Barstow City Council
February 17, 2026

CITY OF BARSTOW, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Prepared By:

Finance Department
7+,63$*(,17(17,21$//</()7%/$1.

CITY OF BARSTOW, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
Page
Number

INTRODUCTORY SECTION
Letter of Transmittal ......................................................................................................................................... i Organizational Chart ....................................................................................................................................... v List of Elected and Appointed Officials .......................................................................................................... vi Certificate of Achievement for Excellence in Financial Reporting ................................................................ vii

FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT ................................................................................................................ 1 MANAGEMENT'S DISCUSSION AND ANALYSIS ............................................................................................... 7

BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements:

Statement of Net Position ....................................................................................................................... 23 Statement of Activities ............................................................................................................................ 24 Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet - Governmental Funds ............................................................................................. 30 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ................................................................................................ 33 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds ............................................................................................... 34 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the
Statement of Activities ............................................................................................................... 36 Proprietary Fund Financial Statements:

Statement of Net Position - Proprietary Funds ................................................................................ 37 Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds ...................................................................................................... 38 Statement of Cash Flows - Proprietary Funds ................................................................................. 39 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position - Fiduciary Funds ................................................................... 42 Statement of Changes in Fiduciary Net Position - Fiduciary Funds ................................................ 43 Notes to Basic Financial Statements ............................................................................................................ 49

CITY OF BARSTOW, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
Page
Number

REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)
Budgets and Budgetary Accounting:

Budget Control and Budgetary Accounting ............................................................................................ 97 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual:

General Fund ................................................................................................................................... 98 Measure I ......................................................................................................................................... 99 Barstow Fire Protection District ...................................................................................................... 100 Grants............................................................................................................................................. 101 Gas Tax .......................................................................................................................................... 103 CalPERS Cost Sharing Plan:

Schedule of Proportionate Share of the Net Pension Liability ............................................................. 104 San Bernardino County Employees’ Retirement Association (SBCERA):

Schedule of Proportionate Share of the Net Pension Liability ............................................................. 106 OPEB Plan
City of Barstow Plan - Schedule of Changes in Net OPEB Liability and Related Ratios ..................... 108 Barstow Fire Protection District Plan - Schedule of Changes in the Net OPEB Liability and Related Ratios ......................................................................................................................... 110 Schedule of Plan Contributions ................................................................................................................... 112

SUPPLEMENTARY INFORMATION
Non-Major Governmental Funds:

Combining Balance Sheet .................................................................................................................... 116 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ........................................................................................................................... 120 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual:

Asset Seizure ................................................................................................................................. 123 Barstow Harvey House Foundation ............................................................................................... 124 Public Safety Cops Program .......................................................................................................... 125 City Capital Projects ....................................................................................................................... 126 Debt Service ................................................................................................................................... 127 Custodial Funds:

Combining Statement of Fiduciary Fund Net Position .......................................................................... 130 Combining Statement of Changes in Fiduciary Net Position ............................................................... 131

CITY OF BARSTOW, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
Page
Number

STATISTICAL SECTION (UNAUDITED)
Description of Statistical Section ................................................................................................................. 135 Net Position by Component – Last Ten Fiscal Years ................................................................................. 137 Changes in Net Position – Last Ten Fiscal Years ....................................................................................... 138 Fund Balances of Governmental Funds – Last Ten Fiscal Years .............................................................. 140 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years ........................................... 141 Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ........................................................................................................................... 142 Assessed Value and Estimated Actual Value of Taxable Property by Class – Last Ten Fiscal Years ........................................................................................................................... 143 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years ........................................................ 144 Largest 2024-25 Local Secured Taxpayers ................................................................................................ 145 Principal Property Tax-Payers – Current Year and Nine Years Ago .......................................................... 146 Property Tax Levies and Collections – Last Ten Fiscal Years.................................................................... 147 Top 25 Sales Tax Producers 2024 ............................................................................................................. 148 Top 25 Sales Tax Producers 2015 ............................................................................................................. 149 Taxable Sales by Category ......................................................................................................................... 150 Ratios of Outstanding Debt by Type – Last Ten Fiscal Years .................................................................... 151 Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years. ...................................................... 152 Direct and Overlapping Governmental Activities Debt ................................................................................ 153 Legal Debt Margin Information – Last Ten Fiscal Years ............................................................................. 154 Pledged Revenue Coverage – Last Ten Fiscal Years ................................................................................ 155 Demographic and Economic Statistics – Last Ten Calendar Years ........................................................... 156 Principal Employers .................................................................................................................................... 157 Full-Time and Part-Time City Employees by Function – Last Ten Fiscal Years ......................................... 158 Operating Indicators by Function – Last Ten Fiscal Years ......................................................................... 159 Capital Asset Statistics by Function – Last Ten Fiscal Years ..................................................................... 160 7+,63$*(,17(17,21$//</()7%/$1.
220 East Mountain View Street, Suite A, Barstow, California 92311-2839 Ph: 760-256-3531 Fax: 760-256-1750 www.barstowca.org
January 22, 2026

For the Citizens of the City of Barstow,
Honorable Mayor and City Council
City of Barstow
It is our pleasure to submit the Annual Comprehensive Financial Report (ACFR) for the City of Barstow. State law requires that all general-purpose local governments publish each fiscal year a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. Pursuant to that requirement, we hereby issue the Annual Comprehensive Financial Report of the City of Barstow for the fiscal year ended June 30, 2025.

This report consists of management’s representations concerning the finances of the City of Barstow. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. Management of the City of Barstow has established a comprehensive internal control framework that is designed 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 exceed anticipated benefits, the City’s comprehensive framework of internal controls has been designed to provide reasonable, rather than, absolute assurance that the financial statements will be free from material misstatement.

The City of Barstow’s financial statements have been audited by LSL, LLP, a firm of licensed certified public accountants. The independent auditors have issued an unmodified opinion and have concluded that the City’s financial statements for the fiscal year ended June 30, 2025, are fairly presented in conformity with generally accepted accounting principles. The independent auditors’ report is presented as the first component of the financial section of this report. GAAP require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City of Barstow’s MD&A can be found immediately following the report of the independent auditors.

PROFILE OF THE CITY
The Reporting Entity
This report combines the financial statements of the City of Barstow, and its component units, the Barstow Public Financing Authority, the Barstow Public Facilities Corporation, the Odessa Water District, the Barstow Harvey House Foundation, Barstow Community Services Foundation and the Barstow Fire Protection District to constitute a single reporting entity. The City Council serves as the governing board of these component units and, as such, this combined presentation better represents the financial activities of the City of Barstow. i
The City directly provides a full range of services, including police and fire protection services. Contracted services include engineering, street sweeping, solid waste management, and attorney services.

Staff provided services include police services and fire protection services, customer service and community relations, community development (which includes planning, economic development, housing and grant administration activities as well as overall department administration), public works oversight including construction and maintenance of roadways, parks and streets, recreational and cultural activities, sewer utility services and general administrative services. All of these activities are included in this report. Fire protection is provided by the Barstow Fire Protection District, a subsidiary agency of the City.

The City is served by private water companies. However, sewerage services are provided by the City of Barstow.

Additionally, the Barstow Unified School District is a separate entity and, accordingly, not included in this report.

History of the City
The City of Barstow is a General Law Council/Manager municipality incorporated in 1947. It is located in the northern part of the County of San Bernardino, approximately 114 miles northeast of Los Angeles, and approximately 70 miles north of the City of San Bernardino. The City boundary encompasses approximately 40 square miles and serves a population of over 24,000. The City prides itself as the “Crossroads of Opportunity” at the juncture of the I-40 and I-15 freeways. Situated midway between Los Angeles and Las Vegas, Barstow caters to the needs of approximately 55 million travelers passing through the City annually.

The City Council is responsible for, among other things, passing ordinances, adopting the budget, appointing committees, and hiring both the City Manager and City Attorney. The Council is elected on a non-partisan basis.

Council members serve four-year terms and elections are staggered every two years. The mayor is elected to serve a four-year term. The mayor is elected at large while the council members are elected by districts.

The City Manager is responsible for carrying out the policies and ordinances of the governing body, and for overseeing the day-to-day operations of the City government working with the directors and managers of various City departments.

The City Manager administers the Annual Operating and Capital Improvement Budget and maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the appropriated budget approved by the City’s governing body. Activities of the general fund, special revenue funds, enterprise funds, debt service fund and capital projects funds are included in the annual appropriated budget. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established at the individual fund level. Appropriations lapse at year end. However, encumbrances and project appropriations generally are re-appropriated as part of the following fiscal year’s operating budget.

ECONOMIC CONDITION AND OUTLOOK
From a historical perspective, growth in the City of Barstow has proceeded at a fairly slow, but steady pace. Major industries located within the city’s boundaries, or in close proximity, included major military installations with both military and civilian personnel, national defense contractors, transportation and rail firms, as well as numerous educational and financial institutions. The most current population figures show San Bernardino County has increased its population by 0.3% from January 1, 2024 to January 1, 2025. The population for the City of Barstow had a slight decrease of -0.5% according to the California Department of Finance. The unemployment rate as of September, 2025, for the City is 7.6% which is an increase from 4.2% in June, 2025. Staff continues to pursue economic development in areas of the local economy that will provide job creation and increased opportunities for City residents.

Sales tax revenue, excluding Measure Q, a major contributor to the City’s revenues, decreased from $8.37 million in fiscal year 2024 to $7.78 million in fiscal year 2025. The City’s transient occupancy tax, also a major contributor, experienced a decrease this fiscal as well. TOT revenues for fiscal year 2025 were $3.39 million, down from $3.94 million in fiscal year 2024. City management and staff continue to monitor the City’s revenues will keep Council informed of any changes as they occur throughout the next fiscal year. ii
MAJOR ACTIVITY IN THE CITY:

Major development activities are underway in the City consistent with the City’s General Plan and Council’s vision and direction to improve and upgrade infrastructure, public services, and promote economic growth and development. Some of these development activities include:
 The City continues its efforts with the Barstow International Gateway (BIG) project. The new facility will bring thousands of direct jobs to California’s high desert communities, reduce highway and port congestion, and maximize rail and distribution efficiency regionally and across the U.S. supply chain.  The Marriott hotel project in the Lenwood area of Barstow along the freeway finally complete and opened for business in the fall of 2023. The project includes two hotels totaling 181 rooms using an innovative shared footprint design. The two hotels are a Fairfield Inn (short term stay) and a Towne Place Suites (long term stay). The hotels are located close to the Outlets at Barstow and conservatively will add over $500 thousand annually in new revenues to the City’s General Fund.  The City has entered into four Inter Governmental Service Agreements (IGSCs) with Fort Irwin (Army) that are expected to add over $800,000 annually in new revenues to the City’s General Fund. The IGSCs cover base operations, refuse collections, and animal services among other services.  The City created a “green zone” and have approved six applications for commercial retail operations, with two in operation. In addition, twenty-three applications for manufacturing and distribution have been approved by the City Council. To date, 7 manufacturing operators have opened in the City. The City will receive regulatory fees plus 3% of gross sales (above the City’s existing 2%) for commercial retail operations and $5 per square foot for manufacturing operations annually per approved development agreements. Annual revenues received pursuant to approved development agreements are expected to be in excess of $1.5 million annually once all approved businesses are operating.  The City successfully passed a local general sales tax ballot measure (Measure Q) on November 6, 2018.

Income from the new general sales tax measure began to be collected on April 1, 2019. The City collected over $9.6 million from the sales tax measure in fiscal year 2025.

LONG-TERM FINANCIAL PLANNING
The City continues to maintain a Council mandated reserve of 20% Working Capital and 5% for emergencies. The Fiscal Year 2025-26 Budget falls within the policy guidelines set by the City Council for budgetary and planning purposes. The City’s financial condition is continuously being monitored and has improved due to the passage of the Measure Q Local Sales Tax, a 1% general tax available to fund senior and youth recreation programs; assist with maintaining roads and parks; and improve police and fire services. Periodically, interim financial reports are presented to City Council regarding the budgetary performance of all major funds. By closely monitoring revenues, expenditures, and financial trends, the City has been able to successfully manage economic downturns, thus reducing the impact on City services. Current economic factors and potential future economic impacts continue to be carefully monitored and tracked by staff.

AWARDS AND ACKNOWLEDGEMENTS
Awards
The City’s Annual Comprehensive Financial Report for the year ended, June 30, 2025, was prepared utilizing best practices and in conformity with the awards program criteria for the Certificate of Achievement for Excellence in Financial Reporting as promulgated by the Government Finance Officer’s Association of the United States and Canada (GFOA). The Certificate of Achievement is the highest form of recognition for excellence in state and local government financial reporting. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe that our current annual comprehensive financial report for the year ended, June 30, 2025, conforms to the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for the certificate. iii
Acknowledgements
In closing, this report was made possible by the leadership and support of the governing body of the City of Barstow.

The preparation of this report on a timely basis is a team effort, requiring the dedication and cooperation of the entire Finance Department staff and continued support of the City Manager’s Office and City Council. The guidance and suggestions from the accounting firm of LSL, LLP, were also invaluable in completion of this report.

Sincerely,
Sydnie Harris
Finance Director
iv

CITIZENS OF BARSTOW

CITY ATTORNEY

ENVIRONMENTAL SERVICES

WASTEWATER

SOLID WASTE

ELECTED OFFICIALS

POLICE DEPARTMENT

COMMUNITY DEVELOPMENT

ENGINEERING

BUILDING & SAFETY

PLANNING

ECONOMIC DEVELOPMENT

ADMINISTRATIVE SERVICES

HUMAN RESOURCES

TECHNOLOGY

PUBLIC INFORMATION

CITY CLERK SERVICES

FINANCE

CITY OF BARSTOW

ORGANIZATIONAL CHART

ASSISTANT CITY MANAGER

COMMUNITY SERVICES

STREETS

BUILDING MAINTENANCE
FLEET

MAYOR CITY TREASURER

CITY COUNCIL CITY CLERK

CITY MANAGER

FIRE PROTECTION DISTRICT POLICE DEPARTMENT
OM
I
O
F
TY
T
N

Y ATTORNEY

WASTEWATER ENGINEERING TE
v
7+,63$*(,17(17,21$//</()7%/$1.
AUDITORS’ OPINION LETTER
7+,63$*(,17(17,21$//</()7%/$1.

LSLCPAS.COM
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the City Council
City of Barstow, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Barstow, California (the “City”), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2025, and the respective changes in financial position, and, where applicable, cash flows thereof, as listed in the table of contents, 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 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 Auditors’ 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 Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

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

To the Honorable Mayor and Members of the City Council
City of Barstow, California
Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

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

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

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison schedules for the General Fund and major special revenue funds, and the required pension and other postemployment benefits schedules, as listed on the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit 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. 2 To the Honorable Mayor and Members of the City Council City of Barstow, California
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 accompanying combining and individual fund financial statements and schedules (supplementary information) are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.

The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

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

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

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 22, 2026, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.

Irvine, California
January 22, 2026
3 7+,63$*(,17(17,21$//</()7%/$1.
4 MANAGEMENT’S DISCUSSION

AND ANALYSIS
5 7+,63$*(,17(17,21$//</()7%/$1.
6 CITY OF BARSTOW
Management’s Discussion and Analysis
June 30, 2025
As management of the City of Barstow (the “City”), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2025. It is designed to:
• Highlight significant financial issues
• Provide an overview of the City’s financial activity
• Discuss changes in the City’s financial position
• Explain any material deviations from the approved budget • Identify individual fund issues
We encourage readers to consider the information presented here in conjunction with the additional information that we have furnished in our letter of transmittal, which can be found on pages i-iv of this report.

FINANCIAL HIGHLIGHTS
• The governmental program and general revenues were $96.7 million. • The cost of governmental activities was $48.0 million. • The business-type activities program and general revenues were $13.3 million. • The cost of business-type activities was $11.2 million • The General Fund ended the fiscal year with a fund balance of $24.9 million, with a reported net decrease in fund balance of $4,669,627.
• For the General Fund, actual revenues exceeded the budgeted revenue estimates by $883,686 and actual expenditures where under the final amended budget by $2.6 million. • The Measure I Special Revenue Fund, a major governmental fund, ended the fiscal year with a fund balance of $1,185,718, an increase of $685,225 from the prior fiscal year. • The Barstow Fire Protection District ended the fiscal year with a fund deficit of $700,834, a deficit reduction of $1,810,802 from the prior fiscal year.
• The Grants Fund, a major governmental fund, ended the fiscal year with a fund deficit of $3,323,205, a deficit increase of $1,079,664 from the prior fiscal year.
• The Gas Tax Fund, a major governmental fund, ended the fiscal year with a fund balance of $3,829,419, an increase of $1,528,439 from the prior fiscal year.
• The City Capital Projects Fund, a major governmental fund, ended the fiscal year with a fund balance of $918,111, a decrease of $48,490 from the prior fiscal year. • Total Other Governmental Funds had a combined fund increase of $55,528.

OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City of Barstow’s basic financial statements, which are comprised of three components: (1) government-wide financial statements, (2) fund financial statements, and (3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.

Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances in a manner similar to a private-sector business. 7 CITY OF BARSTOW
Management’s Discussion and Analysis
June 30, 2025
The statement of net position presents information on all of the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with net position, which is the difference between assets plus deferred outflows of resources and liabilities plus deferred inflows of resources. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

The statement of activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus revenues are reported in the statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).

Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, public works, recreation and community development. The business-type activities of the City include wastewater reclamation and solid waste disposal.

The government-wide financial statements include not only the City itself, (known as the primary government), but also its legally separate component units. The Odessa Water District, the Barstow Fire Protection District, the Barstow Harvey House Foundation and the Barstow Community Services Foundation all function, for all practical purposes, as part of the City of Barstow, and therefore, have been included (blended) as an integral part of the primary government.

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 are divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental funds
Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing 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. 8 CITY OF BARSTOW
Management’s Discussion and Analysis
June 30, 2025
The City of Barstow maintains fourteen individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, Measure I special revenue fund, Barstow Fire Protection District special revenue, Grants special revenue fund, Gas Tax special revenue fund, and City Capital Projects capital projects fund, which are considered to be major funds. Data from the other nine governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements as supplementary information. The non-major revenue funds are the special revenue funds. They are Asset Seizure, Barstow Harvey House Foundation, Redevelopment Housing Successor Fund, Barstow Community Services Foundation, the Local Transportation Fund, the Flood Control Fund, COVID19 Grants Fund, Public Safety COPS Program, and the Debt Service Fund.

The City adopted a single year appropriations budget for its governmental and proprietary funds in fiscal year 2025.

A budgetary comparison has been provided for the general fund on page 98.

The basic governmental fund financial statements can be found on pages 30-36 of this report.

Proprietary funds
The City maintains two 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 its wastewater reclamation and solid waste disposal.

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 the major enterprise funds. The basic proprietary fund financial statements can be found on pages 37-40 of this report.

Fiduciary funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources for those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is like that used for proprietary funds. The City maintains seven fiduciary funds to account for the receipts and disbursements of special assessments. The City also has one private purpose trust fund to account for redevelopment successor agency activity. Fiduciary fund statements are located on page 42-43 of this report.

Notes to the 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. Included in this section is Note 15, which summarizes the activity related to Measure Q, the 1% general transaction tax approved by voters on November 6, 2018. The notes to the financial statements are located on pages 49-93 of this report.

Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s budgetary information and compliance for the General Fund, Measure I special revenue fund, the Barstow Fire Protection District special revenue fund and Grants special 9 CITY OF BARSTOW
Management’s Discussion and Analysis
June 30, 2025
revenue fund. This section also includes information regarding the Defined Benefit Pension Plan, which includes the California Public Employees’ Retirement System (CALPERS) and the San Bernardino County Employees’ Retirement Association (SBCERA) Plan. The schedule of funding progress, which presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for the benefits, is also presented as required supplementary information. Required supplementary information can be found on page 97-112 of this report.

Supplementary information for the non-major governmental funds, such as Grants, Asset Seizure, Barstow Harvey House Foundation, Redevelopment Housing Successor, Barstow Community Services Foundation, as well as the Local Transportation Fund and Flood Control special revenue funds are located on page 115-127 of this report.

GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net Position
Net position over time may serve as a useful indicator of a government’s financial position. In the case of the City, assets and deferred outflows exceeded liabilities and deferred inflows by $116.3 million at the close of the fiscal year, an increase of 76.5% from the previous year.

Capital assets (e.g., land, buildings, machinery, and equipment) less any related debt used to acquire those assets comprises $155.4 million of the City’s Net Position. Total Assets and Deferred Outflows equaled $222.1 million.

Total Liabilities and Deferred Inflows equaled $105.8 million. Total net position from Governmental Activities equaled $94.1 million or 80.8% and Business-Type Activities equaled $22.2 million or 19.2% of the $116.3 million total.

Invested in Capital
Assets, Net of
Related Debt

73.6%
Public Safety

0.1%
Parks & Recreation

0.0%
Capital Projects

3.0%
Low & Mod Income

0.2%
Streets & Highways

0.7% Debt Service

0.0%
Unrestricted
-22.4%
Other Purposes

0.0%
City of Barstow Net Position
10 CITY OF BARSTOW
Management’s Discussion and Analysis
June 30, 2025
2025 2024 2025 2024 2025 2024
Current and other assets $ 39,901,284 $ 43,103,205 $ 6,678,448 $ 4,994,758 $ 46,579,732 $ 48,097,963 Capital & intangible assets 135,645,596 86,411,299 23,478,880 23,869,138 159,124,476 110,280,437 Total Assets $175,546,880 $129,514,504 $30,157,328 $28,863,896 $205,704,208 $158,378,400 Def. outflows of resources - pens. $ 14,013,737 $ 16,510,515 $ 370,097 $ 364,452 $ 14,383,834 $ 16,874,967 Def. outflows of resources - OPEB 2,052,103 2,460,726 - - 2,052,103 2,460,726 Total deferred outflows $ 16,065,840 $ 18,971,241 $ 370,097 $ 364,452 $ 16,435,937 $ 19,335,693 Current liabilities $ 5,896,666 $ 8,673,406 $ 1,534,212 $ 1,065,352 $ 7,430,878 $ 9,738,758 Long-term liabilities 70,369,690 73,265,184 6,426,276 6,321,184 76,795,966 79,586,368 Total Liabilities $ 76,266,356 $ 81,938,590 $ 7,960,488 $ 7,386,536 $ 84,226,844 $ 89,325,126 Deferred inflows - pension $ 9,553,700 $ 10,921,023 $ 317,498 $ 260,658 $ 9,871,198 $ 11,181,681 Deferred inflows - OPEB 11,460,739 10,965,248 - - 11,460,739 10,965,248 Deferred inflows - leases 241,254 311,915 - - 241,254 311,915 Total deferred inflows $ 21,255,693 $ 22,198,186 $ 317,498 $ 260,658 $ 21,573,191 $ 22,458,844 Net Position:

Net investment in capital assets $132,607,944 $ 59,172,179 $22,786,748 $23,820,713 $155,394,692 $ 82,992,892 Restricted 8,280,437 6,077,215 - - 8,280,437 6,077,215
Unrestricted (46,797,710) (20,900,425) (537,309) (2,239,559) (47,335,019) (23,139,984) Total net position $ 94,090,671 $ 44,348,969 $22,249,439 $21,581,154 $116,340,110 $ 65,930,123 Total
Net Position (Summarized)
As of June 30, 2025 and 2024
Governmental Activities Business-Type Activities
As shown in the total column for 2025 in the chart above (City of Barstow Net Position), a portion of the City’s net position, $8.3 million, represents resources that are subject to restrictions on how they may be used. This restricted amount is primarily comprised of $1.4 million restricted for Streets and Highways, $6.3 million restricted for Capital Projects, and $480 thousand restricted for Low and Moderate Income Housing projects. 11 CITY OF BARSTOW
Management’s Discussion and Analysis
June 30, 2025
The City of Barstow’s overall net position increased by $50.7 million from the prior year. The reasons for this overall increase are discussed in the following sections for governmental activities (an increase of $50.0 million) and business-type activities (an increase of $668 thousand).

Governmental Activities
Governmental activities net position increased by $50 million for fiscal year 2025 as shown in the chart above and the chart on page 13. This net increase primarily resulted from increases in the City’s operating contributions and grants from the completion of the North First Avenue Bridge with assets contributed to the City from several grants totaling $47.7 million. In addition, the City had $2.9 million in decreases in deferred outflows, $5.7 million for decreases in total liabilities, and $942 thousand for deferred inflows. More information about governmental activities are reflected in the charts and graphs on the following pages. 2025 2024 2025 2024 2025 2024
Revenues:

Program Revenues:

Charges for services $ 4,050,581 $ 3,837,370 $ 13,088,990 $ 13,132,465 $ 17,139,571 $ 16,969,835 Operating contributions and grants 48,891,466 634,025 - 48,891,466 - 634,025 Capital contributions and grants 6,556,381 5,288,068 - 6,556,381 - 5,288,068 General Revenues:

Property taxes 13,135,370 12,613,212 - 13,135,370 - 12,613,212 Transient occupancy taxes 3,421,796 3,962,337 - 3,421,796 - 3,962,337 Sales taxes 17,394,413 18,219,191 - 17,394,413 - 18,219,191 Franchise taxes 1,478,105 1,421,689 - 1,478,105 - 1,421,689 Business license taxes 256,717 266,660 - - 256,717 266,660 Other taxes 62,794 68,629 - - 62,794 68,629
Intergovernmental, unrestricted - - - - - -
Use of money and property 1,005,585 1,050,239 141,775 86,329 1,147,360 1,136,568 Gain (loss) on disp. of capital assets - - - - - -
Other revenues 409,386 467,422 57,095 38,407 466,481 505,829 Gain (loss) on disp. of capital assets - - - - - -
Transfers between funds 1,399,287 1,440,393 (1,399,287) (1,440,393) - - Transfers - - - - - -
Total Revenues 98,061,881 49,269,235 11,888,573 11,816,808 109,950,454 61,086,043 Expenses:

General government 8,681,014 7,434,116 - 8,681,014 - 7,434,116 Public safety 23,176,662 25,168,097 - 23,176,662 - 25,168,097 Community development 3,741,681 3,704,614 - 3,741,681 - 3,704,614 Recreation 1,887,507 1,948,867 - 1,887,507 - 1,948,867
Public works 9,437,760 7,651,476 - 9,437,760 - 7,651,476 Interest on long-term debt 1,090,188 2,406,835 - 1,090,188 - 2,406,835 Wastewater Reclamation - 4,494,077 - 3,687,095 4,494,077 3,687,095 Solid Waste Disposal - 6,707,221 - 6,477,475 6,707,221 6,477,475 Total Expenses 48,014,812 48,314,005 11,201,298 10,164,570 59,216,110 58,478,575 Transfers - - - - - -
Change in Net Position 50,047,069 955,230 687,275 1,652,238 50,734,344 2,607,468 Net position, beginning of year, as restated 44,043,602 43,393,739 21,562,164 19,928,916 65,605,766 63,322,655 Net postion, end of year $ 94,090,671 $ 44,348,969 $ 22,249,439 $ 21,581,154 $ 116,340,110 $ 65,930,123 Changes in Net Position
As of June 30, 2025 and 2024
Governmental Activities Business-Type Activities Total
12 CITY OF BARSTOW
Management’s Discussion and Analysis
June 30, 2025
Governmental Activities
Governmental Activities - Expenses and Program Revenues for FY 2024/25 Governmental Activities - Revenues by Source
- 2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
20,000,000
22,000,000
24,000,000
26,000,000
28,000,000
30,000,000
32,000,000
34,000,000
36,000,000
38,000,000
40,000,000
42,000,000
44,000,000
46,000,000
48,000,000
50,000,000
52,000,000
54,000,000
56,000,000
58,000,000
General
Government
Public Safety Recreation Community
Development
Public Works Interest & Longterm Debt
Expenses Revenues
Sales & Use Tax
18%
Capital Grants &
Contributions
7%
Operating
Grants
50%
Other Taxes
2%
Charges for
Service
4%
Other Revenue
3%
Transient
Occupancy Tax…
Property Tax
13%
13 CITY OF BARSTOW
Management’s Discussion and Analysis
June 30, 2025
Business-type Activities
Business-type activities increased net position by $687 thousand as shown in the chart below. The increase is directly a result of the increase in the solid waste rate to account for the increase in the cost of services.

The chart below illustrates business-type expenses and revenues. The second chart on the following page shows Business-type revenues by source.

Business-Type Activities - Expenses and Program Revenues Business-Type Activities - Revenues by Source
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
Wastewater Solid Waste
Expenses Revenues
Operating
Grants &
Contributions
0%
Capital Grants
&
Contributions
0%
Charges for
Services -
Wastewater
43%
Charges for
Services -
Solid Waste
57%
14 CITY OF BARSTOW
Management’s Discussion and Analysis
June 30, 2025
FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental Funds
The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $29.2 million, a decrease of $1.7 million or -5.6% when compared to the fund balances of the prior year. In fiscal year 2025, total governmental funds expenditures exceeded revenues by $51.1 million. Further analysis discusses the underlying changes in the major government funds with major changes:

General Fund- During fiscal year 2025, there was a decrease in fund balance of $4.7 million from the previous year.

The decreases were primarily from a transfer out to other governmental funds including $4.7 million to BFPD, $317 thousand for Capital Projects, and $1.9 million for Debt Service. Expenditures were increased from prior year by $3.4 million primarily due to capital outlay spending for the purchase of heavy equipment and the renovation of several parks in the City.

Measure I- The net change in fund balance was an increase of $685 thousand.

Barstow Fire Protection District- The net change in fund balance was an increase of $1.8 million. This increase in fund balance reduced the accumulated fund deficit to $700 thousand. The deficit relates to an interfund operating loan from the General Fund to the BFPD. A plan of repayment has been adopted including annual payments of $500 thousand which may be amended from time to time as warranted. Total revenues for the District, excluding transfers, increased by $637 thousand while total expenditures increased by $362 thousand.

The non-spendable portion of total governmental funds fund balances is $7.1 million. The City’s non-spendable fund balances are prepaid amounts that pertain to another accounting period, inventories, assets that are not in cash form and deposits that are liabilities. As of June 30, 2025, the major amounts designated as non-spendable are as follows:
• $576 thousand due to a Prepaid amount for Debt Service • $4.6 million Barstow Fire Protection District loan
• $1.4 million in deposits held on behalf of the City
Restricted funds constitute $8.3 million of the total government funds fund balance. • More than one half ($6.3 million) of the restricted funds are restricted for Streets & Highway uses. • $1.2 million of the restricted funds are restricted for Measure I and various other Capital Projects. • Low and Moderate Income Housing funds constitute $480 thousand of the restricted fund balance.

Assigned fund balance accounts for $7.9 million of fund balance and is comprised of Working Capital ($5.4 million) and Emergency Reserves ($1.4 million), and Community Benefits funds ($832 thousand). 15 CITY OF BARSTOW
Management’s Discussion and Analysis
June 30, 2025
Unassigned fund balance in the General Fund constitutes approximately $9.9 million as of the end of the fiscal year which is available for spending at the government’s discretion. Of this amount, $4.63 million offsets accumulated deficits for all other governmental funds leaving $5.3 million remaining as unassigned fund balance as of the fiscal year end.

More details about the fund balance for governmental funds can be found on pages 30-31.

Proprietary Funds
At year-end, the total net position of all proprietary funds was $22.2 million, which was an increase of $668 thousand or 3.2% over the previous fiscal year. Details for the change are discussed below. • The Wastewater Fund net position increased by $116 thousand (0.6%) during the fiscal year. The increase is primarily due to the increased monitoring of industrial discharge flow and rate increases due to inflationary cost pressures.
• The Solid Waste Fund had a change in net position of $571 thousand (28.4%) This change was primarily due to increased collection efforts for past due accounts and rate increases due to inflationary cost pressures.

Additional information can be found on pages 37-40 of this report.

GENERAL FUND BUDGETARY HIGHLIGHTS
The fiscal 2025 year-end actual revenues of $34.6 million exceeded budgeted estimated revenues by approximately $884 thousand after adjusting for actuals received at mid-year. That is a decrease of revenues of $915 thousand from prior fiscal year. This decrease can be seen primarily in the tax revenues.

Actual total General Fund revenues had a positive or favorable variance in the amount of $884 thousand or

2.7% when in comparison to the fiscal year budget. The total General Fund expenditures also had a favorable variance and ended in a positive position of $2.6 million, however, this can be attributed to the unexpended portion of the capital outlay budget of $1.5 million for capital projects not completed at year end.

CAPITAL ASSET AND DEBT ADMINISTRATION
The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2025, amounts to $159.1 million (net of accumulated depreciation). This investment in capital assets includes land, building and system improvements, machinery and equipment and park facilities. The total change in the City’s investment in capital assets for the current fiscal year, when compared to the previous year’s capital assets, was an increase of 44.3% or $48.8 million. Changes from the prior year are discussed below and the City of Barstow’s Capital Assets chart on the next page. The analysis is detailed below:

Increases in Capital Assets for Governmental Activities & Decreases in Business-type Activities:

Governmental Activities had a net increase in capital assets of $49.2 million from the previous fiscal year due mainly to the following: a net decrease in Construction-in-progress of $19.1 million; a net increase in Machinery & Equipment of $844 thousand; and a net increase in infrastructure of $67.7 million. 16 CITY OF BARSTOW
Management’s Discussion and Analysis
June 30, 2025
Business-type Activities had an overall decrease of $390 thousand from fiscal year 2024. This decrease was primarily due to a $884 thousand decrease in Infrastructure that was offset by a $264 thousand increase in Machinery and Equipment from the prior fiscal year.

City of Barstow’s Capital Assets
(Net of Depreciation)
Additional information on the City’s capital assets can be found in Note 5 of the “Notes to Basic Financial Statements” on pages 62-63 of this report.

Long-term Debt
At the end of the current fiscal year, the City of Barstow had total debt outstanding of $25.3 million. Of this debt amount, governmental activities accounts for $25.2 million, and $0.1 million is related to business-type activities.

The City has no general obligation bonded debt or tax allocation bonded debt outstanding.

City of Barstow’s Outstanding Debt
In total, debt decreased by $2.0 million. This decrease was due to the timely payment of the Pension Obligation Bonds ($16.8 million) and Lease Revenue Bonds ($6.7 million), along with the payments on other loans, leases, and subscriptions during the fiscal year. These bonds were issued to pre-fund the Unfunded Actuarially-accrued Liabilities (UAL) within the pension funds for the City and Fire District.

Additional information on the City’s long-term debt can be found in Notes 6, 8, and 9von pages 64-68 of this report. 2025 2024 2025 2024 2025 2024
Land & Intangible Assets 9,784,135 $ $ 9,784,135 $ 1,657,637 $ 1,657,637 $ 11,441,772 $ 11,441,772 Work in progress 1,700,841 20,821,690 193,882 1,894,723 - 20,821,690 Buildings & Improvements 9,177,700 9,109,526 71,928 74,824 9,249,628 9,184,350 Machinery & equipment 3,480,909 2,636,987 2,046,431 1,781,859 5,527,340 4,418,846 Leased vehicles & equipment 797,451 1,029,730 86,445 47,762 883,896 1,077,492 Infrastructure 110,704,560 43,031,231 19,422,557 20,307,056 130,127,117 63,338,287 Total $ 135,645,596 $ 86,413,299 $ 23,478,880 $ 23,869,138 $ 159,124,476 $ 110,282,437 Governmental Activities Business-Type Activities Total
2025 2024 2025 2024 Total 2025 Total 2024
Lease Revenue Bonds $ 6,745,692 $ 7,207,778 $ - $ 6,745,692 - $ $ 7,207,778 Pension Obligation Bonds 16,800,000 17,995,000 - 16,800,000 - 17,995,000 Loans Payable 855,464 999,064 - 855,464 - 999,064
Leases Payable 824,184 988,614 87,536 48,425 911,720 1,037,039 Subscriptions Payable 8,115 48,664 - - 8,115 48,664
Total $ 25,233,455 $ 27,239,120 $ 87,536 $ 48,425 $ 25,320,991 $ 27,287,545 Governmental Activities Business-Type Activities Total
17 CITY OF BARSTOW
Management’s Discussion and Analysis
June 30, 2025
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
The economy continues to be at the forefront of management’s consideration in leading and providing services for the residents of the City of Barstow. The management team continuously takes the necessary steps required to address the needs of its residents for the short-term and the long-term, focusing on needed infrastructure improvements, community services including recreation and activities for all ages, business and economic development, and planning for long-term growth in conjunction with the City Council.

The construction of a Marriott hotel project in the Lenwood area of Barstow along the freeway was opened for business in the 2024 fiscal year. The project includes two hotels totaling 181 rooms using an innovative shared footprint design. The two hotels are a Fairfield Inn (short term stay) and a Towne Place Suites (long term stay) and are located close to the Outlet mall. They are estimated to bring an additional $500 thousand annually in new revenues to the City’s General Fund.

The City has approved creation of a “green zone” within a commercial and industrial area of the City. Based upon a Cannabis fee study completed for the City, expected new revenues during the next fiscal year may amount to approximately $1 to $2 million in new revenue. After approval, the City will receive over $70,000 annually in regulatory fees plus 3% of gross sales (above the City’s existing 2% sales tax) for each approved development agreement. To date, four Cannabis retailers have been fully approved. Two of those retailers are now in operation.

Burlington Northern Sante Fe railroad (BNSF) has recently announced investment of $4 billion in the City and immediately surrounding area to construct an in-land port. This new intermodal hub is anticipated to create 20,000 direct and indirect jobs in the City. This project will create significant future positive impacts both in quality of life and new revenue as well as additional service demands and significant growth. Currently, it is anticipated that this project will begin development in the spring of 2027. The City’s executive management team continues its commitment to improving the infrastructure for its residents. This is evidenced by the continued projects such as:

First Avenue Bridge over Burlington Northern Santa Fe (BNSF), the North First Avenue Bridge over the Mojave River, and West Section 7.

The unemployment rate for the City of Barstow as of June, 2025 was 5.9%. This represents an increase of

0.5% from the June, 2024 rate of 5.4%. The City’s Economic Development team is actively working to assist local businesses to identify and development new business opportunities in the community. The City also demonstrates its “pro-business” outlook by its willingness to work with prospective employers and new businesses interested in locating in Barstow.

REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Director, 220 E. Mountain View Street, Suite A, Barstow, California 92311.
18 GENERAL PURPOSE

FINANCIAL STATEMENTS
19 7+,63$*(,17(17,21$//</()7%/$1.
20 GOVERNMENT-WIDE

FINANCIAL STATEMENTS
21 7+,63$*(,17(17,21$//</()7%/$1.
22 CITY OF BARSTOW, CALIFORNIA
Statement of Net Position
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments $ 26,724,400 $ 5,449,142 $ 32,173,542 Receivables (net of uncollectibles):

Accounts 10,643,422 1,197,008 11,840,430
Taxes 61,338 - 61,338
Accrued interest 175,222 30,965 206,187
Leases 255,480 - 255,480
Deposits 1,359,170 - 1,359,170
Prepaid costs 682,252 1,333 683,585
Capital assets (not being depreciated) 11,484,976 1,851,519 13,336,495 Capital assets (net of accumulated depreciation/amortization) 124,160,620 21,627,361 145,787,981 Total assets 175,546,880 30,157,328 205,704,208

DEFERRED OUTFLOWS OF RESOURCES
Pension-related 14,013,737 370,097 14,383,834
OPEB-related 2,052,103 - 2,052,103
Total deferred outflows of resources 16,065,840 370,097 16,435,937

LIABILITIES
Accounts payable 4,188,116 1,448,014 5,636,130
Due to other governments 5,560 - 5,560
Accrued liabilities 1,319,337 44,569 1,363,906
Accrued interest 163,002 - 163,002
Deposits payable 24,632 41,629 66,261
Unearned revenue 172,757 - 172,757
Retentions payable 23,262 - 23,262
Noncurrent liabilities:

Due within one year: bonds, leases, subscriptions, claims, and compensated absences 4,312,042 85,979 4,398,021
Pollution remediation liability - 51,000 51,000
Due in more than one year:

Net pension liability 24,345,414 796,029 25,141,443
Net OPEB liability 12,784,702 - 12,784,702
Bonds, leases, subscriptions, claims, and
compensated absences 28,927,532 157,899 29,085,431
Pollution remediation liability - 5,335,369 5,335,369
Total liabilities 76,266,356 7,960,488 84,226,844

DEFERRED INFLOWS OF RESOURCES
Pension-related 9,553,700 317,498 9,871,198
OPEB-related 11,460,739 - 11,460,739
Lease-related 241,254 - 241,254
Total deferred inflows of resources 21,255,693 317,498 21,573,191

NET POSITION
Net investment in capital assets 132,607,944 22,786,748 155,394,692 Restricted:

Public safety and fire protection 117,901 - 117,901
Parks and recreation 1,825 - 1,825
Capital projects 6,275,969 - 6,275,969
Low and moderate income housing 479,549 - 479,549
Streets and highways 1,393,849 - 1,393,849
Other purposes 11,344 - 11,344
Unrestricted (46,797,710) (537,309) (47,335,019)
Total net position $ 94,090,671 $ 22,249,439 $ 116,340,110 June 30, 2025
Primary Government
See Notes to Financial Statements.
23 CITY OF BARSTOW, CALIFORNIA
Statement of Activities
For the Year Ended June 30, 2025
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Functions/Programs:

Primary government:

Governmental activities:

General government $ 8,681,014 $ 1,292,863 $ 62,234 $ - Public safety 23,176,662 2,148,971 971,484 953
Community development 3,741,681 485,189 104,892 759,988 Parks and recreation 1,887,507 122,851 - 11,770
Public works 9,437,760 707 47,752,856 5,783,670
Interest on long-term debt 1,090,188 - - -
Total governmental activities 48,014,812 4,050,581 48,891,466 6,556,381 Business-type activities:

Wastewater Reclamation 4,494,077 5,590,679 - -
Solid Waste Disposal 6,707,221 7,498,311 - -
Total business-type activities 11,201,298 13,088,990 - - Total primary government $ 59,216,110 $ 17,139,571 $ 48,891,466 $ 6,556,381 General revenues and transfers:

General revenues:

Property taxes
Sales taxes
Transient occupancy taxes
Franchise taxes
Business licenses taxes
Other taxes
Use of money and property
Other
Transfers
Total general revenues and transfers
Change in net position
Net position-beginning
Restatements - change in accounting principle
Net position-beginning, as restated
Net position-ending
Program Revenues
See Notes to Financial Statements.
24 Governmental Business-Type
Activities Activities Total
$ (7,325,917) $ - $ (7,325,917)
(20,055,254) - (20,055,254)
(2,391,612) - (2,391,612)
(1,752,886) - (1,752,886)
44,099,473 - 44,099,473
(1,090,188) - (1,090,188)
11,483,616 - 11,483,616
- 1,096,602 1,096,602
- 791,090 791,090
- 1,887,692 1,887,692
11,483,616 1,887,692 13,371,308
13,135,370 - 13,135,370
17,394,413 - 17,394,413
3,421,796 - 3,421,796
1,478,105 - 1,478,105
256,717 - 256,717
62,794 - 62,794
1,005,585 141,775 1,147,360
409,386 57,095 466,481
1,399,287 (1,399,287) -
38,563,453 (1,200,417) 37,363,036
50,047,069 687,275 50,734,344
44,350,969 21,581,154 65,932,123
(307,367) (18,990) (326,357)
44,043,602 21,562,164 65,605,766
$ 94,090,671 $ 22,249,439 $ 116,340,110
Primary Government
Net (Expenses) Revenues and
Changes in Net Position
See Notes to Financial Statements.
25 7+,63$*(,17(17,21$//</()7%/$1.
26 FUND

FINANCIAL STATEMENTS
Governmental Funds Financial Statements
Enterprise Funds Financial Statements
Fiduciary Funds Financial Statements
27 7+,63$*(,17(17,21$//</()7%/$1.
28 GOVERNMENTAL FUND FINANCIAL STATEMENTS
General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund.

The Measure I Fund is used to account for money generated by a one-half percent sales tax approved by the voters in 1989, through 2010. In 2004, San Bernardino County voters approved the extension of Measure I sales tax through 2040.

The Barstow Fire Protection District Fund accounts for operations of the Barstow Fire Protection District.

Grants Fund is used to account for receipts and expenditures of money received from various governmental grants.

Gas Tax Fund is used to account for receipts and expenditures of money apportioned under Street and Highway Code Sections 2105, 2106, 2107 and 2107.5 of the State of California.

City Capital Projects Fund accounts for transactions related to proceeds from bonds and other resources and their use to acquire and construct certain capital facilities.

Other Governmental Funds is the aggregate of all the non-major governmental funds. 29 CITY OF BARSTOW, CALIFORNIA
Balance Sheet
Governmental Funds
June 30, 2025
General
ASSETS
Cash and cash equivalents $ 13,308,210 $ 3,369,727 $ 2,968,944 $ 156,190 Receivables (net of allowance for uncollectible):

Accounts 5,595,354 1,501,984 58,762 3,350,560
Taxes - - - -
Accrued interest 107,513 20,541 - 1,589
Leases 19,560 - 235,920 -
Due from other funds 3,797,576 - - -
Prepaid items 105,891 - - -
Deposits 1,359,170 - - -
Advances to other funds 5,017,392 - - -
Total assets $ 29,310,666 $ 4,892,252 $ 3,263,626 $ 3,508,339

LIABILITIES
Accounts payable $ 2,965,053 $ 804,940 $ 237,756 $ 160,254 Acrrued payroll 962,816 - 183,426 -
Unearned revenue - - - 153,670
Retentions payable - - - -
Deposits received 197,727 - - -
Due to other governments 5,560 - - -
Due to other funds - - - 3,193,383
Advances from other funds - 1,700,000 3,317,392 -
Total liabilities 4,131,156 2,504,940 3,738,574 3,507,307

DEFERRED INFLOWS OF RESOURCES
Lease-related 15,368 - 225,886 -
Unavailable revenues 214,619 1,201,594 - 3,324,237
Total deferred inflows of resources 229,987 1,201,594 225,886 3,324,237

FUND BALANCES (DEFICITS)
Nonspendable
Prepaid items 105,891 - - -
Deposits and advances 6,376,562 - - -
Restricted
Public safety - - - -
Public works - - - -
Community development - - - -
Capital outlay - 1,185,718 - -
Committed
General government 655,796 - - -
Assigned
General government 1,354,874 - - -
Public safety 294,700 - - -
Community development 832,054 - - -
Capital outlay 5,419,498 - - -
Unassigned 9,910,148 - (700,834) (3,323,205)
Total fund balances (deficits) 24,949,523 1,185,718 (700,834) (3,323,205) Total liabilities, deferred inflows of resources,
and fund balances (deficits) $ 29,310,666 $ 4,892,252 $ 3,263,626 $ 3,508,339 Special Revenue Funds
Measure I
Barstow Fire
Protection
District Grants
See Notes to Financial Statements.
30 CITY OF BARSTOW, CALIFORNIA
Balance Sheet
Governmental Funds
June 30, 2025
ASSETS
Cash and cash equivalents
Receivables (net of allowance for uncollectible):

Accounts
Taxes
Accrued interest
Leases
Due from other funds
Prepaid items
Deposits
Advances to other funds
Total assets

LIABILITIES
Accounts payable
Acrrued payroll
Unearned revenue
Retentions payable
Deposits received
Due to other governments
Due to other funds
Advances from other funds
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Lease-related
Unavailable revenues
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Nonspendable
Prepaid items
Deposits and advances
Restricted
Public safety
Public works
Community development
Capital outlay
Committed
General government
Assigned
General government
Public safety
Community development
Capital outlay
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
Special
Revenue Capital
Funds Projects Fund
Total Total
Nonmajor Governmental
Funds Funds
$ 5,140,655 $ 934,732 $ 845,942 $ 26,724,400
122,790 - 13,972 10,643,422
61,338 - - 61,338
33,075 6,641 5,863 175,222
- - - 255,480
- - - 3,797,576
- - 576,361 682,252
- - - 1,359,170
- - - 5,017,392
$ 5,357,858 $ 941,373 $ 1,442,138 $ 48,716,252
$ - $ - $ 20,113 $ 4,188,116
- - - 1,146,242
- - 19,087 172,757
- 23,262 - 23,262
- - - 197,727
- - - 5,560
- - 604,193 3,797,576
- - - 5,017,392
- 23,262 643,393 14,548,632
- - - 241,254
- - 13,972 4,754,422
- - 13,972 4,995,676
- - 576,361 682,252
- - - 6,376,562
- - 117,901 117,901
- - 11,344 11,344
- - 689,505 689,505
5,357,858 918,111 - 7,461,687
- - - 655,796
- - - 1,354,874
- - - 294,700
- - - 832,054
- - - 5,419,498
- - (610,338) 5,275,771
5,357,858 918,111 784,773 29,171,944
$ 5,357,858 $ 941,373 $ 1,442,138 $ 48,716,252
Gas Tax
City Capital
Projects
See Notes to Financial Statements.
31 7+,63$*(,17(17,21$//</()7%/$1.
32 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2025
Amounts reported for governmental activities in the Statement of Net Position are different because:

Total fund balances - governmental funds $ 29,171,944
135,645,596
Deferred outflows-pension related $ 14,013,737
Deferred outflows-OPEB related 2,052,103
Deferred inflows-pension related (9,553,700)
Deferred inflows-OPEB related (11,460,739)
Total deferred outflows and inflows related to postemployment benefits (4,948,599) Miscellaneous revenues 4,754,422
Total other long-term assets 4,754,422
Bonds and loans payable (24,401,156)
Claims and judgments payable (5,958,103)
Leases and subscriptions payable (832,299)
Compensated absences (2,048,016)
Accrued interest payable on long-term debt (163,002)
Net pension liability (24,345,414)
Net OPEB liability (12,784,702)
Total long-term liabilities (70,532,692)
Net position of governmental activities $ 94,090,671
Long-term liabilities that are not due and payable in the current period, and therefore, are not reported in the funds.

CITY OF BARSTOW, CALIFORNIA
Capital assets, net of accumulated depreciation/amortization, used in governmental activities are not financial resources and, therefore, are not reported in the funds.

Differences between expected and actual experiences, assumption changes and net differences between projected and actual earnings, and contributions subsequent to the measurement date for the postretirement benefits (pension and OPEB) are recognized as deferred outflows of resources and deferred inflows of resources on the Statement of Net Position.

Other long-term assets that are not available to pay for current period expenditures and, therefore, are either labeled unavailable or not reported in the funds.

See Notes to Financial Statements.
33 CITY OF BARSTOW, CALIFORNIA
Statement of Revenues, Expenditures,
and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2025
General

REVENUES
Taxes $ 29,179,541 $ - $ 6,585,046 $ -
Licenses and permits 422,373 - 6,853 -
Intergovernmental 511,223 1,712,469 395,561 2,239,808
Charges for services 3,133,061 - - -
Use of money and property 724,174 93,650 17,899 574
Fines and forfeitures 210,360 - - -
Miscellaneous 430,331 - - -
Total revenues 34,611,063 1,806,119 7,005,359 2,240,382

EXPENDITURES
Current:

General government 8,576,185 - - -
Public safety 13,112,442 40,298 8,253,080 182,828
Community development 3,525,571 - - 51,253
Parks and recreation 1,677,585 - - -
Public works 4,524,638 - - -
Capital outlay 2,653,297 - 40,000 291,867
Debt service:

Principal 590,354 - - -
Interest and fiscal charges 52,097 - - -
Total expenditures 34,712,169 40,298 8,293,080 525,948
Excess (deficiency) of revenues
over (under) expenditures (101,106) 1,765,821 (1,287,721) 1,714,434

OTHER FINANCING SOURCES (USES)
Transfers in 2,077,200 - 4,653,013 -
Transfers out (6,846,947) (1,080,596) (1,554,790) (2,794,098) Capital contributions - - - -
Leases issued 201,226 - - -
Total other financing sources (uses) (4,568,521) (1,080,596) 3,098,223 (2,794,098) Net change in fund balances (4,669,627) 685,225 1,810,502 (1,079,664) Fund balances-beginning 29,619,150 500,493 (2,511,336) (2,243,541) Restatement-changes to or within the reporting entity - - - - Fund balances (deficit)-beginning, as restated 29,619,150 500,493 (2,511,336) (2,243,541) Fund balances (deficit)-ending $ 24,949,523 $ 1,185,718 $ (700,834) $ (3,323,205) Special Revenue Funds
Measure I
Barstow Fire
Protection
District Grants
See Notes to Financial Statements.
34 CITY OF BARSTOW, CALIFORNIA
Statement of Revenues, Expenditures,
and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2025

REVENUES
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Miscellaneous
Total revenues

EXPENDITURES
Current:

General government
Public safety
Community development
Parks and recreation
Public works
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Capital contributions
Leases issued
Total other financing sources (uses)
Net change in fund balances
Fund balances-beginning
Restatement-changes to or within the reporting entity
Fund balances (deficit)-beginning, as restated
Fund balances (deficit)-ending
Special
Revenue Capital
Funds Projects Funds
Total Total
Nonmajor Governmental
Funds Funds
$ - $ - $ - $ 35,764,587
- - - 429,226
1,420,204 23,134 200,573 6,502,972
- - - 3,133,061
150,509 30,596 28,111 1,045,513
- - - 210,360
- - - 430,331
1,570,713 53,730 228,684 47,516,050
- - 13,971 8,590,156
- - 50,500 21,639,148
- - 45 3,576,869
- - 25 1,677,610
- 172,615 - 4,697,253
35,374 52,047,152 28,615 55,096,305
- -
- - 1,657,086 2,247,440
- - 1,006,088 1,058,185
35,374 52,219,767 2,756,330 98,582,966
1,535,339 (52,166,037) (2,527,646) (51,066,916)
- 4,369,231 2,663,174 13,762,618
(6,900) - (80,000) (12,363,331)
- 47,748,316 - 47,748,316
- - - 201,226
(6,900) 52,117,547 2,583,174 49,348,829
1,528,439 (48,490) 55,528 (1,718,087)
- - 5,525,265 30,890,031
3,829,419 966,601 (4,796,020) -
3,829,419 966,601 729,245 30,890,031
$ 5,357,858 $ 918,111 $ 784,773 $ 29,171,944
Formerly
Nonmajor
City Capital
Projects
Formerly
Nonmajor
Gas Tax
See Notes to Financial Statements.
35 Reconciliation of the Statement of Revenues, Expenses and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2025
Amounts reported for governmental activities in the Statement of Activities are different because:

Net change in fund balances - total governmental funds: $ (1,718,087) Capital outlay $ 53,918,819
Loss on disposal of assets (20,945)
Depreciation/amortization expense (4,665,577)
Total adjustment 49,232,297
Earned but unavailable other revenues 1,419,173
Total adjustment 1,419,173
Leases issued (201,226)
Principal payments 2,206,891
Total adjustment 2,005,665
Changes in accrued interest on long-term debt (55,606)
Changes in compensated absences (13,797)
Changes in claims and judgements (146,392)
Total adjustment (891,979)
Change in net position of governmental activities $ 50,047,069 Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds.

CITY OF BARSTOW, CALIFORNIA
Governmental funds report capital outlays are expenditures. However, in the Statement of Activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation/amortization expense. This is the amount by which capital outlays exceeded depreciation/amortization expense in the current period.

Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds.

Bond and other debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position.

Repayment of bond and other debt principal is an expenditure in the governmental funds, but repayment reduces long-term liabilities in the Statement of Net Position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities.

See Notes to Financial Statements.
36 CITY OF BARSTOW, CALIFORNIA
Statement of Net Position
Proprietary Funds
June 30, 2025
Nonmajor
Enterprise
Fund
Total
Enterprise
Funds
ASSETS
Current assets:

Cash and cash equivalents $ 2,771,413 $ 2,677,729 $ 5,449,142 Receivables (net of uncollectibles):

Accounts 630,082 566,926 1,197,008
Accrued interest 14,928 16,037 30,965
Prepaid items 693 640 1,333
Total current assets 3,417,116 3,261,332 6,678,448
Noncurrent:

Capital assets, not being depreciated/amortized 1,851,519 - 1,851,519 Capital assets, net of accumulated depreciation/amortization 21,389,843 237,518 21,627,361 Total noncurrent assets 23,241,362 237,518 23,478,880
Total assets 26,658,478 3,498,850 30,157,328

DEFERRED OUTFLOWS OF RESOURCES
Pension-related 275,279 94,818 370,097
Total deferred outflows of resources 275,279 94,818 370,097

LIABILITIES
Current liabilities:

Accounts payable 789,011 659,003 1,448,014
Accrued liabilities 38,138 6,431 44,569
Deposits payable - 41,629 41,629
Accrued compensated absences - due within one year 57,770 4,767 62,537 Pollution remediation liability - due within one year 51,000 - 51,000 Lease liabilities - due within one year 21,389 2,053 23,442 Total current liabilities 957,308 713,883 1,671,191
Noncurrent liabilities:

Accrued compensated absences - due in more than one year 86,654 7,151 93,805 Pollution remediation liability - due in more than one year 5,335,369 - 5,335,369 Lease liabilities - due in more than one year 60,660 3,434 64,094 Net pension liability 592,088 203,941 796,029
Total noncurrent liabilities 6,074,771 214,526 6,289,297 Total liabilities 7,032,079 928,409 7,960,488

DEFERRED INFLOWS OF RESOURCES
Pension-related 236,156 81,342 317,498
Total deferred inflows of resources 236,156 81,342 317,498

NET POSITION
Net investment in capital assets 22,554,717 232,031 22,786,748 Unrestricted (2,889,195) 2,351,886 (537,309)
Total net position $ 19,665,522 $ 2,583,917 $ 22,249,439 Business-Type Activities
Wastewater
Reclamation
Solid Waste
Disposal
See Notes to Financial Statements.
37 CITY OF BARSTOW, CALIFORNIA
Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2025
Nonmajor
Enterprise
Fund
Total
Enterprise
Funds

OPERATING REVENUES
Charges for services $ 5,590,679 $ 7,498,311 $ 13,088,990 Other revenue 8,281 48,814 57,095
Total operating revenues 5,598,960 7,547,125 13,146,085

OPERATING EXPENSES
Administrative fees and other 1,115,065 288,832 1,403,897 Operations and maintenance of plant 2,173,383 6,370,338 8,543,721 Claims expense 135,376 23,652 159,028
Depreciation/amortization expense 1,068,680 24,242 1,092,922 Total operating expenses 4,492,504 6,707,064 11,199,568 Operating income (loss) 1,106,456 840,061 1,946,517

NONOPERATING REVENUES (EXPENSES)
Interest revenue 68,255 73,520 141,775
Interest expense and fiscal charges (1,573) (157) (1,730) Total nonoperating revenues (expenses) 66,682 73,363 140,045 Income (loss) before transfers 1,173,138 913,424 2,086,562 Transfers out (1,057,362) (341,925) (1,399,287)
Change in net position 115,776 571,499 687,275
Net position-beginning 19,564,254 2,016,900 21,581,154
Restatements - change in accounting principle (14,508) (4,482) (18,990) Net position-beginning, as restated 19,549,746 2,012,418 21,562,164 Net position-ending $ 19,665,522 $ 2,583,917 $ 22,249,439 Business-Type Activities
Wastewater
Reclamation
Solid Waste
Disposal
See Notes to Financial Statements.
38 CITY OF BARSTOW, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025
Nonmajor
Enterprise
Fund
Totals

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 5,653,793 $ 7,513,402 $ 13,167,195 Payments to suppliers and service providers (3,546,467) (6,571,987) (10,118,454) Payments to employees for salaries and benefits 42,410 (14,347) 28,063 Net cash provided by (used for)
operating activities 2,149,736 927,068 3,076,804

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Transfers to other funds (1,057,362) (341,925) (1,399,287) Principal paid on non-capital debt (20,644) - (20,644)
Net cash provided by (used for)
noncapital financing activities (1,078,006) (341,924) (1,419,930)

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition and construction of capital assets (98,068) - (98,068) Principal paid on capital debt (17,204) (2,008) (19,212) Interest paid on capital debt (1,573) (157) (1,730)
Net cash provided by (used for)
capital and related financing activities (58,522) (2,166) (60,688)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 61,091 69,850 130,941
Net cash provided by (used for)
investing activities 61,091 69,850 130,941
Net increase (decrease) in
cash and cash equivalents 1,074,299 652,828 1,727,127
Cash and cash equivalents-beginning 1,697,114 2,024,901 3,722,015 Cash and cash equivalents-ending $ 2,771,413 $ 2,677,729 $ 5,449,142 Business-Type Activities
Wastewater
Reclamation
Solid Waste
Disposal
See Notes to Financial Statements.
39 CITY OF BARSTOW, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025
Nonmajor
Enterprise
Fund
Totals
Business-Type Activities
Wastewater
Reclamation
Solid Waste
Disposal

RECONCILIATION OF OPERATING INCOME (LOSS)

TO NET CASH PROVIDED BY (USED FOR)

OPERATING ACTIVITIES
Operating income (loss) $ 1,106,456 $ 840,061 $ 1,946,517 Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:

Depreciation/amortization expense 1,068,680 24,242 1,092,922 (Increase) decrease in accounts receivable 54,833 (398) 54,435 (Increase) decrease in prepaid items 2 (164) (162)
Increase (decrease) in accounts payable (118,446) 112,444 (6,002) Increase (decrease) in accrued liabilities (7,706) (9,445) (17,151) Increase (decrease) in deposits payable - (33,324) (33,324) Increase (decrease) in compensated absences 20,391 (15,140) 5,251 Total adjustments 1,043,280 87,007 1,130,287
Net cash provided by (used for)
operating activities $ 2,149,736 $ 927,068 $ 3,076,804

SCHEDULE OF NON-CASH NONCAPITAL, CAPITAL,

AND INVESTING ACTIVITIES
Purchase of capital assets on account $ 604,596 $ - $ 604,596 See Notes to Financial Statements.
40 FIDUCIARY FUND FINANCIAL STATEMENTS
41 Successor
Agency Private
Purpose Custodial
Trust Fund Funds
ASSETS
Cash and investments $ 47,855 $ 238,450
Receivables:

Accounts 45,461 21
Accrued interest - 1,669
Property held for resale 2,224,905 -
Total assets 2,318,221 240,140

LIABILITIES
Accounts payable - 2,204
Total liabilities - 2,204

NET POSITION
Restricted for:

Individuals, organizations, and other governments 2,318,221 237,936 Total net position $ 2,318,221 $ 237,936

CITY OF BARSTOW, CALIFORNIA
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
See Notes to Financial Statements.
42 Successor
Agency Private
Purpose Custodial
Trust Fund Funds

ADDITIONS
Interest and change in fair value of investments $ 125 $ 7,648 Collections for assessment districts - 22,190
Intergovernmental 3,057 -
Total additions 3,182 29,838

DEDUCTIONS
General administrative expenses - 2,286
Contractual services - 8,104
Total deductions - 10,390
Net increase (decrease) in fiduciary net position 3,182 19,448 Net position-beginning 2,315,039 218,488
Net position-ending $ 2,318,221 $ 237,936

CITY OF BARSTOW, CALIFORNIA
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2025
See Notes to Financial Statements.
43 7+,63$*(,17(17,21$//</()7%/$1.
44 FOOTNOTE DISCLOSURES
45 7+,63$*(,17(17,21$//</()7%/$1.
46 NOTES TO BASIC

FINANCIAL STATEMENTS
47 7+,63$*(,17(17,21$//</()7%/$1.
48 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Barstow California (City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City’s accounting policies are described below.

A. Financial Reporting Entity
The City was incorporated on September 30, 1947, under the general laws of the State of California. The City operates under a council-manager form of government and provides the following services: park and recreation, public safety (police and fire), highways and streets, public improvements, planning and zoning, and general administrative services.

The accompanying financial statements include the financial activities of the City, and its component units, the Barstow Public Financing Authority, the Barstow Public Facilities Corporation, the Odessa Water District, the Barstow Harvey House Foundation, Barstow Community Services Foundation, and the Barstow Fire Protection District. Financial information for the City and these components are accounted for in the accompanying financial statements in accordance with principles defining the governmental reporting entity adopted by the Governmental Accounting Standards Board. The City Council serves as the governing board of these component units and, as such, these entities are presented on a blended basis:

The Barstow Public Facilities Corporation (the Facilities Corporation) was established on September 21, 1989, to render financial assistance to the City by financing, refinancing, acquiring, constructing, improving, leasing, selling or otherwise conveying property of any kind to the City. The City Council acts as the Corporation’s governing board and exerts significant influence over its operations. The City is responsible for the Facilities Corporation’s obligations. Separate financial statements are not produced for the Facilities Corporation.

The Odessa Water District (Odessa) was established on July 5, 1993, pursuant to legislation approved by the State in 1991 to provide water resources to the City. The City Council acts as the District’s governing board and exerts significant influence over its operations. The City is responsible for Odessa’s obligations. Separate financial statements are produced for the District and may be obtained from the City’s Finance Administration Office.

The Barstow Harvey House Foundation (the Foundation) is a nonprofit public benefit corporation established on January 16, 1992, to promote development of the Harvey House historic site, to improve, renovate, and maintain the historic significance of the site. The City Council acts as the Foundation’s governing board and exerts significant influence over its operations. The City is responsible for the Foundation’s obligations.

Separate financial statements are not produced for the Foundation.

The Barstow Community Services Foundation (the Community Services Foundation) was formed on October 7, 2013 as a non-profit public benefit corporation. The Community Services Foundation will receive, invest and utilize funds and property acquired through the solicitation of contributions, donations, grants, gifts, bequests for the purposes of fostering and promoting community interests, events, and programs promoting and celebrating Barstow, its history and contributions, and any other purpose beneficial to the public. The City Council acts as the Community Services Foundation’s governing board and exerts significant influence over its operations. The City is responsible for the Community Services Foundation’s obligations. Separate financial statements for the Community Services Foundation are not produced.

The Barstow Fire Protection District (the District) became a component unit of the City on November 17, 2010.

Previously the District was an independent district. The District will continue to be operated according to the applicable state fire protection district laws and the property taxes collected within the district will be used exclusively for the administration and operational costs of the district. The City Council acts as the District’s governing board and exerts significant influence over its operations. Separate financial statements are produced for the District and may be obtained from the City’s Finance Office. 49 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate entity.

The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Government-Wide Financial Statements
The City’s government-wide financial statements include a statement of net position and a statement of activities.

These statements present summaries of governmental and business-type activities for the City accompanied by a total column. Fiduciary activities of the City are not included in these statements.

These statements are presented on an economic resource’s measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and liabilities, including capital assets, as well as infrastructure assets and long-term liabilities, are included in the accompanying statement of net position. The statement of activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.

Grant revenues are recognized when all eligibility requirements imposed by the provider have been met. The types of transactions reported as program revenues for the City are reported in three categories: 1) charges for services, 2) operating grants and contributions, and 3) capital grants and contributions.

Certain eliminations have been made as prescribed by Governmental Accounting Standards Board (GASB) Statement No. 34 in regard to interfund activities, payables and receivables. All internal balances in the statement of net position have been eliminated except those representing balances between the governmental activities and the business-type activities.

Governmental Fund Financial Statements
Governmental funds financial statements include a balance sheet and a statement of revenues, expenditures, and changes in fund balances for all major governmental funds and nonmajor funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in fund balances as presented in these statements to the net position presented in the government-wide financial statements.

The City reports the following major governmental funds:
• The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. • The Measure I Fund is used to account for money generated by a one-half percent sales tax approved by the voters in 1989 and extended in 2004 by the San Bernardino County voters to continue until 2040.

The fund is also used to account for the debt proceeds and related expenditures of the California Communities Local Measure I Sales Tax Revenue Certificates of Participation, Series 2012. • The Barstow Fire Protection District Fund accounts for operations of the Barstow Fire Protection District which was annexed to the City effective November 17, 2010. The District’s main source of revenue is through the collection of property taxes. This constitutes approximately 91% of its revenue source for fiscal year 2022. Minor sources of revenue are fees for permits, plan and specification review, and grants. • The Grants Fund accounts for transactions related to proceeds from grants restricted for various purposes specified in the respective grant agreements.
• The Gas Tax Fund is used to account for receipts and expenditures of money apportioned under Street and Highway Code Sections 2105, 2106, 2107 and 2107.5 of the State of California. 50 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) • The City Capital Projects Fund accounts for transactions related to proceeds from bonds and other resources and their use to acquire and construct certain capital facilities.

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 presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balance.

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. Accordingly, revenues are recorded when received in cash, except that revenues subject to accrual (generally received within 90 days after year-end). The primary revenue sources, which have been treated as susceptible to accrual by the City, are property tax, sales tax, intergovernmental revenues, and other taxes. Expenditures are recorded in the accounting period in which the related fund liability is incurred.

Enterprise Fund Financial Statements
Enterprise fund financial statements include a statement of net position, a statement of revenues, expenses and changes in fund net position, and a statement of cash flows for each major enterprise fund and nonmajor funds aggregated.

The City reports two major enterprise funds:
• The Wastewater Reclamation Fund accounts for the operation of the wastewater system. The City and its employees operate the wastewater system and plant.

In addition, the City reports one nonmajor enterprise fund:
• The Solid Waste Disposal Fund is used to account for the operation of the Solid Waste (trash) utility, a self-supporting activity which renders services on a user charge basis to residents and businesses located in the Barstow area.

Enterprise funds are accounted for using the economic resources measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or non-current) are included on the statement of net position. The statement of revenues, expenses and changes in fund net position present increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.

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

Fiduciary Fund Financial Statements
Fiduciary fund types are accounted for using the economic resources measurement and the accrual basis of accounting.

The City reports the following fiduciary funds:
• Custodial Funds – account for receipt of special taxes and assessments used to pay principal and interest on related bonds with no direct City liability. Custodial funds are also used to account for developer deposits and other small funds for the benefit of other agencies. • Successor Agency Private Purpose Trust Fund – accounts for assets and liabilities of the Successor Agency Trust Fund.
51 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Cash and Investments
The City pools idle cash from all funds for the purpose of increasing income through investment activities.

In compliance with Governmental Accounting Standards Board Statement No. 31, the City's investments are stated at fair value. Fair market value is used for those securities for which market quotations are readily available. For securities that lack readily available market quotations, reasonable estimates of fair value are used based on the market value of similar investments. The City generally holds all investments until maturity or until market values equal or exceed cost. Therefore, the fair value of securities in the investment pool does not necessarily reflect realized gains or losses but rather the fair value of those investments as of June 30, 2025.

D. Cash and Cash Equivalents
For purposes of the statement of cash flows, the City considered all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. All pooled cash and investments of the enterprise funds are considered cash equivalents.

E. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures.

Accordingly, actual results could differ from those estimates.

F. Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds." Advances to other funds, as reported in the fund financial statements, are offset by a non-spendable fund balance.

Governmental fund and enterprise fund receivables are shown net of an allowance for uncollectible amounts.

Residential utility customers are billed bi-monthly on an alternating basis. Commercial and multi-family customers are billed monthly.

Property taxes are assessed, collected and allocated by San Bernardino County throughout the fiscal year according to the following property tax calendar:

Lien Date January 1
Levy Date July 1 to June 30
Due Dates November 1, 1st Installment
February 1, 2nd Installment
Delinquent Dates December 11, 1st Installment
April 11, 2nd Installment
52 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) City property tax revenues are recognized when levied to the extent that they result in current receivables. The City elected to participate in the County of San Bernardino Teeter Plan guaranteed payment as of June 30, 1993.

The County of San Bernardino collects an administration fee from the City for its services. The City receives a percentage of the basic 1% ad valorem tax rate allowed on property within the City of Barstow. Property tax rates for the City's general obligation debt are set by the City Council based on assessed valuations and debt service requirements. The assessed valuation is at "full cash value." G. Inventories and Prepayments
Inventory is valued at cost using the first in, first out method. The City uses the consumption method of accounting for inventories. Certain types of goods and services such as payments to vendors and pension costs are paid in advance and reflect costs applicable to future accounting periods and are recorded as prepaid items.

H. Use of Restricted/Unrestricted Net Position
When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the City's policy is to apply restricted net position first.

I. Capital Assets
The City’s buildings, machinery, equipment, lease and subscription assets, infrastructure and intangible assets with useful lives of more than two years are stated at historical cost or estimated historical cost and reported in the government-wide financial statements. Enterprise capital assets are also reported in their respective fund financial statements. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition value. The City updated its Capital Asset Policy on June 16, 2014 per Council approval. The City capitalizes its assets as follows:

Buildings and building improvements Costs of $50,000 or more Furniture Costs of $10,000 or more
Equipment Costs of $20,000 or more
Infrastructure Costs of $100,000 or more
Lease and subscription assets Costs of $20,000 or more
The costs of normal maintenance and repairs that do not add to the asset value or materially extend useful lives are not capitalized. Capital assets are depreciated or amortized using the straight-line method. When capital assets are disposed, the cost and applicable accumulated depreciation/amortization are removed from the respective accounts, and the resulting gain or loss is recorded in operations. Amortization of assets acquired under leases and subscription-based information technology arrangements is based on the shorter of the contract term or the estimated useful life of the asset and is included in depreciation and amortization. Water rights, which are intangible assets, are not amortized. Estimated useful lives, in years, for depreciable or amortizable assets are as follows:

Buildings 50 years
Infrastructure and improvements other than buildings 10-100 years Machinery and equipment 3-15 years
Lease and subscription assets Shorter of the underlying asset’s useful life or the agreement term
53 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) J. Compensated Absence Payable
Under certain circumstances and according to negotiated labor agreements, employees of the City are allowed to accumulate vacation leave, compensation time, and sick leave. This amount is included as a liability in the government-wide and enterprise fund financial statements.

K. Long-Term Obligations
In the government-wide financial statements and enterprise fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or enterprise fund type statement of net position.

L. Net Position and Fund Equity
In the government-wide financial statements, net position is classified in the following categories:

Net Investment in Capital Assets: This category groups all capital assets into one component of net position.

Accumulated depreciation on these assets and the outstanding principal of related debt reduce this category.

Restricted Net Position: This category represents external restrictions imposed by creditors, grantors, contributors, or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.

Unrestricted Net Position: This category represents the net position of the City that are not externally restricted for any project or other purpose.

As prescribed by GASB Statement No. 54, governmental funds report fund balance in classifications based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the funds can be spent. Fund balances at June 30, 2025, for the governmental funds are non-spendable, restricted, assigned, and unassigned for the following purposes:

Non-spendable Fund Balance – includes amounts that are (a) not in spendable form, or (b) legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash, for example: inventories, prepaid amounts, and long-term notes receivable.

Restricted Fund Balance – includes amounts that are restricted for specific purposes stipulated by external resources providers, constitutionally or through enabling legislation. Restrictions may effectively be changed or lifted only with the consent of resource providers.

Committed Fund Balance – is the portion of fund balance that can only be used for specific purpose due to formal action of the City Council through adoption of a resolution prior to the end of the fiscal year. Once adopted, the limitation imposed by resolution remains in place until a similar action is taken (the adoption of another resolution) to remove or revise the limitation. No amounts have been reported within this category of fund balance.

Assigned Fund Balance – includes amounts intended to be used by the City for specific purposes that are neither restricted nor committed. Intent is expressed by (a) City Council or (b) a body (a budget, finance committee, or management (City Wide Leadership team, which consists of City Manager and Executive Department Heads)) to which the assigned amounts are to be used for specific purposes. Assigned amounts also include all residual amounts in governmental funds (except negative amounts) other than the General Fund, that are not classified as non-spendable, restricted, or committed.
54 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) In June 2010, the City Council adopted Resolution No. 4548-2010 approving Policy Memorandum No. 2010-15 - Fund Balance Policy. The policy aims to help reduce the negative impact on the City in times of economic uncertainty and potential losses of funding from other governmental agencies. City reserves are restricted for one-time purposes. The policy establishes minimum requirements for General Fund non-departmental reserves and provides guidelines for the use of these funds. Appropriation for contingencies is maintained at twenty percent of total General Fund net appropriations for one-time emergencies and economic uncertainties. Excess fund balance at year-end must first be used to replenish the reserve amount at the 20% level. Accordingly, at June 30, 2025, the City has assigned fund balance of $1,354,874 for emergency contingency, and $5,419,498 for working capital reserve. The Fund Balance Policy can be changed only by a resolution of the City Council.

Unassigned Fund Balance – the residual classification for the General Fund and includes all not contained in the other classifications. Governmental funds report residual negative balances as unassigned fund balance.

In circumstances when an expenditure is made for a purpose for which amounts are available in multiple fund balance classifications, fund balance is depleted in the order of restricted, committed, assigned, and unassigned.

M. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position 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.

N. Pension
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plan and San Bernardino County Employees’ Retirement Association (SBCERA) plan (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS and SBCERA. 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. The General Fund is the primary source in conjunction with the Insurance Fund to liquidate the liability for pensions
O. Other Post-Employment 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:

Valuation Date: June 30, 2023
Measurement Date: June 30, 2024
Measurement Period: July 1, 2023 to June 30, 2024
The General Fund is primarily used to liquidate the liability for other postemployment benefits. 55 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) P. New GASB Pronouncements Effective during Fiscal Year The following Government Accounting Standards Board (GASB) pronouncement was effective for and implemented for the fiscal year ended June 30, 2025:

GASB Statement No. 101, Compensated Absences
The requirements of this Statement will improve financial reporting by implementing a unified recognition and measurement model that will result in a liability for compensated absences that more appropriately reflects when a government incurs an obligation. Establishing the unified model will result in consistent application to any type of compensated absence and will eliminate potential comparability issues between governments that offer different types of leave. This Statement will also result in a more robust estimate of the amount of compensated absences that a government will pay or settle, which will enhance the relevance and reliability of information about the liability for compensated absences. The impact of the implementation of this Statement on the fund balance and net position of the City was not significant to the financial statements, and is further discussed in Note 20.

GASB Statement No. 102, Certain Risk Disclosures
The requirements of this Statement will improve financial reporting by providing users of financial statements with essential information that currently is not often provided. The disclosures will provide users with timely information regarding certain concentrations or constraints and related events that have occurred or have begun to occur that make a government vulnerable to a substantial impact. As a result, users will have better information with which to understand and anticipate certain risks to a government’s financial condition. Management has assessed the impact of this Statement on the City's financial statements and determined that it did not have a material impact.

NOTE 2: CASH AND INVESTMENTS
Cash and investments are reported in the accompanying financial statements as follows:

Government-Wide Statement of Net Position
Cash and investments as of June 30, 2025, consist of the following:

The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under provisions of bond indentures. Interest income earned on pooled cash and investments is allocated to the various funds based on the period-end cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund. The carrying amount of the City’s cash deposit was $12,434,595 at June 30, 2025. Bank balances before reconciling items were $12,646,093 the total amount of which was insured and/or collateralized with securities held by pledging financial institutions in the City’s name as discussed in note 2E.

Governmental
Activities
Business-Type
Activities
Fiduciary
Funds Total
$ 5,449,142 26,724,400 $ 286,305 $ 32,459,847 $
$ 5,449,142 26,724,400 $ 286,305 $ 32,459,847 $
Cash and Investments
Total Cash and Investments
Deposits:

Cash on Hand 1,950 $
Deposits with Financial Institution 12,434,595
Investments
Local Agency Investment Fund 18,994,265
California Liquid Asset Securities (CLASS) 1,029,037
Total Investments 20,023,302
Total Cash and Investments 32,459,847 $
56 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
A. Investments Authorized by the California Government Code and the City of Barstow Adopted Investment Policy
The table below identifies the investment types that are authorized for the City of Barstow by the California Government Code and by the City’s adopted investment policy. The table also identifies certain provisions of the California Government Code or the City’s adopted investment policy, where more restrictive, that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City or its authorities, rather than the general provisions of the California Government Code or the City’s adopted investment policy. *Limit set by LAIF Governing Board, not Government Code B. Investments Authorized by Debt Agreements
Investment of debt proceeds held by bond trustee is governed by provisions of the debt agreements rather than the general provisions of the California Government Code or the City’s investment policy.

C. Disclosures Related to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates that 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.

Maximum
Maturity
Maximum
Percentage of
Portfolio
Maximum
Investment in
One Issuer
None None None
None None None
None None None
5 Years N/A N/A
N/A 30% 50%
180 Days 40% 30%
270 Days 25% None
1 Year None None
92 Days 20% None
N/A 20% 10%
5 Years 30% None
5 Years 20% None
N/A None $75 million
N/A None $75 million
None None None
Mortgage Backed Securities
Local Agency Investment Fund (LAIF) *
Federal Agency
Bankers' Acceptance
Prime Commercial Paper
Repurchase Agreements
Reverse Repurchase Agreements
Mutual Funds Investing in Eligible Securities
Medium Term Notes
California Liquid Asset Securities (CLASS)
Negotiable Certificates of Deposit
Authorized Investment Type
U.S. Treasury Bills, Notes, or Bonds
U.S. Agencies
CA Warrants, Treasury Notes and Bonds
Local Agency Bonds
57 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
Information about the sensitivity of the fair values of the City’s investments to market interest rate fluctuations is provided in the following table that shows the distribution of the City’s investments by maturity:

D. Disclosures Related to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization.

Presented below is the minimum rating required by the California Government Code or the City’s investment policy, and the actual rating as of year-end for each investment type.

Concentration of Credit Risk
The City’s investment policy contains certain limitations as disclosed in the accompanying table on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. The City has not invested more than 5% of its total investment value with any one issuer.

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

As of June 30, 2025, $12,396,093 of the City’s deposits with financial institutions in excess of federal depository insurance limits were held in collateralized accounts.

Investment
Maturities
(in years)
Fair Value 1 Year or Less
Local Agency Investment Fund $ 18,994,265 $ 18,994,265
California Liquid Asset Securities (CLASS) 1,029,037 1,029,037 Total $ 20,023,302 $ 20,023,302
Investment Type
Rating as of
Year End
Fair Value Not Rated
Local Agency Investment Fund 18,994,265 $ N/A 18,994,265 $ California Liquid Asset Securities (CLASS) 1,029,037 N/A 1,029,037 Total 20,023,302 $ 20,023,302 $
Investment Type
Legal Minimum
Rating
58 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
F. Local Agency Investment Fund
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The balance is available for withdrawal on demand. The City’s investments with LAIF at June 30, 2025, include a portion of the pooled funds invested in Structured Notes and Asset-Backed Securities. These investments include the following:

Structures 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 that 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 $18,994,265 invested in LAIF, which had invested 3.81% of the pool investment funds in Structured Notes and Asset-Backed Securities. The City reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool share. The fair value of LAIF was calculated by applying a factor to the total investments held by LAIF.

G. California Cooperative Liquid Assets Securities System The California Cooperative Liquid Assets Security System (CLASS) is a public joint powers authority which provides California Public Agencies with investment management services for surplus funds and comprehensive investment management, accounting and arbitrage rebate calculation services for proceeds of tax-exempt financings. The CLASS currently offers the Cash Reserve Portfolio, a short-term investment portfolio, as a means for Public Agencies to invest these funds. Public Agencies that invest in the Pool (Participants) purchase shares of beneficial interest. Participants may also establish individual, professionally managed investment accounts (Individual Portfolios) by separate agreement with the Investment Advisor.

Investments in the Pools and Individual Portfolios are made only in investments in which Public Agencies generally are permitted by California statute. The CLASS may reject any investment and may limit the size of a Participant's account. The Pool seeks to maintain, but does not guarantee, a constant net asset value of $1 per share. A Participant may withdraw funds from its Pool accounts at any time by check or wire transfers. Requests for same-day wire transfers must be made by 11:00 a.m. that day. Fair determined by the fair value per share of the Pool's underlying portfolio. Accordingly, the City’s investment in this pool is measured on uncategorized inputs not H. Investment Valuation
Investments (except for money market accounts included in investments classified as restricted cash and investments) are measured at fair value on a recurring basis. Recurring fair value measurements, are those that Governmental Accounting Standards Board (GASB) Statements require or permit in the statement of net position at the end of each reporting period. Fair value measurements are categorized based on the valuation inputs used to measure an asset’s fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. Investment fair value measurements at June 30, 2025 are described on the following page. 59 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
Investments included in restricted cash and investments included in money market accounts and guaranteed investment contracts are not subject to fair value measurement.

NOTE 3: ACCOUNTS RECEIVABLE
Receivables as of year-end, including the applicable allowances for uncollectible accounts, are as follows:

NOTE 4: INTERFUND BALANCES
The following table presents the interfund balances as of June 30, 2025:

Capital projects, funded by reimbursable grants and capital allocations from Federal, State, and County sources, were approved by the City Council with the understanding that the General Fund lends monies to other funds with the expectation that the amounts will be repaid based on contractual commitments from other governmental entities. The Grants Special Revenue Fund and Non-Major Governmental Funds have expenses for which the expected reimbursement has not yet been received as of June 30, 2025.

Fair Value
Not Subjected
to Disclosure
Local Agency Investment Fund 18,994,265 $ 18,994,265 $
California Liquid Asset Securities (CLASS) 1,029,037 1,029,037 Total Investment Subject to Fair Value 20,023,302 $ 20,023,302 $ Investment Type
Accounts
Receivable
Allowances for
Uncollectibles Total
Governmental Funds:

General 5,787,666 $ (192,312) $ 5,595,354 $
- 1,501,984 1,501,984
- 58,762 58,762
- 3,350,560 3,350,560
122,790 122,790 -
13,972 - 13,972
Proprietary Funds:

Wastewater Reclamation 630,082 630,082 -
Solid Waste Disposal 566,926 566,926 -
Fiduciary Funds:
45,461 - 45,461
21 - 21
$ 12,078,224 $ (192,312) $ 11,885,912
Measure I
Grants
Custodial Funds
Barstow Fire District
Gas Tax
Non-Major Governmental Funds
Successor Agency
Due from Other
Funds
Grants Fund 3,193,383 $
Non-Major Governmental Funds 604,193
Total 3,797,576 $
Due to General Fund
60 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 4: INTERFUND BALANCES (CONTINUED)
The following table presents advances as of June 30, 2025:

In fiscal year 2016, the General Fund advanced $2,000,000 to the Measure I Special Revenue Fund to complete the Henderson/Cameron Area Road Project. Per San Bernardino County Transportation Authority (SBCTA), interest may not be charged on Measure I funds. As of June 30, 2025, the total amount owed to the General Fund is $ 1,700,000.

Beginning in fiscal year 2015, the General Fund began advancing funds to the Barstow Fire Protection District Special Revenue Fund to cover operational expenditures for each fiscal year. Funds advanced accumulated to $4,153,696 as of July 1, 2018. On October 1, 2018, the City and the Barstow Fire Protection District entered into a formal loan agreement with the balance due to be paid over a period of 5 years at a zero percent interest rate. The City has the option to declare at any point in time that the entire principal amount outstanding will be due and payable upon request. In fiscal year 2021, the General Fund advanced the Barstow Fire Protection District an additional $1,243,696. As of June 30, 2025, the total amount owed to the General Fund from the Barstow Fire Protection District Special Revenue Fund is $3,317,392.

With Council approval, resources are transferred from one City fund to another. The transfers reflected are to record capital outlay and debt service for the year. The transfers between governmental funds have been eliminated in the government-wide statements.

In the fund financial statements, transfers were as follows:

Measure I
Special
Revenue Fund
Barstow Fire
Protection
District Special
Revenue Fund Total
Advances to Other Funds
General Fund $ 1,700,000 $ 3,317,392 $ 5,017,392
General Fund Measure I
Barstow Fire
Protection
District Grants Gas Tax
Wastewater
Reclamation
Solid Waste
Disposal
Non-Major
Governmental
Funds Total
Governmental Funds:

General $ 16,300 - $ $ 884,000 $ - $ 6,900 $ 770,000 $ 320,000 $ 80,000 $ 2,077,200 - - - - - - - - -
4,653,013 - - - - - - 4,653,013 -
City Capital Projects 316,955 1,064,296 193,882 2,794,098 - - - 4,369,231 - 1,876,979 476,908 - - 287,362 - 21,925 2,663,174 -
Total $ 6,846,947 $ 1,080,596 $ 1,554,790 $ 2,794,098 $ 6,900 $ 1,057,362 $ 341,925 $ 80,000 $ 13,762,618 Transfers Out
Transfers In
Measure I
Barstow Fire Protection District
Non-Major Governmental Funds
61 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 5: CAPITAL ASSETS
A summary of changes in the governmental activities capital assets at June 30, 2025, is as follows:

Depreciation/amortization expense was charged to functions/programs of the primary government as follows:

Balance Balance
June 30, 2024 Additions Deletions Transfers June 30, 2025 Governmental activities:

Capital assets, not being depreciated/amortized
Land $ 9,699,135 $ - $ - $ 9, - $ 699,135
Intangible Asset-Water Rights 85,000 - - - 85,000
Construction-in-progress 20,821,690 52,681,875 (71, - 802,724) 1,700,841 Total capital assets, not being depreciated/amortized 30,605,825 52,681,875 (71, - 802,724) 11,484,976 Capital assets, being depreciated/amortized
Buildings 26,103,044 208,545 (28,884) 327,411 26,610,116 Machinery, equipment, and vehicles 6,194,404 772,452 - 495,012 7,461,868 Leased vehicles and equipment 1,369,390 201,227 (85,545) 1, - 485,072 Subscription assets 128,591 - - - 128,591
Infrastructure 115,367,815 54,720 (106,000) 70,980,301 186,296,836 Total capital assets, being depreciated/amortized 149,163,244 1,236,944 (220,429) 71,802,724 221,982,483 Less accumulated depreciation/amortization
Buildings (16,993,518) (467,782) 28,884 (17, - 432,416) Machinery, equipment, and vehicles (3,557,417) (423,542) - (3, - 980,959) Leased vehicles and equipment (393,034) (372,232) 64,600 ( - 700,666) Subscription assets (75,217) (40,329) - ( - 115,546)
Infrastructure (72,336,584) (3,361,692) 106,000 (75, - 592,276) Total accumulated depreciation/amortization (93,355,770) (4,665,577) 199,484 (97, - 821,863) Total capital assets, being depreciated/amortized, net 55,807,47 4 (3,428,633) (20,945) 71,802,724 124,160,620 Total governmental activities capital assets $ 86,413,299 $ 49,253,242 $ (20,945) $ - $ 135,645,596 General government $ 779,857
Public safety 262,891
Parks and recreation 162,624
Public works 3,460,205
Total depreciation/amortization expense $ 4,665,577
62 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 5: CAPITAL ASSETS (CONTINUED)
A summary of changes in the business-type activities capital assets at June 30, 2025, is as follows:

Depreciation/amortization expense was charged to functions/programs of business-type funds as follows:

Balance Balance
June 30, 2024 Additions Deletions Transfers June 30, 2025 Business-type activities:

Capital assets, not being depreciated/amortized
Land $ 1,657,637 $ - $ - $ 1, - $ 657,637
Construction-in-progress - 193,882 - - 193,882
Total capital assets, not being depreciated/amortized 1,657,637 193,882 - 1, - 851,519 Capital assets, being depreciated/amortized
Buildings 306,094 - - - 306,094
Machinery, equipment, and vehicles 3,409,222 450,458 - 3, - 859,680 Leased vehicles and equipment 85,886 58,324 (24,094) - 120,116 Infrastructure 35,323,912 - - 35, - 323,912
Total capital assets, being depreciated/amortized 39,125,114 508,782 (24,094) 39, - 609,802 Less accumulated depreciation/amortization
Buildings (231,270) (2,896) - ( - 234,166)
Machinery, equipment, and vehicles (1,627,363) (185,886) - (1, - 813,249) Leased vehicles and equipment (38,124) (19,641) 24,094 - (33,671) Infrastructure (15,016,856) (884,499) - (15, - 901,355) Total accumulated depreciation/amortization (16,913,613) (1,092,922) 24,094 (17, - 982,441) Total capital assets, being depreciated/amortized, net 22,211,50 1 (584,140) - 21, - 627,361 Total business-type activities capital assets $ 23,869,138 $ (390,258) $ - $ 23, - $ 478,880 Wastewater reclamation $ 1,068,680
Solid waste 24,242
Total depreciation/amortization expense $ 1,092,922
63 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 6: LONG-TERM DEBT
During the year ended June 30, 2025, the following changes occurred in liabilities reported in long-term debt:

A. Lease Revenue Bonds
In November 2021, the City of Barstow issued $8,245,878 of 2021 Lease Revenue Bonds at a fixed interest rate of

2.98%. The bonds were issued to provide funds for the Barstow Fire Protection District to refinance its payment obligation to the San Bernardino County Employees’ Retirement Association. The payments under the agreement are due on July 1 and January 1 of each year and mature through July 2036.

Annual debt service requirements to maturity for the 2021 Lease Revenue Bonds are as follows:

B. Pension Obligation Bonds
In April 2022, the City of Barstow issued $20,170,000 of the 2022 Taxable Pension Obligation Bonds (POBs). The bonds were issued to refund a portion of the City’s obligations to the California Public Employee’s Retirement System (“CalPERS”) under the CalPERS contracts, evidencing all of the City’s obligation to pay the City’s unfunded actuarial liability to CalPERS. The payments under the agreement are due June and December of each year with interest rates ranging from 3.109% to 4.560% and mature through June 2033.

Amount
Balance Balance Due Within
June 30, 2024 Additions Deletions June 30, 2025 One Year Governmental Activities:

Lease Revenue Bonds 7,207,778 $ - $ 462,086 $ 6,745,692 $ 475,856 $ Pension Obligation Bonds 17,995,000 - 1,195,000 16,800,000 1,240,000 Loans Payable 999,064 - 143,600 855,464 147,140
Total Governmental Activities 26,201,842 $ - $ 1,800,686 $ 24,401,156 $ 1,862,996 $ Fiscal Year
Ending
June 30, Principal Interest Total
2026 $ 475,856 $ 100,511 $ 576,367
2027 490,036 93,421 583,457
2028 504,639 86,119 590,758
2029 519,678 78,600 598,278
2030 535,164 70,857 606,021
2031-2035 2,924,759 416,050 3,340,809
2036-2037 1,295,560 38,891 1,334,451
Totals $ 6,745,692 $ 884,449 $ 7,630,141
64 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 6: LONG-TERM DEBT (CONTINUED)
Annual debt service requirements to maturity for the 2022 Taxable Pension Obligation Bonds are as follows:

C. Loans Payable
In fiscal year 2021, the City entered into an equipment purchase agreement to finance the cost to refurbish a fire engine, and purchase a new fire apparatus, and hydraulic lift to service the fire apparatus. The total available financing is $ 1,242,878. During fiscal year 2021-22 the remaining balance of the available funding was utilized. The City is required to make semi-annual payments of $83,601, including principal and interest at a rate of 2.45% until the year 2030.

NOTE 7: COMPENSATED ABSENCES
The City’s policy relating to compensated absences is described in Note 1. The total amount outstanding at June 30, 2025, was $2,048,016 for governmental activities and $156,342 for business-type activities.

Fiscal Year
Ending
June 30, Principal Interest Total
2026 1,240,000 $ 375,075 $ 1,615,075 $
2027 1,285,000 351,849 1,636,849
2028 1,335,000 326,818 1,661,818
2029 1,390,000 299,924 1,689,924
2030 1,445,000 271,228 1,716,228
2031-2035 8,220,000 1,511,716 9,731,716
2036-2037 1,885,000 47,691 1,932,691
Totals 16,800,000 $ 3,184,301 $ 19,984,301 $
Fiscal Year
Ending
June 30, Principal Interest Total
2026 147,140 $ 20,063 $ 167,203 $
2027 150,767 16,436 167,203
2028 154,483 12,720 167,203
2029 158,291 8,912 167,203
2030 162,193 5,010 167,203
2031 82,590 1,012 83,602
Totals 855,464 $ 64,153 $ 919,617 $
Balance Balance Due Within
June 30, 2024 Adjustments Net Change June 30, 2025 One Year Governmental Activities $ 1,726,852 $ 307,367 $ 13,797 $ 2,048,016 $ 819,206 Business Type Activities $ 132,102 $ 18,990 $ 5,250 $ 156,342 $ 62,537 65 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 8: LEASES
Leases are financings of the right to use an underlying asset. A lessee is required to recognize a lease liability and a lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources.

A. Leases Receivable and Deferred Inflows of Resources
The City leases land and buildings to various companies. The terms by lease type are listed in the table below.

Some leases have extension options of ranging from 1.83 to 44.58 years. As of June 30, 2025, the value of the lease receivable is $255,480. The value of the deferred inflow of resources as of June 30, 2025, was $241,254 and the amortization of the deferred inflow during the year totaled $70,661.

The principal and interest payments that are expected to maturity are as follows:

B. Lease Payable and Lease Assets
The City entered into a master lease agreement with Enterprise FM Trust for the lease of vehicles. The terms range from 36 to 60 months from the date the lease is entered into. The City is required to make monthly payments ranging from $266 to $1,461. The leases have an interest rate of ranging from 0.5925% to 2.4806%. The City also leases printers, postage machines and copiers with terms ranging from 36 to 60 months. The City is required to make monthly payments ranging from $178 to $815. The leases have an interest rate of 0.8453%.

Fiscal Year Ending
June 30,
Principal
Payments
Interest
Payments Total Payments
2026 22,787 $ 6,460 $ 77,065 $
2027 3,317 6,335 29,247
2028 3,392 6,260 9,652
2029 3,503 6,149 9,652
2030 3,600 6,052 9,652
2031-2035 19,539 28,719 48,258
2036-2040 22,394 25,862 48,256
2041-2045 25,697 22,556 48,254
2046-2050 29,469 18,781 48,251
2051-2055 33,795 14,452 48,248
2056-2060 38,752 9,492 48,244
2061-2065 44,447 3,792 48,240
2066 4,788 35 14,471
Total 255,480 $ 154,945 $ 607,734 $
Governmental Activities
66 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 8: LEASES (CONTINUED)
Lease assets are split between governmental and business-type activities, as shown in note 5, and consist of the following asset classes at June 30, 2025:

As of June 30, 2025, the total value of the lease liability is $911,720. Future principal and interest requirements to maturity for the lease liability are as follows:

Lease liability for governmental and business-type funds is as follows:

Asset Class
Lease Asset
Value
Accumulated
Amortization
Equipment $ 94,494 $ 54,493
Vehicles 1,510,694 679,844
Total Leases $ 1,605,188 $ 734,337
As of June 30, 2025
Fiscal Year Ending
June 30,
Principal
Payments
Interest
Payments Total Payments
2026 385,370 $ 19,870 $ 405,240 $
2027 277,342 8,327 285,669
2028 139,762 2,157 141,919
2029 21,710 166 21,876
Total $ 824,184 $ 30,520 $ 854,704
Governmental Activities
Fiscal Year Ending
June 30,
Principal
Payments
Interest
Payments Total Payments
2026 23,442 $ 2,403 $ 25,845 $
2027 23,352 1,683 25,035
2028 20,334 984 21,318
2029 12,107 487 12,594
2030 8,301 88 8,389
Total 87,536 $ 5,645 $ 93,181 $
Business-Type Activities
Asset Class
Balance
June 30, 2024 Additions Deletions
Balance
June 30, 2025
Due Within One
Year
Vehicles 949,527 $ $ 182,870 $ 342,185 $ 790,212 $ 361,455 Equipment 39,087 18,356 23,471 33,972 23,915
Total Lease Liability 988,614 $ $ 201,226 $ 365,656 $ 824,184 $ 385,370 Asset Class
Balance
June 30, 2024 Additions Deletions
Balance
June 30, 2025
Due Within One
Year
Vehicles $ 44,497 $ 58,323 $ 17,668 $ 85,152 $ 21,862
Equipment 3,928 - 1,544 2,384 1,580
Total Lease Liability $ 48,425 $ 58,323 $ 19,212 $ 87,536 $ 23,442 Governmental Activities
Business-Type Activities
67 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 9: SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS As of June 30, 2025, the total value of the subscription liability is $8,115. Subscription liability for governmental funds is as follows:

On September 1, 2022, the City entered into a 36-month subscription for the use of Office Pro Plus Platform. An initial subscription liability was recorded in the amount of $97,935. As of June 30, 2025, the value of the subscription liability is $0. The City is required to make annual fixed payments of $33,407. The subscription has an interest rate of 2.354%. The value of the subscription asset as of June 30, 2025 is $97,913 with accumulated amortization of $92,473.

On July 1, 2022, the City entered into a 47-month subscription for the use of Central Intercept X. An initial subscription liability was recorded in the amount of $30,684. As of June 30, 2025, the value of the subscription liability is $8,115. The City is required to make monthly fixed payments of $745. The subscription has an interest rate of 2.445%. The value of the subscription asset as of June 30, 2025 is $30,678 with accumulated amortization of $23,073.

Subscription assets, as shown in note 5, consist of the following asset classes at June 30, 2025:

Future principal and interest requirements to maturity for the subscription liability are as follows:

Balance as of Balance as of Due Within
Subscription Liability June 30, 2024 Additions Reductions June 30, 2025 One Year Governmental Activities
Office Pro Plus Platform $ 32,630 $ 32,630 - $ $ - $ -
Central Intercept X 16,034 - 7,919 8,115 8,115
Total Subscription Liability $ 48,664 $ 40,549 - $ $ 8,115 $ 8,115 Asset Class
Subscription
Asset Value
Accumulated
Amortization
Subscription Assets 128,591 $ $ 115,546
Total 128,591 $ $ 115,546
Fiscal Year
Principal
Payments
Interest
Payments
Total
Payments
2026 8,115 $ 92$ 8,207$
Totals $ 8,115 92$ 8,207$
68 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 10: POLLUTION REMEDIATION LIABILITY
During the year ended June 30, 2025, the following changes occurred in the City’s Pollution Remediation Liability:

On August 2, 2006, the California Regional Water Quality Board issued an order requiring the City of Barstow to take remediation action for wastewater discharges resulting in alleged increases in the nitrate levels in the water supply resulting from the City’s wastewater plant. Major long-term costs associated with the project include quarterly well sampling and reporting; operation and maintenance of a groundwater remediation system and replacement drinking water to select residents. In 2015, the City completed the Phase I Improvement Project, which resulted in an improved effluent water quality from the Barstow Wastewater Treatment Plant. In 2019, the California Regional Water Quality Control Board issued a new discharge permit that encompassed new and revised sampling requirements for the treatment plant and the surrounding monitoring wells. During this time the Regional Water Quality Control Board removed the Cease and Desist Order against the City of Barstow. To date approximately $3,471,304 has been spent. Implementation of the mitigation order has been delayed pending the outcome of the discussions with the Regional Water Quality Board to include perchlorate remediation, (which is not the City’s responsibility) with nitrate remediation. The City anticipates spending $51,000 for the operating and testing costs in fiscal year 2026 and will continue the monitoring costs relating to legal mandates such as regulatory agency orders, court orders or other affirmative legal obligations. A summary of the components of the pollution remediation liability at June 30, 2025, is as follows:

Method and Assumption
With the adoption of GASB 49, the pollution remediation sites on the property managed and operated by the City were evaluated. The City applied the requirements of GASB 49 and measured the environmental liabilities for pollution remediation sites using the expected cash flow technique. The measurements are based on the current value of the outlays expected to be incurred. The cash flow scenarios include components which can be reasonably estimated for outlays such as testing, monitoring, legal services and indirect outlays. Reasonable estimates of ranges of possible cash flows are limited from a single scenario to a few scenarios. Data used to develop the cash flow scenarios is obtained from outside consultants and City staff.

Changes to estimates will be made when new information becomes available, increases or reductions in price, changes in technology, or changes in applicable laws or regulations. At a minimum, the City will evaluate the estimates for the pollution remediation sites when the following benchmarks occur. • Receipt of an administrative order.
• Participation, as a responsible party or a potentially responsible party, in the site assessment or investigation. • Completion of a corrective measures feasibility study. • Issuance of an authorization to proceed.
• Remediation design and implementation, through and including operation and maintenance and post remediation monitoring.

Amount
Balance Balance Due Within
June 30, 2024 Additions Deletions June 30, 2025 One Year Business Type Activities:

Pollution Remediation Liability 5,407,013 $ - $ 20,644 $ 5,386,369 $ 51,000 $ Total Business Type Activities 5,407,013 $ - $ 20,644 $ 5,386,369 $ 51,000 $ Obligating Event Liability
Quarterly Maintenance of Groundwater $ 10,061
Operation and Maintenance of Groundwater 1,461
Replacement Drinking Water 11,794
Total by Obligating Event $ 23,316
69 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 11: RISK MANAGEMENT
The City is a member of Public Entity Risk Management Authority (PERMA), a joint powers insurance authority formed under Section 990 of the California Government Code for the purpose of jointly funding programs of insurance coverage for its members. PERMA is comprised of thirty-one participating member agencies:
twenty-one cities, four transit agencies and six special districts. PERMA is governed by a Board of Directors which consists of one director from each member agency. The City participates in the Liability, Workers' Compensation, Employment Practices Liability, Property Insurance, Auto Physical Damage, Cyber Liability, and Crime Coverage insurance programs of PERMA.

The Liability program provides coverage up to $50 million per occurrence for personal injury, bodily injury, property damage and public officials' errors and omissions. The City self-insures up to $125,000 per occurrence and participates in risk sharing pools for losses up to $1 million followed by PERMA's membership in the Public Risk Innovation, Solutions, and Management (PRISM) for $49 million excess liability coverage. PERMA administers the City’s liability claims.

The Workers' Compensation program provides statutory limits per accident for workers' compensation and $5 million each accident for employers' liability. The City self-insures up to $250,000 per accident or employee and participates in a risk sharing pool for losses up to $500,000 followed by PERMA's membership in the Local Agency Workers' Compensation Excess Joint Powers Authority (LAWCX) for excess coverage.

A third-party administrator administers the City’s workers’ compensation claims.

The Employment Practices Liability program provides up to $1 million coverage for employment related lawsuits, such as wrongful termination and discrimination. The City self-insures up to $25,000 per occurrence and participates in the Employment Risk Management Authority (ERMA) for losses up to $1 million. Coverage above $1 million and up to $50 million is available through PERMA’s membership in PRISM for excess liability coverage.

The Property Insurance program is group purchased under a master property insurance policy with accumulated values from all participants effecting lower rates and broader coverage for members. The program covers real property, business personal property, inland marine coverage for special mobile equipment and business interruption. Commercial property coverage is written on a replacement cost basis and all risk, eliminating the traditional commercial "named peril" policy.

The Auto Physical Damage program is also group purchased under a master insurance policy with accumulated values from all participants effecting lower rates for members. Auto physical damage coverage is written on an agreed amount basis.

The Cyber Liability program is also group purchased under a master insurance policy and provides coverage for information security and privacy liability, privacy notification costs, regulatory defense and penalties, website media content liability, cyber extortion, first party data protection, and business interruption losses. The program provides its insureds with access to a breach response team consisting of privacy expert attorneys, forensic specialists to determine scope of breach, notification vendors, and credit monitoring services at preferred rates.

The Crime Coverage program is also group purchased under a master insurance policy and provides coverage up to $1,000,000 for employee theft, forgery or alteration, computer fraud and funds transfer fraud.

None of the above programs of protection have had settlements or judgments that exceeded pooled or insured coverage for the past three (3) years. There have been no reductions in pooled or insured coverage from coverage in the prior year. General Fund resources would be typically used to liquidate the claims liability, should the need arise.

The claims liability is estimated based on actuarial studies of the Liability and Workers’ Compensation program.

The actuary used a 65% confidence level and discounted the liabilities using a 2% interest rate. 70 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 11: RISK MANAGEMENT (CONTINUED)
At June 30, 2025, claims liabilities of $866,289 and $370,066 were due within one year for Workers’ Compensation and General Liability, respectively.

NOTE 12: RETIREMENT PLANS
A. Summary of Pension Plan Balances
Pension related balances presented on the Statement of Net Position as of the June 30, 2025, by individual plan are described in the following table:

B. CALPERS Safety and Miscellaneous Employees Plans
Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS). The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other). Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous risk pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors four rate plans (two miscellaneous and two safety). Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions, and membership information that can be found on the CalPERS website.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments, and death benefits to plan members who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employee’s Retirement Law.

Workers' General Total
Compensation Liability Claims
Liability - June 30, 2023 $ 3,394,917 $ 1,364,358 $ 4,759,275 Claims incurred and Changes in Estimates 2,010,677 394,125 2,404,802 Claims payments (1,074,148) (278,218) (1,352,366)
Liability - June 30, 2024 4,331,446 1,480,265 5,811,711 Claims incurred and Changes in Estimates 982,140 (222,628) 759,512 Claims payments (455,526) (157,594) (613,120)
Liability - June 30, 2025 $ 4,858,060 $ 1,100,043 $ 5,958,103 Deferred
OutflowsPensionNet Pension
Liability
Deferred
InflowsPensionPension
Expense
$ 9,643,767 $ (18,112,043) $ (8,587,480) $ 2,745,320
4,740,067 (7,029,400) (1,283,718) (346,506)
Total $ 14,383,834 $ (25,141,443) $ (9,871,198) $ 2,398,814 CalPERS Cost Sharing Plan
SBCERA- Barstow Fire Protection District
71 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 12: RETIREMENT PLANS (CONTINUED)
The rate plan provisions and benefits in effect at the measurement date 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 are to be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plan is determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

The City’s contributions to the Plan for the measurement period ended June 30, 2024, were recognized as a reduction to the net pension liability were $2,982,045.

Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2025, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan of $18,112,043.

The City’s net pension liability for the Plan is measured as the proportionate share of the total net pension liability of the Plan. The net pension liability of the Plan is measured as of June 30, 2024, and the total pension liability for the Plan used to calculate the net pension liability was determined by actuarial valuations as of June 30, 2023. The City’s proportionate of the net pension liability was based on the City’s plan liability and asset-related information where available, and proportional allocations of individual plan amounts as of the valuation date where not available.

Safety - Classic Miscellaneous - Classic
Hire Date Prior to January 1, 2013 Prior to January 1, 2013 5 Years Service 5 Years Service
Monthly For Life Monthly For Life
50 55
3% 2.7%

8.990% 7.960%

27.320% 16.020%
$259,795 $372,705
Safety - PEPRA Miscellaneous - PEPRA
Hire Date On or After January 1, 2013 On or After January 1, 2013 5 Years Service 5 Years Service
Monthly For Life Monthly For Life
57 62

2.70% 2.00%

13.000% 6.750%

13.760% 7.870%
$20,932 $11,373
Required Employer Contribution Rates
Required UAL Payment
Required UAL Payment
Benefit Vesting Schedule
Benefit Payment
Retirement Age
Monthly Benefits, as a % of Annual
Required Employee Contribution Rates
Required Employer Contribution Rates
Benefit Vesting Schedule
Benefit Payment
Retirement Age
Monthly Benefits, as a % of Annual
Required Employee Contribution Rates
72 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 12: RETIREMENT PLANS (CONTINUED)
The City’s proportionate share of the net pension liability for the Plan as of the measurement dates June 30, 2024 and 2025 were as follows:

For the year ended June 30, 2025, the City recognized pension expense of $2,745,320. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources.

The $2,226,919 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending 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:

0.66598%

0.69543%

0.02945%
Proportion - June 30, 2024
Proportion - June 30, 2025
Change - Increase (Decrease)
Deferred Outflows
of Resources
Deferred Inflows of
Resources
$ - 2,226,919 $
- 457,914
(55,953) 1,531,284
(4,151,645) 1,444,520
(4,379,882) 3,006,433
- 976,697
Total $ (8,587,480) 9,643,767 $
Net Differences Between Projected and Actual
Earnings on Plan Investments
Pension Contributions Subsequent to Measurement Date
Changes of Assumptions
Differences Between Expected and Actual Experience
Changes in Employer's Proportion
Differences Between the Employer's Contribution and the Employer's Proportionate Share of Contributions
Measurement
Period Ending
June 30,
Deferred
Outflows/(Inflows)
2025 $ (1,265,593)
2026 827,259
2027 (397,781)
2028 (334,517)
Total $ (1,170,632)
73 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 12: RETIREMENT PLANS (CONTINUED)
Actuarial Assumptions – The total pension liabilities in the June 30, 2024, actuarial valuations were determined using the following actuarial assumptions:

The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2024, valuation were based on the results of a January 2017 actuarial experience study for the period 1997 to 2015. Further details of the Experience Study can be found on the CalPERS website.

Discount Rate – The discount rate used to measure the total pension liability was 6.90% for the Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for the Plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 6.90% discount rate is adequate, and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 6.90% will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CalPERS website. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

Long-term Expected Rate of Return – In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short- term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.

Entry - Age Normal in Accordance with the
Requirements of GASB 68

6.90%

2.30%
Varies by Entry Age and Service
Derived by CalPERS Membership Data for All Funds
Post Retirement Benefit Increase The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on
purchasing power applies, 2.30% thereafter
Mortality Rate Table
Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Projected Salary Increase
74 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 12: RETIREMENT PLANS (CONTINUED)
The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses.

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

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

C. San Bernardino County Employees’ Retirement Association (SBCERA) The District became a component of the City from November 17, 2010, and effective that date all of the employees of the District have become employees of the City. The District employees were covered under the pension plan of the San Bernardino County Employees’ Retirement Association (SBCERA). Subsequent to the merger, the members of Barstow Professional Firefighters Association were enrolled in the City’s retirement program through the SBCERA.

New Strategic
Allocation Real Return 1, 2
Global Equity - Cap-weighted 30.00% 4.54%

12.00% 3.84%

13.00% 7.28%

5.00% 0.27%

5.00% 0.50%

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 100.00%
Asset Class 1
Global Equity Non-Cap-weighted
Private Equity
Treasury
Mortgage-Backed Securities
Investment Grade Corporates
1 An expected price inflation of 2.30% used for this period. 2 Figures are based on the 2022 Asset Liability Management study.

5.90%
$ 40,398,140

6.90%
$ 18,112,043

7.90%
$ (182,096)
Current Discount Rate
Net Pension Liability
1% Increase
Net Pension Liability
1% Decrease
Net Pension Liability
75 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 12: RETIREMENT PLANS (CONTINUED)
Plan Description
The SBCERA is a cost-sharing multiple-employer defined benefit pension plan (the Plan) operating under the California County Employees' Retirement Act of 1937 (1937 Act). It provides retirement, death and disability benefits to members. Although legally established as a single employer plan, the City of Big Bear Lake, Department of Water and Power-City of Big Bear Lake, Crestline Sanitation District, California State Association of Counties, South Coast Air Quality Management District (SCAQMD), San Bernardino Associated Governments (SANBAG), Local Agency Formation Commission (LAFCO), San Bernardino County Law Library, Barstow Fire Protection District, Hesperia Recreation and Parks District, SBCERA, City of Chino Hills, Mojave Desert Air Quality Management District (MDAQMD), California Electronic Recording Transaction Network Authority (CERTNA), along with the County, and are collectively referred to as the “Participating Members.” The plan is governed by the SBCERA Board of Retirement under the 1937 Act. Employees become eligible for membership on their first day of regular employment and become fully vested after 5 years. SBCERA issues a stand-alone financial report, which may be obtained by contacting the Board of Retirement, 348 W Hospitality Lane - 3rd Floor, San Bernardino, California 92415-0014.

Benefits Provided
SBCERA provides service retirement, disability, death, and survivor benefits to eligible employees. Generally, any employee of the County of San Bernardino or participating employers who is appointed to a regular position whose service is greater than fifty percent of the full standard of hours required by a participating SBCERA employer (e.g. 20 hours per week or more) must become a member of SBCERA effective on the first day of employment.

There are separate retirement benefits for General and Safety member employees. Safety membership is extended to those involved in active law enforcement and fire suppression. All other members are classified as General Members.

There are currently two tiers applicable to both General and Safety members. Members with membership dates before January 1, 2013, are included in General Tier 1 or Safety Tier 1. Any new member who becomes a member on or after January 1, 2013, is designated as General Tier 2 or Safety Tier 2 and is subject to the provisions of California Public Employees’ Pension Reform Act of 2013 (CalPEPRA), California Government Code 7522 et seq. and Assembly Bill (AB) 197.

General members prior to January 1, 2013, are eligible to retire once they attain the age of 70 regardless of service or at age 50 and have acquired 10 or more years of retirement service credit. A member with 30 years of service is eligible to retire regardless of age. General members who are first hired on or after January 1, 2013, are eligible to retire once they attain the age of 70 regardless of service or at age 52 and have acquired five or more years of retirement service credit.

Safety members prior to January 1, 2013, are eligible to retire once they attain the age of 70 regardless of service or at age 50 and have acquired 10 or more years of retirement service credit. A member with 20 years of service is eligible to retire regardless of age. Safety members who are first hired on or after January 1, 2013, are eligible to retire once they attain the age of 70 regardless of service or at age 50 and have acquired five or more years of retirement service credit.

The retirement benefits the member will receive is based upon age at retirement, final average compensation, years of retirement service credit and retirement plan and tier.

General Tier 1 benefit is calculated pursuant to the provisions of California Government Code of Section 31676.15.

The monthly allowance is equal to 2% of final compensation times years of accrued retirement service credit times age factor from Section 31676.15. General Tier 2 benefit is calculated pursuant to the provisions found in California Government Code Section 7522.20(a). The monthly allowance is equal to the final compensation multiplied by years of accrued retirement credit multiplied by the age factor from Section 7522.20(a). 76 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 12: RETIREMENT PLANS (CONTINUED)
Safety Tier 1 benefit is calculated pursuant to the provisions of California Government Code Section 31664.1.

The monthly allowance is equal to 3% of final compensation times years of accrued retirement service credit times age factor from Section 31664.1. Safety Tier 2 benefit is calculated pursuant to the provisions found in California Government Code Section 7522.25(d). The monthly allowance is equal to the final compensation multiplied by years of accrued retirement credit multiplied by the age factor from Section 7522.25(d).

For Tier 1 members, the maximum monthly retirement allowance is 100% of final compensation. There is no final compensation limit on the maximum retirement benefit for Tier 2 members. However, the maximum amount of compensation earnable that can be taken into account for Tier 1 members with membership dates on or after July 1, 1996, is $265,000. The maximum amount of pensionable compensation for Tier 2 members that can be taken into account is equal to $140,424. These limits are adjusted on an annual basis. Members are exempt from paying member contributions and employers are exempt from paying employer contributions on compensation in excess of the annual cap.

Final average compensation consists of the highest 12 consecutive months for Tier 1 members and the highest 36 consecutive months for Tier 2 members.

The member may elect an unmodified retirement allowance or choose an optional retirement allowance. The unmodified retirement allowance provides the highest monthly benefit and a 60% continuance to an eligible surviving spouse or domestic partner. An eligible surviving spouse or domestic partner is one married to or registered with the member one year prior to the effective retirement date or at least two years prior to the date of death and has attained age 55 on or prior to the date of death. There are four optional retirement allowances the member may choose. Each of the optional retirement allowances requires a reduction in the unmodified retirement allowance in order to allow the member the ability to provide certain benefits to a surviving spouse, domestic partner, or named beneficiary having an insurable interest in the life of the member.

SBCERA provides an annual cost-of-living benefit to all retirees. The cost-of-living adjustment based upon the Consumer Price Index for All Urban Consumers for the Los Angeles-Riverside-Orange County Area, is capped at

2.0%.

The County of San Bernardino and participating employers contribute to the retirement plan based upon actuarially determined contribution rates adopted by the Board of Retirement. Employer contribution rates are adopted annually based upon recommendations received from SBCERA’s actuary after the completion of the annual actuarial valuation.

All members are required to make contributions to SBCERA regardless of the retirement plan or tier in which they are included.

Fire safety members contribute the required employee share of their pension. The percentage of pay varies between 12.30% – 17.74%.

The District pays a capped percentage of the employer’s pension cost per the Barstow Professional Fire Fighters Association Memorandum of Understanding. The employer’s costs are capped at 46% with the employee paying the difference.

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

The City’s contributions to the Plan for the measurement period ended June 30, 2024, were $1,571,187. 77 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 12: RETIREMENT PLANS (CONTINUED)
Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2025, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan of $7,029,400. During the 2021-2022 fiscal year, the City of Barstow issued the 2021 Lease Revenue Bonds at a fixed interest rate of 2.98% to provide funds for the Barstow Fire Protection District to refinance its payment obligation to the San Bernardino County Employees’ Retirement Association. Under the bonds, the City will make lease payments from any available source of funds, and BFPD will reimburse the City. The payments under the agreement are due on July 1 and January 1 of each year and mature through July 2036.

The City’s net pension liability for the Plan is measured as the proportionate share of the total net pension liability of the Plan. The net pension liability of the Plan is measured as of June 30, 2023, and the total pension liability for the Plan used to calculate the net pension liability was determined by actuarial valuations as of June 30, 2022. The City’s proportionate of the net pension liability was based on the City’s share of all actual contributions, actuarially determined.

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

For the year ended June 30, 2025, the City recognized pension expense of $(346,506) at June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

The $1,571,187 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2026.

0.307%

0.331%

0.024%
Proportion - June 30, 2023
Proportion - June 30, 2024
Change - Increase (Decrease)
Deferred Outflows
of Resources
Deferred Inflows of
Resources
$ - 1,571,187 $
(246,982) 147,795
(765,067) 2,129,051
(179,479) -
(92,190) 892,034
Total 4,740,067 $ (1,283,718) $
Pension Contributions Subsequent to Measurement Date
Changes of Assumptions or Other Inputs
Changes in Employer's Proportion and Differences Between the Employer's Contribution and the Employer's Proportionate Share of Contributions
Net Differences Between Projected and Actual Earnings on Plan Investments
Difference Between Expected and Actual Experience in the Total Pension Liability
78 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 12: RETIREMENT PLANS (CONTINUED)
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, 2024, actuarial valuations were determined using the following actuarial assumptions:

Change of Assumptions - There were no changes in assumptions.

Fiscal Year
Ending June 30:

Deferred
Outflows/(Inflows
2026 (2,058,943) $
2027 3,547,577
2028 453,958
2029 (57,430)
Total $ 1,885,162
June 30, 2022
June 30, 2024
Entry - Age Actuarial Cost Method

7.25%

2.50%
General: 4.30% to 9.5% and Safety: 4.75% to 10.00%
CPI increase of 2.00% per year; retiree COLA increases
due to CPI subject to a 2.00% maximum change per
year.

7.25%
Mortality rates are based on the Pub-2010 Amount
Weighted Above-Median Mortality Table projected
generationally using the two-dimensional MP-2019
projection scale. For healthy General members, the
General Healthy retiree rates increased by 10% were
used. For healthy Safety members, the Safety Healthy
Retiree rates are used. For disabled General members,
the Non-Safety Disabled Retiree rates were used. For
disabled Safety members, the Safety Disabled Retiree
rates were used. For beneficiaries, the General
Contingent Survivor rates increased by 10% were used.
2 Includes inflation at 2.75% plus real across-the-board salary increase of 0.5% plus merit and promotional increases.

Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Projected Salary Increase 2
Cost of Living Adjustments
Investment Rate of Return 1
Mortality
1 Net of pension plan investment expenses, including inflation. 79 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 12: RETIREMENT PLANS (CONTINUED)
Discount Rate – The discount rates used to measure the Total Pension Liability was 7.25% as of June 30, 2024.

The projection of cash flows used to determine the discount rate assumed employer and member contributions will be made at rates equal to the actuarially determined contribution rates. For this purpose, only employee and employer contributions that are intended to fund benefits for current plan members and their beneficiaries are included. Projected employer contributions that are intended to fund the service costs for future plan members and their beneficiaries, as well as projected contributions from future plan members, are not included. Based on those assumptions, the Pension Plan's Fiduciary Net Position was projected to be available to make all projected future benefit payments for current plan members. Therefore, the long-term expected rate of return on pension plan investments of 7.25% was applied to all periods of projected benefit payments to determine the Total Pension Liability as of June 30, 2024.

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

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

The June 30, 2024, target allocations (approved by the Board) and projected arithmetic real rates of return for each major asset class, after deducting inflation but before deducting investment expenses, used in the derivation of the long-term expected investment rate of return assumption is summarized in the table on the following page.

Total Allocation
Long-Term Expected
Real Rate of Return
(Arithmetic)

14.50% 6.00%

2.50% 6.65%

7.00% 7.01%

6.00% 8.80%

2.00% 1.97%

13.00% 6.48%

6.00% 4.76%

5.00% 3.86%

2.00% 0.63%

11.00% 7.10%

7.00% 7.10%

6.00% 10.10%

18.00% 9.84%
100.00%
High Yield/ Credit Strategies
Emerging Market Debt
Real Estate
Cash & Equivalents
International Credit
Absolute Return
Real Assets
Private Equity
Total
U.S. Core Fixed Income
Asset Class
Large Cap U.S. Equity
Small Cap U.S. Equity
Developed International Equity
Emerging Market Equity
80 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 12: RETIREMENT PLANS (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 the Plan, calculated using the discount rate for the Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

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

NOTE 13: POST-EMPLOYMENT HEALTHCARE BENEFITS
A. City of Barstow OPEB Plan
OPEB related balances presented on the Statement of Net Position as of June 30, 2025, by individual plan are described in the following table:

Plan Description
The City provides retiree medical benefits under the CalPERS health plan which provide medical insurance benefits to eligible retirees and their spouses in accordance with various labor agreements. Copies of the CalPERS’ annual financial report may be obtained from the CalPERS Executive Office, 400 Q Street, Sacramento, California 95811. The CalPERS health plan is an agent multiple employer defined benefit plan.

Employee Covered
Contributions
The contribution requirements of plan members and the City are established and may be amended by the City Council. The City must agree to make a defined monthly payment towards the cost of each retiree’s coverage.

The required contribution is based on projected prefunding financing requirements. For the measurement period 2023-2024, the City contributed $940,820 which were in the form of benefit payments during the period. The City did not make additional contributions to the CERBT trust (CERBT).

6.25%
$ 12,046,230

7.25%
$ 7,029,400

8.25%
$ 2,929,645
Net Pension Liability
Current Discount Rate
Net Pension Liability
1% Increase
Net Pension Liability
1% Decrease
Deferred
OutflowsOPEBNet OPEB
Liability
Deferred InflowsOPEB
OPEB
Expense
$ (11, 1,679,062 $ (5,910,543) 416,503) $ (56,979) $
(1, 373,041 (5, 368,199) (546, 550,196) 360)
Total 2,052,103 $ (12, $ (11,460,739) 784,702) $ (603,339) $ City of Barstow OPEB Plan
Barstow Fire Protection District OPEB Plan
Inactive Employees or Beneficiaries Currently Receiving Benefits 119 Inactive Employees Entitled to but not yet Receiving Benefits - Active Employees 154
Total 273
81 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 13: POST-EMPLOYMENT HEALTHCARE BENEFITS (CONTINUED) CERBT is a tax qualified irrevocable trust, organized under Internal Revenue Code (IRC) Section 115, established to prefund OPEB as described in GASB Statement No. 45. The CERBT issues a publicly available financial report that included financial statements and required supplementary information for the City, not individualizing, but in aggregate with the other CERBT participants. That report may be obtained by contacting CalPERS.

Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2024, and the total OPEB liability used to the calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2023, based on the following actuarial methods and assumptions
In March 2022, CalPERS updated the project future investment returns for CERBT Strategy 1. CalPERS determined its returns using a building block method and best-estimate ranges of expected future real rates of return for each major classes (expected returns, net of OPEB plan investment expense and inflation). The target allocation and best estimates of geometric real rates of return published by CalPERS for each major class are split for years 1-5 and years 6-20:

June 30, 2023
June 30, 2024
Entry - Age Normal Cost, level percent of pay

2.5% per year

3.0% per year

3.00%

6.30%
SBCERA Rates, Scale MP-2021
MacLeod Watts Scale 2022

7.4% in 2025, fluctuates down to 4.14% by 2076
Salary Increases
Assumed Wage Inflation
Investment Rate of Return
Mortality
Post Retirement Benefit Increase
Healthcare Trend
Inflation
Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:

Target Allocation*
Expected Real
Return Year 1-5
Expected Real
Return Years 6-20

49.00% 3.90% 4.70%

23.00% 2.70% 2.60%

20.00% 3.70% 4.00%

5.00% 1.70% 1.40%

3.00% 2.90% 2.00%
*Real rates of return come from a geometric representation of returns that assume a general inflation rate of 2.5%.

Commodities
Asset Class
Global Equity
Fixed Income
Global Real Estate (REITs)
Treasury Inflation Protected Securities
82 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 13: POST-EMPLOYMENT HEALTHCARE BENEFITS (CONTINUED) Discount Rate
The discount rate used to measure the total OPEB liability was 4.09 percent. The discount rate used reflects the results of a crossover test. In years where the trust is expected to have sufficient assets to pay the current year’s retiree benefits, the assumed trust rate of return is applied; once the trust is no longer expected to be able to pay plan benefits, a municipal bond rate is applied for the remainder of the projects. The S&P General Obligation Municipal Bond 20 Year High Grade Index was used for the purpose of the municipal bond rate.

Changes in the net OPEB Liability
The changes in the net OPEB liability for the OPEB Plan are as follows:

Sensitivity of the Net OPEB Liability to Changes in the Discount Rate 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:

Total OPEB
Liability
Plan Fiduciary
Net Position
Net OPEB
Liability/Asset
$ 13,523,769 $ 1,571,396 $ 11,952,373
318,529 - 318,529
611,095 - 611,095
- 92,809 (92,809)
(352,249) - (352,249)
(940,820) (940,820) -
- 940,820 -
- 80,128 -
- (512) 512
(363,445) 172,425 (535,870)
$ 13,160,324 $ 1,743,821 $ 11,416,503
Net Changes
Balance at June 30, 2025
Administrative Expenses
Net Investment Income
Increase (Decrease)
Balance at June 30, 2024
Change in the Year:

Service Cost
Interest
Differences between expected
and actual experience
Changes in Assumptions
Benefit Payments
Contribution - Employer
1% Decrease

3.84%
Current
Discount

4.84%
1% Increase

5.84%
Net OPEB Liability 12,804,463 $ 11,416,503 $ 10,240,065 $ 1% Decrease
Current
Healthcare
Trend Rate 1% Increase
Net OPEB Liability 12,743,712 $ $ 11,416,503 $ 419,921
83 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 13: POST-EMPLOYMENT HEALTHCARE BENEFITS (CONTINUED) Recognition of Deferred Outflow 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 income of $56,979. For the fiscal year ended June 30, 2025, the City reported deferred outflows of resources related to OPEB from the following sources:

The $1,134,507 reported as deferred outflows of resources related to contributions subsequent to the 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 differences between projected and actual
earnings on OPEB plan investments
5 years straight-line recognition
All Other Amounts
Expected average remaining service
lifetime (EARSL) (7.6 years at
June 30, 2024, measurement date)
Deferred
Outflows of
Resources
Deferred Inflows
of Resources
$ - 1,134,507 $
(1,768,490) 4,241
(4,141,251) 540,314
(802) -
Total 1,679,062 $ (5,910,543) $
OPEB Contributions Subsequent to Measurement
Differences between expected and actual experience
Changes of Assumptions
Net Difference Between Projected and Actual
Fiscal Year
Ending June 30,
Recognized Net
Deferred Outflows
(Inflows) of
Resources
2026 $ (1,154,966)
2027 (1,218,179)
2028 (1,248,652)
2029 (937,816)
2030 (475,018)
Thereafter (331,357)
Total $ (5,365,988)
84 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 13: POST-EMPLOYMENT HEALTHCARE BENEFITS (CONTINUED) B. Barstow Fire Protection District OPEB Plan
Plan Description
The Barstow Fire Protection District (BFPD) became part of the City of Barstow in November 2010 as a special revenue fund. In previous years, the Barstow Fire Professional Fire Fighters Association (BFPA) had a separate health insurance plan, Riverstone Capital, apart from City Employees. Riverstone Capital notified the City that effective February 28, 2019, the BFPD employees would be losing their Stop Loss/Reinsurance coverage. The City's/BFPD's insurance broker, Alliant/Crystal and Company, reviewed several options and it was determined that moving the BFPD employees into CalPERS medical would offer the best long-term coverage options for the employees.

CalPERS would also extend the coverage to retirees. The previous method for providing retiree coverage under BFPA's Memorandum of Understanding (MOU) required the retiree carry their own insurance coverage and submit proof of payment of the premium and a request for reimbursement on a monthly basis. Including retired firefighters in CalPERS medical coverage streamlined the process for the city and the retiree.

A meeting with BFPD members was held to advise them of the situation and staff began the process to enroll them into CalPERS health coverage effective March 1, 2019. The inclusion of the BFPD firefighters in CalPERS medical coverage also simplified the process of providing medical insurance to all City employees.

The City provides retiree medical benefits to eligible retirees and their spouses in accordance with their labor agreements. The BFPD is classified for GASB 75 purposes as a single employer.

Employee Covered
Contributions
The contribution requirements of plan members and the District are established and may be amended by the Board of Directors. The District must agree to make a defined monthly payment towards the cost of each retiree’s coverage. The required contribution is based on projected prefunding financing requirements. For the measurement period 2023-24, the District contributed $82,543, which were in the form of benefit payments during the period. The City did not make additional contributions to the CERBT trust (CERBT).

CERBT is a tax qualified irrevocable trust, organized under Internal Revenue Code (IRC) Section 115, established to prefund OPEB as described in GASB Statement No. 45. The CERBT issues a publicly available financial report that included financial statements and required supplementary information for the City, not individualizing, but in aggregate with the other CERBT participants. That report may be obtained by contacting CalPERS.

Inactive plan members currently receiving benefits 8
Inactive plan members entitled to but not receiving benefits - Active plan members 25
Total 33
85 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 13: POST-EMPLOYMENT HEALTHCARE BENEFITS (CONTINUED) Net OPEB Liability
The District’s net OPEB liability was measured as of June 30, 2024, and the total OPEB liability used to the calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2023 based on the following actuarial methods and assumptions:

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 table below.

Discount Rate
The discount rate used to measure the total OPEB liability was 4.41 percent. The discount rate used reflects the results of a crossover test. In years where the trust is expected to have sufficient assets to pay the current year’s retiree benefits, the assumed trust rate of return is applied; once the trust is no longer expected to be able to pay plan benefits, a municipal bond rate is applied for the remainder of the projects. The S&P General Obligation Municipal Bond 20 Year High Grade Index was used for the purpose of the municipal bond rate.

June 30, 2023
June 30, 2024
Entry - Age Normal Cost Method

4.41%

2.50%
Contributes full ADC
Varies by Entry Age and Service

3.00%
SBCERA Rates
Healthcare Trend 7.4% decreasing to 4.14% in 2076
Contribution Policy
Salary Increases
Projected Salary Increases
Mortality
Inflation
Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Target Allocation*
Expected Real
Return Year 1-5
Expected Real
Return Years 6-20

49.00% 3.90% 4.70%

23.00% 2.70% 2.60%

20.00% 3.70% 4.00%

5.00% 1.70% 1.40%

3.00% 2.90% 2.00%
*Real rates of return come from a geometric representation of returns that assume a general inflation rate of

2.5%.

Commodities
Asset Class
Global Equity
Fixed Income
Global Real Estate (REITs)
Treasury Inflation Protected Securities
86 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 13: POST-EMPLOYMENT HEALTHCARE BENEFITS (CONTINUED) Changes in the net OPEB Liability
The changes in the net OPEB liability for the OPEB Plan are as follows:

Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the District 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 Due to the nature of the benefit agreements of the plan, the health care cost trend rate was not considered to be a significant assumption in determining the net OPEB liability, hence the sensitivity disclosure with regard to the healthcare cost trend rate was not applicable.

Total OPEB
Liability
Plan Fiduciary
Net Position
Net OPEB
Liability/Asset
$ 345,370 1,693,276 $ 1,347,906 $
- 125,234 125,234
- 73,222 -
16,600 - -
- (57,724) -
82,543 - -
(82,543) (82,543) -
(21,409) 21,409
(113) - -
37,896 58,189 20,293
$ 383,266 1,751,465 $ 1,368,199 $
Net Changes
Balance at June 30, 2025
Administrative Expenses
Increase (Decrease)
Balance at June 30, 2024
Change in the Year:

Service Cost
Interest on the Total OPEB Liability
Differences Between Actual and
Charges in Assumptions
Contribution - Employer
Benefit Payments
Net Investment Income
Expected Experience
1% Decrease

3.41%
Current
Discount

4.41%
1% Increase

5.41%
Net OPEB Liability 1,581,923 $ 1,368,199 $ 1,192,140 $
87 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 13: POST-EMPLOYMENT HEALTHCARE BENEFITS (CONTINUED) Recognition of Deferred Outflow 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 District recognized OPEB income of $546,360. For the fiscal year ended June 30, 2025, the District reported deferred outflows of resources related to OPEB from the following sources:

Net differences between projected and actual
earnings on OPEB plan investments
5 years straight-line
All Other Amounts Expected average remaining service lifetime (EARSL) (9.1 years at June 30, 2024)
Deferred Outflow
of Resources
Deferred Inflow
of Resources
$ - 103,912 $
(5,107,701) 188,525
(442,495) 77,568
- 3,036
Total 373,041 $ (5,550,196) $
OPEB Contributions Subsequent to Measurement
Changes of Assumptions
Differences between expected and actual experience
Net Difference Between Projected and Actual
Earnings on Plan Investments
88 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 13: POST-EMPLOYMENT HEALTHCARE BENEFITS (CONTINUED) The $103,912 reported as deferred outflows of resources related to contributions subsequent to the 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:

NOTE 14: COMMITMENTS AND CONTINGENCIES
A. Pending Litigation
The City is a defendant in a number of lawsuits that have arisen in the normal course of business. While substantial damages are alleged in some of these actions, their outcome cannot be predicted with certainty. In the opinion of the City Attorney, these actions, when finally adjudicated, will not have any material adverse effect in the financial position of the City.

B. Construction Commitments
Fiscal Year
Ending June 30,
Recognized Net
Deferred Outflows
(Inflows) of
Resources
2026 (725,518) $
2027 (713,488)
2028 (725,645)
2029 (732,553)
2030 (743,157)
Thereafter (1,640,706)
Total (5,281,067) $
Project Title
Contract
Amount
Expenditures to
date as of
June 30, 2025
Remaining
Commitments
First Avenue Bridge Over BNSF Railroad Track PS&E 4,610,000 $ 4,605,430 $ 4,570 $ First Avenue Bridge Over BNSF Railroad Track ROW 15,000,000 10,477,604 4,522,396 First Avenue Bridge Over BNSF Railroad Track CPUC 5,000,000 367,820 4,632,180 First Avenue Bridge Over Mojave River 4,242,837 2,496,331 1,746,506 89 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 15: MEASURE Q
In November 2018, the voters approved Measure Q which established a one-cent sales-tax, estimated to generate $7 million in local funding for public safety and citywide services.

Funding generated from the tax is intended to:
• Maintain local fire protection and paramedic services • Provide police services, including neighborhood police patrols, crime prevention and investigations • Maintain streets and parks, and repair potholes
• Provide quick responses to 9-1-1 emergencies
• Help fund senior and youth programs
• Reduce gang activity and drug-related crimes
The revenues received and expenditures relating to Measure “Q” for the current year and previous year are as follows:

Measure Q is reported under the General Fund, and therefore, is not a separate standalone fund. For more information, please refer to the Measure Q section under Note 19. 2024-2025 2023-2024
Revenues:

Measure "Q" sales tax 9,625,706 $ 9,863,721 $
Use of money and property 19,851 54,524
Miscellaneous income 35,188 100,030
Total Revenues 9,680,745 10,018,275
Expenditures:

General Government 303,378 419,710
Police 3,487,513 3,378,949
Fire 3,482,223 3,506,458
Community Development 782,556 158,432
Public Works 688,317 483,241
Capital Outlay 2,029,110 854,117
Debt Service 1,543,653 1,865,490
Total expenditures 12,316,750 10,666,397
Current year excess (deficiency)
of revenues over expenditures (2,636,005) (648,122)
Fund Balance, Beginning of the year 8,844,510 9,492,632 Fund Balance, End of Year $ 6,208,505 $ 8,844,510
Fiscal Year
90 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 16: SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Barstow 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 17, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number 4653-2012.

Real Property Held for Resale
In order to improve blighted conditions in the City of Barstow, the City formed the Barstow Redevelopment Agency in 1973. Additionally, the Agency had adopted a Five- Year Implementation Plan for the Project Area I with an established goal of supporting affordable housing and promoting economic development, as well as community, commercial and institutional revitalization. To implement these programs and activities, the Agency acquired real property within the Project Area I to be redeveloped. Three parcels were held in the Land Held for Resale asset account by the Agency totaling $2,224,905.

As of February 1, 2012, the land held for resale was taken over by the Successor Agency to the Redevelopment Agency due to the dissolution of the Barstow Redevelopment Agency per Assembly Bill AB 1X 26 and Assembly Bill AB1484.

NOTE 17: NEGATIVE FUND BALANCE/NET POSITION
The following funds have negative fund balance as of June 30, 2025:

Barstow Fire Protection District Fund ($700,834) - As projected by staff and discussed with the Board, the District’s expenditures exceeded revenues for the fiscal year. The District has reduced its operating expenditures to its lowest, yet sustainable limit. Salaries and benefits continued to be monitored but pension costs remained high with the San Bernardino County Employees’ Retirement Association. Management was aware of ongoing fiscal issues and the Board is also aware of the increasing fund balance deficit.

Grants Fund ($3,323,205) – The City made major progress payments for reimbursable grant projects for which it has not been reimbursed.

Harvey House Foundation ($15,583) – The Foundation is expected to become more active in the future. It is anticipated that the Foundation will receive revenue to offset the deficit fund balance in the coming years.

COVID-19 Grants Fund ($20,774) – The City will make payments for reimbursable grant projects for which it has not been reimbursed.

NOTE 18: BARSTOW FIRE PROTECTION DISTRICT
The Barstow Fire Protection District (District) continues to have a deficit fund balance in fiscal year 2025. In fiscal year 2018, the Board and management studied and reviewed a variety of options to address these concerns. 91 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 18: BARSTOW FIRE PROTECTION DISTRICT (CONTINUED)
• Measure Q - In March 2018, the City Council hired a research firm to perform a general sales tax measure feasibility study. As part of this study, a survey was sent to the City of Barstow voters requesting their feedback about establishing an increase in general transaction and use (sales) tax that will fund municipal services. The result of the survey, was presented at the May 15, 2018, Council’s meeting, showing approximately 63-69% of the residents in support of the proposed transaction and use tax measure. On July 16, 2018, the City Council unanimously adopted the resolution and ordinance to put Measure Q on November 2018 ballot. The resolution called for a General Transaction and Use Tax of one percent. The measure passed with 59.28% of the vote.

The City began receiving the Measure Q revenue immediately in July, for fiscal year 2020. So far, the receipts have exceeded the City’s initial estimates. These funds will be used to pay-back the loan and sustain the Fire Department, in addition to supporting police officers, maintaining streets and help fund senior and youth programs.
• Beginning in fiscal year 2015, the City began advancing funds to the District to cover operational costs. On October 1, 2018, the City Council approved the amended and restated loan agreement between the City of Barstow and the Barstow Fire Protection for $4,153,696, with a zero percent interest rate. The City advanced an additional $1,243,696 for fiscal year 2020 bringing the amount due the City to $5,817,392. This action formalized the outstanding debt due the City in the event the Measure Q ballot measure was not successful.

The Fire Protection district repaid $500,000 in 2024 and 2025, bringing the amount due at June 20, 2025 to $3,317,392.
• The Board and management will continue to monitor the Barstow Fire Protection District financial situation.

Management will keep the Board informed of developing highlights, and concerns regarding the District.

NOTE 19: NET INVESTMENT IN CAPITAL ASSETS
The breakdown for net investment in capital assets for the year ended June 30, 2025, is as follows:

Total
Governmental Wastewater Solid Waste Business-Type
Activities Reclamation Fund Disposal Fund Activities
Capital assets, net of
accumulated depreciation/amortization 135,645,596 $ 23, $ 241,362 $ 23, 237,518 $ 478,880 Less:

Bonds, notes and finance
purchase agreements (1,666,220) (82, (5, 049) 487) (87,536) Capital related, non-debt payable (1,371,432) (604,596) - (604,596) Net investment in capital assets $ 132,607,944 $ 22,554,717 $ 232,031 $ 22,786,748 Business-Type Activities
92 CITY OF BARSTOW, CALIFORNIA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
NOTE 20: RESTATEMENTS
Changes to or within the Reporting Entity
For the fiscal year ended June 30, 2025, the Gas Tax fund and the City Capital Projects fund, previously reported as nonmajor governmental funds, are now reported as major governmental funds based on their relative significance to the financial statements. This change was made to provide more meaningful information to users of the financial statements. The reclassification did not affect the total fund balances of the government.

Changes in Accounting Principle
For fiscal year ended June 30, 2025, the City implemented GASB Statement No. 101, Compensated Absences, which updated the recognition and measurement guidance for compensated absences, to align recognition and measurement under a single unified model to better meet the needs of financial statement users; refer to note 1.

NOTE 21: SUBSEQUENT EVENTS
The City evaluated subsequent events for recognition and disclosure through January 22, 2026, the date on which these financial statements were available to be issued. Management concluded that no material subsequent events have occurred since June 30, 2025, that required recognition or disclosure in these financial statements.

June 30, 2024 Changes to or Changes in
As Previously within the Accounting June 30, 2024
Reported Reporting Entity Principle As Restated
Government-wide
Governmental activities 44,350,969 $ - $ (307,367) $ 44,043,602 $ Business-type activities 21,581,154 - (18,990) 21,562,164 Total government-wide 65,932,123 $ - $ (326,357) $ 65,605,766 $ Governmental funds
Major funds
Gas Tax - $ 3,829,419 $ - $ 3,829,419 $
City Capital Projects - 966,601 - 966,601
Nonmajor funds - (4,796,020) - (4,796,020)
Total governmental funds - $ - $ - $ - $
Proprietary funds
Major funds
Wastwater Reclamation 19,564,254 $ - $ (14,508) $ 19,549,746 $ Solid Waste Disposal 2,016,900 - (4,482) 2,012,418
Total proprietary funds 21,581,154 $ - $ (18,990) $ 21,562,164 $ 93 7+,63$*(,17(17,21$//</()7%/$1.
94 REQUIRED SUPPLEMENTARY

INFORMATION
95 7+,63$*(,17(17,21$//</()7%/$1.
96 CITY OF BARSTOW, CALIFORNIA
Notes to Required Supplementary Information
For the Year Ended June 30, 2025
NOTE 1: BUDGET CONTROL AND BUDGETARY ACCOUNTING
A. Budget Control and Budgetary Accounting
The City follows these procedures in establishing the budgets.

1. The annual budget is adopted by the City Council after the holding of a hearing and provides for the general operation of the City. The operating budget includes proposed expenditures and the means of financing them.

2. The City Council approves total budgeted appropriations and any amendments to appropriations throughout the year. This “appropriated budget” covers City expenditures in all governmental funds, except debt service and capital improvement projects carried forward from prior years.

3. The City manager is authorized to transfer budgeted amounts between departments. Actual expenditures may not exceed budgeted appropriations at the fund level.

4. Formal budgetary integration is employed as a management control devise during the year. Commitments for materials and services, such as purchase orders and contracts, are recorded as encumbrances to assist in controlling expenditures. Capital projects appropriations are an automatic supplemental appropriation for next year. All others lapse unless they are encumbered at year end or re-appropriated through the formal budget process.

5. Annual budgets are adopted for the General Fund, all special revenue funds, capital projects funds, and debt service funds, on a basis substantially consistent with accounting principles generally accepted in the United States of America. Accordingly, actual revenues and expenditures can be compared with related budgeted amounts without any significant reconciling items.

The Redevelopment Housing Successor, Barstow Community Services, Local Transportation, Flood Control, and COVID-19 Grants special revenue funds did not adopt a budget for the fiscal year ended June 30, 2025.

For the fiscal year ended June 30, 2025, there were funds where the City had expenditures in excess of appropriations. In the Gas Tax fund, capital outlay expenditures exceeded appropriations by $35,374. In the City Capital Projects fund, capital outlay expenditures exceeded appropriations by $33,349,848.

97 CITY OF BARSTOW, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual General Fund
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes $ 29,373,895 $ 29,373,895 $ 29,179,541 $ (194,354) Licenses and permits 336,150 336,150 422,373 86,223
Intergovernmental 469,540 469,540 511,223 41,683
Charges for services 2,967,300 2,967,300 3,133,061 165,761 Use of money and property 161,400 161,400 724,174 562,774 Fines and forfeitures 157,500 157,500 210,360 52,860
Miscellaneous 261,592 261,592 430,331 168,739
Total revenues 33,727,377 33,727,377 34,611,063 883,686

EXPENDITURES
Current:

General government 8,477,651 8,940,651 8,576,185 364,466 Public safety 13,169,725 13,437,955 13,112,442 325,513
Community development 3,674,128 3,823,578 3,525,571 298,007 Parks and recreation 1,390,789 1,702,551 1,677,585 24,966 Public works 4,604,387 4,616,887 4,524,638 92,249
Capital outlay 1,599,373 4,180,880 2,653,297 1,527,583
Debt service:

Principal (332,797) 590,354 590,354 -
Interest and fiscal charges - - 52,097 (52,097)
Total expenditures 32,583,256 37,292,856 34,712,169 2,580,687 Excess (deficiency) of revenues
over (under) expenditures 1,144,121 (3,565,479) (101,106) 3,464,373

OTHER FINANCING SOURCES (USES)
Transfers in 2,597,100 2,597,100 2,077,200 (519,900)
Transfers out (6,529,179) (7,449,496) (6,846,947) 602,549 Leases issued - - 201,226 201,226
Total other financing sources (uses) (3,932,079) (4,852,396) (4,568,521) 283,875 Net change in fund balances $ (2,787,958) $ (8,417,875) (4,669,627) $ 3,748,248 Fund balances-beginning 29,619,150
Fund balances-ending $ 24,949,523
98 CITY OF BARSTOW, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Measure I
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental $ 2,000,000 $ 2,000,000 $ 1,712,469 $ (287,531) Use of money and property - - 93,650 93,650
Total revenues 2,000,000 2,000,000 1,806,119 (193,881)

EXPENDITURES
Current:

Public safety - 52,000 40,298 11,702
Total expenditures - 52,000 40,298 11,702
Excess (deficiency) of revenues
over (under) expenditures 2,000,000 1,948,000 1,765,821 (182,179)

OTHER FINANCING SOURCES (USES)
Transfers out (16,300) (4,514,420) (1,080,596) 3,433,824 Total other financing sources (uses) (16,300) (4,514,420) (1,080,596) 3,433,824 Net change in fund balances $ 1,983,700 $ (2,566,420) 685,225 $ 3,251,645 Fund balances-beginning 500,493
Fund balances-ending $ 1,185,718
99 CITY OF BARSTOW, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Barstow Fire Protection District
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes $ 5,875,000 $ 5,875,000 $ 6,585,046 $ 710,046
Licenses and permits 5,000 5,000 6,853 1,853
Intergovernmental 311,300 311,300 395,561 84,261
Use of money and property 11,000 11,000 17,899 6,899
Total revenues 6,202,300 6,202,300 7,005,359 803,059

EXPENDITURES
Current:

Public safety 8,579,430 8,539,430 8,253,080 286,350
Capital outlay - 40,000 40,000 -
Debt service:

Principal 500,000 500,000 - 500,000
Total expenditures 9,079,430 9,079,430 8,293,080 786,350 Excess (deficiency) of revenues
over (under) expenditures (2,877,130) (2,877,130) (1,287,721) 1,589,409

OTHER FINANCING SOURCES (USES)
Transfers in (4,137,525) 4,137,525 4,653,013 515,488
Transfers out (1,561,674) (1,561,674) (1,554,790) 6,884 Total other financing sources (uses) (5,699,199) 2,575,851 3,098,223 522,372 Net change in fund balances $ (8,576,329) $ (301,279) 1,810,502 $ 2,111,781 Fund balances (deficit)-beginning (2,511,336)
Fund balances (deficit)-ending $ (700,834)
100

CITY OF BARSTOW, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Grants
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental $ 372,117 $ 12,422,209 $ 2,239,808 $ (10,182,401) Use of money and property - - 574 574
Total revenues 372,117 12,422,209 2,240,382 (10,181,827)

EXPENDITURES
Current:

Public safety 97,309 1,007,550 182,828 824,722
Community development 38,601 49,601 51,253 (1,652)
Capital outlay 53,650 53,650 291,867 (238,217)
Total expenditures 189,560 1,110,801 525,948 584,853
Excess (deficiency) of revenues
over (under) expenditures 182,557 11,311,408 1,714,434 (9,596,974)

OTHER FINANCING SOURCES (USES)
Transfers out (213,809) (10,294,731) (2,794,098) 7,500,633 Total other financing sources (uses) (213,809) (10,294,731) (2,794,098) 7,500,633 Net change in fund balances $ (31,252) $ 1,016,677 (1,079,664) $ (2,096,341) Fund balances (deficit)-beginning (2,243,541)
Fund balances (deficit)-ending $ (3,323,205)
101
7+,63$*(,17(17,21$//</()7%/$1.
102

CITY OF BARSTOW, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Gas Tax
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental $ 1,356,000 $ 1,356,000 $ 1,420,204 $ 64,204 Use of money and property - - 150,509 150,509
Total revenues 1,356,000 1,356,000 1,570,713 214,713

EXPENDITURES
Capital outlay - - 35,374 (35,374)
Total expenditures - - 35,374 (35,374)
Excess (deficiency) of revenues
over (under) expenditures 1,356,000 1,356,000 1,535,339 179,339

OTHER FINANCING SOURCES (USES)
Transfers out (6,900) (1,226,688) (6,900) 1,219,788
Total other financing sources (uses) (6,900) (1,226,688) (6,900) 1,219,788 Net change in fund balances $ 1,349,100 $ 129,312 1,528,439 $ 1,399,127 Fund balances (deficit)-beginning 3,829,419
Fund balances (deficit)-ending $ 5,357,858
103

CITY OF BARSTOW, CALIFORNIA
CalPERS Cost Sharing Plan
Schedule of Proportionate Share of the Net Pension Liability As of June 30, for the Last Ten Fiscal Years
2025 2024 2023 2022 2021
Measurement Date 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 Proportion of the Net Pension Liability 0.69543% 0.66598% 0.08838% 0.39191% 0.26490% Proportionate Share of the Net Pension Liability $ 18,112,043 $ 18,721,763 $ 18,023,479 $ 14,864,924 $ 29,751,671 Covered Payroll $ 11,745,774 $ 14,750,205 $ 9,880,472 $ 10,266,253 $ 9,842,257 Proportionate Share of the Net Pension Liability as
Percentage of Covered Payroll 154.20% 126.93% 182.42% 144.79% 302.29% Plan Fiduciary Net Position $ 136,012,450 $ 130,014,867 $ 129,524,741 $ 123,982,203 $ 104,679,650 Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 87.90% 87.78% 87.78% 89.29% 77.87% Notes to Schedule:

Benefit Changes: None
Changes of Assumptions: None
104
2020 2019 2018 2017 2016
6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015

0.24588% 0.25121% 0.24901% 0.24341% 0.20999%
$ 26,777,913 $ 24,207,207 $ 24,695,340 $ 21,062,463 $ 14,413,454 $ 10,816,083 $ 11,891,452 $ 10,244,777 $ 10,085,135 $ 10,085,135 247.57% 223.81% 207.67% 205.59% 142.92%
$ 102,046,037 $ - $ - $ - $ -

75.26% 75.26% 73.31% 74.06% 79.82%
105

CITY OF BARSTOW, CALIFORNIA
San Bernardino County Employees' Retirement Association (SBCERA) Schedule of Proportionate Share of the Net Pension Liability As of June 30, for the Last Ten Fiscal Years
2025 2024 2023 2022 2021
Measurement Date 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 Proportion of the Net Pension Liability 0.331% 0.307% 0.338% 0.435% 0.421% Proportionate Share of the Net Pension Liability $ 7,029,400 $ 7,278,342 $ 7,854,204 $ 8,433,660 $ 16,891,227 Covered Payroll $ 2,759,103 $ 2,605,075 $ 2,550,102 $ 2,430,284 $ 2,045,831 Proportionate Share of the Net Pension Liability as
Percentage of Covered Payroll 254.77% 279.39% 308.00% 347.02% 825.64% Plan Fiduciary Net Position $ 30,627,947 $ 26,805,659 $ 29,379,425 $ 45,633,022 $ 33,270,269 Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 81.33% 78.65% 78.91% 84.40% 66.33% Notes to Schedule:

Changes of Assumptions: None
Benefit Changes: None
106
2020 2019 2018 2017 2016
6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015

0.457% 0.498% 0.378% 0.518% 0.638%
$ 12,382,040 $ 12,626,176 $ 9,958,070 $ 12,781,554 $ 12,395,608 $ 1,890,826 $ 1,816,148 $ 1,776,774 $ 2,518,304 $ 2,036,785 654.85% 695.22% 560.46% 507.55% 608.59%
$ 33,532,575 $ 34,034,011 $ 24,486,977 $ 18,856,232 $ 20,207,792

73.03% 72.94% 71.09% 76.86% 80.98%
107

CITY OF BARSTOW, CALIFORNIA
Schedule of Changes in the Net OPEB Liability and Related Ratios As of June 30, for the Last Ten Fiscal Years(1)
2025 2024 2023 2022
Measurement Date 6/30/2024 6/30/2023 6/30/2022 6/30/2021 Changes in Total OPEB Liability
Service cost $ 318,529 $ 435,006 $ 535,801 $ 565,909
Interest 611,095 677,345 455,294 577,610
Differences between actual and expected experience - (1,276,926) - (2,058,221) Changes in assumptions (352,249) (1,980,960) (4,307,157) 991,369 Benefit payments (940,820) (913,325) (901,111) (851,272) Net change in total OPEB liability (363,445) (3,058,860) (4,217,173) (774,605) Total OPEB liability - beginning 13,523,769 16,582,629 20,799,802 21,574,407 Total OPEB liability - ending (a) 13,160,324 13,523,769 16,582,629 20,799,802 Plan Fiduciary Net Position
Contribution - employer 940,820 913,325 901,111 851,272 Net investment income 172,937 94,886 (228,363) 367,993
Benefit payments (940,820) (913,325) (901,111) (851,272) Administrative expense (512) (572) (432) (507)
Other expense - - - -
Net change in plan fiduciary net position 172,425 94,314 (228,795) 367,486 Plan fiduciary net position - beginning 1,571,396 1,477,082 1,705,877 1,338,391 Plan fiduciary net position - ending (b) 1,743,821 1,571,396 1,477,082 1,705,877 Net OPEB Liability/(Assets) - ending (a) - (b) $ 11,416,503 $ 11,952,373 $ 15,105,547 $ 19,093,925 Plan fiduciary net position as a percentage
of the total OPEB liability 13.3% 11.6% 8.9% 8.2%
Covered payroll $ 12,218,251 $ 11,209,318 $ 13,424,691 $ 12,765,028 Net OPEB liability as a percentage
of covered payroll 93.44% 106.63% 112.52% 149.58%
Notes to Schedule:

Changes of Assumptions: The discount rate increased from 4.57% to 4.84% in measurement period 6/30/2024. (1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available. 108
2021 2020 2019 2018
6/30/2020 6/30/2019 6/30/2018 6/30/2017
$ 532,051 $ 628,854 $ 586,241 $ 637,325
586,298 557,475 559,512 497,633
- 110,249 - -
353,512 1,857,556 365,110 (1,110,604)
(759,312) (741,262) (702,823) (628,957)
712,549 2,412,872 808,040 (604,603)
20,861,858 18,448,986 17,640,946 18,245,549
21,574,407 20,861,858 18,448,986 17,640,946
759,312 741,262 702,823 628,957
45,704 75,207 89,989 108,069
(759,312) (741,262) (702,823) (628,957)
(632) (261) (603) (548)
- - (1,496) -
45,072 74,946 87,890 107,521
1,293,319 1,218,373 1,130,483 1,022,962
1,338,391 1,293,319 1,218,373 1,130,483
$ 20,236,016 $ 19,568,539 $ 17,230,613 $ 16,510,463

6.2% 6.2% 6.6% 6.4%
$ 13,389,701 $ 12,153,938 $ 10,550,746 $ 10,244,777
151.13% 161.01% 163.31% 161.16%
109

BARSTOW FIRE PROTECTION DISTRICT
Schedule of Changes in the Net OPEB Liability and Related Ratios As of June 30, for the Last Ten Fiscal Years(1)
2025 2024 2023 2022
Measurement Date 6/30/2024 6/30/2023 6/30/2022 6/30/2021 Changes in Total OPEB Liability
Service cost $ 125,234 $ 525,547 $ 633,234 $ 573,551
Interest on the total OPEB liability 73,222 168,356 109,198 127,973 Plan experience - 20,115 - (705,883)
Changes in assumptions (57,724) (2,569,363) (1,437,109) 208,292 Changes in benefit terms - - - -
Benefit payments (82,543) (64,217) (45,608) (33,966)
Net change in total OPEB liability 58,189 (1,919,562) (740,285) 169,967 Total OPEB liability - beginning 1,693,276 3,612,838 4,353,123 4,183,156 Total OPEB liability - ending (a) 1,751,465 1,693,276 3,612,838 4,353,123 Plan Fiduciary Net Position
Contribution - employer 82,543 64,217 45,608 33,966
Net investment income 38,009 20,854 (50,191) 80,880
Benefit payments (82,543) (64,217) (45,608) (33,966)
Administrative expense (113) (162) (95) (111)
Other expense - 120 - -
Net change in plan fiduciary net position 37,896 20,812 (50,286) 80,769 Plan fiduciary net position - beginning 345,370 324,558 374,844 294,075 Plan fiduciary net position - ending (b) 383,266 345,370 324,558 374,844 Net OPEB Liability/(Assets) - ending (a) - (b) $ 1,368,199 $ 1,347,906 $ 3,288,280 $ 3,978,279 Plan fiduciary net position as a percentage
of the total OPEB liability 21.9% 20.4% 9.0% 8.6%
Covered payroll $ 4,400,295 $ 4,272,131 $ 4,005,521 $ 3,624,974 Net OPEB liability as a percentage
of covered payroll 31.09% 31.55% 82.09% 109.75%
Notes to Schedule:

Changes of Assumptions: The discount rate increased from 4.12% to 4.41% in measurement period 6/30/2024. (1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available. 110
2021 2020 2019 2018
6/30/2020 6/30/2019 6/30/2018 6/30/2017
$ 544,393 $ 90,956 $ 86,320 $ 90,934
111,849 29,157 26,317 21,440
- 124,887 - -
72,167 52,128 13,302 (50,934)
- 2,355,457 - -
(19,568) (14,200) (12,072) (12,099)
708,841 2,638,385 113,867 49,341
3,474,315 835,930 722,063 672,722
4,183,156 3,474,315 835,930 722,063
19,568 14,200 12,072 12,099
10,045 16,415 19,778 23,752
(19,568) (14,200) (12,072) (12,099)
(139) 57 (461) (121)
- - - -
9,906 16,472 19,317 23,631
284,169 267,697 248,380 224,749
294,075 284,169 267,697 248,380
$ 3,889,081 $ 3,190,146 $ 568,233 $ 473,683

7.0% 8.2% 32.0% 34.4%
$ 2,045,831 $ 2,758,300 $ 2,611,101 $ 2,537,528
190.10% 115.66% 21.76% 18.67%
111

CITY OF BARSTOW, CALIFORNIA
Schedules of Plan Contributions
As of June 30, for the Last Ten Fiscal Years 1
Covered/ Contribution as a
Fiscal Year Actuarially Actual Contribution Covered- % of Covered/ Ending Determined Employer Deficiency Employee Covered Employee June 30, Contribution Contributions (Excess) Payroll Payroll 2025 $ 2,226,919 $ 2,226,919 $ - $ 12,030,212 18.51%
2024 1,618,835 1,618,835 - 11,745,774 13.78%
2023 2,349,577 2,349,577 - 14,750,205 15.93%
2022 3,643,916 23,404,058 (19,760,142) 9,880,472 236.87% 2021 3,405,375 3,405,375 - 10,266,253 33.17%
2020 3,124,739 3,124,739 - 9,842,257 31.75%
2019 2,677,140 2,677,140 - 10,816,083 24.75%
2018 2,533,851 2,533,851 - 11,891,452 21.31%
2017 2,388,566 2,388,566 - 10,244,777 23.31%
2016 2,051,026 2,051,026 - 10,085,135 20.34%
2025 $ 1,571,187 $ 1,571,187 $ - $ 2,780,665 56.50%
2024 1,363,210 1,363,210 - 2,759,103 49.41%
2023 1,321,109 1,321,109 - 2,605,075 50.71%
2022 2,141,231 10,276,108 (8,134,877) 2,550,102 402.97% 2021 2,029,361 2,029,361 - 2,430,284 83.50%
2020 1,760,542 1,760,542 - 2,045,831 86.06%
2019 1,625,725 1,625,725 - 1,890,826 85.98%
2018 1,704,307 1,704,307 - 1,816,148 93.84%
2017 1,258,947 1,258,947 - 1,776,774 70.86%
2016 1,407,336 1,407,336 - 2,518,304 55.88%
2025 $ 1,092,785 $ 1,134,507 $ (41,722) $ 12,371,330 9.17% 2024 1,065,332 893,664 171,668 12,218,251 7.31%
2023 1,003,698 913,325 90,373 11,209,318 8.15%
2022 995,997 901,111 94,886 13,424,691 6.71%
2021 1,213,266 851,272 361,994 12,765,028 6.67%
2020 1,085,891 759,312 326,579 13,389,701 5.67%
2019 1,032,102 741,262 290,840 12,153,938 6.10%
2018 982,138 702,823 279,315 10,550,746 6.66%
2025 $ 217,472 $ 103,912 $ 113,560 $ 4,650,100 2.23%
2024 208,181 90,199 117,982 4,400,295 2.05%
2023 408,795 64,217 344,578 4,272,131 1.50%
2022 376,137 45,608 330,529 4,005,521 1.14%
2021 366,074 33,966 332,108 3,624,974 0.94%
2020 335,358 19,568 315,790 2,045,831 0.96%
2019 64,738 14,200 50,538 2,758,300 0.51%
2018 62,732 12,072 50,660 2,611,101 0.46%
(1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation of GASB 75. Future years' information will be displayed up to 10 years as information becomes available.

Barstow Fire Protection District Agent Multiple Employer OPEB Plan Agent Multiple Employer OPEB Plan
CalPERS Cost Sharing Plan
San Bernardino County Employees' Retirement Association (SBCERA) 112

SUPPLEMENTARY INFORMATION
113
7+,63$*(,17(17,21$//</()7%/$1.
114

NON-MAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS
Asset Seizure Fund is used to account for asset seizure and forfeitures resulting from police investigations and court decisions.

Barstow Harvey House Foundation Fund is used to account for the operations of the Harvey House facility.

The City rents portions of the premises to various organizations.

Redevelopment Housing Successor Fund is used to account for housing income to be used to promote low and moderate income programs for residents.

Barstow Community Services Fund is used to account for activities of the Barstow Community Services Foundation Inc.

Local Transportation Fund is used to account for revenue received as allocated excess transit funds after transit needs are met.

Flood Control Fund is used to account for expenditures toward the construction of Kitchen Dean Wash, Laverne Avenue, and Avenue I funded by the San Bernardino County Flood Control District (District).

COVID-19 Grants Fund is used to account for grant expenditures incurred due grants for the Covid-19 pandemic.

Public Safety COPS Program Fund is used to account for the Supplemental Law Enforcement funds used for front line law enforcement services, and for the purchase of equipment to assist law enforcement to prevent and reduce crime.

DEBT SERVICE FUND
Debt Service Fund is used for the payment of principal and interest on the 2021 Lease Revenue Bonds and the 2022 Taxable Pension Obligation Bonds.
115

CITY OF BARSTOW, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Cash and cash equivalents $ 42,934 $ - $ 476,079 $ 1,811 Receivables (net of allowance for uncollectible):

Accounts - - - -
Accrued interest - - 3,470 14
Prepaid items - - - -
Total assets $ 42,934 $ - $ 479,549 $ 1,825

LIABILITIES
Accounts payable $ 579 $ - $ - $ -
Unearned revenue 19,087 - -
Due to other funds - 15,583 - -
Total liabilities 19,666 15,583 - -

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - -
Total deferred inflows of resources - - - -

FUND BALANCES (DEFICITS)
Nonspendable
Prepaid items - - - -
Restricted
Public safety 23,268 - - -
Public works - - - -
Community development - - 479,549 1,825
Unassigned - (15,583) - -
Total fund balances (deficits) 23,268 (15,583) 479,549 1,825 Total liabilities, deferred inflows of resources,
and fund balances (deficits) $ 42,934 $ - $ 479,549 $ 1,825 Special Revenue Funds
Barstow
Community
Asset Seizure Services
Barstow
Harvey House
Foundation
Redevelopment
Housing
Successor
116

CITY OF BARSTOW, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Cash and cash equivalents
Receivables (net of allowance for uncollectible):

Accounts
Accrued interest
Prepaid items
Total assets

LIABILITIES
Accounts payable
Unearned revenue
Due to other funds
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Nonspendable
Prepaid items
Restricted
Public safety
Public works
Community development
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
(Continued)
$ 206,625 $ 11,262 $ - $ 107,231
- - 13,972 -
1,506 82 - 791
- - - -
$ 208,131 $ 11,344 $ 13,972 $ 108,022
$ - $ - $ 6,145 $ 13,389
- - - -
- - 14,629 -
- - 20,774 13,389
- - 13,972 -
- - 13,972 -
- - - -
- - - 94,633
- 11,344 - -
208,131 - - -
- - (20,774) -
208,131 11,344 (20,774) 94,633
$ 208,131 $ 11,344 $ 13,972 $ 108,022
Special Revenue Funds
Local
Transportation Flood Control
COVID-19
Grants
Public Safety
COPS
Program
117

CITY OF BARSTOW, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Cash and cash equivalents
Receivables (net of allowance for uncollectible):

Accounts
Accrued interest
Prepaid items
Total assets

LIABILITIES
Accounts payable
Unearned revenue
Due to other funds
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Nonspendable
Prepaid items
Restricted
Public safety
Public works
Community development
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
Debt
Service Fund
Total
Nonmajor
Funds
$ - $ 845,942
- 13,972
- 5,863
576,361 576,361
$ 576,361 $ 1,442,138
$ - $ 20,113
- 19,087
573,981 604,193
573,981 643,393
- 13,972
- 13,972
576,361 576,361
- 117,901
- 11,344
- 689,505
(573,981) (610,338)
2,380 784,773
$ 576,361 $ 1,442,138
Debt Service
118
7+,63$*(,17(17,21$//</()7%/$1.
119

CITY OF BARSTOW, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025

REVENUES
Intergovernmental $ - $ 5,753 $ - $ -
Use of money and property - 1,192 - 15,904
Total revenues - 6,945 - 15,904

EXPENDITURES
Current:

General government - - - -
Public safety - - - -
Community development - - - 20
Parks and recreation - - 25 -
Capital outlay - - - -
Debt service:

Principal - - - -
Interest and fiscal charges - - - -
Total expenditures - - 25 20
Excess (deficiency) of revenues
over (under) expenditures - 6,945 (25) 15,884

OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses) - - - -
Net change in fund balances - 6,945 (25) 15,884
Fund balances-beginning 3,829,419 16,323 (15,558) 463,665 Restatement-changes to or within the reporting entity (3,829,419) - - - Fund balances (deficit)-beginning, as restated - 16,323 (15,558) 463,665 Fund balances (deficit)-ending $ - $ 23,268 $ (15,583) $ 479,549 Special Revenue Funds
Formerly
Nonmajor
Gas Tax Asset Seizure
Barstow
Harvey House
Foundation
Redevelopment
Housing
Successor
120

CITY OF BARSTOW, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025

REVENUES
Intergovernmental
Use of money and property
Total revenues

EXPENDITURES
Current:

General government
Public safety
Community development
Parks and recreation
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances-beginning
Restatement-changes to or within the reporting entity
Fund balances (deficit)-beginning, as restated
Fund balances (deficit)-ending
(Continued)
$ - $ - $ - $ -
63 6,903 376 -
63 6,903 376 -
- - - 13,971
- - - -
25 - - -
- - - -
- - - -
- - - -
- - - -
25 - - 13,971
38 6,903 376 (13,971)
- - - -
- - - -
- - - -
38 6,903 376 (13,971)
1,787 201,228 10,968 (6,803)
- - - -
1,787 201,228 10,968 (6,803)
$ 1,825 $ 208,131 $ 11,344 $ (20,774)
Special Revenue Funds
COVID-19
Grants
Barstow
Community
Services
Local
Transportation Flood Control
121

CITY OF BARSTOW, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025

REVENUES
Intergovernmental
Use of money and property
Total revenues

EXPENDITURES
Current:

General government
Public safety
Community development
Parks and recreation
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances-beginning
Restatement-changes to or within the reporting entity
Fund balances (deficit)-beginning, as restated
Fund balances (deficit)-ending
Capital Debt
Project Fund
Total
Nonmajor
Funds
$ 194,820 $ - $ - $ 200,573
3,673 - - 28,111
198,493 - - 228,684
- - - 13,971
50,500 - - 50,500
- - - 45
- - - 25
28,615 - - 28,615
- - 1,657,086 1,657,086
- - 1,006,088 1,006,088
79,115 - 2,663,174 2,756,330
119,378 - (2,663,174) (2,527,646)
- - 2,663,174 2,663,174
(80,000) - - (80,000)
(80,000) - 2,663,174 2,583,174
39,378 - - 55,528
55,255 966,601 2,380 5,525,265
- (966,601) - (4,796,020)
55,255 - 2,380 729,245
$ 94,633 $ - $ 2,380 $ 784,773
Service Fund
Special
Revenue
Funds
Public Safety
COPS
Program
Formerly
Nonmajor
City Capital
Projects Debt Service
122

CITY OF BARSTOW, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Asset Seizure
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental $ - $ - $ 5,753 $ 5,753
Use of money and property - - 1,192 1,192
Total revenues - - 6,945 6,945

EXPENDITURES
Current:

Public safety 16,100 16,100 - 16,100
Total expenditures 16,100 16,100 - 16,100
Net change in fund balances $ (16,100) $ (16,100) 6,945 $ 23,045 Fund balances (deficit)-beginning 16,323
Fund balances (deficit)-ending $ 23,268
123

CITY OF BARSTOW, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Barstow Harvey House Foundation
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

EXPENDITURES
Current:

Parks and recreation $ 325 $ 325 $ 25 $ 300
Total expenditures 325 325 25 300
Net change in fund balances $ (325) $ (325) (25) $ 300
Fund balances (deficit)-beginning (15,558)
Fund balances (deficit)-ending $ (15,583)
124

CITY OF BARSTOW, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Public Safety COPS Program
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental $ 100,000 $ 195,000 $ 194,820 $ (180) Use of money and property - - 3,673 3,673
Total revenues 100,000 195,000 198,493 3,493

EXPENDITURES
Current:

Public safety 47,500 69,600 50,500 19,100
Capital outlay 10,000 42,798 28,615 14,183
Total expenditures 57,500 112,398 79,115 33,283
Excess (deficiency) of revenues
over (under) expenditures 42,500 82,602 119,378 36,776

OTHER FINANCING SOURCES (USES)
Transfers out (80,000) (50,000) (80,000) (30,000)
Total other financing sources (uses) (80,000) (50,000) (80,000) (30,000) Net change in fund balances $ (37,500) $ 32,602 39,378 $ 6,776 Fund balances (deficit)-beginning 55,255
Fund balances (deficit)-ending $ 94,633
125

CITY OF BARSTOW, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual City Capital Projects
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental $ - $ 14,375 $ 23,134 $ 8,759
Use of money and property - - 30,596 30,596
Total revenues - 14,375 53,730 39,355

EXPENDITURES
Current:

Public works - 175,000 172,615 2,385
Capital outlay 638,919 18,397,304 52,047,152 (33,649,848) Total expenditures 638,919 18,572,304 52,219,767 (33,647,463) Excess (deficiency) of revenues
over (under) expenditures (638,919) (18,557,929) (52,166,037) (33,608,108)

OTHER FINANCING SOURCES (USES)
Transfers in (638,919) 18,369,972 4,369,231 (14,000,741) Transfers out - 283,473 - (283,473)
Capital contributions - - 47,748,316 47,748,316
Total other financing sources (uses) (638,919) 18,653,445 52,117,547 33,464,102 Net change in fund balances $ (1,277,838) $ 95,516 (48,490) $ (144,006) Fund balances (deficit)-beginning 966,601
Fund balances (deficit)-ending $ 918,111
126

CITY OF BARSTOW, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Debt Service
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

EXPENDITURES
Debt service:

Principal $ - $ 1,670,856 $ 1,657,086 $ 13,770
Interest and fiscal charges - 993,656 1,006,088 (12,432) Total expenditures - 2,664,512 2,663,174 1,338
Excess (deficiency) of revenues
over (under) expenditures - (2,664,512) (2,663,174) 1,338

OTHER FINANCING SOURCES (USES)
Transfers in 2,664,512 2,664,512 2,663,174 (1,338)
Total other financing sources (uses) 2,664,512 2,664,512 2,663,174 (1,338) Net change in fund balances $ 2,664,512 $ - - $ -
Fund balances (deficit)-beginning 2,380
Fund balances (deficit)-ending $ 2,380
127
7+,63$*(,17(17,21$//</()7%/$1.
128

CUSTODIAL FUNDS
Public Improvement District 91-1 accounts for the receipt of assessments relating to Public Improvement District 91-1 and the disposition of the assessments under the terms of the agreement.

Landscape Assessment District accounts for the receipt of assessment relating to the Landscape District and the disposition of the assessments under the terms of the agreements. 129
Total Private
Purpose
Trust
Funds
ASSETS
Cash and investments $ 47,855 $ 47,855
Receivables:

Accounts 45,461 45,461
Property Held for Resale 2,224,905 2,224,905
Total assets 2,318,221 2,318,221

NET POSITION
Restricted for:

Individuals, organizations, and other governments 2,318,221 2,318,221 Total net position $ 2,318,221 $ 2,318,221

CITY OF BARSTOW, CALIFORNIA
Combining Statement of Fiduciary Net Position
Private Purpose Trust Fund
June 30, 2025
Successor
Agency of the
Former RDA
130
Total Private
Purpose
Trust
Funds

ADDITIONS
Investment earnings:

Investment Earnings $ 125 $ 125
Total investment earnings 125 125
Intergovernmental Revenues 3,057 3,057
Total additions 3,182 3,182
Net increase (decrease) in fiduciary net position 3,182 3,182 Net position-beginning 2,315,039 2,315,039
Net position-ending $ 2,318,221 $ 2,318,221

CITY OF BARSTOW, CALIFORNIA
Combining Statement of Changes in Fiduciary Net Position Private Purpose Trust Fund
For the Year Ended June 30, 2025
Successor
Agency of the
Former RDA
131
7+,63$*(,17(17,21$//</()7%/$1.
132

STATISTICAL SECTION
133
7+,63$*(,17(17,21$//</()7%/$1.
134
Index Page
Financial Trends 137
These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time.

Revenue Capacity 142
These schedules contain information to help the reader assess the City’s most significant local revenues sources, property tax and sales tax.

Debt Capacity 151
These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability issues additional debt in the future.

Demographic and Economic Information 156
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place.

Operating Information 159
These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs.

STATISTICAL SECTION
This part of the City of Barstow’s annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City.
135
7+,63$*(,17(17,21$//</()7%/$1.
136

CITY OF BARSTOW, CALIFORNIA
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Governmental Activities:

Net investment in
capital assets 80,392,246 $ 81,895,762 $ 82,945,793 $ 83,892,867 $ 83,177,722 $ 83,193,605 $ 85,392,038 $ 84,182,513 $ 59,172,179 $ 132,607,944 $ Restricted 1,912,180 2,122,953 2,815,993 4,321,280 4,856,154 2,060,032 2,652,011 4,485,010 6,077,215 8,280,437 Unrestricted (4,892,883) (15,011,733) (36,244,461) (40,010,751) (48,226,357) (47,612,389) (49,033,863) (44,227,542) (20,900,425) (46,797,710) Total Governmental Activities Net Position 77,411,543 $ 69,006,982 $ 49,517,325 $ 48,203,396 $ 39,807,519 $ 37,641,248 $ 39,010,186 $ 44,439,981 $ 44,348,969 $ 94,090,671 $ Business-type Activities:

Net investment in
capital assets 22,332,269 $ 22,376,249 $ 22,036,073 $ 22,493,982 $ 22,443,932 $ 21,922,426 $ 22,527,948 $ 23,997,654 $ 23,820,713 $ 22,786,748 $ Restricted - - - - - - -
Unrestricted (12,179,023) (10,757,834) (9,598,849) (8,538,249) (7,598,760) (5,702,487) (2,791,649) (4,068,738) (2,239,559) (537,309) Total Business-type Activities Net Position 10,153,246 $ 11,618,415 $ 12,437,224 $ 13,955,733 $ 14,845,172 $ 16,219,939 $ 19,736,299 $ 19,928,916 $ 21,581,154 $ 22,249,439 $ Primary Government:

Net investment in
capital assets 102,724,515 $ 104,272,011 $ 104,981,866 $ 106,386,849 $ 105,621,654 $ 105,116,031 $ 107,919,986 $ 108,180,167 $ 82,992,892 $ 155,394,692 $ Restricted 1,912,180 2,122,953 2,815,993 4,321,280 4,856,154 2,060,032 2,652,011 4,485,010 6,077,215 8,280,437 Unrestricted (17,071,906) (25,769,567) (45,843,310) (48,549,000) (55,825,117) (53,314,876) (51,825,512) (48,296,280) (23,139,984) (47,335,019) Total Primary Government Net Position 87,564,789 $ 80,625,397 $ 61,954,549 $ 62,159,129 $ 54,652,691 $ 53,861,187 $ 58,746,485 $ 64,368,897 $ 65,930,123 $ 116,340,110 $ Fiscal Year
137

CITY OF BARSTOW, CALIFORNIA
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Expenses:

Governmental activities:

General government 3,453,207 $ 4,243,537 $ 3,407,933 $ 3,195,349 $ 4,539,158 $ 7,178,050 $ 11,261,122 $ 9,714,186 $ 8,022,866 $ 8,681,014 $ Public safety 14,618,441 16,507,044 16,367,119 18,968,397 23,887,685 22,274,486 20,727,916 20,200,731 25,168,097 23,176,662 Community development 2,567,843 3,328,046 2,868,473 2,522,157 2,959,442 1,835,249 2,114,693 3,692,053 3,704,614 3,741,681 Recreation 2,840,457 3,221,250 3,097,501 2,573,335 2,548,681 1,413,896 1,892,705 1,767,910 1,948,867 1,887,507 Public works 7,863,741 7,603,005 6,911,603 6,937,058 7,842,090 9,115,346 8,246,181 10,133,006 7,651,476 9,437,760 Interest on long-term debt 188,887 143,333 100,036 55,104 85 51,162 1,178,331 2,002,106 2,406,835 1,090,188 Total Governmental Activities Expenses 31,532,576 35,046,215 32,752,665 34,251,400 41,777,141 41,868,189 45,420,948 47,509,992 48,902,755 48,014,812 Business-type Activities:

Wastewater 5,183,363 3,991,004 4,077,582 3,928,331 5,093,118 4,626,634 2,572,697 3,299,653 3,687,095 4,494,077 Solid Waste 4,588,155 2,376,686 2,526,901 2,216,662 1,575,575 3,901,112 5,088,339 5,882,295 6,477,475 6,707,221 Transit Services 127,671 - - - - - - - - -
Other Enterprise Funds 391,844 - - - - - - - - -
Total Business-type Activities Expenses 10,291,033 6,367,690 6,604,483 6,144,993 6,668,693 8,527,746 7,661,036 9,181,948 10,164,570 11,201,298 Total Primary Government Expenses 41,823,609 41,413,905 39,357,148 40,396,393 48,445,834 50,395,935 53,081,984 56,691,940 59,067,325 59,216,110 Program revenues:

Governmental activities:

Charges for services 1,569,444 1,702,142 1,488,493 2,318,518 1,327,757 1,236,136 1,830,004 2,593,480 3,837,370 4,050,581 Operating grants and contributions 1,045,110 638,283 847,091 1,002,010 859,437 757,387 305,735 1,152,051 634,025 48,891,466 Capital grants and contributions 5,488,502 4,365,660 6,145,461 5,670,702 3,526,055 4,994,774 9,450,259 9,095,030 5,288,068 6,556,381 Total governmental activities
program revenues 8,103,056 6,706,085 8,481,045 8,991,230 5,713,249 6,988,297 11,585,998 12,840,561 9,759,463 59,498,428 Business-type activities:

Charges for services:

Wastewater 5,514,969 5,382,396 5,395,851 5,691,682 5,541,935 5,564,001 5,204,267 5,500,174 5,640,331 5,590,679 Solid Waste 4,121,294 1,926,405 2,027,441 1,971,820 1,988,453 4,208,547 5,733,905 6,301,088 7,492,134 7,498,311 Transit Services 129,803 - - - - - - - - -
Other business-type activites 58,451 - - - - - - - - -
Operating grants and contributions 219,038 524,058 - - - - - - - - Capital grants and contributions - - - - - - - - - -
Total business-type activities
program revenues 10,043,555 7,832,859 7,423,292 7,663,502 7,530,388 9,772,548 10,938,172 11,801,262 13,132,465 13,088,990 Total primary government
program revenues 18,146,611 14,538,944 15,904,337 16,654,732 13,243,637 16,760,845 22,524,170 24,641,823 22,891,928 72,587,418 Fiscal Year
138

CITY OF BARSTOW, CALIFORNIA
Changes in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Net revenues (expenses):

Governmental activities (23,429,520) $ (28,340,130) $ (25,103,932) $ (25,260,170) $ (36,063,892) $ (34,879,892) $ (33,834,950) $ (34,669,431) $ (39,143,292) $ 11,483,616 $ Business-type activities (247,478) 1,465,169 818,809 1,518,509 861,695 1,244,802 3,277,136 2,619,314 2,967,895 1,887,692 Total net revenues (expenses) (23,676,998) (26,874,961) (24,285,123) (23,741,661) (35,202,197) (33,635,090) (30,557,814) (32,050,117) (36,175,397) 13,371,308 General Revenues and Other Changes in Net Position:

Governmental activities:

Taxes:

Property taxes 7,441,119 7,970,015 9,108,160 8,774,293 9,252,006 9,796,572 10,448,051 11,492,487 12,613,212 13,135,370 Transient occupancy taxes 2,857,509 3,056,078 3,147,207 3,320,952 2,855,796 3,436,464 4,318,551 4,591,458 3,962,337 3,421,797 Sales taxes 7,670,993 7,166,274 7,239,830 9,690,333 13,527,079 16,387,048 18,622,825 18,807,640 18,219,191 17,394,413 Franchise taxes N/A N/A N/A 1,023,994 1,077,373 1,175,996 1,212,053 1,329,910 1,421,689 1,478,105 Business License taxes N/A N/A N/A 233,526 220,930 222,605 228,316 228,630 266,660 256,716 Other taxes 1,265,262 1,264,374 1,308,951 59,958 64,808 55,188 144,161 87,730 68,629 62,794 Use of money and property 482,812 278,153 202,328 242,147 318,440 1,048,338 117,614 374,912 1,050,239 1,005,585 Other general revenues 199,570 200,675 269,350 601,038 352,124 721,375 370,710 641,520 467,422 409,386 Gain (loss) on sale of assets - - - - - - - - - -
Transfers 1,537,968 - - - - (258,393) 2,544,939 1,440,393 1,399,287 Total Governmental Activities 21,455,233 19,935,569 21,275,826 23,946,241 27,668,555 32,843,585 35,203,887 40,099,226 39,509,772 38,563,453 Business-type activities:

Use of money and property - - - - - - (3,498) 28,614 86,329 141,775 Other revenue - - - - 27,744 129,965 39,202 63,818 38,407 57,095 Gain (loss) on sale of assets - - - - - - (54,873) - - - Transfers (2,781,366) - - - - 258,393 (2,519,129) (1,440,393) (1,399,287) Total Business-type Activities (2,781,366) - - - 27,744 129,965 239,224 (2,426,697) (1,315,657) (1,200,417) Total Primary Government 18,673,867 19,935,569 21,275,826 23,946,241 27,696,299 32,973,551 35,443,112 37,672,529 38,194,115 37,363,036 Changes in Net Position:

Governmental activities (1,974,287) (8,404,561) (3,828,106) (1,313,929) (8,395,337) (2,166,271) 1,368,937 5,429,795 366,480 50,047,069 Business-type activities (3,028,844) 1,465,169 818,809 1,518,509 889,439 1,374,767 3,516,360 192,617 1,652,238 687,275 Total Primary Government (5,003,131) $ (6,939,392) $ (3,009,297) $ 204,580 $ (7,505,898) $ (791,504) $ 4,885,297 $ 5,622,412 $ 2,018,718 $ 50,734,344 $ Fiscal Year
139
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General Fund:

Nonspendable 8,680,778 $ 7,619,282 $ 5,183,492 $ 8,111,586 $ 9,955,211 $ 8,002,559 $ 6,651,670 $ 6,224,280 $ 5,754,146 $ 6,482,453 $ Restricted - - - - - - - - - -
Committed - - - - - - - - - 655,796
Assigned - - - - 4,406,560 4,438,404 4,438,404 5,467,623 655,796 7,901,126 Unassigned 12,063,100 9,222,550 9,163,739 5,843,014 (479,717) 5,218,191 12,237,711 17,285,358 17,086,923 9,910,148 Total General Fund 20,743,878 $ 16,841,832 $ 14,347,231 $ 13,954,600 $ 13,882,054 $ 17,659,154 $ 23,327,785 $ 28,977,261 $ 23,496,865 $ 24,949,523 $ All Other Governmental Funds:

Nonspendable - $ - $ - $ - $ - $ - $ - $ - $ 569,480 $ 576,361 $ Restricted 1,941,169 2,122,945 2,232,689 4,376,375 4,856,154 2,060,032 2,652,011 4,485,010 6,045,739 8,280,437 Committed - - - - - - - - - -
Assigned - - - - - - - - - -
Unassigned, reported in:

Special revenue funds (3,645,638) (4,363,879) (5,509,987) (8,192,534) (8,168,382) (6,784,541) (10,311,199) (8,679,945) (4,777,238) (4,060,396) Debt Service - - - - - - - - (567,100) (573,981)
Capital projects funds - - - - - - - - - -
Total all other governmental funds (1,704,469) $ (2,240,934) $ (3,277,298) $ (3,816,159) $ (3,312,228) $ (4,724,509) $ (7,659,188) $ (4,194,935) $ 1,270,881 $ 4,222,421 $

CITY OF BARSTOW, CALIFORNIA
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
Source: Barstow Finance
Department
140

CITY OF BARSTOW, CALIFORNIA
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Revenues:

Taxes 19,035,503 $ 19,265,710 $ 20,748,728 $ 22,592,237 $ 26,994,270 $ 31,071,466 $ 34,961,386 $ 36,527,075 $ 36,567,110 $ 35,764,587 $ Licenses and permits 509,323 574,297 561,068 490,306 442,883 536,798 430,332 524,674 405,516 429,226 Fines and forfeitures 140,692 216,117 78,862 114,564 132,885 89,923 163,033 145,651 119,996 210,360 From other agencies 6,713,437 5,161,172 7,365,874 6,051,941 5,818,278 5,535,566 5,625,545 10,174,029 8,771,007 6,502,972 Charges for services 808,528 712,690 655,742 1,053,338 444,041 328,465 1,003,759 1,599,549 3,030,882 3,133,061 Use of Money and Property 579,736 430,896 350,328 924,400 354,439 1,084,648 154,154 412,548 1,089,004 1,045,513 Other 80,491 68,327 136,635 472,340 352,124 592,683 370,710 641,520 467,422 430,331 Total Revenues 27,867,710 26,429,209 29,897,237 31,699,126 34,538,920 39,239,549 42,708,919 50,025,046 50,450,937 47,516,050 Expenditures
Current:

General government 3,350,641 3,633,918 3,197,895 3,964,134 3,271,395 5,750,679 16,070,310 5,448,047 7,051,135 8,590,156 Public safety 14,032,923 14,419,752 15,862,429 17,253,463 18,655,220 18,784,049 35,711,833 20,875,565 21,335,251 21,639,148 Public works 3,274,837 3,418,593 3,321,773 3,162,077 3,854,666 5,042,790 5,467,331 6,972,863 4,951,821 4,697,253 Recreation 2,541,381 2,575,293 2,628,551 2,429,324 2,188,673 1,007,100 1,487,939 1,513,155 1,545,601 1,677,610 Community development 2,573,815 2,839,218 2,609,936 2,555,676 2,626,193 1,605,860 1,981,876 2,974,300 3,264,066 3,576,869 Debt service:

Principal retirement 1,145,000 1,190,000 1,249,026 1,290,000 1,826,578 2,114,295 155,368 1,746,160 1,603,714 2,247,440 Interest and fiscal charges 311,543 262,775 212,818 167,854 112,835 163,912 877,959 2,114,458 2,487,459 1,058,185 Capital Outlay 6,929,898 2,652,301 4,176,662 3,372,692 1,890,389 2,532,983 6,843,748 2,581,897 4,074,416 55,096,305 Total Expenditures 34,160,038 30,991,850 33,259,090 34,195,220 34,425,949 37,001,668 68,596,364 44,226,445 46,313,463 98,582,966 Excess (Deficiency) of
Revenues Over (Under)
Expenditures (6,292,328) (4,562,641) (3,361,853) (2,496,094) 112,971 2,237,881 (25,887,445) 5,798,601 4,137,474 (51,066,916) Other financing sources (uses):

Transfers in 7,939,085 3,486,269 4,950,785 4,645,038 4,667,368 8,189,791 38,734,738 16,388,185 12,921,576 13,762,618 Transfers out (9,288,600) (3,486,269) (4,950,785) (4,645,038) (4,667,368) (8,189,791) (38,993,131) (13,843,246) (11,481,183) (12,363,331) Capital contributions - - - - - - - - - 47,748,316
Proceeds from sale of assets 24,332 - 32,306 720,188 318,414 126,938 - 5,000 - - Capital leases - 124,130 642,996 - - - - - - -
Issuance of bonds - - - - - - 28,415,878 - -
Proceeds from leases - - - - - - 463,912 627,672 667,355 201,226 Proceeds from subscription based IT agmts - - - - - - - 137,517 - - Transfer of residual equity due to termination 280,669 - - - - - - - - - Total Other Financing
Sources (Uses) (1,044,514) 124,130 675,302 720,188 318,414 126,938 28,621,397 3,315,128 2,107,748 49,348,829 Net Change in Fund Balances (7,336,842) $ (4,438,511) $ (2,686,551) $ (1,775,906) $ 431,385 $ 2,364,819 $ 2,733,952 $ 9,113,729 $ 6,245,222 $ (1,718,087) $ Debt service as a percentage of
noncapital expenditures 5.3% 5.1% 5.0% 4.7% 6.0% 6.6% 1.7% 9.3% 9.7% 7.6% Fiscal Year
141
Fiscal Year
Ended SBE City
June 30 Secured Unsecured Nonunitary Net Value % Change 2016 $1,075,574,231 100,176,764 1,091,097 1,176,842,092 1.83% 2017 1,179,227,750 92,848,517 1,090,047 1,273,166,314 8.18% 2018 1,199,023,057 87,038,753 1,174,083 1,287,235,893 1.11% 2019 1,277,320,622 97,633,037 1,100,258 1,376,053,917 6.90% 2020 1,364,148,974 96,231,522 1,041,131 1,461,421,627 6.20% 2021 1,406,623,300 99,619,193 986,567 1,507,229,060 3.13% 2022 1,519,793,070 97,859,589 891,005 1,618,543,664 7.39% 2023 1,621,768,649 102,344,988 625,283 1,724,738,920 6.56% 2024 1,764,443,000 118,744,392 561,317 1,883,748,709 9.22% 2025 1,849,515,519 127,747,563 476,168 1,977,739,250 4.99% Source: HdL Coren & Cone/San Bernardino Co Assessor 2015/16-2024/25 Combined Tax Rolls *Exempt values are not included in Total Assessed Value.

Last Ten Fiscal Years
Assessed Value of Taxable Property

CITY OF BARSTOW, CALIFORNIA
City of Barstow
142

CITY OF BARSTOW, CALIFORNIA
Assessed Value of Taxable Property by Class
Fiscal
Year
Residential
Property
Commercial
Property
Industrial
Property Vacant Land
SBE Non
Unitary Unsecured Other
Total Taxable
Assessed Value
(a)
Total
Direct
Tax Rate
2015-16 541,740,544 352,020,034 28,283,445 100,095,186 1,091,097 100,176,764 53,435,022 1,176,842,092 0.150% 2016-17 558,991,827 436,522,540 28,978,583 100,797,408 1,090,047 92,848,517 53,937,392 1,273,166,314 0.150% 2017-18 572,637,923 442,244,817 29,637,912 101,055,206 1,174,083 87,038,753 53,447,196 1,287,235,890 0.150% 2018-19 601,437,825 489,871,146 29,041,847 103,502,172 1,100,258 97,633,037 53,467,632 1,376,053,917 0.150% 2019-20 651,254,179 512,323,358 30,132,457 115,105,159 1,041,131 96,231,522 55,333,821 1,461,421,627 0.180% 2020-21 675,586,704 541,992,444 28,785,991 104,526,446 986,567 99,619,193 55,731,715 1,507,229,060 0.179% 2021-22 708,405,523 562,837,351 34,196,759 101,079,158 891,005 97,859,589 113,274,279 1,618,543,664 0.179% 2022-23 777,247,468 594,512,150 31,769,133 104,409,274 625,283 102,344,988 113,830,624 1,724,738,920 0.178% 2023-24 850,354,151 643,533,560 33,065,143 114,400,312 561,317 118,744,392 123,089,834 1,883,748,709 0.176% 2024-25 912,255,415 652,702,186 32,839,038 119,781,477 476,168 127,747,563 131,937,403 1,977,739,250 0.174% Source: HdL Coren & Cone/San Bernardino Co Assessor 2015/16-2024/25 Combined Tax Rolls Notes:
(a) Exempt values are not included in Total Assessed Value.

Last Ten Fiscal Years
$1,000,000
$1,100,000
$1,200,000
$1,300,000
$1,400,000
$1,500,000
FY-16 FY-17 FY-18 FY-19
$1,000,000,000
$1,200,000,000
$1,400,000,000
$1,600,000,000
$1,800,000,000
$2,000,000,000
$2,200,000,000
FY-16 FY-17 FY-18 FY-19 FY-20 FY-21 FY-22 FY-23 FY-24 FY-25 143

CITY OF BARSTOW, CALIFORNIA
Direct and Overlapping Property Tax Rates
(Rate per $100 of assessed value)
Last Ten Fiscal Years
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Direct & Overlapping (2) Tax Rates
Basic Levy (1) 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Barstow Unified School Bond 0.0329 0.0394 0.0308 0.1245 0.0451 0.0844 0.0705 0.0816 0.0634 0.0654 Mojave Water Agency 0.1675 0.1675 0.1675 0.1675 0.1675 0.1675 0.1675 0.1675 0.1675 0.1675 Total Direct & Overlapping Rates 1.20040 $ 1.20690 $ 1.19830 $ 1.29200 $ 1.21260 $ 1.25190 $ 1.23800 $ 1.24910 $ 1.23090 $ 1.23290 $ City's Share of 1% Levy Per Prop 13 (3) 0.14974 0.14974 0.14974 0.14974 0.14974 0.14974 0.14974 0.14974 0.14974 0.14974 General Obligation Debt Rate
Redevelopment Rate (4) N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Total Direct Rate (5) 0.15012 0.15012 0.15015 0.15016 0 0.18054 0.17982 0.17928 0.17797 0.17572 0.17416 Source: San Bernardino County Assessor/Hdl, Coren & Cone Fiscal Year
NOTE:
(1) In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values of any voter approved bonds. (2) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners. (3) City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. ERAF general fund tax shifts may not be included in tax ratio figures.
(4) Redevelopment Rate is based on the largest RDA tax rate area and only includes rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. The approval of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012/13 and years thereafter. (5) Total Direct Rate is the weighted average of all individual direct rates appled to the City. Beginning in 2013/2014 the Total Direct Rate no longer includes revenue generated from thr former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during 2012/13. for the purposes of this report, residual revenue is assumed to be distributed to the City in the same proportions as general fund revenue. 144
2024-25 % of
Property Owner Primary Land Use Assessed Valuation Total (1) 1 FRO2MO Barstow LLC Shopping Center $106,000,000 5.73% 2 Golden State Water Company Utility Company 69,105,178 3.74% 3 Hospital of Barstow Inc. Hospital 46,896,676 2.53%
4 Walmart Inc. Commercial Store 29,823,729 1.61%
5 Spruce Enterprises LLC Hotelier 23,369,443 1.26%
6 Jagan Nath Investments Inc. Hotelier 16,375,310 0.89% 7 Steven C Curran Medical Center 16,037,184 0.87%
8 Global Resorts Inc. Hotelier 14,634,868 0.79%
9 TVL Properties LLC Supermarket 14,424,366 0.78%
10 Desert Heights LLC Apartments 14,294,208 0.77%
$350,960,962 18.97%
(1) 2024-25 Local Secured Assessed Valuation: $1,849,991,687 Source: San Bernardino County Assessor/Hdl, Coren & Cone

CITY OF BARSTOW, CALIFORNIA
Largest 2024-25 Local Taxpayers
145
Percent of Percent of
Total City Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Owner** Value Value Value Value
Desert Heights LLC 14,294,208 0.00% - 0.00%
Fred and Robin Rosenberg Family Limited - 0.00% 12,191,666 1.13% FRO2MO Barstow LLC $106,000,000 5.73% $ 25,529,174 0.00% Global Resorts Inc. 14,634,868 0.00% - 0.00%
Golden State Water Company 69,105,178 3.74% - 0.00%
Home Depot USA Inc. - 0.00% 9,174,593 0.85%
Hospital of Barstow Inc. 46,896,676 2.53% 39,800,794 3.70% Hospitality Express II LLC - 0.00% 9,450,000 0.88%
Jagan Nath Investments Inc. 16,375,310 0.89% - 0.00%
Lee Family Irrevocable Trust - 0.00% 10,759,769 1.00%
Pilot Travel Center LLC - 0.00% 8,928,326 0.83%
Spruce Enterprises LLC 23,369,443 1.26% - 0.00%
Steven C Curran 16,037,184 0.87% - 0.00%
T T Group Inc - 0.00% 8,843,403 0.82%
TVL Properties LLC 14,424,366 0.78% 12,241,834 1.14%
Walmart Inc. 29,823,729 1.61% - 0.00%
Walmart Real Estate Business Trust - 0.00% 10,515,127 0.98% TOTAL OF TOP TEN: $ 350,960,962 17.41% $ 147,434,686 11.32% CITY TOTAL $ 1,849,991,687 $ 1,076,665,328
**Listed alphabetically
Source: Hdl Coren & Cone-San Bernardino County Assessor

CITY OF BARSTOW, CALIFORNIA
2025 2016
Current Year and Nine Years Ago
Principal Property Tax Payers
146
Fiscal Taxes Levied Collected in
Year Ended for the Percent Subsequent Percentage
June 30 Fiscal Year Amount of Levy Years Amount of Levy 2016 4,730,324 4,634,977 98% 75,016 4,709,993 100%
2017 4,806,433 4,729,390 98% 77,662 4,807,052 100%
2018 4,812,206 4,753,763 99% 68,142 4,821,905 100%
2019 4,980,727 4,901,322 98% 64,702 4,966,024 100%
2020 5,241,332 5,145,125 98% 76,708 5,221,833 100%
2021 5,365,780 5,355,407 100% 59,417 5,414,824 101%
2022 5,528,046 5,491,897 99% 61,667 5,553,564 100%
2023 5,880,691 5,717,331 97% 50,923 5,768,254 98%
2024 6,234,286 6,143,405 99% - 6,143,405 99%
2025 6,479,417 6,443,355 99% 55,747 6,499,101 100%
Source: San Bernardino Auditor-Controller Recorder
Includes Barstow Park & Recreation and Barstow Fire Protection District

CITY OF BARSTOW, CALIFORNIA
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the
Fiscal Year of Levy Total Collections to Date
147
Business Name Business Category
Arco AM PM Service Stations
Calvin Klein Service Stations
Chevron Service Stations
Circle K Service Stations
Coach Women's Apparel
Del Taco Quick-Service Restaurants
Del Taco Quick-Service Restaurants
Food 4 Less Grocery Stores
Home Depot Building Materials
In N Out Burger Quick-Service Restaurants
Lenwood ARCO Service Stations
Loves Travel Stop Service Stations
Marshalls Family Apparel
McDonald's Quick-Service Restaurants
Mobil Service Stations
Mojave Toyota Chrysler Dodge Jeep Ram New Motor Vehicle Dealers Nike Shoe Stores
Pilot Travel Center Service Stations
Ralph Lauren Service Stations
Shell Grocery Stores
Stater Bros Cannabis Related
Stiizy Barstow Service Stations
Terrible Herbst Service Stations
Travelcenters of America 76 Heavy Industrial
Walmart Discount Dept Stores
Percent of calendar Year Total Paid by Top 25 Accounts = 65.03% Period: January 2024 Through December 2024
Source: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HdL Companies

CITY OF BARSTOW, CALIFORNIA
Top 25 Sales Tax Producers (Alphabetically)
For the Calendar Year 2024
148
Business Name Business Category
76 Service Stations
Arco AM PM Service Stations
Bally Shoe Stores
Barstow Shell Service Stations
Calvin Klein Family Apparel
Chevron Service Stations
Circle K Service Stations
Coach Women's Apparel
Del Taco Quick-Service Restaurants
Food 4 Less Grocery Stores
Home Depot Building Materials
In N Out Burgers Quick-Service Restaurants
Loves Travel Stop Service Stations
McDonalds Quick-Service Restaurants
Michael Kors Family Apparel
Mojave Ford/Nissan of Barstow New Motor Vehicle Dealers Mojave Toyota Chrysler Dodge Jeep Ram New Motor Vehicle Dealers Nike Shoe Stores
Pilot Travel Center Service Stations
Ralph Lauren Family Apparel
Shell Service Stations
Travelcenters of America Service Stations
USA Gasoline Service Stations
Valero Service Stations
Walmart Discount Dept Stores
Percent of Fiscal Year Total Paid by Top 25 Accounts = 68.38% Period: January 2015 thru December 2015
For the Calendar Year 2015
Top 25 Sales Tax Producers (Alphabetically)

CITY OF BARSTOW, CALIFORNIA
Source: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HdL Companies
149

CITY OF BARSTOW, CALIFORNIA
Taxable Sales by Category
Last Ten Calendar Years (in thousands of dollars)
Adjusted for Economic Data
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Apparel Stores 133,877 $ 134,627 $ 129,340 $ 123,931 $ 111,311 $ 60,901 $ 73,908 $ 74,729 $ 79,888 $ 84,911 $ Food Stores 25,860 25,047 25,129 27,425 26,153 23,429 24,092 26,312 23,248 23,424 Eating & Drinking Places 81,755 86,384 88,812 89,942 93,163 81,780 108,898 111,769 117,188 123,298 Auto Dealers & Supplies 36,424 41,087 38,581 35,874 35,883 36,791 44,687 43,722 36,566 31,551 Service Stations 263,739 250,314 251,927 263,568 261,508 203,957 286,434 348,693 318,325 275,880 Other Retail Stores 96,255 95,490 102,683 108,458 107,898 127,840 145,282 134,160 136,517 134,194 All Other Outlets 82,239 84,449 89,384 93,796 100,645 117,257 130,693 141,149 140,925 123,554 Total 720,149 $ 717,398 $ 725,856 $ 742,994 $ 736,561 $ 651,955 $ 813,994 $ 880,534 $ 852,657 $ 796,812 $ Source: State of California Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office and The Hdl Companies Note: Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternate information regarding the sources of the City's revenues.

Calendar Year
150
Fiscal Year Pension Lease Total Wastewater Wastewater Total Total Percentage Debt Ended Obligation Revenue Measure I Financing Governmental Certificates of Financing Business-type Primary of Personal Per June 30 Bonds Bonds Leases/SBITAS TRIP Agreements Activities Participation Agreements Leases Activities Government Income 1 Capita 1
2016 - - - 7,018,749 2,092,667 9,111,416 935,472 1,312,813 - 2,248,285 $ 11,359,701 2.61% 466 2017 - - - 5,715,999 1,625,443 7,341,442 636,157 1,096,638 - 1,732,795 $ 9,074,237 2.14% 374 2018 - - - 4,363,249 1,825,131 6,188,380 327,402 887,323 - 1,214,725 $ 7,403,105 1.87% 303 2019 - - - 2,960,499 1,195,399 4,155,898 - 598,645 - 598,645 $ 4,754,543 1.10% 197 2020 - - - 1,507,749 1,027,235 2,534,984 - 349,491 - 349,491 $ 2,884,475 0.62% 119 2021 - - - - 1,594,224 1,594,224 - 47,057 - 47,057 $ 1,641,281 0.35% 68 2022 20,170,000 8,245,878 - - 1,275,983 1,594,224 - - - - 1,594,224 0.32% 63 2023 19,150,000 7,656,492 599,140 - 1,139,209 27,945,701 - - 67,039 67,039 $ 28,012,740 5.20% 1,124 2024 17,995,000 7,207,778 1,037,279 - 999,064 27,239,121 - - 48,425 48,425 $ 27,287,546 4.37% 1,106 2025 16,800,000 6,745,692 832,299 - 855,464 25,233,455 - - 87,536 87,536 $ 25,320,991 3.94% 1,021 1 These ratios are calculated using personal income and population

CITY OF BARSTOW, CALIFORNIA
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
for the prior calendar year
Governmental Activities Business-type
151
Fiscal Year General Percent of
Ended Obligation Assessed Per
June 30 Bonds Value 1 Capita
2016 - 0.00% -
2017 - 0.00% -
2018 - 0.00% -
2019 - 0.00% -
2020 - 0.00% -
2021 - 0.00% -
2022 - 0.00% -
2023 - 0.00% -
2024 - 0.00% -
2025 - 0.00%
Source: Barstow Finance Department
General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (of which, the City has none). 1 Assessed value has been used because the actual value of taxable property is not readily available in the State of California. 2025 Net Assessed Value is $1,977,739,250. 2 The 2024 population of the City of Barstow is 24,811

CITY OF BARSTOW, CALIFORNIA
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
152
2024-25 Assessed Valuation: $1,977,739,250
Total Debt City’s Share of
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2025 % Applicable (1) Debt 6/30/25 Barstow Unified School District $ 36,638,776 65.923% $ 24,153,380 City of Barstow - 100 -
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $ 24,153,380
DIRECT AND OVERLAPPING GENERAL FUND DEBT:

San Bernardino County General Fund Obligations $ 100,765,000 0.579% 583,429 San Bernardino County Flood Control District General Fund Obligations 37,295,000 0.579% 215,938 Barstow Unified School District Certificates of Participation 13,440,000 65.923% 8,860,051 City of Barstow Bonds 23,545,692 100.00% 23,545,692
City of Barstow Loans Payable 855,464 100.00% 855,464
City of Barstow Leases Payable 824,184 100.00% 824,184
City of Barstow Subscriptions Payable 8,115 100.00% 8,115 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 34,884,759 TOTAL DIRECT DEBT $ 25,233,455
TOTAL OVERLAPPING DEBT $ 33,812,799
COMBINED TOTAL DEBT (2) $ 59,046,254
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortage revenue and non-bonded capital lease obligations.

Ratios to 2024-25 Assessed Valuation:

Total Direct Debt ($25,233,455) 1.28%
Total Direct and Overlapping Tax and Assessment Debt 1.71% Combined Total Debt 2.99%
Source: Barstow Unified School District
San Bernardino County
California Municipal Statistics, Inc.
(1) The percentage of overlapping debt applicable to the City is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping distirct's assessed value that is within the boundaries of the City divided by the district's total taxable assessed alue.

CITY OF BARSTOW, CALIFORNIA
Direct & Overlapping Governmental Activities Debt
As of June 30, 2025
153

CITY OF BARSTOW, CALIFORNIA
Legal Debt Margin Information
Last Ten Fiscal Years
2016 2017 2018 2019 2020 2021 2022 2023 2023 2024
Assessed valuation 1,176,842,092 $ 1,273,166,314 $ 1,287,235,890 $ 1,376,053,917 $ 1,461,421,627 $ 1,507,229,060 $ 1,618,543,664 $ 1,724,738,920 $ 1,883,748,709 $ 1,977,739,250 $ Conversion percentage 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% Adjusted assessed valuation 294,210,523 318,291,579 321,808,973 344,013,479 365,355,407 376,807,265 404,635,916 431,184,730 470,937,177 494,434,813 Debt limit percentage 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% Debt limit 44,131,578 47,743,737 48,271,346 51,602,022 54,803,311 56,521,090 60,695,387 64,677,710 70,640,577 74,165,222 Total net debt applicable to limit:

Legal debt margin 44,131,578 $ 47,743,737 $ 48,271,346 $ 51,602,022 $ 54,803,311 $ 56,521,090 $ 60,695,387 $ 64,677,710 $ 70,640,577 $ 74,165,222 $ Total debt applicable to the limit
as a percentage of debt limit 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Source: Barstow Department of Finance
County Tax Assessor's Office
Fiscal Year
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state. 154
Fiscal Year Tax Debt Service (1)
Ended Principal and
June 30 Increment (1) Interest Coverage
2016 - - -
2017 - - -
2018 - - -
2019 - - -
2020 - - -
2021 - - -
2022 - - -
2023 - - -
2024 - - -
2025 - - -
Source: Barstow Finance Department
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements. Operating expenses do not include interest or depreciation expenses. (1) Amounts have been rounded to the nearest thousand.

Tax Allocation Bonds

CITY OF BARSTOW, CALIFORNIA
Pledged-Revenue Coverage
Last Ten Fiscal Years
155
Calendar Population
Personal
Income Per Capita Unemployment Median Age
% of Pop 25+ with
High School Degree
% of Pop 25+ with
Bachelor's Degree
Year (1) (3) (in thousands) Income (3) Rate (2) Median Age High School Degree Bachelor's Degree 2015 24,360 435,931 17,895 6.0% 31.2 80.3% 11.8%
2016 24,248 423,134 17,450 5.3% 30.2 79.8% 11.5%
2017 24,411 396,041 16,223 6.9% 29.3 77.3% 11.7%
2018 24,150 430,713 17,834 5.9% 30.0 78.4% 11.7%
2019 24,268 463,700 19,107 5.2% 29.8 79.3% 11.3%
2020 24,205 471,728 19,488 11.4% 30.1 78.2% 9.2%
2021 25,202 490,979 19,481 9.5% 30.3 81.4% 10.5%
2022 24,918 538,926 21,627 5.2% 30.6 83.3% 11.1%
2023 24,669 624,850 25,329 5.3% 31.7 84.0% 10.4%
2024 24,811 643,327 25,929 6.6% 32.9 83.8% 11.1%
Sources: HdL, Coren & Cone
(1) Population: California State Department of Finance
(2) Unemployment Data: California Employment Development Department's Bureau of Labor Statistics (3) Income Data is provided by the U.S. Census Bureau.

CITY OF BARSTOW, CALIFORNIA
Demographic and Economic Statistics
Last Ten Calendar Years

8.0%

6.0%

4.0%

2.0%

0.0%

12.0%

10.0%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Unemployment Rate
$28,000
$26,000
$24,000
$22,000
$20,000
$18,000
$16,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Personal Income per Capita
156
Business Name Employees
% of Total
Employmen
t Employees
% of Total
Employment
Ft. Irwin National Training Center* 8,451 81.26% 22,700 74.93% Marine Corps Logistics Base* 1,935 18.61% 2,071 6.84%
BNSF Railroad 1,000 9.62% 1,000 3.30%
Barstow Unified School District 750 7.21% 643 2.12%
Outlets at Barstow 450 4.33% - -
Raytheon Technical Services Co, LLC* 393 3.78% 501 1.65% Barstow Community Hospital 360 3.46% 300
Barstow Community College 309 2.97% 396 1.31%
Walmart Supercenter 305 2.93% 190 -
Silver Valley School District* 301 2.89% 306 -
Northrup Grumman 467 1.54%
Veterans Home of CA-Barstow 217 -
City of Barstow 167 -
High Desert Support Services 330 1.09%
Tanger Outlet Stores 596 1.97%
San Bernardino County 410 1.35%
Total Top Employers 14,254 137.06% 30,294 96.10%
Total City Labor Force (1) 10,400 30,294
Source: MuniServices, LLC, / Avenu Insights & Analytics Source: 2016, previously published ACFR
Results based on direct correspondence with city’s local businesses. *Employers outside of City Limits
(1) Total City Labor Force is provided by EDD Labor Force Data. ** Business has not responded to Avenu's inquiries, prior year count applied. 2025 2016

CITY OF BARSTOW, CALIFORNIA
Principal Employers
Last Fiscal Year and Nine Years Ago
157
Function 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 General government* 17 16 16 16 26.5 24.5 24.5 21.3 25.5 26.5 Police Safety
Sworn 38 38 37 38 46 46 46 47 47 47
Non-Sworn 19 19 18 18 20 20 20 20 20 19
Fire Safety**
Sworn 28 20 20 20 27 28 28 28 28 28
Non-Sworn 1 1 1 1 1 2 2 2 2 2
Recreation 17 17 17 17 11 2.5 2.5 22 24.5 19.5
Community Service 26 21 21 24 23 29 29 30 28 28
Community Development 10 16 15 10 11 7 7 12 16 15
Solid Waste 1 1 1 1 1 1 1 1 1 1
Wastewater 11 11 11 10 11 11 11 11 11 11
Transit - - - - - - - - - -
Total 167 160 157 155 177.5 171 171 194.3 203 197
* Includes 7 Elected Officials
**Fire District added November 17, 2010
Source: City of Barstow Adopted Budget-Authorized Positions Fiscal Year

CITY OF BARSTOW, CALIFORNIA
Full-Time and Part-Time City Employees
by Function
Last Ten Fiscal Years
158
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Police:

Arrests 2,762 2,625 2,463 2,410 2,235 2,198 1,937 1,959 1,805 1,896 Parking citations issued 286 501 408 299 1,110 579 1,191 49 481 718 Fire Services:

Fire Calls 242 311 212 340 576 499 426 397 448 494
Medical Aid Calls 4,597 5,380 4,031 5,165 5,351 5,118 5,112 4,867 5,285 5,509 Parks and recreation:

Number of recreation classes 14 14 10 10 6 13 19 21 17 10 Number of facility rentals 85 64 52 50 6 27 60 106 72 113 Sewer:

New connections 5 4 4 5 8 6 5 7 4 14
Average/Millions of
Gallons Sewage Treatment 1.98 2.03 2.06 2.13 2.15 2.19 2.23 2.21 2.2 0.02 Building Department:

Permits 720 1,106 905 710 657 686 780 861 707 692
Fire Permits
Fire Permits - - - - - - - - - -
Construction Fire Permits# 88 99 94 93 97 78 73 77 91 59 Annual Permit to Operate# 323 347 335 323 287 313 323 330 321 293 Source: City of Barstow
* Data not available
**The City of Barstow assumed dispatching services from County of San Bernardino. Incident tracking has changed due to enhanced software.
# Permits now processed and tracked through the Building & Planning Department of the City of Barstow.

CITY OF BARSTOW, CALIFORNIA
Operating Indicators
by Function
Last Ten Fiscal Years
Fiscal Year
159
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Police:

Stations 2 2 2 2 2 2 2 2 2 2
Fire District
Stations 3 3 3 3 3 3 3 3 3 3
Public Works:

Streets (miles) 91 91 91 91 91 104.4 104.4 104.4 104.4 104.4 Streetlights 1,081 1,081 1,081 1,081 1,053 1,053 1,053 1,053 1,053 1,053 Traffic signals 22 22 22 22 22 22 22 22 22 22
Parks and Recreation:

Parks 10 10 10 10 10 10 10 10 10 10
Community pools 1 1 1 1 1 1 1 1 1 1
Community centers 3 3 3 3 3 3 3 3 3 3
Wastewater:

Sanitary sewers (miles) 113 113 113 113 123 123 123 123 123 123 Storm sewers (miles) 16 16 16 16 16 16 16 16 16 16
Maximum daily treatment capacity
(millions of gallons per day) 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 Source: City of Barstow
* Data not available
Fiscal Year

CITY OF BARSTOW, CALIFORNIA
Capital Asset Statistics
by Function
Last Ten Fiscal Years
160