CS 667, 1990; Ord. CS 721, 3-27-1995)

17.37.060 Exceptions.

The following exceptions shall apply:

A. Setbacks to be enforced as adopted with Section 17.34.060 if abutting residential areas or fronting on certain streets.
(Ord. CS 569, 1984)

17.37.070 Signs.

All proposed signs shall comply with the regulations elsewhere in this title. (Ord. CS 569, 1984)

17.37.080 Site plan and design review.

All uses in the C-T zone shall submit the required drawings for site plan and design review at the time the use permit is applied for, as described elsewhere in this title. (Ord. CS 569, 1984; Ord. CS 1059, § 1, 3-27-2023)

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Exhibit C - Original
Title 17 - ZONING
CHAPTER 17.38 C-G, GENERAL COMMERCIAL DISTRICT
Atwater, California, Code of Ordinances Created: 2026-02-23 08:35:35 [EST] (Supp. No. 12, Update 1)

Page 1 of 4 ends

CHAPTER 17.38 C-G, GENERAL COMMERCIAL DISTRICT

17.38.010 Purpose.

17.38.015 Principal permitted uses.

The following shall be permitted uses:

A. Retail establishments.

B. Banking and financial institutions.

C. Business, professional and medical offices.

D. Massage establishment/therapist.

E. Personal service establishments.

F. Restaurants and cafes.

G.
(Ord. CS 606, 1986; Ord. CS 768, 3-8-1999)

17.38.020 Conditional uses.

The following shall require a use permit by the Planning Commission:

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Created: 2026-02-23 08:35:35 [EST]
(Supp. No. 12, Update 1)

Page 2 of 4 ends

L. Any other commercial or light manufacturing uses the Planning commission finds to be consistent with the purpose of this district;
M. Off-site alcoholic beverage sales;
N. Uses as identified in Section 17.36.040;
O. Uses otherwise identified in Section 17.38.015 as principal permitted uses, when located adjacent to an existing use allowed as a conditional use.
(Ord. CS 568, 1984; Ord. CS 606, 1986; Ord. CS 780, 2-28-2000; Ord. CS 782, 5-8-2000)

17.38.030 Accessory uses.

Any accessory uses incidental to the main use of the property. (Ord. CS 568, 1984)

17.38.040 Development standards.

All development in this district shall also comply with the following:

A. A minimum of ten percent landscaping shall be provided on every property.

B. Landscaping shall comply with City landscape standards.

C. Street trees are to be planted in compliance with adopted City standards.

D. Parking to be in compliance with requirements elsewhere in this title.

G. Trash receptacles shall be screened from view.

H. All utilities shall be installed underground.

I. Refer to Section 17.03.110 for requirements for collection and loading recyclable materials in development projects.
(Ord. CS 568, 1984; Ord. CS 667, 1990; Ord. CS 721, 3-27-1995)

17.38.050 Lot area, setbacks, building height.

No lot shall be created that would be smaller than 10,000 square feet. All existing lots that are smaller shall be developed in compliance with this chapter.

Setbacks: Exterior setback: ten feet.

Interior and rear yard setback as required by Building or Fire Code.

Building height: No building constructed in this zone shall exceed a height of 35 feet unless the following has occurred:

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Created: 2026-02-23 08:35:35 [EST]
(Supp. No. 12, Update 1)

Page 3 of 4 ends

1. The Fire Marshal and Chief Building Official, or designees, have both approved the site plans, improvement plans, and/or other required submittals for the project; and

2. The Planning Commission makes all of the following findings:

17.38.060 Exceptions.

Setbacks listed in Section 17.38.050 shall not apply in the following instances:

B. If property is abutting a residential zone or land designated for residential uses in the General Plan, a ten foot setback shall be required.
(Ord. CS 568, 1984)

17.38.070 Sign Regulations.

All proposed signs shall comply with the regulations elsewhere in this title.

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Created: 2026-02-23 08:35:35 [EST]
(Supp. No. 12, Update 1)

Page 4 of 4 ends

(Ord. CS 568, 1984)

17.38.080 Site plan and design review.

All uses in the C-G zone shall require site plan approval and design review as described elsewhere in this title. (Ord. CS 568, 1984; Ord. CS 1059, § 1, 3-27-2023)

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AGENDA REPORT

MEETING
DATE:

June 8, 2026
TO: Mayor and City Council
FROM: Christopher Hoem, City Manager

PREPARED
BY:

Anna Nicholas, Finance Director
SUBJECT: Receiving and Accepting the City of Atwater's Annual Financial Report for the year ended June 30, 2025 (City Manager Hoem)

RECOMMENDED COUNCIL ACTION
Motion to receive and accept the City of Atwater's Annual Financial Report for the year ended June 30, 2025 and the Independent Accountants’ Report on Agreed-Upon Procedures Applied to Appropriations Limit Schedule for the year ended June 30, 2026.

I. BACKGROUND/ANALYSIS:

Background:

Each year, the City's financial records are audited by an independent Certified Public Accounting firm. For the financial records of Fiscal Year 2024-25 (FY 25), the independent external auditing firm of Badawi & Associates performed the annual audit which is formally known as the Annual Financial Report. Using Generally Accepted Accounting Principles (GAAP) and Generally Accepted Government Auditing Standards (GAGAS), the firm reviewed the financial records of the City and issued the FY 25 Annual Financial Report, which includes the Independent Auditor's Report. In addition, the Independent Accountants' Report on Agreed-Upon Procedures Applied to Appropriations Limit Schedule for FY 26 has been completed. This report is to meet the intended purpose of the requirements of Section 1.5 of Article XIII-B of the California Constitution, as it pertains to the Appropriations Limit and the calculations to be reviewed as part of the annual audit process. All of these reports are used by internal and external stakeholders to evaluate the fiscal condition of the City.

Analysis:

1. The City received an unmodified (favorable) audit opinion for the FY 25 Annual Financial Report. The opinion indicates the auditor found the financial statements to be fairly presented in all material respects, in accordance with the applicable financial reporting framework; there have been no findings of material misstatements; and the City has adhered to GAAP in the preparation of the financial statements. Along with the Annual Financial Report, the auditor includes an Independent Auditor's Report which addresses internal controls over financial reporting. Included with the Annual Financial

CITY COUNCIL
Mike Nelson
John Cale Brian Raymond
Danny Ambriz Kalisa Rochester

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Agenda Report - Receiving and Accepting the City of Atwater's Annual Financial Report for the year ended June 30, 2025 (City Manager Hoem) Page 2

Report is a Letter of Transmittal which can be found on Page v. The Letter of Transmittal is from the Finance Director and City Manager and provides additional information about the City, including recent initiatives. Page 1 begins the Independent Auditor's Report, which contains items such as the Auditor's Opinion, Basis for Opinions and other Supplementary Information. Page 5 begins the Management Discussion & Analysis (MD&A). The MD&A provides the reader with a narrative overview and analysis of the financial activities for the fiscal year ended June 30, 2025. The Basic Financial Statements (beginning on pg. 23) are comprised of the Government-wide Financial Statements and the Fund Financial Statements. The Government-wide Financial Statements provide a broad overview of the City's activities as a whole and are comprised of the Statement of Net position and the Statement of Activities. The Fund Financial Statements (beginning on pg. 29) provide detailed Fund level statements for governmental and proprietary funds for the City. The Notes to the Basic Financial Statements (pg.45) provide supporting information that helps to explain the significant categories of accounting.

II. FISCAL IMPACTS:

There is no fiscal impact with the acceptance of the required financial reports.

III. LEGAL REVIEW:

This item has been reviewed by the City Attorney's Office.

IV. EXISTING POLICY:

Not applicable.

V. ALTERNATIVES:

N/A
VI. INTERDEPARTMENTAL COORDINATION:

Not applicable.

VII. PUBLIC PARTICIPATION:

The public will have an opportunity to comment on this item.

VIII. ENVIRONMENTAL REVIEW:

Not applicable.

IX. STEPS FOLLOWING APPROVAL:

The report will be posted to the City's website for all interested stakeholders.

Submitted and Approved by:

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Agenda Report - Receiving and Accepting the City of Atwater's Annual Financial Report for the year ended June 30, 2025 (City Manager Hoem) Page 3

Chris Hoem, City Manager
Attachments:

1. Atwater AFR FY2025 - FINAL

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City of
Atwater
Atwater, California
Annual Financial Report
For the year ended June 30, 2025
Prepared by:

Finance Department

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City of Atwater
Annual Financial Report
For the year ended June 30, 2025
Table of Contents
Page

INTRODUCTORY SECTION
Table of Contents ............................................................................................................................................................ i Letter of Transmittal ...................................................................................................................................................... v List of City Officials ...................................................................................................................................................... ix City of Atwater Organizational Chart ........................................................................................................................ x

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

Government-Wide Financial Statements
Statement of Net Position ..................................................................................................................................... 25 Statement of Activities .......................................................................................................................................... 26 Fund Financial Statements
Governmental Funds:

Balance Sheet ...................................................................................................................................................... 31 Reconciliation of Governmental Funds Balance Sheet
to the Statement of Net Position ................................................................................................................... 32 Statement of Revenues, Expenditures and Changes in Fund Balances ...................................................... 33 Reconciliation of Fund Basis Balance Sheet
to Government-wide Statement of Activities ............................................................................................. 34 Statement of Revenues, Expenditures and Changes
in Fund Balances – Budget and Actual – General Fund ............................................................................ 35 Statement of Revenues, Expenditures and Changes
in Fund Balances – Budget and Actual – Public Safety Transaction & Use Special Revenue Fund ... 36 Proprietary Funds
Statement of Net position – Proprietary Funds .......................................................................................... 37 Statement of Revenues, Expenses, and Changes in Fund Net position ................................................. 38 Statement of Cash Flows ................................................................................................................................ 39 Fiduciary Funds:

Statement of Fiduciary Net Position ............................................................................................................ 41 Statement of Changes in Fiduciary Net Position........................................................................................ 42 Notes to the Basic Financial Statements ................................................................................................................ 45 i

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City of Atwater
Annual Financial Report
For the year ended June 30, 2025
Table of Contents
Page
FINANCIAL SECTION, Continued
Required Supplementary Information
Schedule of the City’s Proportionate Share of the
Net Pension Liability and Related Ratios – Last 10 years ............................................................................... 88 Schedule of Pension Contributions – Last 10 Years ............................................................................................ 90 Schedule of Changes in the Net OPEB Liability and Related Ratios – Last 10 Years .................................... 92 Schedule of OPEB Contributions – Last 10 Years ............................................................................................... 94 Other Supplementary Information
Combining and Individual Fund Financial Statements and Schedules Non-Major Governmental Funds:

Combining Balance Sheet ..................................................................................................................................... 97 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .................................... 98 Non-Major Special Revenue Funds:

Combining Balance Sheet ................................................................................................................................... 100 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .................................. 104 Statements of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:

Measure V Fund ............................................................................................................................................... 108 Police Grants Fund ........................................................................................................................................... 109 Gas Tax Fund .................................................................................................................................................... 110 Local Transportation Fund ............................................................................................................................. 111 Facility Impact Fee Fund ................................................................................................................................. 112 CDBG Program Income Fund ........................................................................................................................ 113 Home Investment Partnership Fund ............................................................................................................. 114 Housing Authority Fund ................................................................................................................................ 115 Narcotics Program Fund ................................................................................................................................. 116 Neighborhood Stabilization Fund ................................................................................................................. 117 Applegate Interchange Fund .......................................................................................................................... 118 Regional Surface Transportation Program Fund ......................................................................................... 119 ARPA Grant Fund ............................................................................................................................................ 120 Pension Rate Stabilization 115 Trust Fund ................................................................................................... 121 General Plan Update Grant Fund .................................................................................................................. 122 Permanent Housing Local Allocation Fund ................................................................................................. 123 Combining Balance Sheet – Maintenance District Special Revenue Funds .................................................. 124 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Maintenance District Special Revenue Funds .............................................................. 132 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – CFD Districts - Maintenance District Special Revenue Fund ................................. 139 ii

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City of Atwater
Annual Financial Report
For the year ended June 30, 2025
Table of Contents
Page
FINANCIAL SECTION, Continued
Internal Service Funds:

Combining Statement of Net Position .............................................................................................................. 141 Combining Statement of Revenues, Expenses and Changes in Net Position ............................................. 142 Combining Statement of Cash Flows ............................................................................................................... 143 Custodial Funds:

Combining Statement of Fiduciary Net Position ........................................................................................... 145 Combining Statement of Changes in Fiduciary Net Position ....................................................................... 146 Schedule of Debt Service Coverage ........................................................................................................................ 147 iii

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iv

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City of Atwater, California
Finance Department
May 12, 2026
Honorable Mayor, Members of the City Council and Citizens of the City of Atwater:

It is our pleasure to submit the Annual Financial Report of the City of Atwater for the fiscal year that ended June 30, 2025. The financial statements are presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with government auditing standards. In compliance with state and federal laws, a licensed certified public accountant conducts an annual audit at the end of each fiscal year and issues a complete set of financial statements to be submitted to the governing body of the City of Atwater.

Management is responsible for the completeness and reliability of the information contained in this report, based on a comprehensive framework of internal control that has been established for this purpose. We believe the data presented in this report is accurate in all material respects and all statements and disclosures necessary for the reader to obtain a thorough understanding of the City’s financial activities have been included.

Management has established an internal control framework that is designed both to protect the City’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 framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatements.

While formally presented to the governing body of the City, this report is intended to provide relevant financial information to the citizens of the City of Atwater, City staff, creditors, investors, and other interested readers. We encourage all readers to contact the Finance Department with any questions or comments concerning this report.

The City’s financial statements have been audited by Badawi & Associates, a firm of certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City for the fiscal year that ended June 30, 2025, are free of material misstatements. 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 v Page 179 of 490
significant estimates made by management, and evaluating the overall financial statement presentation. Based upon the audit, the independent auditors concluded that there was reasonable basis for rendering an unqualified opinion, which states 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 the Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the 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.

Profile of the City of Atwater and Services Provided
The City of Atwater was incorporated in 1922 and is in the San Joaquin Valley of California. Atwater is one of six incorporated cities in Merced County. The City encompasses a six square mile area approximately six miles west-northwest of Merced. The City has a current population of 31,862 (State of California DOF Population Estimates, May 2025). The City maintains a small hometown feel through community events, partnerships with areas schools, and longstanding community service clubs that build on many beloved traditions in Atwater. Being located along the Highway 99 corridor, the City of Atwater is in a premiere location for travelers that traverse through California. Additionally, the City is geographically situated where a visit to the Pacific coast or Sierra Nevada mountain range is all within the distance of a daytrip, making the location a desirable place to live, work and operate a business.

The City of Atwater operates under a Council-Manager form of government and provides municipal services that include general municipal administration, road infrastructure, police services, contracted fire services, community and economic development, and parks and recreational opportunities. In addition, through public works, the City provides water, wastewater, and contracted solid waste services in the form of enterprise activities. This report includes all funds of the City of Atwater and its blended component unit, the Successor Agency of the Atwater Redevelopment Agency, for which the City is financially accountable. The Atwater City Council consists of five members: four council members are elected by districts to four-year terms, and the Mayor is elected at large. All council members must be residents of the City. The Mayor conducts the City Council meetings and represents the City on ceremonial occasions. The City Council serves as the policy board for the City of Atwater and provides policy direction, establishes goals, and sets priorities for the City government.

In addition to serving as the policy makers for the community, the City Council is responsible for numerous land use decisions within its borders, including the General Plan. The City Council appoints the City Manager, City Attorney, and members of advisory boards, commissions, and committees, except for the Public Safety Transaction & Use Tax (Measure B) Oversight Committee, whose appointments are made by the City Manager.

Local Economy
The City’s primary General Fund revenue sources are property tax and sales tax. While property and sales tax revenues have remained strong, revenue estimates for sales tax continue to be moderate when compared to previous recent years. The City’s housing market has continued to remain stable.

For the years 2020-2024, the median home value for the City of Atwater was $363,400. The median household income in Atwater is $64,472. Both statistics were sourced from: U.S. Census Bureau QuickFacts: United States, on March 12, 2026.The unemployment rate (EDD, State of CA, December vi

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2025) for Merced County was 9.6% and for the City of Atwater was 9.1%, which compares to a state rate of 5.1% and the U.S. rate of 4.4% at the same point in time. The diversity of the region offers many opportunities for businesses; college educational opportunities; and many recreational activities for families.

Budget Information
The City operates on a fiscal year that runs from July 1 – June 30. The City Council adopts annual budgets for the General Fund, Proprietary Funds, and all Special Revenue Funds, in addition to a capital budget. Budgetary control is legally maintained at the fund level. The City Manager and Finance Director meet with each department director to discuss budget requests, department and organizational goals and needs, and make revisions, as necessary. The Finance Department prepares an estimate of revenues and expenses for the City Manager’s review and recommendation to the City Council. Budget workshops are held prior to the adoption of the budget that allow for public comment opportunity. In June of each year, the City Council adopts by resolution the new fiscal year budget which serves as a spending plan and a communication tool for the spending priorities of the new fiscal year.

Financial Information & Policies
The City continues to take necessary steps to improve and preserve its fiscal health and sustainability.

The City of Atwater, by way of Resolution No. 3068-19, has a General Fund Reserve Policy that requires a minimum of 10% of annual General Fund operating costs to be kept in fund balance.

During this audit period and subsequent periods to date of this publication, the City has maintained this requirement and met the goal of having a 25% General Fund reserve. The City established an irrevocable Section 115 trust (combo trust) to address the long-term liabilities of other postemployment benefits (OPEB) and pension liabilities. The City has made contributions for five consecutive years into the plan and is committed to annual contributions so the plan can grow and provide resources to help fund OPEB and pension liabilities. The City continues to work towards implementing measures to help fund existing liabilities and reduce future liabilities, while aiming to achieve structural fund balance in all operating funds on an annual basis.

The City of Atwater’s sales tax rate is 8.75%. One percent of this is the Public Safety Transactions and Use Tax “Measure B” which is dedicated to public safety costs. This is a destination-based tax that provides revenue for public safety expenses.

During the past fiscal year, there were no changes to the City’s financial policies or items in which policies impacted financial information or presentation. Information concerning significant accounting policies affecting the finances of the City is summarized in the Notes to the Financial Statements. vii

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Major Initiatives
The City of Atwater’s City Council, executive management team, and staff remain committed to improving the community’s day-to-day experience by refining systems, coordinating across departments, and allocating resources where they create the greatest impact. Recent accomplishments include the launch of a modern digital permit processing system, the completion of the City’s 2026–2030 Strategic Plan update, and the relocation of the Finance and Community Development Departments to the new City Hall in spring 2025.

Another major initiative shaping Atwater’s future is the comprehensive update of the City’s General Plan. The General Plan serves as the City’s long-range blueprint for growth, development, and infrastructure investment. It outlines policies related to land use, transportation, housing, public safety, environmental sustainability, and community amenities. Once complete, the updated plan will provide a clear framework to guide decision-making, support economic vitality, and ensure Atwater continues to grow in a way that reflects the community’s values and priorities.

Acknowledgements
The preparation and completion of the City of Atwater’s Annual Financial Report is made possible by the dedicated service of the Finance Department. The department takes considerable care in producing this report for all the City of Atwater’s stakeholders. Appreciation is extended to the Finance Department and to the service, professionalism and expertise provided by Badawi & Associates and their efforts that made the completion of this report possible.

In addition, appreciation is extended to all City departments for their collaborative contributions made in the preparation of this report. We thank the Mayor and City Council as well for their continued support and encouragement toward achieving and maintaining the highest standards of management and fiscal stewardship for the City of Atwater. We look forward to our ongoing partnerships with the community as we continue to strive to provide efficient and optimal municipal governance for the City of Atwater, while maintaining financial integrity as steward of public resources.

Respectfully submitted,
______________________________
Christopher Hoem,
City Manager
____________________________
Anna Nicholas,
Finance Director
viii

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City of Atwater
For the year ended June 30, 2025
List of City Officials
Elected:
 Mike Nelson, Mayor
 John Cale, Mayor Pro Term
 Danny Ambriz, Council Member
 Brian Raymond, Council Member
 Kalisa Rochester, Council Member
 Kory J. Billings, City Clerk
 Mark Borba, City Treasurer
Appointed:
 Christopher Hoem, City Manager
 Jonnie Hanson Lan, Community Development Director
 Richard McEachin, Police Chief
 Anna Nicholas, Finance Director
 Joshua Randol, BaƩalion Chief, CAL FIRE
 Jana Sousa, Human Resources Director
 Frank Splendorio, contracted City AƩorney, Best Best & Krieger, LLP  JusƟn Vinson, Public Works Director
ix

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CITY OF ATWATER

ORGANIZATIONAL CHART
2025
Council Committees: Audit & Finance,
Citizens Oversight for Public Safety Transaction and Use Tax Elected Representatives
City Treasurer City Council Mark Borba
Mike Nelson, Mayor
John Cale, Mayor Pro Tem/Council (District 1)
Kalisa Rochester, Council Member (District 2)
Danny Ambriz, Council Member (District 3)
Brian Raymond, Council Member (District 4)
Commissions
City Manager Planning
Chris Hoem
Community
Development
Jonnie Hanson Lan
Human
Resources
Jana Sousa
Fire

CAL FIRE
Joshua Randol
Police
Richard McEachin
Assistant City
Clerk
Janell Martin
Finance
Anna Nicholas
Public Works
Justin Vinson
Recreation
City Attorney
(BB&K)
Frank Splendorio
City Clerk
Kory J. Billings
x Page 184 of 490
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members
of the City Council of the City of Atwater
Atwater, 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 Atwater (City), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise City’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, 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. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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

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

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

Page 2 ends

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

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

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

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information for major funds, and required pension and other post-employment benefit (OPEB) information on pages 5-19 and 88-94 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 2

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

Page 3 ends

required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The other budgetary comparison schedules, combining and individual nonmajor fund financial statements, budgetary comparison schedules of nonmajor governmental funds, and schedule of debt service coverage are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The other budgetary comparison schedules, combining and individual nonmajor fund financial statements, and budgetary comparison schedules of nonmajor governmental funds are the responsibility of management and were derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the other budgetary comparison schedules, combining and individual nonmajor fund financial statements, and budgetary comparison schedules of nonmajor governmental funds 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 section but does not include the financial statements and our auditor's report thereon. Our opinions on the 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 financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the 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.
3

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

Page 4 ends

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated May 12, 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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Badawi & Associates, CPAs
Emeryville, California
May 12, 2026
4

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City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2025
Management’s Discussion and Analysis
This section provides a narrative overview and analysis of the financial activities of the City of Atwater (City) for the fiscal year ended June 30, 2025. It should be read in conjunction with the accompanying transmittal letter and basic financial statements.

FINANCIAL HIGHLIGHTS
Government-wide Highlights
 City’s net position (assets and deferred outflows in excess of liabilities and deferred inflows) at June 30, 2025, totaled $136.0 million. Governmental activities the net position was $39.5 million, while the business-type activities net position was $96.5 million.  Total City revenues, including program and general revenues, and business-type activities were $62.5 million, while total expenses were $50.8 million.  Governmental program and general revenues were $33.5 million compared to governmental program expenses of $26.5 million.
 Program revenues from business-type activities were $25.8 million, while expenses for businesstype activities were $24.2 million.  The City’s total net capital asset balance for governmental activities was $35.6 million and $39.2 million for business-type activities.

Fund Highlights
 Net General Fund revenues and other financing sources (uses) exceeded expenditures by $2.6 million as compared to the prior year when revenues and other financing sources (uses) exceeded expenditures by $1.6 million.
 At June 30, 2024, the General Fund has a positive fund balance of $19.9 million.

OVERVIEW OF THE ANNUAL FINANCIAL REPORT
This Annual Financial Report is in two major parts:
1) Introductory section, which includes the Transmittal Letter and general information; and, 2) Financial section, which includes the Management’s Discussion and Analysis (this part), the Basic Financial Statements, which include the Government-wide and the Fund Financial Statements along with the notes to these financial statements and Combining and Individual Fund Financial Statements and Schedules.
5

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City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2025
Management’s Discussion and Analysis, Continued
OVERVIEW OF THE ANNUAL FINANCIAL REPORT, Continued
The Basic Financial Statements
The Basic Financial Statements are comprised of the Government-wide Financial Statements and the Fund Financial Statements; these two sets of financial statements provide two different views of the City’s financial activities and financial position.

Government-wide Financial Statements
The Government-wide Financial Statements provide a broad overview of the City’s activities as a whole and comprise the Statement of Net position and the Statement of Activities. The Statement of Net position provides information about the financial position of the City as a whole, including all its capital assets and long-term liabilities on the full accrual basis, similar to that used by corporations. The Statement of Activities provides information about all the City’s revenues and all its expenses, also on the full accrual basis, with the emphasis on measuring net revenues or expenses of each the City’s programs. The Statement of Activities explains in detail the change in Net position for the year.

All of the City’s activities are grouped into Governmental Activities and Business-type activities, as explained below. All the amounts in the Statement of Net position and the Statement of Activities are separated into Governmental Activities and Business-type Activities in order to provide a summary of these two activities of the City as a whole. ♦ Governmental activities – All of the City’s basic services are considered to be governmental activities, including general government, public safety, highways and streets, urban redevelopment and housing, community services, and general administration. These services are supported by general City revenues such as taxes and by specific program revenues such as developer fees.
♦ Business-type activities – All the City’s enterprise activities are reported here, including Water, Sewer, and Sanitation Funds. Unlike governmental services, these services are supported by charges paid by users based on the amount of the service they use.

Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds.
6

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City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2025
Management’s Discussion and Analysis, Continued
OVERVIEW OF THE ANNUAL FINANCIAL REPORT, Continued
Fund Financial Statements, Continued
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 the Governmental Fund Financial Statements is narrower than that of the Government-wide Financial Statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the Government-wide Financial Statement. By doing so, readers may better understand the long-term impact of the government’s near-term financial decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Governmental Fund Financial Statements provide detailed information about each of the City’s most significant funds, called major funds. The concept of major funds, and the determination of which are major funds, was established by GASB Statement No. 34 and replaces the concept of combining like funds and presenting them as one total. Instead, each major fund is presented individually, with all nonmajor funds summarized and presented only in a single column. Subordinate schedules present the detail of these nonmajor funds. Major funds present the major activities of the City for the year and may change from year to year as a result of changes in the pattern of the City’s activities.

For the fiscal year ended June 30, 2025, the City’s major funds are as follows:

GOVERNMENTAL FUNDS:
 General Fund
 Public Safety Transactions and Use Tax Fund
PROPRIETARY FUNDS:
 Water Enterprise Fund
 Sewer Enterprise Fund
 Sanitation Enterprise Fund
7

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City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2025
Management’s Discussion and Analysis, Continued
OVERVIEW OF THE ANNUAL FINANCIAL REPORT, Continued
Fund Financial Statements, Continued
For the fiscal year ended June 30, 2025, the City adopted annual appropriated budgets for all governmental funds.

Proprietary funds. The City maintains Enterprise-type and Internal Service proprietary funds.

Enterprise funds are used to report the same functions presented as business-type activities in the Government-wide Financial Statements. The City uses enterprise funds to account for Water, Sewer, and Sanitation activities. Internal service funds are an accounting methodology used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for its fleet of vehicles and its information technology assets. Proprietary funds provide the same type of information as the Government-wide Financial Statements, only in more detail. The proprietary fund financial statements provide separate information for all of these operations.

Fiduciary funds. The City maintains a private-purpose trust fund and custodial funds that are classified as fiduciary funds. The private-purpose trust fund the City maintains is the Successor Agency to the Atwater Redevelopment Agency (RDA) and the City serves as the custodian to the assets of the dissolved RDA and administers the retirement of enforceable obligations. The custodial funds the City maintains are related to assets held in employee benefit trust.

Notes to the Basic Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the Government-wide and Fund Financial Statements. The notes to the basic financial statements can be found on pages 45–84 of this report.

Combining and Individual Fund Financial Statements and Schedules The combining statements referred to earlier in connection with non-major governmental funds are presented immediately following the notes to the financial statements. Combining and individual fund statements can be found on pages 88–146 of this report. 8

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City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2025
Management’s Discussion and Analysis, Continued

GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City’s net position, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $136.0 million as of June 30, 2025. The Summary of net position as of June 30, 2024, and 2025 follows:

Overall, the total net position increased by $11.7 million. The total net position of governmental activities increased by $6.9 million and total net position for business-type activities increased by $4.8 million.

The total restricted net position decreased by $2.8 million, and the unrestricted net position experienced a increase of $6.1 million over the previous year.

Govern- Business- Govern- Businessmental type mental type Activities Activities Total Activities Activities Total Current and other assets $ 54,729,192 $ 56,499,694 $ 111,228,886 $ 54,680,627 $ 60,275,789 $ 114,956,416 Noncurrent assets 28,228,225
104,582,890 132,811,115 $ 36,791,179 $ 103,167,393 $ 139,958,572 Deferred outflows of resources 15,350,383
- 15,350,383 $ 11,149,431 $ - $ 11,149,431
Total assets and deferred
outflows of resources 98,307,800
161,082,584 259,390,384 $ 102,621,237 $ 163,443,182 $ 266,064,419 Current and other liabilities 7,230,264
5,084,696 12,341,960 $ 7,881,242 $ 4,826,363 $ 12,707,605 Long-term liabilities 50,318,880
64,232,273 114,551,153 $ 49,574,413 $ 62,062,566 $ 111,636,979 Deferred inflows of resources 8,144,089
-
8,144,089
$ 5,639,505 $ - $ 5,639,505
Total liabilities and deferred
inflows of resources 65,693,233
69,316,969 135,010,202 $ 63,095,160 $ 66,888,929 $ 129,984,089 Net position:

Net investment in
capital assets 27,836,092
36,668,554 66,504,646 $ 35,624,096 $ 39,288,066 $ 74,912,162 Restricted 26,722,990
1,130,742 27,853,732 $ 23,794,368 $ 1,219,541 $ 25,013,909 Unrestricted (deficit) (21,944,515)
51,966,319 30,021,804 $ (19,982,387) $ 56,046,646 $ 36,154,259 Total net position $ 32,614,567 $ 91,765,615 $ 124,380,182 $ 39,526,077 $ 96,554,253 $ 136,080,330 2024 2025
Summary of Net Position
9

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City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2025
Management’s Discussion and Analysis, Continued
GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued
Revenues
The City’s total revenues for governmental and business-type activities were $62.5 million for the fiscal year ended June 30, 2025. Significant revenues for the City for fiscal year 2024-25 were derived from charges for services 46.6%, sales and use tax 18.1%, operating/capital grants and contributions 9.9%, property taxes and assessments 11.4%.

The following discusses variances in key revenues from the prior fiscal year for governmental and business-type activities:

1. Sales and Use Tax. Sales Tax revenue decreased by $108,834 or less than 1% over previous fiscal year. The fiscal year ending June 30, 2024, encompassed the first full fiscal year the Measure B Public Safety one cent special transaction and use tax (sales tax) was in effect.

The one cent tax went into effect during the last quarter of fiscal year 2022-23 and replaced Measure H which was a half cent transaction and use tax.

2. Operating/Capital Grants and Contributions. Capital contributions represent 2% of overall total revenues for the City.

3. Property Taxes and Assessments. Property tax revenue increased by $288,486 or 4.2% over last fiscal year. This is due primarily to higher property values. 10

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City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2025
Management’s Discussion and Analysis, Continued
GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued
The change in net position for the fiscal years ended June 30, 2024, and 2025, follows Govern- Business- Govern- Businessmental type mental type Activities Activities Total Activities Activities Total Revenues:

Program revenues:

Charges for services $4,688,984 $24,271,014 $28,959,988 4,573,557 24,606,210 $ 29,179,767
Grants and contributions:

Operating 3,839,414 1,314,149 5,153,563 3,640,819 1,275,417 $ 4,916,236 Capital 2,137,575 2,137,575 1.327,243 -
$ 1,327,243
General revenues:

Property taxes
and assessments 6,851,539 -
6,851,539 7,140,025 - $ 7,140,025
Transient occupancy taxes 51,276 -
51,276 42,983 - $ 42,983
Sales and use tax 11,478,891 -
11,478,891 11,370,057 - $ 11,478,891
Franchise taxes 714,781 -
714,781 727,049 - $ 714,781
Other taxes 1,848,083 -
1,848,083 1,646,656 -
$ 1,848,083
Intergovernmental 1,773,427 -
1,773,427 927,973 - $ 1,773,427
Use of money and property 1,820,613 2,976,846 4,797,459 1,761,446 3,237,012 $ 4,797,459 Other 202,249 -
202,249 265,764 - $ 202,249
Sale of real property 80,000 -

80,000

-
- $ 80,000
Total revenues 35,486,832 28,562,009 64,048,841 33,423,572 29,118,639 62,542,211 Expenses:

Governmental activities:

General government 6,453,064 -
6,453,064 $ 6,208,941 $ 6,208,941
Public safety 12,370,822 -
12,370,822 14,146,062 $ 14,146,062
Highways and streets 3,760,276 -
3,760,276 3,941,656 $ 3,941,656
Urban redevelopment
and housing 988,150 -
988,150 1,141,978 $ 1,141,978
Community services 1,134,604 -
1,134,604 1,105,771 $ 1,105,771
Interest on long-term debt 126,142
- 126,142 42,878
$ 42,878
Business-type activities:

Water -
6,153,078 6,153,078 7,256,120
$ 7,256,120
Sewer -
12,761,785 12,761,785 12,326,913 $ 12,326,913
Sanitation -
5,605,016 5,605,016 4,698,987 $ 4,698,987
Total expenses 24,833,058 24,519,879
49,352,937 26,587,286 24,282,020 50,869,306 Change in net position before transfers 10,653,774 4,042,130 14,695,904 6,836,286 4,531,869 11,672,905 Transfers 152,375 (152,375)
- 152,375
(152,375) -
Change in net position 10,806,149 3,889,755 14,695,904 6,988,661 4,684,244 11,672,905 2024 2025
Changes in Net Position
11

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Governmental activity expenses totaled $26.5 million or 52% of total expenses. Business-type activities incurred $24.2 million or 48% of total expenses during the fiscal year. Public safety costs represented 53% of total governmental activities expenses.

Governmental Activities
The following table shows the cost of each of the City’s major programs and the net cost of the programs. Net cost is the total cost less fees and other direct revenue generated by the activities.

The net cost reflects the financial burden that was placed on the City’s taxpayers by each of the programs. The total cost of services and the net cost of services for the fiscal years ended June 30, 2024, and 2025, are as follows:

Net cost of the City’s major programs can fluctuate greatly from one fiscal year to the next due to GASB’s standards associated with the reporting of pension expense in the City’s financial statements. The components of pension expense include many factors: service cost, interest on the total pension liability, changes in the net pension liability, employee contributions, and expected return on plan assets. When investment returns come in higher than expected, the City will experience a reduction in pension expense. Conversely, if returns on plan assets fall short of the expected return, the City will realize an increase in pension expense. The first situation occurred in FY 23/24, when CalPERS net return on plan assets came in higher than anticipated resulting in a reduction of pension expense for the City.

Total Cost Net Cost Total Cost Net Cost
of Services of Services of Services of Services
General government $ 6,453,064 $ (2,715,091) $ 6,208,941 $ (2,383,962) Public Safety 12,370,822 (9,165,603) 14,146,062 (11,558,588) Highway and streets 3,760,276 (549,042) 3,941,656 (1,026,794) Urban redevelopment and housing 988,150 (829,941) 1,141,978 (1,141,978) Community services 1,134,604 (781,266) 1,105,771 (891,467) Interest on long-term debt 126,142 (126,142) 42,878 (42,878) Total $ 24,833,058 $ (14,167,085) $ 26,587,286 $ (17,045,667) 2024 2025
12

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Charges for services
$4,688,984

13.2%
Operating grants
$3,839,414

10.8%
Capital grants
$2,137,575

6.0%
Property taxes
$6,851,539

19.4%
Transient occupancy
taxes
$51,276

0.1%
Sales and use tax
$11,478,891

32.4%
Franchise fees
$714,781

2.0%
Other taxes
$1,848,083

5.2%
Intergovernmental
$1,773,427

5.0%
Use of money and
property
$1,820,613

5.1%
Other general
$202,249

0.6%
Revenues by Source - Governmental Activities 2024
Charges for services
$4,573,557

13.7%
Operating grants
$3,640,819

10.9%
Capital grants
$1,327,243

4.0%
Property taxes
$7,140,025

21.4%
Transient
occupancy taxes
$42,983

0.1%
Sales and use tax
$11,370,057

34.0%
Franchise fees
$727,049

2.2%
Other taxes
$1,646,656

4.9%
Intergovernmental
$927,973

2.8%
Use of money and
property
$1,761,446

5.3%
Other general
$265,764

0.8%
Revenues by Source - Governmental Activities 2025
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City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2025
Management’s Discussion and Analysis, Continued
GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued
Business-type Activities
The City has three business-type activities: Water, Sewer, and Sanitation Operations. The operating revenues and expenses for the business-type activities for the fiscal years ended June 30, 2024 and 2025 are as follows:

Operating Revenues & Expenditures
Business-type 2024

$-
$5,000,000
$10,000,000
$15,000,000
Water Sewer Sanitation
Operating revenues
Operating expenses
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
Water Sewer Sanitation
Operating revenues
Operating expenses
Operating Revenues and Expenses
Business-type Activities
2025
14

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City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2025
Management’s Discussion and Analysis, Continued
GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued
Business-type Activities, Continued
The revenues by source for the business-type activities for the fiscal years ended June 30, 2023, and 2024, are as follows:

Chrg for Serv,
$24,271,014,

94.87%
Operating Grants and
Contributions,
$1,314,149, 5.13%
Revenues by Source - Business-type Activities 2024
Charges for
services,
$24,606,210,

95.1%
Operating Grants
and Contributions,
$1,275,417, 4.9%
Revenues by Source - Business-type Activities 2025
15

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City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2025
Management’s Discussion and Analysis, Continued
FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
The City of Atwater uses fund accounting to ensure and demonstrate compliance with financerelated legal requirements. The fund financial statements focus on individual parts of the City government, reporting the City’s operations in more detail than the government-wide financial statements.

Governmental Funds. The City’s governmental funds provide information on near-term inflows, outflows, and balances of spending resources. At the fiscal year ended June 30, 2025, the City’s governmental funds reported combined fund balances of $43.3 million. The increase is due mainly to departments not expending the approved appropriations contained within the adopted/amended budget.

The General Fund is the primary operating fund of the City. At the fiscal year ended June 30, 2025, the General Fund had a fund balance of $19.9 million. The General Fund balance improved by $2.6 million from the prior fiscal year end balance of $17.3 million and is the sixth consecutive fiscal year with positive fund balance. The increase of $2.6 million is due to revenues coming in higher than anticipated and outgoing expenses were less than anticipated.

The Public Safety Transactions and Use Tax Fund is defined as a major fund of the City and had a fund balance of $3.2 million as of June 30, 2025. The Public Safety Transactions and Use Tax Fund balance improved by $200,000 over the prior fiscal year.

Proprietary Funds. The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statement. The City uses enterprise funds to account for its water, sewer and sanitation operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses the internal service funds to account for its building and equipment maintenance, as well as employee benefits fund. The City’s proprietary funds net position increased by $4.6 million for enterprise funds and increased by $634,810 for internal service funds in the fiscal year ended June 30, 2025.

Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not available to support the City’s own programs.

The accounting used for fiduciary funds is much like that used for proprietary funds. 16

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City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2025
Management’s Discussion and Analysis, Continued
FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS, Continued General Fund Budgetary Highlights
General Fund actual revenues totaled $20.4 million which was 105.6 percent of the amended budget estimate. General Fund expenditures totaled $17.1 million or 87.8 percent of the approved amended budget. The General Fund balance increased by $2.6 million to a balance of $19.9 million.

CAPITAL ASSETS
The City’s net investment in capital assets for its governmental and business-type activities as of June 30, 2025 amounted to $139.7 million. This investment in capital assets includes land, construction in progress, costs for buildings and improvements, infrastructure, roads, and equipment.

The June 30, 2025, total balance reflects addition to construction in progress of $4.1 million. Total depreciation for the year amounted to $6.8 million.

More detail of the capital assets and current activity can be found in the notes to the financial statements on page 49 for significant accounting policies and Note 3 on pages 60 and 61 for other capital asset information.
2024 2025 2024 2025 2024 2025
Land $ 299,384 $ 299,384 $ 1,064,902 $ 1,064,902 $ 1,364,286 $ 1,364,286 Construction in progress 6,420,451 14,599,244 11,715,195 7,638,762 $ 18,135,646 $ 22,238,006 Buildings and improvements 18,160,380 18,914,317 139,740,024 146,553,183 $ 157,900,404 $ 165,467,500 Infrastructure 1,214,625 1,214,625 - 1,214,625 - $ $ 1,214,625 Roads 50,012,085 50,527,682 - 50,012,085 - $ $ 50,527,682 Equipment 12,316,355 12,303,901 11,977,249 12,255,048 $ 24,293,604 $ 24,558,949 Total $ 88,423,280 $ 97,859,153 $ 164,497,370 $ 167,511,895 $ 252,920,650 $ 265,371,048 Governmental Activities Business-type Activities Totals 17

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City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2025
Management’s Discussion and Analysis, Continued

LONG-TERM LIABILITIES
At June 30, 2025, the City had $65.7 million in debt outstanding consisting of compensated absences, lease obligations and revenue bonds.

During the current fiscal year, the City’s net debt increased by $432,024. The net increase was due to lease obligations the City entered into during the fiscal year. Additional information regarding each of the City’s debt issues as well as debt service requirements is discussed in greater detail in Note 6 to the financial statements on page 66.

NEXT YEARS BUDGET AND THE ECONOMY
The budget for Fiscal Year (FY) 2025-26 was developed with expense and revenue estimates based on known data factors and historical trends. The City’s total FY 2025-26 adopted budget approves appropriations at $85.1 million. The budget provides funding for staffing of 113 positions. The budget approves a dedicated contribution to a Section 115 Trust for Pension and OPEB funding.

Revenue increases were calculated with a conservative and likely approach as there are no identified new revenue streams coming online during FY 2025-26 and sales tax estimates are rather flat. Expense estimates were calculated with cost escalation of both known data and estimates where needed.

The City’s General Fund is projected to maintain a positive fund balance during FY 2025-26. Per General Fund Reserve Policy, the General Fund will maintain a positive fund balance of the required ten (10) % of estimated operating expenses. In addition, the fund balance is expected to maintain the target goal of twenty-five (25) % of estimated operating expenses.

As with many cities, the City of Atwater expects to experience the effects of increased inflation with impacts on operating expenses in the delivery of municipal services during FY 2025-26 due to varying geopolitical uncertainties. In addition, primary sources of General Fund revenue, such Governmental Business-type
Activities Activities Total
Compensated absences $ 670,405 $ 157,630 $ 828,035
Lease Obligations (includes lease purchases)
1,007,719 - 1,007,719
2017A Wastewater Revenue Refunding Bonds - 48,000,000 48,000,000 2018A Wastewater Revenue Refunding Bonds - 11,805,000 11,805,000 Unamortized bond premium - 4,074,327 4,074,327
Unamortized underwriting discount - - Total $ 1,678,124 $ 64,036,957 $ 65,715,081 2025
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City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2025
Management’s Discussion and Analysis, Continued
as sales tax, have slowed in recent quarters. For FY 2025-26, there are cost of living increases approved for the Atwater Police Officers Association which have been included in the budget, and no cost-of-living increases approved for the other labor groups or unrepresented employees in the FY 2025-26 budget. The City budget ensures debt service obligations will be met during the fiscal year.

The City of Atwater is located in Merced County, which lies in the great Central Valley of California. The City is situated in an ideal location for a variety of industries, with railroad service and a major freeway nearby. The City continues to pursue viable economic development activities that will advantageously position the City for future revenue growth.

REQUESTS FOR INFORMATION
This Annual Financial Report is intended to provide citizens, taxpayers, investors, and creditors with a general overview of the City’s finances. If you have any questions about this report, need additional financial information, or would like to obtain component unit financial statements, contact the City of Atwater Finance Department, 1350 Broadway Avenue, Atwater, CA 95301, or visit the City’s web page at www.atwater.org.
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BASIC

FINANCIAL STATEMENTS
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GOVERNMENT-WIDE

FINANCIAL STATEMENTS
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City of Atwater
Statement of Net Position
June 30, 2025
Governmental Business-type
Activities Activities Total
ASSETS
Current assets:

Cash and investments $ 50,310,039 $ 56,311,858 $ 106,621,897 Restricted cash and investments - 1,219,541 1,219,541
Receivables:

Accounts 4,316,690 2,736,265 7,052,955
Prepaid items 53,898 8,125 62,023
Total current assets 54,680,627 60,275,789 114,956,416
Noncurrent assets:

Land held for resale 159,364 - 159,364
Capital assets:

Nondepreciable 14,898,628 8,703,664 23,602,292
Depreciable 82,960,525 158,808,231 241,768,756
Lease assets 249,376 - 249,376
Subscription assets 1,105,850 - 1,105,850
Less accumulated amortization (373,516) - (373,516)
Less accumulated depreciation (62,209,048) (64,344,502) (126,553,550) Total capital assets 36,631,815 103,167,393 139,799,208 Total noncurrent assets 36,791,179 103,167,393 139,958,572 Total assets 91,471,806 163,443,182 254,914,988

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows - pension 8,839,677 - 8,839,677
Deferred outflows - OPEB 2,309,754 - 2,309,754
Total deferred outflows of resources 11,149,431 - 11,149,431

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 5,007,112 1,736,570 6,743,682 Interest payable - 422,309 422,309
Deposits payable 534,323 606,155 1,140,478
Other liabilities 349,217 30,000 379,217
Unearned revenue 869,488 56,938 926,426
Compensated absences - current portion 287,378 59,391 346,769 Lease liabilities - current portion 1,869 - 1,869
SBITA liabilities - current portion 112,133 - 112,133
Long-term debt - current portion - 1,915,000 1,915,000
Net OPEB liability - current portion 719,722 - 719,722
Total current liabilities 7,881,242 4,826,363 12,707,605 Noncurrent liabilities:

Compensated absences 383,027 98,239 481,266
Net pension liability 28,249,398 - 28,249,398
Net OPEB liability 20,048,271 - 20,048,271
SBITA liabilities 893,717 - 893,717
Long-term debt - 61,964,327 61,964,327
Total noncurrent liabilities 49,574,413 62,062,566 111,636,979 Total liabilities 57,455,655 66,888,929 124,344,584

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources - pension 1,820,858 - 1,820,858 Deferred inflows of resources - OPEB 3,818,647 - 3,818,647 Total deferred inflows of resources 5,639,505 - 5,639,505

NET POSITION
Net investment in capital assets 35,624,096 39,288,066 74,912,162 Restricted 23,794,368 1,219,541 25,013,909
Unrestricted (19,892,387) 56,046,646 36,154,259
Total net position $ 39,526,077 $ 96,554,253 $ 136,080,330 Primary Government
See accompanying Notes to Basic Financial Statements
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City of Atwater
Statement of Activities
For the year ended June 30, 2025
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Total Governmental activities:

General government $ 6,208,941 $ 3,565,688 $ 259,291 $ 3,824,979 - $ Public safety 14,146,062 158,943 2,428,531 2,587,474 -
Highways and streets 3,941,656 635,095 952,997 1,326,770 2,914,862 Urban redevelopment and housing 1,141,978 - - - -
Community services 1,105,771 213,831 - 473 214,304
Interest on long-term debt 42,878 - - - -
Total governmental activities 26,587,286 4,573,557 3,640,819 1,327,243 9,541,619 Business-type Activities:

Water 7,256,120 8,431,389 103,959 8,535,348 -
Sewer 12,326,913 12,058,971 441,053 12,500,024 -
Sanitation 4,698,987 4,115,850 730,405 4,846,255 -
Total Business-Type activities 24,282,020 24,606,210 1,275,417 25,881,627 - Total primary government $ 50,869,306 $ 29,179,767 $ 4,916,236 $ 1,327,243 $ 35,423,246 General Revenues:

Taxes:

Property taxes, levied for general purposes
Transient occupancy tax
Sales taxes
Franchise fes
Other taxes
Total taxes
Intergovernmental
Use of money and property
Other general revenues
Total general revenues
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning of year
Restatement
Net position - beginning of year, as restated
Net position - end of year
Program Revenues
See accompanying Notes to Basic Financial Statements.
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Governmental Business-Type
Activities Activities Total
$ (2,383,962) $ (2,383,962) - $
(11,558,588) (11,558,588) -
(1,026,794) (1,026,794) -
(1,141,978) (1,141,978) -
(891,467) (891,467) -
(42,878) (42,878) -
(17,045,667) (17,045,667) -
1,279,228 - 1,279,228
173,111 - 173,111
147,268 - 147,268
1,599,607 - 1,599,607
(17,045,667) 1,599,607 (15,446,060)
7,140,025 - 7,140,025
42,983 - 42,983
11,370,057 - 11,370,057
727,049 - 727,049
1,646,656 - 1,646,656
20,926,770 20,926,770 -
927,973 927,973 -
1,761,446 3,237,012 4,998,458
265,764 265,764 -
2,955,183 3,237,012 6,192,195
152,375 (152,375) -
3,107,558 3,084,637 6,192,195
6,988,661 4,684,244 11,672,905
32,614,567 91,765,615 124,380,182
(77,151) 104,394 27,243
32,537,416 91,870,009 124,407,425
$ 39,526,077 $ 96,554,253 $ 136,080,330
and Changes in Net Position
Net (Expense) Revenue
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FUND

FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
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City of Atwater
Balance Sheet
Governmental Funds
June 30, 2025
Public Safety
Transaction & Nonmajor Total
General Use Special Tax Governmental Governmental
Fund Revenue Fund Funds Funds
ASSETS
Cash and investments $ 19,513,063 $ 2,473,786 $ 24,226,191 $ 46,213,040 Receivables:

Taxes 840,321 13,230 - 853,551
Interest 129,734 22,804 163,349 315,887
Intergovernmental 12,370 436,649 - 449,019
Other receivable 1,466,020 1,016,911 191,719 2,674,650
Prepaid items 41,688 - 331 42,019
Due from other funds 649,191 - - 649,191
Land held for resale - 159,364 - 159,364
Total assets $ 22,652,387 $ 3,513,501 $ 25,190,833 $ 51,356,721

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable $ 1,442,907 $ 177,598 $ 2,878,583 $ 4,499,088 Accrued liabilities 322,121 38,823 20,901 381,845
Deposits payable 422,657 111,666 - 534,323
Other liabilities - 349,217 - 349,217
Unearned revenue - 869,488 - 869,488
Total liabilities 2,187,685 216,421 4,879,046 7,283,152 Deferred Inflows of Resources
Unavailable revenues 534,132 218,307 - 752,439
Total deferred inflows of resources 534,132 218,307 - 752,439 Fund Balances:

Nonspendable
Prepaid items 41,688 - 331 42,019
Land held for resale - 159,364 - 159,364
Restricted 3,297,080 - 20,497,288 23,794,368
Assigned - 123,919 - 123,919
Unassigned 19,888,882 (687,422) - 19,201,460
Total fund balances 19,930,570 3,297,080 20,093,480 43,321,130 Total liabilities, deferred inflows of resources
and fund balances $ 22,652,387 $ 3,513,501 $ 25,190,833 $ 51,356,721 Major Funds
See accompanying Notes to Basic Financial Statements
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Total Fund Balances - Total Governmental Funds $ 43,321,130 Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet. Except for the internal service funds reported below, the capital assets were adjusted as follows:

GovernmentWide Statement
of Net Position
Internal
Service
Funds Total
Nondepreciable $ 14,898,628 $ - $ 14,898,628
Depreciable, net 21,733,187 (682,854) 21,050,333
Total capital assets $ 36,631,815 $ (682,854) 35,948,961 Internal service funds were used by management to charge the costs of certain activities, such as insurance, to individual funds. The assets and liabilities of the Internal service funds were included in governmental activities in the Government-Wide Statement of Net Position. 4,659,109
Unavailable revenues recorded in the fund financial statements resulting from activities in which revenues were earned but were not available are reclassified as revenues in the Government-Wide Financial Statements. 752,439 In the Government-Wide Financial Statements, deferred employer contributions for pension and OPEB, certain differences between actuarial estimates and actual results, and other adjustments resulting from changes in assumptions and benefits are deferred in the current year.

Deferred outflows of resources related to pension 8,839,677 Deferred outflows of resources related to OPEB 2,309,754 Deferred inflows of resources related to pension (1,820,858) Deferred inflows of resources related to OPEB (3,818,647) Long-term liabilities were not due and payable in the current period. Therefore, they were not reported in the Governmental Funds Balance Sheet.

GovernmentWide Statement
of Net Position
Internal
Service
Funds Total
Compensated absences - due within one year $ (287,378) $ 10,810 $ (276,568) SBITA liability -due within one year (112,133) (112,133) - Lease liability -due within one year (1,869) (1,869)
Compensated absences - due in more than one year (383,027) 19,217 (363,810) Net pension liability (28,249,398) - (28,249,398)
Net OPEB liability (20,767,993) - (20,767,993)
SBITA liability - due in more than one year (893,717) - (893,717) Total long-term liabilities $ (50,695,515) $ (50,665,488) 30,027

Net Position of Governmental Activities $ 39,526,077
City of Atwater
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2025
Amounts reported for governmental activities in the statement of net position are different because:

See accompanying Notes to Basic Financial Statements.
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City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2025
Public Safety
Transaction & Nonmajor Total
General Use Special Tax Governmental Governmental
Fund Revenue Funds Funds
REVENUES:

Taxes and assessments $ 9,301,323 $ 5,595,919 $ 1,969,368 $ 16,866,610 Licenses and permits 327,923 - - 327,923
Fines and forfeitures 104,796 - - 104,796
Intergovernmental 5,859,489 - 4,321,292 10,180,781
Use of money and property 782,948 79,957 780,722 1,643,627 Charges for services 3,995,170 - 214,070 4,209,240
Other revenues 107,751 - 185,321 293,072
Total revenues 20,479,400 5,675,876 7,470,773 33,626,049 EXPENDITURES:

Current:

General government 5,713,115 6,990 453,421 6,173,526
Public safety 8,264,357 4,807,337 41,506 13,113,200
Highways and streets 1,819,785 - 1,275,152 3,094,937
Urban redevelopment and housing - - 1,129,569 1,129,569 Community services 1,095,339 1,124 - 1,096,463
Capital outlay - 1,479,667 9,091,507 10,571,174
Debt service
Principal 270,061 95,831 - 365,892
Interest and fiscal charges - 7,886 - 7,886 -
Total expenditures 17,162,657 6,398,835 11,991,155 35,552,647

REVENUES OVER (UNDER)
EXPENDITURES 3,316,743 (722,959) (4,520,382) (1,926,598) OTHER FINANCING SOURCES (USES):

Transfers in 152,375 - 711,656 864,031
Transfers out (818,950) (42,706) - (861,656)
Proceeds from SBITA lease - 946,843 - 946,843
Total other financing sources (uses) (666,575) 946,843 668,950 949,218 Net change in fund balances 2,650,168 223,884 (3,851,432) (977,380) FUND BALANCES:

Beginning of year 17,334,750 3,073,196 23,890,564 44,298,510 Restatements (54,348) - 54,348 -
Beginning of year, as restated 17,280,402 3,073,196 23,944,912 44,298,510 End of year $ 19,930,570 $ 3,297,080 $ 20,093,480 $ 43,321,130 Major Funds
See accompanying Notes to Basic Financial Statements
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City of Atwater
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Government-Wide Statement of Activities For the year ended June 30, 2025
Net Change in Fund Balances - Total Governmental Funds $ (977,380) Governmental funds reported capital outlay as expenditures. However, in the Government-Wide Statement of Activities, the cost of those assets was allocated over their estimated lives as depreciation expense. This was the amount of capital assets recorded in the current period, net of the amount related to internal service funds. 10,571,174
Depreciation expense on capital assets was reported in the Government-Wide Statement of Activities, but did not require the use of current financial resources. Therefore, depreciation expense was not reported as expenditures in the governmental funds, net of the amount related to internal service funds. (2,120,856)
Accrued compensated leave payments were reported as expenditures in the governmental funds, however expense is recognized in the Government-Wide Statement of Activities based on earned leave accruals. 127,060
Debt proceeds provide current financial resources to governmental funds, but issuing debt increased long-term liabilities in the Government-Wide Statement of Net Position. Repayment of debt was an expenditure in governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position.

Long-term debt repayments 330,900
Issuance of Debt (946,843)
Changes in the net pension liability and related deferred inflows and deferred outflows do not use or provide current financial resources and are therefore not reported in the funds. (1,178,601) Changes in the net OPEB liability and related deferred inflows and deferred outflows do not use or provide current financial resources and are therefore not reported in the funds. 868,366 Unavailable revenues recorded in the fund financial statements resulting from activities in which revenues were earned but were not available are reclassified as revenues in the Government-Wide Financial Statements. (319,969)
Internal service funds were used by management to charge the costs of certain activities, such as insurance and fleet management, to individual funds. The net revenue of the internal service funds was reported with governmental activities. 634,810

Change in Net Position of Governmental Activities $ 6,988,661 Amounts reported for governmental activities in the Government-Wide Statement of Activities were different because:

See accompanying Notes to Basic Financial Statements.
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City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes and assessments $ 9,133,834 $ 9,133,834 $ 9,301,323 $ 167,489 Licenses and permits 315,400 315,400 327,923 12,523
Fines and forfeitures 167,750 167,750 104,796 (62,954)
Intergovernmental 5,014,716 5,014,716 5,859,489 844,773 Use of money and property 173,033 173,033 782,948 609,915 Charges for services 4,408,241 4,408,241 3,995,170 (413,071) Other revenues 175,500 175,500 107,751 (67,749)
Total revenues 19,388,474 19,388,474 20,479,400 1,090,926 EXPENDITURES:

Current:

General government 6,098,894 6,098,894 5,713,115 385,779 Public safety 9,612,947 9,612,947 8,264,357 1,348,590
Public works 2,495,136 2,495,136 1,819,785 675,351
Community services 1,336,420 1,336,420 1,095,339 241,081 Debt Service
Principal - - 270,061 (270,061)
Total expenditures 19,543,397 19,543,397 17,162,657 2,380,740

REVENUES OVER (UNDER)
EXPENDITURES (154,923) (154,923) 3,316,743 3,471,666
OTHER FINANCING SOURCES (USES):

Transfers in 202,375 202,375 152,375 (50,000)
Transfers out (867,640) (867,640) (818,950) 48,690
Total other financing sources (uses) (665,265) (665,265) (666,575) (1,310) Net change in fund balances $ (820,188) $ (820,188) 2,650,168 $ 3,470,356 FUND BALANCES:

Beginning of year 17,334,750
Restatements (54,348)
Beginning of year, as restated 17,280,402
End of year $ 19,930,570
Budget Amounts
See accompanying Notes to Basic Financial Statements.
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City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Public Safety Transaction & Use Special Revenue Fund
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes and assessments $ 5,114,700 $ 5,114,700 $ 5,595,919 $ 481,219 Use of money and property 1,000 1,000 79,957 78,957
Total revenues 5,115,700 5,115,700 5,675,876 560,176
EXPENDITURES:

Current:

General government 7,200 7,200 6,990 210
Public safety 4,913,001 4,913,001 4,807,337 105,664
Non-departamental 17,000 17,000 1,124 15,876
Capital outlay:

General capital outlay 757,000 757,000 1,479,667 (722,667) Debt service
Principal 162,500 162,500 95,831 66,669
Total expenditures 5,856,701 5,856,701 6,398,835 (542,134)

REVENUES OVER (UNDER)
EXPENDITURES (741,001) (741,001) (722,959) 18,042
OTHER FINANCING SOURCES (USES):

Proceeds from leases - - 946,843 946,843
Total other financing sources (uses) - 946,843 - 946,843 Net change in fund balances $ (741,001) $ (741,001) 223,884 $ 964,885 FUND BALANCES:

Beginning of year 3,073,196
End of year $ 3,297,080
Budget Amounts
See accompanying Notes to Basic Financial Statements.
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City of Atwater
Statement of Net Position
Proprietary Funds
June 30, 2025
Governmental
Activities
Internal
Water Sewer Sanitation Totals Service Funds
ASSETS
Current Assets:

Cash and investments $ 33,149,780 $ 20,258,030 $ 2,904,048 $ 56,311,858 $ 4,096,999 Restricted cash and investments 1,219,541 - 1,219,541 - - Receivables:

Accounts 774,701 995,076 558,978 2,328,755 3,956
Interest 244,298 143,474 19,738 407,510 19,627
Prepaid expenses 8,125 - - 8,125 11,879
Total current assets 34,176,904 22,616,121 3,482,764 60,275,789 4,132,461 Noncurrent:

Capital assets:

Nondepreciable 5,406,826 3,211,494 85,344 8,703,664 -
Depreciable 54,054,659 104,186,901 566,671 158,808,231 2,796,185 Less accumulated depreciation (19,174,648) (44,668,365) (501,489) (64,344,502) (2,113,331) Net capital assets 40,286,837 62,730,030 150,526 103,167,393 682,854 Total noncurrent assets 40,286,837 62,730,030 150,526 103,167,393 682,854 Total assets 74,463,741 85,346,151 3,633,290 163,443,182 4,815,315

LIABILITIES
Current liabilities:

Accounts payable 1,011,832 202,113 461,984 1,675,929 115,906 Accrued payroll 17,068 43,573 60,641 - 10,273
Interest payable 422,309 - 422,309 - -
Deposits payable 606,155 - 606,155 - -
Other liabilities 30,000 - 30,000 - -
Unearned revenue 56,938 - 56,938 - -
Compensated absences - current 11,338 48,053 59,391 - 10,810 Long-term debt - current 1,915,000 - 1,915,000 - -
Total current liabilities 1,676,393 2,687,986 461,984 4,826,363 136,989 Noncurrent liabilities:

Compensated absences 9,312 88,927 98,239 - 19,217
Long-term debt 61,964,327 - 61,964,327 - -
Total noncurrent liabilities 62,053,254 9,312 62,062,566 - 19,217 Total liabilities 1,685,705 64,741,240 461,984 66,888,929 156,206

NET POSITION
Net investment in capital assets 40,286,837 (1,149,297) 150,526 39,288,066 682,854 Restricted for capital projects 1,219,541 - 1,219,541 - - Unrestricted 32,491,199 20,534,667 3,020,780 56,046,646 3,976,255 Total net position $ 72,778,036 $ 20,604,911 $ 3,171,306 $ 96,554,253 $ 4,659,109 Business-Type Activities - Enterprise Funds
See accompanying Notes to Basic Financial Statements.
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City of Atwater
Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
For the year ended June 30, 2025
Governmental
Activities
Internal
Water Sewer Sanitation Totals Service Funds
OPERATING REVENUES:

Charges for services $ 8,431,389 $ 12,058,971 $ 4,115,850 $ 24,606,210 $ 6,090,752 Other operating revenue 103,959 441,053 730,405 1,275,417 58,715 Total operating revenues 8,535,348 12,500,024 4,846,255 25,881,627 6,149,467 OPERATING EXPENSES:

Salaries and benefits 707,772 1,431,279 - 2,139,051 470,529 Contractual services 1,123,431 2,596,646 3,598,619 7,318,696 748,333 Materials and supplies 229,577 195,391 70,683 495,651 1,538 Repairs and maintenance - - - 765,787 -
Utilities 1,645,706 838,654 - 2,484,360 202,457
Insurance - - - 3,100,216 -
Other operating costs 1,929,011 1,868,195 1,015,632 4,812,838 400,112 Depreciation 1,620,623 2,997,609 14,053 4,632,285 93,177 Total operating expenses 7,256,120 9,927,774 4,698,987 21,882,881 5,782,149 Operating income (loss) 1,279,228 2,572,250 147,268 3,998,746 367,318 NONOPERATING REVENUES (EXPENSES):

Intergovernmental revenues (expenses) - - - - 3,570
Interest revenue 2,405,904 738,950 92,158 3,237,012 113,922 Interest expense (2,399,139) - (2,399,139) - -
Total nonoperating revenues (expenses) 2,405,904 (1,660,189) 92,158 837,873 117,492 Income before contributions and transfers 3,685,132 912,061 239,426 4,836,619 484,810 CONTRIBUTIONS AND TRANSFERS:

Transfers in - - - 200,000 -
Transfers out (152,375) - (152,375) - (50,000)
Total contributions and transfers (152,375) - (152,375) - 150,000 Change in net position 3,532,757 912,061 239,426 4,684,244 634,810 NET POSITION:

Beginning of year 69,141,581 19,692,154 2,931,880 91,765,615 4,027,060 Restatement 103,698 696 104,394 - (2,761)
Beginning of year, as restated 69,245,279 19,692,850 2,931,880 91,870,009 4,024,299 End of year $ 72,778,036 $ 20,604,911 $ 3,171,306 $ 96,554,253 $ 4,659,109 Business-Type Activities - Enterprise Funds
See accompanying Notes to Basic Financial Statements.
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City of Atwater
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2025
Governmental
Activities
Internal
Water Sewer Sanitation Totals Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers and users $ 8,527,361 $ 12,533,219 $ 4,811,713 $ 25,872,293 $ 6,185,312 Cash paid to suppliers for goods and services (4,829,248) (6,168,938) (4,498,466) (15,496,652) (5,388,402) Cash paid to employees for services (729,722) (1,405,140) (2,134,862) - (469,947) Net cash provided by (used in) operating activities 2,968,391 4,959,141 313,247 8,240,779 326,963 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Cash transfers in - - - - 200,000
Cash transfers out (152,375) - (152,375) - (50,000)
Subsidy from grants - - - - 3,570
Net cash provided by (used in)
noncapital financing activities (152,375) - (152,375) - 153,570 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Note principal payments (1,830,000) - (1,830,000) - -
Interest paid on capital debt (2,618,207) - (2,618,207) - - Purchase of capital assets (2,519,242) (591,206) (3,110,448) - (31,757) Net cash provided by (used in)
capital and related financing activities (2,519,242) (5,039,413) (7,558,655) - (31,757) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest received 2,388,647 733,974 91,346 3,213,967 113,922 Net cash provided by (used in) investing activities 2,388,647 733,974 91,346 3,213,967 113,922 Net cash flows 2,685,421 653,702 404,593 3,743,716 562,698 CASH AND INVESTMENTS - Beginning of year 30,464,359 20,823,869 2,499,455 53,787,683 3,534,301 CASH AND INVESTMENTS - End of year $ 33,149,780 $ 21,477,571 $ 2,904,048 $ 57,531,399 $ 4,096,999

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

Operating income (loss) $ 1,279,228 $ 2,572,250 $ 147,268 $ 3,998,746 367,318 Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:

Depreciation 1,620,623 2,997,609 14,053 4,632,285 93,177 (Increase) decrease in accounts receivable (3,448) 33,195 (34,542) (4,795) 30,512 (Increase) decrease in prepaid expense (4,539) - - (4,539) 5,333 Increase (decrease) in accounts payable 296,246 (670,052) 186,468 (187,338) (169,959) Increase (decrease) in accrued payroll 1,006 9,651 - 10,657 - Increase (decrease) in accrued liabilities (226,820) - (226,820) - 498 Increase (decrease) in deposits payable 29,051 - - 29,051 - Increase (decrease) in compensated absences (22,956) 16,488 - (6,468) 84 Net cash provided by (used in) operating activities $ 2,968,391 $ 4,959,141 $ 313,247 $ 8,240,779 $ 326,963 Business-Type Activities - Enterprise Funds
See accompanying Notes to Basic Financial Statements.
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City of Atwater
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
RDA
Successor Agency
Private Purpose
Trust Fund Custodial Funds
ASSETS
Current assets:

Cash and investments $ 300,198 $ 141,180
Interest receivable 5,986 1,031
Total current assets 306,184 142,211
Land 706,256
Property, plant and equipment 8,670,932 -
Less accumulated depreciation (7,042,860) -
Property, plant and equipment 1,628,072 -
Total assets 2,640,512 142,211

LIABILITIES
Current liabilities:

Accounts payable 588 -
Due to others - 1,738
Due within one year 1,005,000 -
Total current liabilities 1,005,588 1,738
Total liabilities 1,005,588 1,738

NET POSITION
Held in trust for dissolution of RDA 1,634,924 -
Held for the CFD Bond holders - 140,473
Total Net Position $ 1,634,924 $ 140,473
See accompanying Notes to Basic Financial Statements.
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City of Atwater
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2025
RDA
Successor Agency
Private Purpose
Trust Fund Custodial Funds
ADDITIONS:

Property taxes $ 730,958 $ -
Investment income 28,961 4,611
Other additions 1,055,277 -
Total additions 1,815,196 4,611
DEDUCTIONS:

Depreciation expense 143,990 -
Urban redevelopment and housing 1,085,697 -
Interest expense 52,055 -
Total deductions 1,281,742 -
Change in net position 533,454 4,611
NET POSITION:

Beginning of year 778,782 135,862
Restatement - correction of error 322,688 -
Beginning of year, as restated 1,101,470 -
End of year $ 1,634,924 $ 140,473
See accompanying Notes to Basic Financial Statements.
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NOTES TO BASIC

FINANCIAL STATEMENTS
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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Atwater (City) was incorporated in 1922, under the laws and regulations of the State of California (State). The City operates under a City Council/Manager form of government and provides the following services: public safety (Police), highways and streets, solid waste, storm water utility, public improvements, planning and zoning, and general administration.

The financial statements of the City have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the standard-setting body for governmental accounting and financial reporting. On June 15, 1987, GASB issued a codification of the existing Governmental Accounting and Financial Reporting Standards which, along with subsequent GASB pronouncements (Statements and Interpretations), constitutes GAAP for governmental units. The City applies all GASB pronouncements to its activities.

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

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

The basic financial statements of the City include only the financial activities of the City. The City does not have component units.

B. Basis of presentation
Government Wide Financial Statements
The statement of net position and statement of activities display information about the reporting government as a whole. They include all funds of the reporting entity except for fiduciary funds. The statements distinguish between governmental and business-type activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange revenues.

Certain types of transactions reported as program revenues for the City are reported in three categories:
 Charges for services
 Operating grants and contributions
 Capital grants and contributions
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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of presentation, Continued
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 for those representing balances between the governmental activities and business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal fund transactions have been eliminated; however those transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:
 Due to/from other funds
 Advances to/from other funds
 Transfer in/out
The City applies all applicable GASB pronouncements including all NCGA Statements and Interpretations currently in effect.

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

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

In the fund financial statements, governmental funds are presented on the modified accrual basis of accounting. Under this modified accrual basis of accounting, revenues are recognized when “measurable and available.” Measurable means knowing or being able to reasonably estimate the amount. Available means the amount is collectible within the current period or soon enough thereafter to pay current liabilities. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within 60 days after year end, with the exception of grant revenues and Transportation Development Act (TDA) revenues. Grant revenues are considered to be available if collected within 190 days and TDA revenues are considered to be available if collected within 90 days of the end of the current fiscal period. 46

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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of presentation, Continued
The City reports the following major governmental funds:
 General Fund – used for all activities except those legally or administratively required to be accounted for in other funds.
 Public Safety Transaction & Use Tax Special Revenue Fund – accounts for Measure H and Measure B, a voter approved sales tax measure, to provide enhanced public safety costs.

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

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

Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Operating revenues in the fund are those revenues that are generated from the primary operations of the fund. All other revenues are reported as nonoperating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses. The City reports the following proprietary funds as major:
 Water Enterprise Fund – accounts for the operation and maintenance of the City’s water treatment and distribution system.
 Sewer Enterprise Fund – accounts for the operation and maintenance of the City’s wastewater treatment plant and collection facilities.
 Sanitation Enterprise Fund – accounts for all activities associates with the operation and maintenance of providing solid waste services.

Internal service fund balances and activities have been combined with governmental and business-type activities in the Government-Wide Financial Statements. These funds account for building maintenance, employee benefits, risk management and information technology.

Fiduciary Fund Financial Statements
Fiduciary fund financial statements consist of a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position. The City has one private-purpose trust fund. The private-purpose trust fund accounts for resources of all other trust arrangements in which principal and income benefit individuals, private organizations, or other governments (i.e. unclaimed property/escheat property).

Fiduciary funds are accounted for using the accrual basis of accounting. 47

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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of presentation, Continued
The funds of the financial reporting entity are described below:
 Successor Agency – Former Atwater Community Development Agency Fund - accounts for funds collected and disbursed for the dissolution of the former Atwater Development Agency related to Administration and Retirement of enforceable obligations.  Custodial Funds - account for assets held by the City in a purely custodial capacity and are not presented in the government-wide financial statements.

C. Cash Deposits and Investments
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and shortterm investments with original maturities of three months or less from the date of acquisition.

The City pools cash and investments from all funds for the purpose of increasing income through investment activities. Highly liquid money market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value in accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools. Market value is used as fair value for those securities for which market quotations are readily available.

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

D. Interfund Receivables and Payables
During the course of operations, numerous transactions occur between individual funds that may result in amounts owed between funds. Those related to goods and services type transactions are classified as “due to and from other funds.” Long-term interfund loans (noncurrent portion) are reported as “advances from and to other funds.” Interfund receivables and payables between funds within governmental activities are eliminated in the Statement of Net position. See Note 7 for details of interfund transactions, including receivables and payables at year-end.

E. Receivables
In the government-wide statements, receivables consist of all revenues earned at year-end and not yet received. Major receivable balances for the governmental activities include property taxes, sales and use taxes, utility user taxes, intergovernmental subventions, interest earnings, and expense reimbursements. 48

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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued E. Receivables, Continued
In the fund financial statements, material receivables in governmental funds include revenue accruals such as property tax, sales tax, utility user tax, and intergovernmental subventions since they are usually both measurable and available. Non-exchange transactions collectible but not available, such as property tax, are deferred in the fund financial statements in accordance with the modified accrual basis, but not deferred in the government-wide financial statements in accordance with the accrual basis.

Interest and investment earnings are recorded when earned only if paid within 60 days since they would be considered both measurable and available. The loans receivable are recorded in the fund statements, but are deferred to indicate they do not represent current financial resources. The loans are recognized when advanced in the government-wide statements. The City’s experience is that all accounts receivable are collectible; therefore an allowance for doubtful accounts is unnecessary.

F. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. In the governmental fund financial statements, prepaid items are offset with a reservation of fund balance for long-term assets to indicate they do not constitute current resources available for appropriation.

G. Capital Assets
The City's assets are capitalized at historical cost or estimated historical cost, if actual is unavailable, except for donated Capital Assets which are recorded at their estimated fair value at the date of donation. Policy has set the capitalization threshold for reporting at $5,000 acquisitions value for noninfrastructure capital assets and $25,000 for infrastructure capital assets.

Public domain (infrastructure) capital assets include roads, bridges, curbs and gutters, streets, sidewalks, drainage systems, and lighting systems.

The accounting treatment of property, plant and equipment (capital assets) depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the government-wide or fund financial statements.

Depreciation of all exhaustible capital assets is recorded as an allocated expense in the Statement of Activities, with accumulated depreciation reflected in the Statement of Net position. Depreciation is provided over the assets’ estimated useful lives using the straight-line method of depreciation. No depreciation is recorded in the year of acquisition or in the year of disposition.

The range of estimated useful lives by type of asset is as follows:

Buildings and improvements 5-40 years Landscaping 30 years Roadway improvements 40 years Signage 25 years
Sidewalks, curbs, and gutters 40 years Leasehold improvements 5 years Storm drain pipes/structures 40 years Machinery and equipment 3-5 years Traffic signal devices 5-40 years Vehicles 3 years
Subscritpion Assets 5-9 years*
*
Over the life of the lease liability
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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued H. Compensated Absences- GASB 101-FIFO Approach
Employees accrue vacation, sick, holiday, and compensatory time off benefits. City employees have vested interests in the amount of accrued time off, with the exception of sick time, and are paid on termination. Also, annually an employee may elect to be compensated for 40 to 120 hours of unused annual leave depending upon their length of service. All vacation pay is accrued when incurred in the government-wide and proprietary financial statements. A liability for these amounts is reported in the governmental funds only if they have matured, for example, as a result of employee resignations or retirements and is currently payable.

City implemented GASB 101 during the year which require liabilities for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. Under GASB 101, Compensated absences convertible to CalPERS’s service credits is excluded from liability. City adopted FIFO flow assumption for sick leaves for recording current liability related to Sick leaves and liability for sick leaves to be paid out in cash, when an employee is retired or being laid off by the city.A current liability is accrued in the governmental funds and proprietary funds using the three-year average of annual usage for each group of employee.

I. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position or balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then.

In addition to liabilities, the statement of net position or balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

J. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Local Government of Example's California Public Employees' Retirement System (CaIPERS) plans (Plans) and additions to/deductions from the Plans' fiduciary net position have been determined on the same basis as they are reported by CaIPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued K. Other Postemployment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:

L. Net Position and Fund Balance
Government-Wide Statements
Equity is classified as net position and is displayed in three components:
a. Net investment in capital assets – consists of capital assets, including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets.
b. Restricted net position – consists of net position with constraints placed on the use by external groups such as creditors, grantors, contributors, or bylaws or regulations of other governments or law through constitutional provisions or enabling legislation. c. Unrestricted net position – all other net position that do not meet the definition of “restricted” or “net investment in capital assets.”
Fund Financial Statements
Governmental fund equity is classified as fund balance. Fund balance is classified as nonspendable, restricted, committed, assigned, or unassigned. Proprietary fund equity is classified the same as in the government-wide statements. The classifications for governmental funds are defined as follows for the City:

Nonspendable Fund Balance –
 Assets that will never convert to cash (prepaid items, inventory).  Assets that will not convert to cash soon enough to affect the current period (long-term notes or loans receivable).
 Resources that must be maintained intact pursuant to legal or contractual requirements (the principal of an endowment).

Valuation Date June 30, 2023
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024
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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued L. Net Position and Fund Balance, Continued
Restricted Fund Balance –
 Resources that are subject to externally enforceable legal restrictions imposed by parties altogether outside the government (creditors, grantors, contributors and other governments).  Resources that are subject to limitations imposed by law through constitutional provisions or enabling legislation (e.g. Gas Tax).

Committed Fund Balance –
 Self-imposed limitations set in place prior to the end of the period (encumbrances, economic contingencies and uncertainties).
 Limitation at the highest level of decision-making (Council) that requires formal action at the same level to remove.
 Council resolution is required to be taken to establish, modify or rescind a fund balance commitment
Assigned Fund Balance –
 Amounts in excess of nonspendable, restricted and committed fund balance in funds other than the general fund automatically are reported as assigned fund balance.  Assigned amounts for a specific purpose are as authorized by the City’s City Treasurer through its fund balance policy.

Unassigned Fund Balance –
 Residual net resources
 Total fund balance in the general fund in excess of nonspendable, restricted, committed, and assigned fund balance (surplus).
 Excess of nonspendable, restricted, and committed fund balance over total fund balance (deficit).

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

Property Valuations – are established by the Assessor of the County of Merced (County) for the secured and unsecured property tax rolls; the utility property tax rolls are valued by the State Board of Equalization. Under the provisions of Article XIIIA of the State Constitution (Proposition 13 adopted by voters on June 6, 2078) properties are assessed at 100% of full value. From this base of assessment, subsequent annual increases in valuation are limited to a maximum of 2%. However, increases to full value are allowed for property improvements or upon change in ownership.

Personal property is excluded from these limitations, and is subject to annual reappraisal. 52

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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued M. Revenues, Expenditures, and Expenses, Continued
Tax Levies – are limited to 1% of full value which results in a tax rate of $1.00 per $100 assessed valuation, under the provisions of Proposition 13. Tax rates for voter-approved indebtedness are excluded from this limitation.

Tax Levy Dates – are attached annually on January 1 proceeding the fiscal year for which the taxes are levied. The fiscal year begins July 1 and ends June 30 of the following year. Taxes are levied on both real and unsecured personal property as it exists at that time. Liens against real estate, as well as the tax on personal property, are not relieved by subsequent renewal or change in ownership.

Tax Collections – are the responsibility of the County Tax Collector. Taxes and assessments on secured and utility rolls which constitute a lien against the property, may be paid in two installments: The first is due on November 1 of the fiscal year and is delinquent if not paid by December 10; and the second is due on March 1 of the fiscal year and is delinquent if not paid by April 10. Unsecured personal property taxes do not constitute a lien against real property unless the taxes become delinquent. Payment must be made in one installment, which is delinquent if not paid by August 31 of the fiscal year. Significant penalties are imposed by the County for late payments.

The County levies, bills, and collects property taxes and special assessments for the City. Property taxes levied are recorded as revenue when received, in the fiscal year of levy, due to the adoption of the “alternate method of property tax distribution”, known as the Teeter Plan, by the City and the County.

The Teeter Plan authorizes the Auditor/Controller of the County to allocate 100% of the secured property taxes billed, but not yet paid. The County remits tax monies to the City in three installments as follows:
50 percent remitted in December
45 percent remitted in April
5 percent remitted in June
N. Budgetary Accounting
The City Council establishes budgets for the General Fund and all Special Revenue Funds, except for certain Special Revenue Funds for which expenditures are controlled by grant funding or by assessments received. Budgetary control is legally maintained at the fund level for these funds.

Department heads submit budget requests to the City Manager. The City Manager prepares an estimate of revenues and prepares recommendations for the next year’s budget. The preliminary budget may or may not be amended by the City Council and is adopted by resolution by the City Council on or before June 30 in accordance with the municipal code.

The City Council may amend the budget by motion during the fiscal year. Only the Council can authorize transfers between funds and approve inter-fund loans. The City Manager is authorized to transfer budgeted amounts within a fund without formal council action or approval. The City Manager is authorized to increase expenditures in relation to revenues in funds receiving assigned revenues without approval by the City Council.
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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued N. Budgetary Accounting, Continued
Expenditures may not legally exceed appropriations at the fund level, which is the legal level of control.

Supplemental appropriations, which increase appropriations, may be made during the fiscal year. There were no material supplemental appropriations made for the fiscal year ended June 30, 2025. Budget information is presented for the General and budgeted Special Revenue Funds in the fund financial statements. The budget information is presented on a basis consistent with generally accepted accounting principles. Appropriations, except open project appropriations, and unexpended grant appropriations, lapse at the end of each fiscal year.

O. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from those estimates.

P. New Accounting Pronouncements
In 2025, the City adopted new accounting standards in order to conform to the following Governmental Accounting Standards Board Statements:
 GASB 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. Following the requirements of this statement, City restated its Fund balance for Government wide, Sewer and Water Fund balances to reflect changes in compensated absences liability this year.
 GASB Statement No. 102, Certain Risk Disclosures – The objective of this Statement is to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints. The City had no adjustments or new disclosures as a result of this Statement.

2. CASH AND INVESTMENTS
Cash, cash equivalents, and investments are reported in the accompanying basic financial statements as follows:

Governmental Business-Type Fiduciary
Activities Activities Funds Total
Cash and investments $ 50,310,039 $ 56,311,858 $ 441,378 $ 107,063,275 Restricted cash and investments 1,219,541 - 1,219,541 - Total cash and investments 50,310,039 $ $ 57,531,399 $ 441,378 $ 108,282,816 Government-Wide Statement
of Net Position
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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

2. CASH AND INVESTMENTS, Continued
Summary of Cash and Investments
At June 30, 2025, the City’s pooled cash and investments consist of the following:

Deposits
The carrying amount of the City’s cash deposit was $12,275,214 at June 30, 2025.

Bank balances before reconciling items were a positive amount of $10,057,319 at June 30, 2025. The City’s cash deposit was fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The remaining amount was collateralized with securities held by the pledging financial institutions in the City’s name.

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

The 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.

Cash on hand $ 550
Deposits with financial institutions 12,275,214
Total cash on hand and deposits 12,275,764
Local Agency Investment Funds (LAIF) 68,541,318
CSJVRMA Investment Pool 1,262,643
Government bonds 5,345,821
Corporate bonds 3,250,028
Asset-backed securities 167,541
Suprational obligation 1,001,522
Money Market Fund 11,040,788
Agency Obligation 3,561,190
Total investments 94,170,851
Total City Treasury 106,446,615
Cash and investments held by fiscal agents 1,219,541
Restricted for PARS pension Trust 616,660
Total cash and investments $ 108,282,816
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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

2. CASH AND INVESTMENTS, Continued
Investments
California statutes authorize cities to invest idle or surplus funds in a variety of credit instruments as provided for in the California Government Code, Section 53600, Chapter 4 – Financial Affairs. The table below identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. The table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code of the City’s investment policy. During the year ended June 30, 2025, the City’s permissible investments included the following instruments:

Investment of debt proceeds held by bond trustees are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. The table below identifies the investment types that are authorized for investments held by bond trustees. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Maximum
Maximum Minimum Credit Maximum % Investment
Authorized Investment Type Maturity Quality of Portfolio in One Issuer Bankers Acceptances 180 days A-1, P-1 30% 5%
Certificates of Deposits 5 years N/A 20% $1m per institution Negotiable Certificates of Deposit 5 years A, A-1 30% 5% Commercial Paper 270 days A-1 25% 10%
State of California Local Agency
Investment Fund (State Pool) N/A N/A N/A N/A
Medium Term Notes 5 years A N/A 5%
Money Market Funds N/A Aaa 20% 10%
U.S. Treasury Securities 5 years N/A N/A N/A
U.S. Government Agency Issues 5 years A 30% 5%
U.S. Government Agency Sponsored
Enterprise Securities 5 years N/A N/A N/A
Repurchase Agreements 1 year N/A 10% 10%
Mortgage pass-through and
asset backed securities 5 years AA 20% 5%
Supranational Obligations 5 years AA 30% 10%
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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

2. CASH AND INVESTMENTS, Continued
Investments, Continued
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by Code Section 16429 under the oversight of the Treasurer of the State of California. The City’s investments with LAIF at June 30, 2025, include a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments include the following:

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

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

As of June 30, 2025, the City had $68,541,318 invested in LAIF, which had invested 3.81% of the pool investment funds in Structured Notes and Asset-Backed Securities as compared to 3.00% in the previous year. The LAIF fair value factor of 1.001198310 was used to calculate the fair value of the investments in LAIF.

Risk Disclosures
Interest rate risk –Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. 12 Months 13 to 36 More than
Investment Type Total or less Months 36 Months
Government bonds $ 5,345,821 $ 325,299 $ 5,020,522 $ - Corporate bonds 3,250,028 1,053,689 2,003,199 193,140 Asset-backed securities 167,541 7,332 160,209 - Suprational obligation 1,001,522 641,738 359,784 - Money Market Fund 11,040,788 11,040,788 - - Agency Obligation 3,561,190 2,311,102 1,250,088 - Subtotal 24,366,890 15,379,948 8,434,018 552,924 Joint investment pools:

Local Agency Investment Fund 68,541,318 68,541,318 - - CSJVRMA Investment Pool 1,262,643 1,262,643 - - Total $ 94,170,851 $ 85,183,909 $ 8,434,018 $ 552,924 Investment Maturities (in Months)
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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

2. CASH AND INVESTMENTS, Continued
Risk Disclosures, Continued
Credit risk – Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the actual rating at June 30, 2025 for each investment type:

Concentration of credit risk – The City’s investment policy does not allow for an investment in any one issuer that is in excess of five percent of the government’s total investments. The investments made by the City Treasurer are limited to those allowable under State statutes as incorporated into the City’s Investment Policy, which is accepted annually by the City Council. There were no concentrations in any one issuer for the year.

Custodial credit risk – investments. For investments, this is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside counterparty. For the investments maintained by the City, no security was uninsured or unregistered or held by a brokerage firm which is also the counterparty for the security.

Investment Total A3 A2 A1 Aa2 Aa1 Aaa
Governent bonds $ 5,345,821 $ - $ - $ - $ 5,345,821 - $ $ - Corporate bonds 3,250,028 271,221 966,369 1,440,851 571,587 - - Suprational obligation 1,001,522 - - - - 1,001,522 - Money Market Fund 11,040,788 - - - - 11,040,788 - Asset Backed Securities 129,263 - - - - 129,263 - Agency Obligation 3,561,190 - - - 3,166,821 - 394,369 Subtotal $ 24,328,612 $ 271,221 $ 966,369 $ 1,440,851 $ 571,587 $ 8,512,642 $ 12,565,942 Not Rated:

Joint Investment Pool:

Local Agency Investment Fund 68,541,318 $
CSJVRMA Investment Pool 1,262,643
Asset-backed securities 38,278
Total Investments $ 94,170,851
Rating as of June 30, 2025
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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

2. CASH AND INVESTMENTS, Continued
Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs.

The following is a summary of the fair value hierarchy of the fair value of investments of the City as of June 30, 2025:

Investment Type Fair Value Level 1 Level 2 Level 3
Government bonds $ 5,345,821 $ 5,345,821 - $ $ - Corporate bonds 3,250,028 3,250,028 - - Asset-backed securities 167,541 167,541 - - Suprational obligation 1,001,522 1,001,522 - - Agency Obligation 3,561,190 3,561,190 - - Total investments subject to fair value 13,326,102 $ 13,326,102 - $ $ - Investments not subject to levelling:

Money Market Funds 11,040,788
CSJVRMA Investment Pool 1,262,643
California Local Agency Investment Fund 68,541,318
Total Investments $ 94,170,851
Fair Value Measurement Using
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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

3. CAPITAL ASSETS
Governmental capital asset activity for the year ended June 30, 2025, was as follows:

Depreciation and Amortization expense for capital assets was charged to functions as follows:

Restated Balance at Balance
July 1, 2024 Additions Deletions Transfers June 30, 2025 Governmental activities
Nondepreciable assets:

Land $ 299,384 $ - $ - $ 299,384 - $
Construction in Progress 6,420,451 9,375,267 (1,196,474) - 14,599,244 Total nondepreciable assets 6,719,835 9,375,267 (1,196,474) - 14,898,628 Depreciable assets:

Buildings and improvements 18,160,380 55,656 698,281 - 18,914,317 Infrastructure 1,214,625 - - 1,214,625 - Roads 50,012,085 17,404 498,193 - 50,527,682 Equipment 12,316,355 207,763 (220,217) 12,303,901 - Total depreciable assets 81,703,445 280,823 (220,217) 1,196,474 82,960,525 Total 88,423,280 9,656,090 (220,217) 97,859,153 - Accumulated depreciation:

Buildings and improvements (11,121,001) (471,004) - (11,592,005) - Infrastructure (1,001,437) (9,991) - (1,011,428) - Roads (40,253,428) (809,491) - (41,062,919) - Equipment (8,020,500) (757,464) 235,267 (8,542,697) - Total accumulated depreciation (60,396,365) (2,047,950) 235,267 (62,209,048) - Net depreciable assets 21,307,080 (1,767,127) 15,050 1,196,474 20,751,477 Amortizable assets:

Right of use - lease asset 249,376 - - 249,376 - Subscription Asset 159,007 946,843 - 1,105,850 - Accumulated amortization (207,430) (166,086) - - (373,516) Net amortizable assets 41,946 780,757 - - 981,710
Total net capital assets $ 28,068,861 $ 8,388,897 $ 15,050 $ - $ 36,631,815 General government $ 480,996
Public safety 923,550
Highways and streets 809,490
Total $ 2,214,036
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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

3. CAPITAL ASSETS, Continued
Business-type capital asset activity for the year ended June 30, 2025, was as follows:

Depreciation expense for capital assets was charged to functions as follows:

4. LOAN RECEIVABLE
City has given out loans under different housing programs. City has 100% allowance against these loans. At June 30, 2025, the City’s loans receivable consisted of the following:

Restated balance Balance
July 1, 2024 Additions Deletions Transfers June 30, 2025 Business-type activities
Nondepreciable assets:

Land $ 1,064,902 $ - $ - $ - $ 1,064,902
Construction in Progress 11,715,195 2,220,599 (6,297,032) - 7,638,762 Total nondepreciable assets 12,780,097 2,220,599 (6,297,032) - 8,703,664 Depreciable assets:

Buildings and improvements 139,740,024 625,844 (95,925) 6,283,240 146,553,183 Equipment 11,977,249 264,007 13,792 - 12,255,048
Total depreciable assets 151,717,273 889,851 (95,925) 6,297,032 158,808,231 Total 164,497,370 3,110,450 (95,925) 167,511,895 - Accumulated depreciation:

Buildings and improvements (50,165,332) (4,225,697) 95,925 (54,295,104) - Equipment (9,642,808) (406,590) - (10,049,398) - Total accumulated depreciation (59,808,140) (4,632,287) 95,925 (64,344,502) - Net depreciable assets 91,909,133 (3,742,436) 6,297,032 - 94,463,729 Total net capital assets $ 104,689,230 $ (1,521,837) $ - $ 103,167,393 - $ Water $ 1,620,623
Sewer 2,997,611
Sanitation 14,053
Total $ 4,632,287
Program Loan Amount
CDBG $ 1,978,781
Home 2,141,705
CalHome 358,000
NSP 91,513
RDA 179,112
$ 4,749,111
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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

5. LONG-TERM LIABILITIES
The following is a summary of changes in long-term liabilities for governmental activities for the year ended June 30, 2025:

The following is a summary of changes in long-term liabilities for business-type activities for the year ended June 30, 2025:

Restated Balance Balance Due Within
July 1, 2024 Additions Retirements Adjustments June 30, 2025 One Year Governmental Activities:

Lease liability $ 48,366 $ (46,497) - $ $ 1,869 - $ $ 1,869 SBITA Liability 159,007 946,843 (100,000) 1,005,850 - 112,133 Financed Purchase 184,403 (71,774) - (112,629) - -
Total governmental activities $ 391,776 $ (218,271) - $ $ (112,629) $ 1,007,719 $ 114,002 Balance Balance Due Within
July 1, 2024 Additions Retirements Adjustments June 30, 2025 One Year Business-type Activities
2017A Wastewater Revenue
Refunding Bonds $ 49,115,000 $ (1,115,000) - $ $ 48,000,000 - $ $ 1,175,000 Unamortized bond premium 4,227,695 (201,320) - 4,026,375 - - 2018A Wastewater Revenue Refunding Bonds 12,520,000 (715,000) - 11,805,000 - 740,000 Unamortized bond premium 51,641 (3,689) - 47,952 - - Total governmental activities 65,914,336 $ $ (2,035,009) - $ $ 63,879,327 - $ $ 1,915,000 62

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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

5. LONG-TERM LIABILITIES, Continued
Governmental Activities:

Lease-Purchase financing:

In fiscal year 2019, City of Atwater entered into agreement with Sun Ridge systems for lease RMIS system and US Bank equipment finance for purchase of radios. City paid off the lease purchase liability in FY 2025.

Subscription Based Information Technology Arrangements (SBITAs) Liability:

In fiscal year 2024, the City of Atwater entered into a lease agreement as lessee for financing the acquisition of Kenwood radios and its related software. The remaining liability as of June 30, 2025 amounted to $159,007. The radios have an estimated useful life of 5 years. Amortization expense for the Asset was $31,804 for FY2025.

Year Ending
June 30, Principal Interest
2026 $ 34,992 $ 11,526
2027 38,899 7,619
2028 41,289 5,229
2029 43,827 2,692
Total $ 159,007 $ 27,066
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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

5. LONG-TERM LIABILITIES, Continued
In fiscal year 2021, the City of Atwater entered into a 5-year lease agreement with Axon Enterprises as lessee for the acquisition of police bodycam equipment and related software license. The remaining liability as of June 30, 2024, amounted to $112,629 but in fiscal year 2025, the City of Atwater entered into a new lease agreement with Axon as lessee for the acquisition of police bodycam equipment and related software licensing for 10 years rescinding the old agreement. The new liability as of June 30, 2025 amounted to $846,843. The bodycams have 10-year estimated useful life. Amortization expense for the Asset was $94,684 for FY2025.

Lease liabilities
Pursuant to the GASB 87, the City has the following lease liabilities:

In fiscal year 2021, the City of Atwater entered into a lease agreement as lessee with Enterprise for one police vehicle (Vehicle #2053-23C8PN) valued at $45,349. The vehicle has 4-year estimated useful life. As of June 30, 2025, City has paid off the lease liability. Right to use asset as of June 30, 2025 is fully amortized and is included in the intangible assets on the capital assets activities table found in Note 3 above.

In fiscal year 2022, the City of Atwater entered into a lease agreement as lessee with Enterprise for one police vehicle (Vehicle #2051-23XZTS) valued at $36,778. In FY 2025, city paid off the liability and purchased the vehicle. The vehicle has 4-year estimated useful life.

In fiscal year 2022, the City of Atwater entered into a lease agreement as lessee with Enterprise for one police vehicle (Vehicle #2052-23XZTV) valued at $36,778. As of June 30, 2025, the value of the lease liability is $929. The vehicle has 4-year estimated useful life. The City is required to make monthly payment of $936.

The net value of the right to use the asset as of June 30, 2025 of $782 is included in the intangible assets on the capital assets activities table found in Note 3 above.

Year Ending
June 30, Principal Interest
2026 $ 79,010 $ 36,499
2027 82,415 33,093
2028 85,967 29,542
2029 89,673 25,836
2030-2034 509,778 67,767
Total $ 846,843 $ 192,737
Year Ending
June 30, Principal Interest
2026 $ 929 $ 7
Total $ 929 $ 7
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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

5. LONG-TERM LIABILITIES, Continued
In fiscal year 2022, the City of Atwater entered into a lease agreement as lessee with Enterprise for one police vehicle (Vehicle #2050-252ZQB) valued at $36,778. As of June 30, 2025, the value of the lease liability is $940. The vehicle has 4-year estimated useful life. The City is required to make monthly payment of $940.

The net value of the right to use the asset as of June 30, 2025 of $782 is included in the intangible assets on the capital assets activities table found in Note 3 above.

Business-type Activities
2017A Wastewater Revenue Refunding Bonds (Sewer)
In August 2017, the City issued the 2017A Wastewater Revenue Refunding Bonds in the amount of $56,600,000 to defease the 2008 Wastewater Revenue Refunding Bonds and the 2010 Wastewater Revenue Bonds by placing funds in separate escrow accounts to prepay the obligations. Each payment includes interest at an annual rate between 3.125% to 5.000%. Interest on the bonds is payable on May 1 and November 1 of each year. Principal of the bonds is payable on May 1 of each year beginning May 1, 2018.

The bonds fully mature on May 1, 2045. An original issue premium of $5,619,924 and an underwriting discount of $509,400 was included in the sales of the bonds. 2017A Wastewater Revenue Refunding Bonds (Sewer), Continued The annual debt service requirements for the 2017A Bonds are as follow:

Year Ending
June 30, Principal Interest
2026 $ 940 $ 7
Total $ 940 $ 7
Business-type Activities
Year Ending
June 30,
Principal Interest
2026 $ 1,175,000 $ 2,136,086
2027 1,230,000 2,077,336
2028 1,295,000 2,015,838
2029 1,365,000 1,951,088
2030-2034 7,815,000 8,756,438
2035-2039 10,850,000 7,048,850
2040-2044 19,770,000 3,523,000
2045 4,500,000 157,500
Total $ 48,000,000 $ 27,666,136
Refunding Bonds
2017A Wastewater Revenue
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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

5. LONG-TERM LIABILITIES, Continued
2018A Wastewater Revenue Refunding Bonds (Sewer)
In April 2019, the City issued the 2019A Wastewater Revenue Refunding Bonds in the amount of $16,255,000 to defease the 2011 Wastewater Revenue Bonds by placing funds in an escrow account to prepay the obligation. Each payment includes interest at an annual rate between 2.75% to 4.00%. Interest on the bonds is payable on May 1 and November 1 of each year. Principal of the bonds is payable on May 1 of each year beginning May 1, 2019, Interest payments began on November 1, 2019. The bonds fully mature on May 1, 2038. An original issue premium of $2,064,063 and an underwriting discount of $146,295 was included in the sales of the bonds.

The annual debt service requirements for the 2018A Bonds are as follow:

6. COMPENSATED ABSENCES
The City’s compensated absences payable activity for the year ended June 30, 2025 was as follows:

Year Ending
June 30,
Principal Interest
2026 $ 740,000 $ 397,769
2027 775,000 368,168
2028 795,000 346,856
2029 820,000 323,006
2030-2034 4,495,000 1,211,863
2035-2038 4,180,000 385,019
Total $ 11,805,000 $ 3,032,681
2018A Wastewater Revenue
Refunding Bonds
Restated Balance Balance Due Within
July 1, 2024 Additions Deletions June 30, 2025 One Year Governmental Activities:

Compensated absences payable 648,601 $ (21,804)* $ 670,405 - $ $ 287,378 Business-Type Activities:

Compensated absences payable 164,097 (6,467)* 157,630 - 59,391 $ 812,698 $ (28,271) $ 625,844 - $ $ 346,769
* The change in the compensated absences liability is presented as a net change. 66

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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

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

Fund Balance
Non-spendable and Restricted fund balance consisted of the following at June 30, 2025:

Governmental Business
Activities Activities Total
Net investment in capital assets 35,624,096 $ $ 39,288,066 $ 74,912,162 Restricted 23,794,368 1,219,541 25,013,909
Unrestricted (deficit) (19,892,387) 56,046,646 36,154,259 Total $ 39,526,077 $ 96,554,253 $136,080,330
Nonspendable:

Prepaid items $ 42,019
Investment in land held for resale 159,364
Total Nonspendable $ 201,383
Restricted:

Governmental Funds:

Public Safety Transaction & Use Special Revenue 3,297,080 $ General Plan Update 1,754,449
Measure V Special Revenue 4,525,630
Gas Tax 373,489
Facility Impact Fee 5,770,729
HOME Investment Partnership Program 604,928
Neighborhood Stabilization 236,979
Pension Rate Stabilization 616,660
Police Grant 88,977
Local Transportation 608,981
CDBG Program Income 263,316
Housing Authority 1,286,757
Narcotics Program 2,225
Applegate Exchange 827,504
ARPA Fund 157,523
Reginal Surface Transportation Program 1,588,888
PLHA-Perm Local Housing Allocation 360,387
Maintenance Districts 1,429,866
Total Restricted $ 23,794,368
Assigned:

Performance Bond $ 123,919
Total Assigned $ 123,919
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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

7. NET POSITION/ FUND BALANCES, Continued
The following describe the purpose of each nonspendable, restricted, and committed category used by the City:

Nonspendable
 Prepaid items - used to segregate that portion of fund balance to indicate that prepaid amounts do not represent available, spendable resources even though they are components of assets.  Land held for resale – includes properties held for the purpose of redevelopment either through resale or conversion to public use, which do not represent available, spendable resources even though they are components of assets.

Restricted
 Public Safety Transaction & Use Special Revenue – A voter approved one cent sales & use tax dedicated to public safety and use is restricted for the approved spending plan.  Measure V Special Revenue – A voter approved ½-cent sales & use tax dedicated to transportation maintenance and improvement projects in Merced County and use is restricted for approved spending plans.
 Gas Tax – represents amounts restricted for street maintenance purposes as defined in Sections 2105, 2106, 2107 and 2107.5 of the Streets and Highway Code.  Facility Impact Fee – represents amounts restricted to capital projects through AB1600.  HOME Investment Partnership Program – represents amounts restricted for the City’s HOME revolving loan program as this program is supported by specific grants requiring the restriction.  Neighborhood Stabilization – represents restricted amounts received from Federal Grants for neighborhood revitalization programs.
 Pension rate Stabilization Fund – represents Section 115 Trust dedicated to addressing long-term pension liabilities and costs and stabilizing contribution rates. Funds are restricted for use on pension costs.
 Police Grant – This fund tracks Police grant revenue that is restricted for use per each grant, and related expenses.
 Local Transportation- represents Capital project costs associated with traffic safety improvements are funded from the Local Transportation Fund and funds are restricted for use for approved eligible activities.
 CDBG Program Income – CDBG provides federal funding to support community development projects that benefit low- and moderate-income neighborhoods. The use of funds is restricted to the criteria set forth in the grant requirements.
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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

7. NET POSITION/ FUND BALANCES, Continued
 Housing Authority – Low- & Moderate-Income Fund represents in part the Successor Agency to the Atwater Redevelopment Agency. Funds are restricted to eligible expenses with the purpose of the successor agency to wind down the operations, complete projects, and pay the outstanding debt obligations of the former agency.
 Narcotics Program – Trust is a fund to hold Asset Forfeiture moneys collected from Narcotics Cases.  Applegate Exchange – represents Fee charged for restricted use to fund Applegate Road Interchange upgrade.
 ARPA Fund – represents ARPA funds from the federal government to address the economic impact of the COVID-19 pandemic.
 Regional Surface Transportation program – RSTP is a federally funded program that apportions federal gas tax dollars to states. The funds are restricted for use on roads, transit, non-motorized and other transportation needs
 PHLA Fund – represents state funding to help local governments address unmet housing needs and increase affordable housing supply. Use of funds are restricted per state guidelines for eligible activities.
 Maintenance District – represents special assessment districts. The revenues received are from assessments levied on real property and are restricted for use only to provide maintenance and improvements in the districts that are assessed.
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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

7. NET POSITION/ FUND BALANCES, Continued
Deficit fund balances consisted of the following:

The above deficit fund balances have occurred due to the spending of funds prior to the receipt of revenues (cost reimbursements). The fund balances will be restored in the near future as revenues are received.

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

Transfers consisted of the following at June 30, 2025:

The $152,375 transfer from Water Funds to fund hydrant maintenance paid from General Fund. The transfers from the General Fund to Nonmajor Governmental funds are for the contributions to the Gas Tax Fund for road maintenance and general benefit contribution to the Maintenance Districts. The transfers from the General Fund to Nonmajor Proprietary Funds are for the contributions to the Internal Service Fund for Building/Equipment Replacement and unfunded OPEB Liabilities. The transfers from the Internal Service Fund to Nonmajor Governmental funds are for unfunded OPEB Liabilities. The transfers from the Nonmajor Governmental funds to Nonmajor Governmental funds are for the contributions to the Gas Tax Fund for road maintenance.

As of
June 30, 2025
Nonmajor Capital Project Funds:

General Capital Projects $ (674,880)
Maintenance District Funds:

Northwood Village (248)
Woodview Garland (10)
Price Annexation (6,970)
Bell Crossing (827)
CFD District (4,487)
Total Governmental Funds $ (687,422)
Nonmajor Internal
General Governmental Service
Transfers Out Fund Funds Funds Total
General Fund $ 618,950 - $ $ 200,000 $ 818,950
Nonmajor Governmental Funds 42,706 - - 42,706
Water Fund 152,375 - 152,375 - Internal Service Fund 50,000 - - 50,000 Total $ 152,375 $ 711,656 $ 200,000 $ 1,064,031
Transfers In
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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

9. RISK MANAGEMENT
The City participates with other public entities in a joint venture under a joint powers agreement which establishes the Central San Joaquin Valley Risk Management Authority (CSJVRMA). The relationship between the City and CSJVRMA is such that CSJVRMA is not a component unit of the City for financial reporting purposes. The City is covered for the first $1,000,000 of each general liability claim and $500,000 of each worker’s compensation claim through the CSJVRMA. The City has the right to receive dividends or the obligation to pay assessments based on a formula which, among other expenses, charges the City’s account for liability losses under $50,000 and worker’s compensation losses under $100,000. The CSJVRMA participates in an excess pool which provides worker’s compensation coverage from $500,000 to $4,500,000 and purchases excess insurance above the $5,000,000 to the statutory limit.

The CSJVRMA is a consortium of fifty-four (54) cities in San Joaquin Valley, California. It was established under the provisions of California Government Code Section 6500 et. seq. The CSJVRMA is governed by a Board of Directors, which meets 3-4 times per year, consisting of one member appointed by each member city. The day-to-day business is handled by a management group employed by the CSJVRMA.

At the termination of the joint venture agreement and after all claims has been settled, any excess or deficit will be divided among the cities in proportion to the aggregate amount of contribution made by each. The financial position results of operations of CSJVRMA are as follows for June 30, 2025, the most recent available:

10. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM
General Information about the Pension Plans
Plan Descriptions - All qualified permanent and probationary employees are eligible to participate in the City's separate Safety (police and fire) and Miscellaneous (all other) Employee Pension Plans, cost-sharing multiple employer defined benefit pension plans administered by the California Public Employees' Retirement System (CaIPERS). Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

Benefits Provided - CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 2057 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law.

Total assets $ 206,777,744
Total liabilites 157,063,998
Total equities 49,713,746
Total revenues 94,036,144
Total expenses 86,877,199
Revenues over (under) expenses 7,158,945
71

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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

10. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
Benefits Provided
The Plans' provisions and benefits in effect at June 30, 2025, are summarized as follows:

Contributions -Section 20814(c) of the California Public Employees' Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CaIPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

The Agency’s contributions to the Plan for year ended June 30, 2025 for each Plan were as follows:

Miscellaneous Miscellaneous
PEPRA Classic Miscellaneous - Tier 2
Prior to Prior to Prior to
Hire date January 1, 2013 January 1, 2013 January 1, 2013 Benefit vesting schedule 5 years of service 5 years of service 5 years of service Benefit payments monthly for life monthly for life monthly for life Retirement age 62 55-60 60
Monthly benefits, as a % of eligible compensation 2.00% 2.00%-3.00% 2.00% Required employee contribution rates 6.75% 8.00% 7%
Required employer contribution rates 7.87% 18.03% 10.15% Safety - Classic Safety - PEPRA
Prior to Prior to
Hire date January 1, 2013 January 1, 2013
Benefit vesting schedule 5 years of service 5 years of service Benefit payments monthly for life monthly for life
Retirement age 50 57
Monthly benefits, as a % of eligible compensation 3.00% 2.70% Required employee contribution rates 9.00% 13.75%
Required employer contribution rates 28.52% 13.76%
Miscellaneous Safety
Contributions - employer $ 1,713,412 $ 1,670,498
72

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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

10. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2025, the City reported net pension liabilities for its proportionate shares of the net pension liability of each Plan as follows:

The City's net pension liability for each Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plans is measured as of June 30, 2024, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2024 rolled forward to June 30, 2023 using standard update procedures. The City's proportion of the net pension liability was based on a projection of the City's long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined.

The City’s proportionate share of the net pension liability for each Plan as of June 30, 2024 and 2023 was as follows:

For the year ended June 30, 2025, the City recognized pension expense of $(4,562,511). At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Proportionate Share
of Net Pension Liability
Miscellaneous $ 13,449,014
Safety 14,800,384
Total Net Pension Liability $ 28,249,398
Proportion - June 30, 2023 0.23414%
Proportion - June 30, 2024 0.23294%
Change - Increase (Decrease) (0.00120%) Deferred Outflows Deferred Inflows of Resources of Resources
Change in Assumptions $ 710,319 $ - Differences between actual and expected experience 2,370,634 84,643 Differences between projected and actual investment 1,489,626 - Differences between employers contributions and proportionate share of contributions
885,188 - Change in employer's proportion 1,736,215 - Pension contributions made subsequent to measurement date 3,383,910 - Total $ 8,839,677 $ 1,820,858 73

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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

10. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
$3,383,910 reported as deferred outflows of resources related to contributions subsequent to the measurement date that will be recognized as a reduction of the net pension liability in the year ended June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Actuarial Assumptions -The total pension liabilities in the June 30, 2023 actuarial valuations were determined using the following actuarial assumptions:

The mortality table was developed based on CalPERS-specific data. The rate incorporates Generational mortality improvements to capture ongoing mortality improvement using 80% of Scale MP 2020 published by society of Actuaries. For more details, please refer to the 2021 experience study report that can be found on the CalPERS website.

Discount Rate – The discount rate used to measure the total pension liability as of the measurement date of June 30, 2024 for the Plan 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. A detailed report testing these projections can be obtained from the CalPERS website.

Year Ended
June 30,
2026 $ 930,173
2027 3,234,574
2028 (19,743)
2029 (510,095)
Actuarial Assumptions
Actuarial cost method Entry-age normal cost method
Actuarial assumptions
Discount rate 6.90%
Inflation 2.30%
Salary increases Varies by category, entry age, and service Mortality Rate Table Derived using CalPERS’ Membership Data for all Funs Contract COLA up to 2.3% until purchasing power protection Post-retirement benefit increase Protection Allowance Floor on Purchasing Power applies 74

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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

10. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated and, combined with risk estimates, are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return.

The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation.

These rates of return are net of administrative expenses.

Assumed
Asset
Asset Class (1) Allocation Real Return Years 1 - 10 1,2 Global equity - cap-weighted 30.00% 4.45
Global equity non-cap-weighted 12.00 3.84
Private equity 13.00 7.28
Treasury 5.00 0.27
Mortgage-backed Securities 5.00 0.5
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
Total 100%
(1) Figures are based on the 2021-22 Asset Liability Management study. (2) An expected inflation of 2.30% used for this period. 75

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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

10. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate - The following presents the City's proportionate share of the net pension liability for each Plan, calculated using the discount rate for each Plan, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

Payable to the Pension Plan
At June 30, 2025 the City reported a payable of $0 outstanding amount of contributions to the pension plan required for the year ended June 30, 2025.

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

11. OTHER POSTEMPLOYMENT BENEFITS
Plan Description
The City of Atwater Retired Employees Healthcare Plan is a single-employer defined benefit healthcare plan administered by CalPERS. The City provides medical benefits to eligible retirees, their spouses and dependents. To earn this benefit, employees must have reached the age of fifty with five years of service to the City. The City provides coverage for surviving family members of an enrollee who dies while covered under the plan. Coverage for the enrolled family members then continues until any one of a specific set of circumstances occurs. The Retiree Health Plan does not issue a financial report.

Funding Policy
The contribution requirements of plan members and the City are established and may be amended by the City Council. The required contribution is based on projected pay-as-you-go financing requirements. For fiscal year 2025, the City contributed $890,854 to the plan, the entire amount for current premiums. The City pays the full benefit cost of health care coverage premiums for retired members receiving benefits. The City does not pay for dental and vision insurance premiums for retiree. Those retirees wishing to be covered by dental and vision insurance benefits must pay 100% of the cost for the retirees and their dependents. 1% Decrease Current Discount Rate 1% Increase
(5.90%) (6.90%) (7.90%)
Net Pension Liability as of June 30, 2025
Net Pension Liability (Asset) $ 41,853,935 $ 28,249,398 $ 17,089,577 Total $ 41,853,935 $ 28,249,398 $ 17,089,577
76

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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

11. OTHER POSTEMPLOYMENT BENEFITS, Continued
Funding Policy, Continued
At June 30, 2025, the following employees were covered by the benefit terms:

City Contribution to the Plan
The Plan and its contribution requirements are established by Memoranda of Understanding with the applicable employee bargaining units and may be amended by agreements between the City and the bargaining units. The annual contribution is based on the actuarially determined contribution. For the fiscal year ended June 30, 2025, the City’s cash contributions were $753,545 cash benefit payments.

Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2024 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2023 that was rolled forward to determine the June 30, 2024 total OPEB liability, based on the following actuarial methods and assumptions:

Active employees 98
Inactive employees or beneficiaries currently receiving benefits 72 Inactive employees entitled to, but not yet receiving benefits 29 Total number of participants 199
Actuarial Valuation Date June 30, 2023
Contribution Policy City plans to contribute $50,000 or more into the trust every year, pay benefit payments outside of the trust, and not seek reimbursements Discount Rate 3.93% at June 30, 2024

3.65% at June 30, 2023
Current trust assets insufficient to finance current benefit payments General Inflation 2.50% per annum
Mortality, Retirement, CalPERS 2000-2019 experience study Disability, Termination
Salary Increases Aggregate - 2.75% annually
Merit - Table from CalPERS 2000-2019 Experience Study
Medical Trend 7.90% for 2026 decreasing to 3.45% in 2076 Participation at Retirement Active & surviving spouse:

Participating & Waived:
- Percentage of premium - 100%
- PEMHCA minimum - 60%
Retirees & surviving spouse:

Participating - 100%
Waived - 0%
Actuarial Assumptions:
77

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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

11. OTHER POSTEMPLOYMENT BENEFITS, Continued
Net OPEB Liability, Continued
The long-term expected rate of return on OPEB plan investments was determined using a building block method in which expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Discount Rate
The discount rate used to measure the total OPEB liability was 3.93 percent. The projection of cash flows used to determine the discount rate assumed that Authority contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.

Target Allocation Expected Real
PARS- Balanced Rate of Return
Asset Class
Component Global Equity 60% 4.56%
Fixed Income 35% 0.78%
Cash 5% (0.05%)
100%
78

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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

11. OTHER POSTEMPLOYMENT BENEFITS, Continued
Changes in the OPEB Liability
The changes in the net OPEB liability for the Plan are as follows:

Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The discount rate used for the fiscal year end 2024 is 3.93%. The following presents the net OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2024:

Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the net OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2024 (Healthcare Cost Trend Rate was assumed to start at 7% and grade down to 4% for years 2076 and thereafter):

Total OPEB Fiduciary Net OPEB
Liability Net Position Liability
Balance at 6/30/2024 $ 21,560,545 $ 367,084 $ 21,193,461 (6/30/23 measurement date)
Changes for the year
Service Cost 482,512 - 482,512
Interest 791,437 - 791,437
Difference between actual
and expected experience - - - Assumption changes (832,347) - (832,347) Contributions - employer - 822,226 (822,226)
Contributions - employee - - - Net investment income - 48,302 (48,302) Benefit payments (719,722) (719,722) - Administrative expenses - (3,458) 3,458 Net Changes (278,120) 147,348 (425,468)
Balance at 6/30/2025 $ 21,282,425 $ 514,432 20,767,993
(6/30/24 measurement date)
1% Decrease Current Rate 1% Increase
Change in Discount Rate 2.93% 3.93% 4.93%
Net OPEB Liability $ 23,989,946 $ 20,767,993 $ 18,165,090 Change in Healthcare Cost Trend Rate 1% Decrease Current Trend 1% Increase Net OPEB Liability $ 17,825,204 $ 20,767,993 $ 24,456,307 79

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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

11. OTHER POSTEMPLOYMENT BENEFITS, Continued
Recognition of Deferred Outflows and Deferred Inflows of Resources Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The recognition period differs depending on the source of the gain or loss:

OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2025, the City recognized OPEB expense of $22,488. As of fiscal year ended June 30, 2025, the City reported deferred outflows of resources related to OPEB from the following sources:

The $890,854 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2024 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2026. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows:

Net difference between projected and 5 years
actual earnings on OPEB plan
investment
All other amounts Expected average remaining service
lifetime (EARSL) (7.8 Years at June 30, 2024)
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $ 219,950 $ 479,228 Changes in assumptions 1,198,950 3,325,877
Net difference between projected and actual
earnings on plan investments - 13,542
Employer contributions made subsequent to the
measurement date 890,854 - Total $ 2,309,754 $ 3,818,647 Deferred
Fiscal Year Outflow/(Inflow)
Ended June 30, of Resources
2026 $ (381,442)
2027 (843,804)
2028 (775,647)
2029 (221,834)
2030 3,990
Thereafter (181,010)
80

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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

12. SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELPMENT AGENCY On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Atwater that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.

The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 12, 2015, 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 112-10.

After enactment of the law on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).

In future fiscal years, successor agencies will only be 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. After the date of dissolution, 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. 81

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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

12. SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELPMENT AGENCY, Continued
Long-term Liabilities
The following is a summary of changes in long-term liabilities for the year ended June 30, 2025:
2017 Tax Allocation Refunding Bonds – Series A and B
In September 2017, the Successor Agency to the Atwater Redevelopment Agency issued $7,524,000 Tax Allocation Refunding Bonds, Series A, in the amount of $5,999,000 and Series B in the amount of $1,525,000.

The were used to defease all of the outstanding 2098 A Bonds and the 2007, Series A and B Bonds. The final maturity date on the bonds is June 2026.

Future debt service for Fiduciary Activities at June 30, 2025, is as follows:

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

Grants and Allocations
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the federal and state government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time, although the City expects such amounts, if any, to be immaterial.

Balance Balance Due Within
July 1, 2024 Additions Retirements June 30, 2025 One Year Trust Activities
Refunding Bonds $ 1,984,000 $ (979,000) - $ $ 1,005,000 $ 1,005,000 Total trust fund debt 1,984,000 $ $ (979,000) - $ $ 1,005,000 $ 1,005,000 Year Ending
June 30,
Principal Interest
2026 $ 1,005,000 $ 25,928
Total $ 1,005,000 $ 25,928
Tax Allocation Refunding Bonds
2017 Series A & B
Fiduciary Activities
82

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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

13. COMMITMENTS AND CONTINGENCIES, Continued
Trichloro propane (TCP) Contamination, Settlement and Remediation Efforts he City of Atwater was awarded a $63 million dollar jury award in 2019 after suing Shell Oil Company and DOW Chemical for marketing and selling a pesticide fumigant used in agricultural applications that contained TCP and over the years infiltrated the groundwater system, thereby contaminating the City’s domestic water system wells.

The City’s net settlement was $43 million after legal costs. The City Council of the City of Atwater adopted Resolution No. 3130-20 on January 13, 2020, committing the proceeds of the TCP settlement towards the remediation of TCP from the City’s water system. Under the Resolution the funds will be utilized towards long-term well-head treatment, closure and/or abandonment of existing well sites, and the drilling of new wells.

The City completed the 1, 2, 3 -TCP Central Treatment Plant in 2021. The City oversees the operations and maintenance of the TCP Central Treatment plant and performs testing as required utilizing the TCP Settlement Funds.

Currently the annual cost of maintenance is approximately $1000,000 based upon once a month testing requirements and filter replacements. The cost of testing can fluctuate depending upon levels of TCP present in the monthly samples. Should the levels of TCP increase, more frequent testing would be required, therefore resulting in higher costs.

14. DEFERRED COMPENSATION PLAN
The City has two 457 Deferred Compensation Plans implemented. Effective January 2015, the City established a 457(b) Deferred Compensation Plan with Orion Portfolio Solutions. Approximately 106 employees were eligible to participate in this plan. In calendar year 2025, the employees were able to contribute to the plan up to a maximum $23,500. The City did not match or provide any employer paid contributions to the plan during fiscal year 2025. Effective October 2024, the City established another 457(b) Deferred Compensation Plan with the California Public Employees’ Retirement System (CalPERS).

Approximately 106 employees were eligible to participate in this plan. In calendar year 2025, the employees were able to contribute to the plan up to a maximum $23,500. The City did not match or provide any employer paid contributions to the plan during fiscal year 2025. 83

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City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

15. RESTATEMENTS
Restatements recorded by the City for the current year were as follows:

The City recorded restatements for the following:
1) Capital Assets Restatements:
 City restated SBITA asset to reflect asset leased last year for $159,007.  City restated Sewer fund to record intrafund transfer of asset from one sewer fund to another.  City restated Water fund to record a CIP expense erroneously missed in prior year resulting in restatement of construction in progress of Business-Type Activities and the Water Fund to correct the beginning balances.
2) Error Correction:
 City corrected classification of project expenses incorrectly recorded in Facility Impact fee fund in FY 2017 to 2024 to General fund and General Capital Project fund.  Correction of fund balance in Private Purpose Trust fund caused by duplicate posting of FY23 audit adjusting entry resulting in duplicate recording of expenses in FY24. Hence corrected in FY25.
3) Implementation of GASB Statement No. 96, Subscription-Based Information Technology Arrangements:
 City recorded SBITA liability for Kenwood radios in the amount of $159,007 as restatement of liability as the contract was executed in FY2024 with no effect on total fund balance. 4) Implementation of GASB Statement No. 101, Compensated Absences:
 The City recorded restatements in accrued compensated absences in Governmental Activities, Business-Type Activities, Enterprise Funds, and Internal Service Funds to implement GASB Statement No. 101, Compensated Absences.

Net Position/ Net Position/
Fund Balance Capital Assets Error GASB 96 GASB 101 Fund Balance as Previously Restatments Correction implementation implementation Net Position Government-wide
Governmental activities $ 32,614,567 $ 159,007 $ - $ (159,007) $ (77,151) $ 32,537,416 Business-type activities 91,765,615 517,072 (410,732) - (1,946) 91,870,009 Fund Financials
General Fund 17,334,750 (54,348) - - - 17,280,402
Non major governmental Fund 23,890,564 - 54,348 - - 23,944,912 Enterprise Funds
Sewer Fund 19,692,154 410,732 (410,732) - 696 19,692,850 Water Fund 69,141,581 106,340 - - (2,642) 69,245,279 - Internal Service Fund 4,027,060 - - - (2,761) 4,024,299 Fiduciary Funds
Private Purpose Trust Fund 778,782 322,688 - - - 1,101,470 Restatements
84

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REQUIRED

SUPPLEMENTARY INFORMATION
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City of Atwater
Required Supplementary Information
For the year ended June 30, 2025
Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios - Last 10 Years
Fiscal year 2025 2024 2023 2022 2021
Measurement date 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 Proportion share of the net pension
liability / (asset) 0.23294% 0.23414% 0.24936% 0.34025% 0.25529% Proportionate share of the net pension
liability / (asset) $ 28,249,398 $ 29,210,063 $ 28,802,661 $ 18,401,458 $ 27,776,819 Covered payroll $ 7,065,729 $ 5,904,114 $ 5,228,523 $ 4,635,875 $ 4,869,106 Proportionate share of the net pension
liability / (asset) as a percentage of its
covered-employee payroll 25.01% 20.21% 18.15% 25.19% 17.53% Proportionate share of the fiduciary net
position as a percentage of the City's net
pension liability 78.08% 76.21% 76.68% 88.29% 75.10%
Notes to Schedule
The CalPERS discount rate was increased from 7.5% to 7.65% in fiscal year 2016, decreased from 7.65% to 7.15% in fiscal year 2018 and then decreased from 7.15% to 6.9% in fiscal year 2023 and 2024.

The CalPERS mortality assumptions were adjusted in fiscal year 2019. 88

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City of Atwater
Required Supplementary Information
For the year ended June 30, 2025
Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios - Last 10 Years (Continued)
Fiscal year 2020 2019 2018 2017 2016
Measurement date 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 Proportion share of the net pension
liability / (asset) 0.26482% 0.27549% 0.27768% 0.29319% 0.32718% Proportionate share of the net pension
liability / (asset) $ 27,135,766 $ 26,546,855 $ 27,538,451 $ 25,370,399 $ 22,457,323 Covered payroll $ 4,301,273 $ 4,352,437 $ 4,645,102 $ 4,645,102 $ 4,635,102 Proportionate share of the net pension
liability / (asset) as a percentage of its
covered-employee payroll 15.85% 16.40% 16.87% 18.31% 20.64% Proportionate share of the fiduciary net
position as a percentage of the City's net
pension liability 75.26% 75.26% 73.31% 74.06% 78.40%
89

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City of Atwater
Required Supplementary Information
For the year ended June 30, 2025
Schedule of Pension Contributions - Last 10 Years
Fiscal year 2025 2024 2023 2022
Actuarially determined contribution $ 3,383,910 $ 3,374,118 $ 3,273,604 $ 3,715,339 Contributions in relation to actuarially deemed contributions (3,383,910) (3,374,118) (3,273,604) (3,715,339) Contribution deficiency (excess) $ - $ - $ - $ -
Covered payroll $ 7,208,445 $ 7,065,729 $ 5,904,114 $ 5,228,523 Contributions as a percentage of covered payroll 46.94% 47.75% 55.45% 71.06% Notes to Schedule
Methods and assumptions used to defermine contribution rates:

Valuation date (for contractually required contribution): 6/30/2022 6/30/2021 6/30/2020 6/30/2019 Actuarial cost method: Entry Age Entry Age Entry Age Entry Age Amortization method: (1) (1) (1) (1)
Assets valuation method: Market Value Market Value Market Value Market Value Inflation: 2.30% 2.30% 2.50% 2.50%
Salary increases: (2) (2) (2) (2)
Investment rate of return: 6.900% 6.900% 7.000% 7.000%
Retirement age: (3) (3) (3) (3)
Mortality: (4) (4) (4) (4)
(1) Varies by date established and source. May be level dollar or level % of pay and may include direct rate smoothing (2) Depending on age, service and type of employment
(3) 50 for all plan, with the exception of 52 for Miscellaneous PEPRA 2%@62 (4) Derived using CalPERS’ Membership Data for all Funds. The post-retirement mortality rates include 15 years of projected on-going mortality improvement using 80% of the Society of Actuaries’ Scale MP-2020 90

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City of Atwater
Required Supplementary Information
For the year ended June 30, 2025
Schedule of Pension Contributions - Last 10 Years (Continued) 2021 2020 2019 2018 2017 2016
$ 3,689,231 $ 3,671,000 $ 3,103,630 $ 2,892,846 $ 2,734,672 $ - (3,689,231) (3,671,000) (3,103,630) (2,892,846) (2,734,672) - $ - $ - $ - $ - $ - $ -
$ 4,635,875 $ 4,869,106 $ 4,301,273 $ 4,352,437 $ 4,645,102 $ 4,635,102

79.58% 75.39% 72.16% 66.46% 58.87% 0.00%
6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 Entry Age Entry Age Entry Age Entry Age Entry Age Entry Age (1) (1) (1) (1) (1) (1)
Market Value Market Value Market Value Market Value Market Value Market Value

2.50% 2.63% 2.75% 2.75% 2.75% 2.75%
(2) (2) (2) (2) (2) (2)

7.000% 7.250% 7.375% 7.500% 7.500% 7.500%
(3) (3) (3) (3) (3) (3)
(4) (4) (4) (4) (4) (4)
91

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City of Atwater
Required Supplementary Information
For the year ended June 30, 2025
Schedule of Changes in the Net OPEB Liability and Related Ratios - Last 10 Years* For the Measurement Period Ended: 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 Total OPEB Liability
Service cost $ 482,512 $ 566,446 $ 830,650 1,052,679 $ 737,612 Interest 791,437 721,815 531,096 552,930 678,894
Assumption changes (832,347) 479,774 (4,628,232) (495,797) 4,517,566 Differences between expected and
actual experience 306,204 - (674,772) - -
Benefit payments (719,722) (674,989) (658,695) (630,738) (622,521) Net change in the total OPEB liability (278,120) 1,399,250 (3,925,181) (195,698) 5,311,551 Total OPEB liability - beginning 21,560,545 20,161,295 24,086,476 24,282,174 18,970,623 Total OPEB liabilty - ending (a) $ 21,282,425 $ 21,560,545 $ 20,161,295 24,086,476 $ 24,282,174 Plan Fiduciary Net Position
Contributions - employer $ 822,226 $ 777,122 $ 710,265 $ 732,277 $ 724,186 Net investment income 48,302 23,047 (31,120) 26,549 76
Administrative expense (3,458) (2,763) (2,126) (1,821) (1,665) Benefit payments (719,722) (674,989) (658,695) (630,738) (622,521) Net change in the total OPEB liability 147,348 122,417 18,324 126,267 100,076 Plan fidcuiary net position - beginning 367,084 244,667 226,343 100,076 - Plan fidcuiary net position - ending (b) $ 514,432 $ 367,084 $ 244,667 $ 226,343 $ 100,076 Net OPEB liability - ending (a) - (b) $ 20,767,993 $ 21,193,461 $ 19,916,628 $ 23,860,133 $ 24,182,098 Plan fiduciary net position as a percentage
percentage of the total OPEB liability 2.42% 1.70% 1.21% 0.94% 0.41% Covered employee payroll $ 7,487,307 $ 7,061,135 $ 7,061,135 $ 7,055,218 $ 4,869,106 Net OPEB liability as a percentage of
covered employee payroll 277.4% 300.1% 282.1% 338.19% 496.64% * Fiscal year 20217 was the 1st year of implementation. 92

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City of Atwater
Required Supplementary Information
For the year ended June 30, 2025
Schedule of Changes in the Net OPEB Liability and Related Ratios - Last 10 Years* (Continued) For the Measurement Period Ended: 6/30/2019 6/30/2018 6/30/2017 Total OPEB Liability
Service cost $ 986,349 $ 1,028,487 $ 1,200,000
Interest 949,529 872,785 746,000
Assumption changes 1,230,191 (1,089,852) (2,981,000)
Differences between expected and
actual experience (7,433,570) - -
Benefit payments (622,296) (604,000) (627,000)
Net change in the total OPEB liability (4,889,797) 207,420 (1,662,000) Total OPEB liability - beginning 23,860,420 23,653,000 25,315,000 Total OPEB liabilty - ending (a) $ 18,970,623 $ 23,860,420 $ 23,653,000 Plan Fiduciary Net Position
Contributions - employer $ - $ - $ -
Net investment income - - -
Administrative expense - - -
Benefit payments - - -
Net change in the total OPEB liability - - -
Plan fidcuiary net position - beginning - - -
Plan fidcuiary net position - ending (b) $ - $ - $ -
Net OPEB liability - ending (a) - (b) $ 18,970,623 $ 23,860,420 $ 23,653,000 Plan fiduciary net position as a percentage
percentage of the total OPEB liability 0.00% 0.00% 0.00% Covered employee payroll N/A N/A N/A
Net OPEB liability as a percentage of
covered employee payroll N/A N/A N/A
93

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City of Atwater
Required Supplementary Information
For the year ended June 30, 2025
Schedule of OPEB Contributions - Last 10 Years*
Fiscal Year Ended: 6/30/2025 6/30/2024 6/30/2023 6/30/2022 6/30/2021 Actuarially determined contribution $ 890,854 $ 822,226 $ 777,122 $ 710,265 $ 732,277 Contributions in relation to the actuarially
determined contribution (890,854) (822,226) (777,122) (710,265) (732,277) Contribution deficiency (excess) $ - $ - $ - $ - $ -
Covered - employee payroll $ 7,169,417 $ 7,487,307 $ 7,061,135 $ 7,055,218 $ 5,925,878 Contribution as a percentage
of covered-employee payroll 12% 11% 11% 10% 12%
Notes:
*Fiscal year 2021 is the first year that the City has actuarially determined contribution

Actuarial Assumptions:

Actuarial Valuation Date June 30, 2023
Contribution Policy
Discount Rate 3.93% at June 30, 2024
Long-term Expected Rate of Return on Assets 5.75% at June 30, 2024 General Inflation 2.5% annually
Mortality, Retirement, Disability, Termination CalPERS 2000-2019 Experience Study Salary Increases Aggregate - 2.75% annually
Merit - Table from CalPERS 2000-2019 Experience Study
Medical Trend 7.90% -3.45%
Participation at Retirement Active & surviving spouse:

Participating & Waived:
- Percentage of premium 100%
- PEMHCA minimum - 60%
Retirees & surviving spouse:

Participating - 100%
Waived - 0%
City plans to contribute $50,000 into the trust every year after June 30, 2021, pay benefit payments outside of the trust, and not seek reimbursements. 94

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SUPPLEMENTARY INFORMATION
95

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96

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City of Atwater
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
Special Total Nonmajor
Revenue Performance Governmental
Funds General Bond Funds
ASSETS
Cash and investments $ 23,992,335 $ 233,856 - $ $ 24,226,191 Receivables:

Taxes 13,230 - - 13,230
Interest 161,620 - 1,729 163,349
Intergovernmental 436,649 - 436,649 -
Other receivable 147,580 44,139 191,719 -
Prepaid items 331 - - 331
Land held for resale 159,364 - 159,364 -
Total assets 24,911,109 44,139 235,585 25,190,833

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 2,840,153 38,430 2,878,583 -
Accrued liabilities 20,901 - - 20,901
Deposits payable - 111,666 - 111,666
Other liabilities 348,057 1,160 349,217 -
Unearned revenue 869,488 - 869,488 -
Total liabilities 4,078,599 688,781 111,666 4,879,046
Deferred Inflows of Resources
Unavailable revenues 188,069 30,238 218,307 -
Total deferred inflows of resources 188,069 30,238 218,307 - Fund Balances:

Nonspendable
Prepaid items 331 - - 331
Land held for resale 159,364 - 159,364 -
Restricted 20,497,288 - 20,497,288 -
Assigned - 123,919 - 123,919
Unassigned (12,542) (674,880) (687,422) -
Total fund balances 20,644,441 (674,880) 123,919 20,093,480 Total liabilities, deferred inflows of resources
and fund balances $ 24,911,109 $ 44,139 $ 235,585 $ 25,190,833 Capital Projects Funds
97

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City of Atwater
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2025
Special Total Nonmajor
Revenue Performance Governmental
Funds General Bond Funds
REVENUES:

Taxes and assessments $ 1,969,368 $ - $ 1,969,368 - $
Intergovernmental 4,160,988 160,304 - 4,321,292
Use of money and property 772,991 - 7,731 780,722
Charges for services 214,070 - - 214,070
Other revenues 185,321 - - 185,321
Total revenues 7,302,738 160,304 7,731 7,470,773
EXPENDITURES:

Current:

General government 453,421 - - 453,421
Public safety 41,506 - - 41,506
Highways and streets 1,275,152 - - 1,275,152
Urban redevelopment and housing 1,129,569 - - 1,129,569 Capital outlay 8,942,877 148,630 - 9,091,507
Total expenditures 11,842,525 148,630 - 11,991,155

REVENUES OVER (UNDER)
EXPENDITURES (4,539,787) 11,674 7,731 (4,520,382)
OTHER FINANCING SOURCES (USES):

Transfers in 711,656 - - 711,656
Transfers out (42,706) - - (42,706)
Total other financing sources (uses) 668,950 - - 668,950 Net change in fund balances (3,870,837) 11,674 7,731 (3,851,432) FUND BALANCES:

Beginning of year 23,809,214 (34,838) 116,188 23,890,564 Restatement 706,064 (651,716) - 54,348
Beginning of year, as restated 24,515,278 (686,554) 116,188 23,944,912 End of year $ 19,938,377 $ (674,880) $ 123,919 $ 20,093,480 Capital Projects Funds
98

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99

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City of Atwater
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2025
Measure V
Special
Revenue Fund
Police
Grants
Gas
Tax
Local
Transportation
ASSETS
Cash and investments $ 5,411,368 $ 88,977 $ 382,489 $ 604,512 Receivables:

Taxes - - - -
Interest 47,531 - - 4,469
Intergovernmental 283,933 - - -
Other receivable - 121,368 - -
Prepaid items - - 331 -
Land held for resale - - - -
Total assets 5,742,832 88,977 504,188 608,981

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 1,003,941 70,212 - -
Accrued liabilities - 12,294 - -
Other liabilities 98,737 - - -
Unearned revenue - - - -
Total liabilities 1,102,678 82,506 - -
Deferred Inflows of Resources
Unavailable revenues 114,524 47,862 - -
Total deferred inflows of resources 114,524 47,862 - -
Fund Balances:

Nonspendable
Prepaid items - - 331 -
Land held for resale - - - -
Restricted 4,525,630 88,977 373,489 608,981
Unassigned - - - -
Total fund balances 4,525,630 88,977 373,820 608,981
Total liabilities, deferred inflows of resources
and fund balances $ 5,742,832 $ 88,977 $ 504,188 $ 608,981 Special Revenue Funds
100

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Facility
Impact
Fee
CDBG
Program
Income
HOME
Investment
Partnership
Program
Housing
Authority
Narcotics
Program
$ 5,779,583 $ 395,460 $ 601,205 $ 1,277,337 $ 2,209
- - - - -
37,135 2,642 4,058 9,470 16
152,716 - - - -
- 500 - - -
- - - - -
- - 159,364 - -
5,969,434 398,602 605,263 1,446,171 2,225
76,526 135,315 335 50 -
- - - - -
122,179 - - - -
- - - - -
198,705 135,315 335 50 -
- (29) - - -
- (29) - - -
- - - - -
- - 159,364 - -
5,770,729 263,316 604,928 1,286,757 2,225
- - - - -
5,770,729 263,316 604,928 1,446,121 2,225
$ 5,969,434 $ 398,602 $ 605,263 $ 1,446,171 $ 2,225
Special Revenue Funds
101

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City of Atwater
Combining Balance Sheet
Nonmajor Special Revenue Funds (Continued)
June 30, 2025
Neighborhood
Stabilization
Applegate
Exchange
Regional
Surface
Transportation
Program
ARPA
Fund
ASSETS
Cash and investments $ 235,240 $ 821,430 $ 3,026,062 $ 1,077,811 Receivables:

Taxes - - - -
Interest 1,739 6,074 22,824 -
Intergovernmental - - - -
Other receivable - 25,712 - -
Prepaid items - - - -
Investment in land held for resale - - - -
Total assets 236,979 827,504 3,074,598 1,077,811

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable - 1,377,897 - 5,760
Accrued liabilities - - - -
Other liabilities - 82,101 - 45,040
Unearned revenue - - 869,488 -
Total liabilities - 1,459,998 - 920,288
Deferred Inflows of Resources
Unavailable revenues - 25,712 - -
Total deferred inflows of resources - 25,712 - -
Fund Balances:

Nonspendable
Prepaid items - - - -
Investment in land held for resale - - - -
Restricted 236,979 827,504 1,588,888 157,523
Unassigned - - - -
Total fund balances 236,979 827,504 1,588,888 157,523
Total liabilities, deferred inflows of resources
and fund balances $ 236,979 $ 827,504 $ 3,074,598 $ 1,077,811 Special Revenue Funds
102

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Pension Rate
Stablization
115 Trust
General
Plan Update
Fund
PLHA-Perm
Local Housing
Allocation
Fund
Maintenance
District
Funds
Total Nonmajor
Special Revenue
Funds
$ 616,660 $ 1,747,857 $ 393,138 $ 1,530,997 $ 23,992,335 - - 13,230 - 13,230
14,151 - 1,206 10,305 161,620
- - - - 436,649
- - - - 147,580
- - - - 331
- - - - 159,364
616,660 1,762,008 394,344 1,554,532 24,911,109
- 7,559 33,957 128,601 2,840,153
- - - 8,607 20,901
- - - - 348,057
- - - - 869,488
- 7,559 33,957 137,208 4,078,599
- - - - 188,069
- - - - 188,069
- - - - 331
- - - - 159,364
616,660 1,754,449 360,387 1,429,866 20,497,288
- - (12,542) - (12,542)
616,660 1,754,449 360,387 1,417,324 20,644,441
$ 616,660 $ 1,762,008 $ 394,344 $ 1,554,532 $ 24,911,109 Special Revenue Funds
103

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City of Atwater
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds
For the year ended June 30, 2025
Measure V
Special
Revenue
Police
Grants
Gas
Tax
Local
Transportation
REVENUES:

Taxes and assessments $ 1,022,817 $ - $ - $ 213
Intergovernmental - 24,139 864,109 -
Use of money and property 205,314 363 3,718 19,918
Charges for services 117,196 - 96,874 -
Other revenues - - 3,963 -
Total revenues 1,345,327 24,502 968,664 20,131
EXPENDITURES:

Current:

General government - - - -
Public safety - 37,406 - -
Highways and streets - - 1,275,152 -
Urban redevelopment and housing - - - -
Capital outlay 2,848,202 - 45,614 -
Total expenditures 2,848,202 37,406 1,320,766 -

REVENUES OVER (UNDER)
EXPENDITURES (1,502,875) (12,904) (352,102) 20,131
OTHER FINANCING SOURCES (USES):

Transfers in - - 569,281 -
Transfers out - - - -
Total other financing sources (uses) - - 569,281 -
Net change in fund balances (1,502,875) (12,904) 217,179 20,131 FUND BALANCES:

Beginning of year 6,028,505 101,881 156,641 588,850
Restatement - - - -
Beginning of year, as restated 6,028,505 101,881 156,641 588,850 End of year $ 4,525,630 $ 88,977 $ 373,820 $ 608,981
Special Revenue Funds
104

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Facility
Impact
Fee
CDBG
Program
Income
HOME
Investment
Partnership
Program
Housing
Authority
Narcotics
Program
$ 50,935 $ - $ - $ - $ -
867,093 - - - -
157,142 12,335 18,591 42,457 73
- - - - -
806 121,700 58,000 - -
1,075,976 134,035 76,591 42,457 73
(1,455) 174,761 6,329 - -
- - - - -
- - - - -
- - - 3,396 -
2,678,251 - - - -
2,676,796 174,761 6,329 3,396 -
(1,600,820) (40,726) 70,262 39,061 73
- - - - -
(42,706) - - - -
(42,706) - - - -
(1,643,526) (40,726) 70,262 39,061 73
6,708,191 304,042 534,666 1,407,060 2,152
706,064 - - - -
7,414,255 304,042 534,666 1,407,060 2,152
$ 5,770,729 $ 263,316 $ 604,928 $ 1,446,121 $ 2,225
Special Revenue Funds
105

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City of Atwater
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds (Continued)
For the year ended June 30, 2025
Neighborhood
Stabilization
Applegate
Exchange
Regional
Surface
Transportation
Program
ARPA
Fund
REVENUES:

Taxes and assessments $ - $ - $ - $ -
Intergovernmental - - 444,743 1,713,369
Use of money and property 7,778 27,158 106,390 -
Charges for services - - - -
Other revenues - - - 852
Total revenues 7,778 27,158 551,133 1,714,221
EXPENDITURES:

Current:

General government - - - 26,668
Public safety - - - -
Highways and streets - - - -
Urban redevelopment and housing - - - -
Capital outlay - - 1,672,653 1,687,553
Total expenditures - - 1,672,653 1,714,221

REVENUES OVER (UNDER)
EXPENDITURES 7,778 27,158 (1,121,520) -
OTHER FINANCING SOURCES (USES):

Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses) - - - -
Net change in fund balances 7,778 27,158 (1,121,520) -
FUND BALANCES:

Beginning of year 229,201 800,346 2,710,408 157,523
Restatement - - - -
Beginning of year, as restated 229,201 800,346 2,710,408 157,523 End of year $ 236,979 $ 827,504 $ 1,588,888 $ 157,523
Special Revenue Funds
106

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Pension Rate
Stablization
115 Trust
General
Plan Update
Fund
PLHA-Perm
Local Housing
Allocation
Fund
Maintenance
District
Funds
Total Nonmajor
Special Revenue
Funds
$ - $ - $ 895,403 - $ $ 1,969,368
- - 247,535 - 4,160,988
52,228 59,611 12,378 47,537 772,991
- - - - 214,070
- - - - 185,321
52,228 59,611 259,913 942,940 7,302,738
- 188,999 58,119 - 453,421
- - - 4,100 41,506
- - - - 1,275,152
- - - 1,126,173 1,129,569
- 10,604 - - 8,942,877
- 199,603 58,119 1,130,273 11,842,525
52,228 (139,992) 201,794 (187,333) (4,539,787)
50,000 - - 92,375 711,656
- - - - (42,706)
50,000 - - 92,375 668,950
102,228 (139,992) 201,794 (94,958) (3,870,837)
514,432 1,894,441 158,593 1,512,282 23,809,214
- - - - 706,064
514,432 1,894,441 158,593 1,512,282 24,515,278
$ 616,660 $ 1,754,449 $ 360,387 $ 1,417,324 $ 20,644,441 Special Revenue Funds
107

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City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Measure V Fund
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes and assessments $ 995,000 $ 995,000 $ 1,022,817 $ 27,817 Use of money and property 2,000 2,000 205,314 203,314
Charges for services 2,379,834 2,379,834 117,196 (2,262,638) Total revenues 3,376,834 3,376,834 1,345,327 (2,031,507) EXPENDITURES:

Capital outlay:

General capital outlay 6,841,406 6,841,406 2,848,202 3,993,204 Total expenditures 6,841,406 6,841,406 2,848,202 3,993,204

REVENUES OVER (UNDER)
EXPENDITURES (3,464,572) (3,464,572) (1,502,875) 1,961,697 OTHER FINANCING SOURCES (USES):

Net change in fund balances $ (3,464,572) $ (3,464,572) (1,502,875) $ 1,961,697 FUND BALANCES:

Beginning of year 6,028,505
End of year $ 4,525,630
Budget Amounts
108

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City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Police Grants Fund
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Charges for services $ 24,682 $ 24,682 $ 24,139 $ (543) Fines, forfeitures and assessments - - 363 363
Total revenues 24,682 24,682 24,502 (180)
EXPENDITURES:

Current:

Public safety 24,682 24,682 37,406 (12,724)
Total expenditures 24,682 24,682 37,406 (12,724)

REVENUES OVER (UNDER)
EXPENDITURES - (12,904) - (12,904)
Net change in fund balances $ - $ (12,904) - $ (12,904) FUND BALANCES:

Beginning of year 101,881
End of year $ 88,977
Budget Amounts
109

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City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Gas Tax Fund
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Charges for services $ 868,248 $ 868,248 $ 864,109 $ (4,139) Fines, forfeitures and assessments - - 3,718 3,718
Use of money and property 95,494 95,494 96,874 1,380
Miscellaneous - - 3,963 3,963
Total revenues 963,742 963,742 968,664 4,922
EXPENDITURES:

Current:

Public works 1,442,965 1,442,965 1,275,152 167,813
Capital outlay:

General capital outlay 47,000 47,000 45,614 1,386
Total expenditures 1,489,965 1,489,965 1,320,766 169,199

REVENUES OVER (UNDER)
EXPENDITURES (526,223) (526,223) (352,102) 174,121
OTHER FINANCING SOURCES (USES):

Transfers in 526,575 526,575 569,281 42,706
Total other financing sources (uses) 526,575 526,575 569,281 42,706 Net change in fund balances $ 352 $ 352 217,179 $ 216,827 FUND BALANCES:

Beginning of year 156,641
End of year $ 373,820
Budget Amounts
110

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City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Local Transportation Fund
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ - $ - $ 213 $ 213
Fines, forfeitures and assessments - - 19,918 19,918
Total revenues - 20,131 - 20,131
EXPENDITURES:

Capital outlay:

General capital outlay 394,828 394,828 - 394,828
Total expenditures 394,828 394,828 394,828 -

REVENUES OVER (UNDER)
EXPENDITURES (394,828) (394,828) 20,131 414,959
Net change in fund balances $ (394,828) $ (394,828) 20,131 $ 414,959 FUND BALANCES:

Beginning of year 588,850
End of year $ 608,981
Budget Amounts
111

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City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Facility Impact Fee Fund
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ - $ 50,935 - $ $ 50,935
Charges for services 801,841 801,841 867,093 65,252
Fines, forfeitures and assessments 2,700 2,700 157,142 154,442 Miscellaneous - - 806 806
Total revenues 804,541 804,541 1,075,976 271,435
EXPENDITURES:

Current:

General government 170 170 (1,455) 1,625
Capital outlay:

General capital outlay 3,720,236 3,720,236 2,678,251 1,041,985 Total expenditures 3,720,406 3,720,406 2,676,796 1,043,610

REVENUES OVER (UNDER)
EXPENDITURES (2,915,865) (2,915,865) (1,600,820) 1,315,045 OTHER FINANCING SOURCES (USES):

Transfers out - (42,706) - (42,706)
Total other financing sources (uses) - (42,706) - (42,706) Net change in fund balances $ (2,915,865) $ (2,915,865) (1,643,526) $ 1,272,339 FUND BALANCES:

Beginning of year 6,708,191
Restatment 706,064
Beginning of year, as restated 7,414,255
End of year $ 5,770,729
Budget Amounts
112

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City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual CDBG Program Income Fund
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Fines, forfeitures and assessments $ 500 $ 500 $ 12,335 $ 11,835 Miscellaneous - - 121,700 121,700
Total revenues 500 500 134,035 133,535
EXPENDITURES:

Current:

General government - - 174,761 (174,761)
Total expenditures - 174,761 - (174,761)
Net change in fund balances $ 500 $ 500 (40,726) $ (41,226) FUND BALANCES:

Beginning of year 304,042
End of year $ 263,316
Budget Amounts
113

Page 297 of 490 ends

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Home Investment Partnership Fund
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Fines, forfeitures and assessments $ - $ - $ 18,591 $ 18,591 Miscellaneous - - 58,000 58,000
Total revenues - 76,591 - 76,591
EXPENDITURES:

Current:

General government 75,926 75,926 6,329 69,597
Total expenditures 75,926 75,926 6,329 69,597
Net change in fund balances $ (75,926) $ (75,926) 70,262 $ 146,188 FUND BALANCES:

Beginning of year 534,666
End of year $ 604,928
Budget Amounts
114

Page 298 of 490 ends

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Housing Authority Fund
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Fines, forfeitures and assessments $ 3,000 $ 3,000 $ 42,457 $ 39,457 Miscellaneous 1,000 1,000 - (1,000)
Total revenues 4,000 4,000 42,457 38,457
EXPENDITURES:

Current:

Community development 20,000 20,000 3,396 16,604
Total expenditures 20,000 20,000 3,396 16,604

REVENUES OVER (UNDER)
EXPENDITURES (16,000) (16,000) 39,061 55,061
OTHER FINANCING SOURCES (USES):

Transfers out (50,000) (50,000) 50,000 -
Total other financing sources (uses) (50,000) (50,000) 50,000 - Net change in fund balances $ (66,000) $ (66,000) 39,061 $ 105,061 FUND BALANCES:

Beginning of year 1,407,060
End of year $ 1,446,121
Budget Amounts
115

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City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Narcotics Program Fund
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Fines, forfeitures and assessments $ - $ - $ 73 $ 73
Total revenues - - 73 73
Net change in fund balances $ - $ - 73 $ 73
FUND BALANCES:

Beginning of year 2,152
End of year $ 2,225
Budget Amounts
116

Page 300 of 490 ends

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Neighborhood Stablization Fund
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Fines, forfeitures and assessments $ - $ - $ 7,778 $ 7,778 Total revenues - - 7,778 7,778
Net change in fund balances $ - $ - 7,778 $ 7,778
FUND BALANCES:

Beginning of year 229,201
End of year $ 236,979
Budget Amounts
117

Page 301 of 490 ends

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Applegate Interchange Fund
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Fines, forfeitures and assessments $ - $ - 27,158 27,158 Total revenues - 27,158 - 27,158
Net change in fund balances $ - $ 27,158 - $ 27,158
FUND BALANCES:

Beginning of year 800,346
End of year $ 827,504
Budget Amounts
118

Page 302 of 490 ends

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Regional Surface Transportation Program
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Charges for services $ 444,743 $ 444,743 $ 444,743 $ -
Fines, forfeitures and assessments 5,000 5,000 106,390 101,390 Total revenues 449,743 449,743 551,133 101,390
EXPENDITURES:

Capital outlay:

General capital outlay 2,944,011 2,944,011 1,672,653 1,271,358 Total expenditures 2,944,011 2,944,011 1,672,653 1,271,358 Net change in fund balances $ (2,494,268) $ (2,494,268) (1,121,520) $ 1,372,748 FUND BALANCES:

Beginning of year 2,710,408
End of year $ 1,588,888
Budget Amounts
119

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City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual ARPA Grant
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property $ - $ - $ 1,713,369 $ 1,713,369 Miscellaneous - - 852 852
Total revenues - - 1,714,221 1,714,221
EXPENDITURES:

Current:

General government 102,625 102,625 26,668 75,957
Capital outlay:

General capital outlay 1,692,938 1,692,938 1,687,553 5,385 Total expenditures 1,795,563 1,795,563 1,714,221 81,342 Net change in fund balances $ (1,795,563) $ (1,795,563) - 1,795,563 $ FUND BALANCES:

Beginning of year 157,523
End of year $ 157,523
Budget Amounts
120

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City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Pension Rate Stablization 115 Trust Fund
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property $ - $ - $ 52,228 $ 52,228
Total revenues - 52,228 - 52,228
OTHER FINANCING SOURCES (USES):

Transfers in 50,000 50,000 50,000 -
Total other financing sources (uses) 50,000 50,000 50,000 - Net change in fund balances $ 50,000 $ 50,000 102,228 $ 52,228 FUND BALANCES:

Beginning of year 514,432
End of year $ 616,660
Budget Amounts
121

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City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Plan Update Grant Fund
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property $ - $ - $ 59,611 $ 59,611
Miscellaneous 75,394 75,394 (75,394) -
Total revenues 75,394 75,394 59,611 (15,783)
EXPENDITURES:

Current:

General government 2,810,719 2,810,719 188,999 2,621,720 Capital outlay:

General capital outlay 353,840 353,840 10,604 343,236
Total expenditures 3,164,559 3,164,559 199,603 2,964,956 Net change in fund balances $ (3,089,165) $ (3,089,165) (139,992) $ 2,949,173 FUND BALANCES:

Beginning of year 1,894,441
End of year $ 1,754,449
Budget Amounts
122

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City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Permanent Housing Local Allocation Fund
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental $ - $ - $ 247,535 $ 247,535
Charges for services 949,257 949,257 - (949,257)
Use of money and property - - 12,378 12,378
Total revenues 949,257 949,257 259,913 (689,344)
EXPENDITURES:

Current:

General government 949,257 949,257 58,119 891,138
Total expenditures 949,257 949,257 58,119 891,138
Net change in fund balances $ - $ 201,794 - $ 201,794
FUND BALANCES:

Beginning of year 158,593
End of year $ 360,387
Budget Amounts
123

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City of Atwater
Combining Balance Sheet
Maintenance District Special Revenue Funds
June 30, 2025
Northwood
Village
Orchard Parks
Estates
Wildwood
Estates
Woodview
Garland
ASSETS
Cash and investments $ - $ 99,496 $ 31,816 $ -
Receivables:

Taxes 128 331 70 8
Interest - 707 174 -
Total assets 128 100,534 32,060 8

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 376 164 44 18
Accrued liabilities - - - -
Total liabilities 376 164 44 18
Fund Balances:

Nonspendable
Restricted 100,370 32,016
Unassigned (248) - - (10)
Total fund balances (248) 100,370 32,016 (10)
Total liabilities, deferred inflows of
resources and fund balances $ 128 $ 100,534 $ 32,060 $ 8 Special Revenue Funds
124

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Shaffer Lakes
West Woodhaven
Sierra
Parks
Shaffer Lakes
East
Price
Annexation
Sandlewood
Square
$ 27,854 $ 16,855 $ 1,372 $ 132,410 $ 1,255 $ 21,280
112 16 175 218 1,398 175
197 118 - 903 - 141
28,163 16,989 1,547 133,531 2,653 21,596
59 20 29 239 9,623 785
- - - - - -
59 20 29 239 9,623 785
28,104 16,969 1,518 133,292 - 20,811
- - - - (6,970) -
28,104 16,969 1,518 133,292 (6,970) 20,811
$ 28,163 $ 16,989 $ 1,547 $ 133,531 $ 2,653 $ 21,596
Special Revenue Funds
125

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City of Atwater
Combining Balance Sheet
Maintenance District Special Revenue Funds (Continued)
June 30, 2025
Pajaro
Dunes
Redwood
Estates
Cottage
Gardens
Airport
Business
Park
ASSETS
Cash and investments $ 42,303 $ 67,413 $ 23,092 $ 21,470 Receivables:

Taxes 4 249 - 390
Interest 318 487 179 109
Total assets 42,625 68,149 23,271 21,969

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 491 465 337 109
Accrued liabilities - - - -
Total liabilities 491 465 337 109
Fund Balances:

Nonspendable
Restricted 42,134 67,684 22,934 21,860
Unassigned - - - -
Total fund balances 42,134 67,684 22,934 21,860
Total liabilities, deferred inflows of
resources and fund balances $ 42,625 $ 68,149 $ 23,271 $ 21,969 Special Revenue Funds
126

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Silva
Ranch
Mello
Ranch
Camelia
Estates
Juniper
Meadows
Camelia
Meadows
Stone
Creek
$ 54,781 $ 72,145 $ 20,350 $ 23,198 $ 41,406 $ 136,278
30 230 1 2 291 97
408 510 146 138 287 1,033
55,219 72,885 20,497 23,338 41,984 137,408
1,024 1,321 71 313 649 3,318
- - - - - -
1,024 1,321 71 313 649 3,318
54,195 71,564 20,426 23,025 41,335 134,090
- - - - - -
54,195 71,564 20,426 23,025 41,335 134,090
$ 55,219 $ 72,885 $ 20,497 $ 23,338 $ 41,984 $ 137,408
Special Revenue Funds
127

Page 311 of 490 ends

City of Atwater
Combining Balance Sheet
Maintenance District Special Revenue Funds (Continued)
June 30, 2025
America
West
Bell
Crossing
Atwater
South
Beluga
Court
ASSETS
Cash and investments $ 55,973 $ - $ 86,919 $ 7,462
Receivables:

Taxes - 6 249 -
Interest 422 - 609 56
Total assets 56,395 6 87,777 7,518

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 157 833 2,654 -
Accrued liabilities - - - -
Total liabilities 157 833 2,654 -
Fund Balances:

Nonspendable
Restricted 56,238 85,123 7,518
Unassigned - (827) - -
Total fund balances 56,238 (827) 85,123 7,518
Total liabilities, deferred inflows of
resources and fund balances $ 56,395 $ 6 $ 87,777 $ 7,518 Special Revenue Funds
128

Page 312 of 490 ends

Mello
Ranch 2
Meadow
View Aspenwood
Applegate
Ranch Reserve CFD District
$ 184,415 $ 84,465 $ 96,720 $ 22,152 $ 13,824 $ 95,237
10 112 - 45 - 8,883
1,371 636 751 173 101 -
185,796 85,213 97,471 22,370 13,925 104,120
1,856 1,355 1,044 1,247 100,000 -
- - - - - 8,607
1,856 1,355 1,044 1,247 108,607 -
183,940 83,858 96,427 21,123 13,925
- - - - - (4,487)
183,940 83,858 96,427 21,123 13,925 (4,487)
$ 185,796 $ 85,213 $ 97,471 $ 22,370 $ 13,925 $ 104,120 Special Revenue Funds
129

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City of Atwater
Combining Balance Sheet
Maintenance District Special Revenue Funds (Continued)
June 30, 2025
Simon
Annexation
Lighting
District
Simon
Annexation
Landscape
District
Juniper
Meadows 2
Lighting
District
ASSETS
Cash and investments $ 16,637 $ 6,602 $ 25,817 $ 1,530,997 Receivables:

Taxes - - - 13,230
Interest 115 49 167 10,305
Total assets 16,752 6,651 25,984 1,554,532

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable - - 128,601 -
Accrued liabilities - - - 8,607
Total liabilities - - 137,208 -
Fund Balances:

Nonspendable
Restricted 16,752 6,651 25,984 1,429,866
Unassigned - - (12,542) -
Total fund balances 16,752 6,651 25,984 1,417,324
Total liabilities, deferred inflows of
resources and fund balances $ 16,752 $ 6,651 $ 25,984 $ 1,554,532 Total
Maintenance
District Special
Revenue Funds
Special Revenue Funds
130

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131

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City of Atwater
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Maintenance District Special Revenue Funds
For the year ended June 30, 2025
Northwood
Village
Orchard Parks
Estates
Wildwood
Estates
Woodview
Garland
REVENUES:

Taxes and assessments $ 4,550 $ 6,576 $ 3,504 $ 392
Use of money and property - 3,235 910 -
Total revenues 4,550 9,811 4,414 392
EXPENDITURES:

Current:

Public safety - - - -
Urban redevelopment and housing 8,768 4,892 1,655 882
Total expenditures 8,768 4,892 1,655 882

REVENUES OVER (UNDER)
EXPENDITURES (4,218) 4,919 2,759 (490)
OTHER FINANCING SOURCES (USES):

Transfers in 4,215 350 5,688 500
Total other financing sources (uses) 4,215 350 5,688 500 Net change in fund balances (3) 5,269 8,447 10
FUND BALANCES:

Beginning of year (245) 95,101 23,569 (20)
End of year $ (248) $ 100,370 $ 32,016 $ (10)
Special Revenue Funds
132

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Shaffer Lakes
West Woodhaven
Sierra
Parks
Shaffer Lakes
East
Price
Annexation
Sandlewood
Square
$ 2,291 $ 1,440 $ 2,028 $ 14,254 $ 55,743 $ 7,099
902 540 25 4,235 (8) 670
3,193 1,980 2,053 18,489 55,735 7,769
- - - - - -
2,311 1,327 1,093 9,553 111,551 9,552
2,311 1,327 1,093 9,553 111,551 9,552
882 653 960 8,936 (55,816) (1,783)
280 279 221 1,460 47,722 3,429
280 279 221 1,460 47,722 3,429
1,162 932 1,181 10,396 (8,094) 1,646
26,942 16,037 337 122,896 1,124 19,165
$ 28,104 $ 16,969 $ 1,518 $ 133,292 $ (6,970) $ 20,811
Special Revenue Funds
133

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City of Atwater
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Maintenance District Special Revenue Funds (Continued)
For the year ended June 30, 2025
Pajaro
Dunes
Redwood
Estates
Cottage
Gardens
Airport
Business
Park
REVENUES:

Taxes and assessments $ 3,452 $ 6,187 $ 403 $ 5,396
Use of money and property 1,398 2,208 771 613
Total revenues 4,850 8,395 1,174 6,009
EXPENDITURES:

Current:

Public safety - - - -
Urban redevelopment and housing 5,669 7,792 2,689 3,148 Total expenditures 5,669 7,792 2,689 3,148

REVENUES OVER (UNDER)
EXPENDITURES (819) 603 (1,515) 2,861
OTHER FINANCING SOURCES (USES):

Transfers in 867 2,106 204 3,369
Total other financing sources (uses) 867 2,106 204 3,369 Net change in fund balances 48 2,709 (1,311) 6,230
FUND BALANCES:

Beginning of year 42,086 64,975 24,245 15,630
End of year $ 42,134 $ 67,684 $ 22,934 $ 21,860
Special Revenue Funds
134

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Silva
Ranch
Mello
Ranch
Camelia
Estates
Juniper
Meadows
Camelia
Meadows
Stone
Creek
$ 8,895 $ 13,035 $ 1,220 $ 2,994 $ 5,899 $ 8,282
1,785 2,307 662 693 1,357 4,493
10,680 15,342 1,882 3,687 7,256 12,775
- - - - - -
12,841 18,582 1,704 2,535 5,709 23,771
12,841 18,582 1,704 2,535 5,709 23,771
(2,161) (3,240) 178 1,152 1,547 (10,996)
543 1,031 312 2,845 405 937
543 1,031 312 2,845 405 937
(1,618) (2,209) 490 3,997 1,952 (10,059)
55,813 73,773 19,936 19,028 39,383 144,149
$ 54,195 $ 71,564 $ 20,426 $ 23,025 $ 41,335 $ 134,090
Special Revenue Funds
135

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City of Atwater
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Maintenance District Special Revenue Funds (Continued)
For the year ended June 30, 2025
America
West
Bell
Crossing
Atwater
South
Beluga
Court
REVENUES:

Taxes and assessments $ - $ 6,399 $ 17,429 $ 2
Use of money and property 1,853 - 2,781 249
Total revenues 1,853 6,399 20,210 251
EXPENDITURES:

Current:

Public safety - - - -
Urban redevelopment and housing 2,622 15,628 25,591 113 Total expenditures 2,622 15,628 25,591 113

REVENUES OVER (UNDER)
EXPENDITURES (769) (9,229) (5,381) 138
OTHER FINANCING SOURCES (USES):

Transfers in 444 6,743 1,440 18
Total other financing sources (uses) 444 6,743 1,440 18 Net change in fund balances (325) (2,486) (3,941) 156
FUND BALANCES:

Beginning of year 56,563 1,659 89,064 7,362
End of year $ 56,238 $ (827) $ 85,123 $ 7,518
Special Revenue Funds
136

Page 320 of 490 ends

Mello
Ranch 2
Meadow
View Aspenwood
Applegate
Ranch Reserve CFD District
$ 9,727 $ 8,847 $ 5 $ 4,092 $ 694,660 - $
6,062 2,784 3,239 739 454 1,035
15,789 11,631 3,244 4,831 454 695,695
- - - - - 4,100
21,024 17,304 9,492 10,451 166 787,475
21,024 17,304 9,492 10,451 166 791,575
(5,235) (5,673) (6,248) (5,620) 288 (95,880)
1,126 819 516 579 128 -
1,126 819 516 579 128 -
(4,109) (4,854) (5,732) (5,041) 416 (95,880)
188,049 88,712 102,159 26,164 13,509 91,393
$ 183,940 $ 83,858 $ 96,427 $ 21,123 $ 13,925 $ (4,487) Special Revenue Funds
137

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City of Atwater
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Maintenance District Special Revenue Funds (Continued)
For the year ended June 30, 2025
Simon
Annexation
Lighting
District
Simon
Annexation
Landscape
District
Juniper
Meadows 2
Lighting
District
REVENUES:

Taxes and assessments $ - $ - $ 602 $ 895,403
Use of money and property 529 218 798 47,537
Total revenues 529 218 1,400 942,940
EXPENDITURES:

Current:

Public safety - - - 4,100
Urban redevelopment and housing 31 32 220 1,126,173
Total expenditures 31 32 1,130,273 220

REVENUES OVER (UNDER)
EXPENDITURES 498 186 1,180 (187,333)
OTHER FINANCING SOURCES (USES):

Transfers in 1,045 5 2,749 92,375
Total other financing sources (uses) 1,045 5 2,749 92,375 Net change in fund balances 1,543 191 3,929 (94,958)
FUND BALANCES:

Beginning of year 15,209 6,460 22,055 1,512,282
End of year $ 16,752 $ 6,651 $ 25,984 $ 1,417,324
Total
Maintenance
District Special
Revenue Funds
Special Revenue Funds
138

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City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual CFD Districts - Maintenance District Special Revenue Fund For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes $ - $ 694,660 - $ $ 694,660
Fines, forfeitures and assessments - - 1,035 1,035
Total revenues - 695,695 - 695,695
EXPENDITURES:

Current:

Public safety 4,200 4,200 4,100 100
Community development 796,079 796,079 787,475 8,604
Total expenditures 800,279 800,279 791,575 8,704
Net change in fund balances $ (800,279) $ (800,279) (95,880) $ 704,399 FUND BALANCES:

Beginning of year 91,393
End of year $ (4,487)
Budget Amounts
139

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140

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City of Atwater
Combining Statement of Net Position
Internal Service Funds
June 30, 2025
Building Employee Risk Information
Maintenance Benefits Management Technology Totals
ASSETS
Current Assets:

Cash and investments $ 1,381,325 $ 705,827 $ 1,242,003 $ 767,844 $ 4,096,999 Receivables:

Interest 7,855 5,429 1,775 4,568 19,627
Other 3,956 - - - 3,956
Prepaid expenses - - 11,879 - 11,879
Total current assets 1,389,180 715,212 1,243,778 784,291 4,132,461 Noncurrent:

Capital assets:

Depreciable 2,091,743 103,094 - 601,348 2,796,185
Less accumulated depreciation (1,470,055) (48,089) - (595,187) (2,113,331) Net capital assets 621,688 55,005 - 6,161 682,854
Total noncurrent assets 621,688 55,005 - 6,161 682,854
Total assets 2,010,868 715,212 1,298,783 790,452 4,815,315

LIABILITIES
Current liabilities:

Accounts payable 72,685 17,587 21,653 3,981 115,906
Accrued payroll 7,824 - 2,449 - 10,273
Compensated absences - current 9,544 - 1,266 - 10,810
Total current liabilities 90,053 17,587 21,653 7,696 136,989 Noncurrent liabilities:

Compensated absences 16,772 - 2,445 - 19,217
Total noncurrent liabilities 16,772 - 2,445 - 19,217
Total liabilities 106,825 17,587 21,653 10,141 156,206

NET POSITION
Net investment in capital assets 621,688 55,005 - 6,161 682,854 Unrestricted 1,282,355 697,625 1,222,125 774,150 3,976,255 Total net position $ 1,904,043 $ 697,625 $ 1,277,130 $ 780,311 $ 4,659,109 141

Page 325 of 490 ends

City of Atwater
Combining Statement of Revenues, Expenses and Changes in Net Position Internal Service Funds
For the year ended June 30, 2025
Building Employee Risk Information
Maintenance Benefits Management Technology Totals
OPERATING REVENUES:

Interdepartmental charges $ 1,939,885 $ 851,596 $ 2,516,953 $ 782,318 $ 6,090,752 Other operating revenue 185 58,530 - - 58,715
Total operating revenues 1,940,070 910,126 2,516,953 782,318 6,149,467 OPERATING EXPENSES:

Salaries and benefits 321,804 50,000 - 98,725 470,529
Contractual services 411,896 2,237 123,714 210,486 748,333 Materials and supplies 1,538 - - - 1,538
Repairs and maintenance 765,787 - - - 765,787
Utilities 202,457 - - - 202,457
Insurance - 1,025,528 2,074,688 - 3,100,216
Other operating costs - - 7,861 392,251 400,112
Depreciation 81,074 - 3,142 8,961 93,177
Total operating expenses 1,784,556 1,077,765 2,209,405 710,423 5,782,149 Operating income (loss) 155,514 (167,639) 307,548 71,895 367,318 NONOPERATING REVENUES (EXPENSES):

Intergovernmental revenues (expenses) 3,570 - - - 3,570 Interest revenue 39,757 24,745 24,896 24,524 113,922
Total nonoperating revenues (expenses) 43,327 24,745 24,896 24,524 117,492 Income before contributions and transfers 198,841 (142,894) 332,444 96,419 484,810 CONTRIBUTIONS AND TRANSFERS:

Transfers in 100,000 100,000 - - 200,000
Transfers out - (50,000) - - (50,000)
Total contributions and transfers 100,000 50,000 - - 150,000 Change in net position 298,841 (92,894) 332,444 96,419 634,810 NET POSITION:

Beginning of year 1,608,152 790,519 944,686 683,703 4,027,060 Restatement (2,950) - - 189 (2,761)
Beginning of year, as restated 1,605,202 790,519 944,686 683,892 4,024,299 End of year $ 1,904,043 $ 697,625 $ 1,277,130 $ 780,311 $ 4,659,109 142

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City of Atwater
Statement of Cash Flows
Internal Service Funds
For the year ended June 30, 2025
Building Employee Risk Information
Maintenance Benefits Management Technology Totals
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers and users $ 1,969,244 $ 915,464 $ 2,519,354 $ 781,250 $ 6,185,312 Cash paid to suppliers for goods and services (1,570,416) (1,032,402) (2,186,149) (599,435) (5,388,402) Cash paid to employees for services (322,152) (50,000) (97,795) - (469,947) Net cash provided by (used in) operating activities 76,676 (166,938) 333,205 84,020 326,963 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Cash transfers in 100,000 100,000 - 200,000 -
Cash transfers out (50,000) - (50,000) -
Subsidy from grants 3,570 - - 3,570 -
Net cash provided by (used in)
noncapital financing activities 103,570 50,000 - 153,570 - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Purchase of capital assets (31,759) - - (31,757) 2
Net cash provided by (used in)
capital and related financing activities (31,759) - - (31,757) 2 CASH FLOWS FROM INVESTING ACTIVITIES:

Interest received 39,757 24,745 24,896 24,524 113,922
Net cash provided by (used in) investing activities 39,757 24,745 24,896 24,524 113,922 Net cash flows 188,244 (92,193) 358,101 108,546 562,698 CASH AND INVESTMENTS - Beginning of year 1,193,081 798,020 883,902 659,298 3,534,301 CASH AND INVESTMENTS - End of year $ 1,381,325 $ 705,827 $ 1,242,003 $ 767,844 $ 4,096,999

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

Operating income (loss) $ 155,514 $ (167,639) $ 307,548 $ 71,895 $ 367,318 Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:

Depreciation 81,074 3,142 - 8,961 93,177
(Increase) decrease in accounts receivable 29,174 (582) 2,401 (481) 30,512 (Increase) decrease in prepaid expense 5,920 - (587) - 5,333 Increase (decrease) in accounts payable (188,738) (4,637) 20,114 (169,959) 3,302 Increase (decrease) in accrued payroll 133 - - 365 498
Increase (decrease) in compensated absences (481) - - 565 84 Net cash provided by (used in) operating activities $ 76,676 $ (166,938) $ 333,205 $ 84,020 $ 326,963 143

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Atwater City CouncilJune 8, 2026

Atwater City Council
June 8, 2026