Beaumont City Council
December 16, 2025

Memorandum of Understanding (MOU) to provide financial, staffing and insurance support.

The festival draws tens of thousands of visitors from across the Pass Area and beyond.

Data from the City's contracted software, Placer.ai (Attachment A), has shown the following approximate attendance since 2019, with the exception of 2020 and 2021 due to the Covid-19 pandemic and absence of the festival during those years:
• 2019: -43,500 visits, average duration 162 minutes
• 2022: -48,000 visits, average duration 150 minutes
• 2023: -54,000 visits, average duration 147 minutes
• 2024: -50,000 visits, average duration 159 minutes
• 2025: -44,000 visits, average duration 159 minutes
These insights serve as a benchmark for evaluating long-term event performance and guiding coordination between the City and partner agencies.

Public Safety
Law Enforcement:

The Beaumont Police Department, supported by Star Pro Security, maintained a consistent on -site presence throughout the four -day festival. They provided proactive patrols, managed crowd control, and responded promptly to incidents. Their efforts ensured attendees could enjoy the event safely. During the festival, there were eight (8) juvenile and one adult -related physical altercations. The parties involved were escorted from the event, and no arrests were made. No other criminal activity was reported.

Fire Prevention:

The Office of the Fire Marshal conducted regular inspections, monitored fire safety measures, and remained on -site throughout the event with two staff present to promptly address any potential hazards.

The event went without incident, but the following public safety recommendations/considerations were identified to improve future events:
• Post festival rules at each entrance and online;
• Implement walk-through metal detectors at event entrances; • Continue public education on the clear bag policy;
• Deploy security officers in parking lots;

• Address life safety items before the event starts;
• Properly ground all generators and lighting setups;
• Improve exit signage and banner placement;
• Maintain clear aisles and avoid zip -tied chairs in entertainment areas; • Keep fire lanes clear and consistently marked; and
• Submit plans well in advance of the event.

Traffic & Parking Management
A traffic consultant hired by the City known as "Statewide Traffic Safety and Signs, DBA AWP Safety", performed traffic and parking control for the event. Public Works and the Police Department developed the traffic control concept, which AWP implemented. The configuration allowed sufficient stacking for on -site event parking and provided a separate entrance for emergency, transit, and VIP vehicles. Additional "No Parking" signs and barricades were placed on adjacent streets to discourage unsafe parking on private property. Although the overall traffic control and parking management was an improvement over the prior year, site constraints affected parking layout, ingress, and egress; and misaligned vehicles, limited lighting, and limited staffing created some inefficiencies. Therefore, the following recommendations/considerations were identified to improve future events:
• Reuse the traffic control configuration from the 2025 event; • Obtain permission from adjacent property owners to block unwanted property access;
• Hire a traffic control contractor earlier to secure multiple competitive quotes; • Set up a cone pattern along Oak Valley Parkway from Beaumont Avenue to Oak View Drive to discourage U-turns;
• Improve parking configuration with chalked lanes;
• Increase lighting in parking areas;
• Provide additional parking management staff for vehicle direction; • Develop a protocol to guide patrons to alternative parking when lots are full. • Enhance communication with signs and messaging for capacity limits; • Create "Parking Lot Full" signs at main entrances; and • Post additional "No Parking" signs near venue entrances and exits.

Transit
City Transit transported 2,683 passengers across three pickup locations: Walmart, Fellowship in the Pass Church, and the Sports Park. The highest demand occurred on Friday, May 30th, with 1,468 passengers, representing more than half of the total ridership. The Sports Park was the most utilized site, recording 1,422 passengers

across all four days. Over the course of the event, transit operations consumed 259 gallons of fuel and provided 131 revenue hours and 141 total service hours, demonstrating strong operational coverage and accessibility for festival attendees.

Event Operational Overview
The event's operations encompassed a range of functions, including admissions, vendor coordination, carnival management, alcohol sales and advertising. Each of these components contributed to the overall delivery of the festival and helped inform data collection for future planning. The financial performance of these areas varied compared to prior years, and the information presented above can assist in evaluating trends, informing future decision -making, and improving operational efficiency.

Gate Sales
In 2025, the festival generated net gate sales totaling $150,646.04, compared to $215,606.49 in 2024.

Carnival Sales
Carnival sales were slightly down compared to 2024. The gross revenue from carnival sales was $206,020 in 2025, with a net profit of $51,905. In comparison, 2024 carnival sales grossed $209,375, with a net profit of $52,743.75.

Beer Garden
Unlike 2024, this year's beer profits were shared between the Parks District and the Cherry Festival Association, resulting in less proceeds to the Association but allowing for two beer gardens with staffing assistance. The beer garden produced total sales of $77,985.69 in 2025 (Attachment B). Total expenses amounted to $35,055.48, resulting in a net profit of $42,930.21. After applying a post -event refund of $10,744.00 from the alcohol vendor, the final net total increased to $53,674.21. The Cherry Festival Association received $12,879.06, with the remaining profits distributed to partner organizations Craft Lounge and the Parks District.

Public Outreach
Marketing for the 2025 Cherry Festival included partnerships with NBC Palm Springs, OnlylnThelE, and the Record Gazette. NBC Palm Springs delivered nearly 280,000 impressions via TikTok and digital audio, with a 98.71 % listen-thru rate. The "Cherry Festival Generic Video" alone earned 175,662 impressions. OnlylnThelE's campaign

reached 140,912 accounts with over 13,000 interactions. Email blasts through the Record Gazette reached 50,000 recipients with 10,500 opens and 1,500 clicks.

Additional outreach included 3,933 accounts reached on social media, 38,072 interactions, and 2,331 new followers. RivCoTV produced four 6-8 minute videos, and an open letter to the community was published in collaboration with the Record Gazette.

Fiscal Impact:

The fiscal impacts of the event were as follows:
• Approximately $1,400 spent on an over -the -street banner in front of City Hall. • Approximately $60,000 spent on contracted traffic control and on -site parking management services.
• Approximately $52,892 spent on police services.
• Approximately $26,229 spent on fire services.
• Approximately $13,191 spent on insurance for the event (Attachment C). • Approximately $6,172 spent on transit shuttling services (Attachment D). • A total of $100,000 donated by the City to the Cherry Festival Association to assist with the entertainment venues.

Grand Total City Costs: $259,884.

The cost to prepare this staff report is estimated at $500.

Recommended Action:

Receive and file.

Attachments:

A. Placer.ai Visit Reports
B. Beer Garden Financial Overview
C. Cherry Festival Insurance Invoice
D. Transit Shuttle Services Estimate
E. Event Site Plan

BEAUMONT
-C A L I F O R N A -
Staff Report
TO: City Council
FROM: Steven D. Jones, Community Development Director
Darron Usher, Principal Management Analyst
DATE: December 16, 2025
SUBJECT: Discussion and Direction Regarding Billboard Regulations and Potential Ordinance Amendments
Description: Staff is requesting City Council direction on potential updates to the City's billboard regulations in Beaumont Municipal Code (BMC) Chapter 17.07.030.

Background and Analysis:

On November 4, 2025, Council discussed the current billboard policy, deliberated on whether enough billboards exist, asked why there were so few relocation agreements executed, considered ways to consider permitting billboards without over proliferation and aesthetic harm, and provided feedback on a proposed potential ordinance to amend the prohibition. Under the current code, the City prohibits new billboards and only allows the conversion of an existing static billboard to a digital display through a 1 - to -1 swap. While this has limited new construction, it has not reduced the total number of structures or addressed concentration issues along key freeway corridors.

Two operational challenges have emerged under the current ordinance: visual over - saturation of billboards along portions of Interstate 10 and restrictions that prevent new businesses or developers from installing new billboards due to the existing 1 - to -1 swap requirement. This report outlines several policy options related to billboard reduction, new billboard placement, and future permit review processes.

Developers and businesses continue to request opportunities for modern billboard installations that could enhance visibility and generate revenue for both the applicant and the City. Many California jurisdictions have adopted strategies —such as overlay zones, takedown ratios, and "cap -and -reduce" programs —to balance aesthetics, public safety, and economic development.

These best practices generally support three objectives:
• Removing older, nonconforming, or inefficient structures. • Creating controlled opportunities for new or digital billboards.

• Improving corridor aesthetics through public benefits and revenue -sharing agreements.

Options for City Council Consideration — Billboard Saturation OPTION 1 — Targeted Billboard Overlay Zone with Graduated Swap Ratios This option creates a Billboard Overlay Zone at strategic freeway gateways —such as Beaumont Pointe and designated I-10 interchanges —where new or digital billboards may be considered relocated under strict development and operational standards.

Key Elements:
• Graduated Swap Ratios
O 3:1 — Remove three (3) static structures for each new digital or static billboard
O 4:1 — Applied in high -saturation areas along I-10.

O 2:1 — May apply in lower -impact areas or City -controlled sites that offer direct public benefits (e.g., messaging time, beautification, revenue - sharing).
• Project Requirements
o Sign Permit and Development Agreement (DA).
o Compliance with all Caltrans spacing, brightness, and zoning standards. o Photometric, traffic safety, and visual impact studies.

Outcome:

Provides a balanced, incentive -based program that reduces clutter, improves freeway aesthetics, and allows new billboards only in locations that support economic development.

OPTION 2 — Citywide Cap -and -Reduce Program with Enhanced 2:1 Swap This option maintains current billboard zones but implements a maximum cap on the number of billboard faces allowed citywide.

Key Elements:
• Establish a fixed cap on billboard structures or faces. • Allow static or digital billboards only if the applicant removes two (2) static billboards for each new face (2:1).
• Require at least one (1) removed billboard to come from a high -saturation corridor.
• Offer an optional in -lieu fee for applicants unable to physically remove signs, which would support City -led removals or corridor beautification.

Outcome:

Maintains the current aesthetic character while creating a structured path for modernization and gradual reduction of total billboard clutter.

OPTION 3 — Pilot Overlay Program with 4:1 Ratio and Formal Review This option would implement a limited pilot program to test digital billboards at select locations before a broader citywide rollout.

Key Elements:
• Identify 1-3 pilot locations, such as Beaumont Pointe or key freeway gateways. • Require a 4:1 swap for each digital billboard installed. • Include public messaging time (8-10%), revenue -sharing, and landscaping enhancements.
• Require a five (5) -year program review, including data on aesthetics, traffic safety, and public feedback.

Outcome:

Offers a conservative, data -driven approach that limits impacts while allowing Council to evaluate digital billboards before expanding the program citywide.

City Council approval is currently required for all potential relocation agreements and development agreements. Establishing clear guidelines and a structured regulatory framework would create a more transparent process for applicants, streamline project review, and ensure that development standards are applied consistently to projects so they integrate appropriately with the surrounding community.

Fiscal Impact:

The estimated cost of preparing this staff report is $300.

Recommended Action:

Receive and file; or
Recommend staff move forward with an ordinance on one of the proposed options, or a combination thereof; or
Authorize staff to conduct a workshop with the Beaumont Planning Commission for feedback and recommendations back to the City Council.

Attachments:

A. GIS Maps of Current Billboards
B. GIS Maps of Proposed Overlay Zones

BEAUMONTA O R N -
Staff Report
TO: City Council
FROM: Kirk Pelser, Economic Development Director
Joseph Cale, Management Analyst
DATE: December 16, 2025
SUBJECT: Patriotic Crosswalk Design for Downtown Beaumont Description: Selection of Abstract Patriotic Crosswalk Design for Downtown Beaumont Implementation.

Background and Analysis:

At its November 12, 2025, meeting, the Economic Development Committee (EDC) made a formal motion recommending that two abstract patriotic crosswalk design concepts be presented to the City Council for consideration. These crosswalks are intended for Beaumont Avenue at its intersections with 6th, 7th, and 8th Streets, which frame the Downtown Market Night Area.

The original concept —presented to the EDC on October 9, 2025 —featured a red, white, and blue design that closely resembled an American flag. While the Committee supported the proposal, staff subsequently engaged members of the local veteran community who expressed strong opposition to placing the American flag on the ground. In response to these concerns, staff sourced alternative abstract design examples from publicly available online resources that preserve a patriotic theme while avoiding direct flag imagery.

This crosswalk initiative supports the City's strategy to improve pedestrian safety and enhance downtown aesthetics. During prior EDC discussions, multiple sources were presented showing that vibrantly painted crosswalks can improve driver awareness, reduce vehicle speeds, and enhance pedestrian visibility.

The selected material, thermoplastic striping, was chosen for its long-term durability and low maintenance needs. Thermoplastic surfaces can be pressure -washed to maintain cleanliness, and similar examples of thermoplastic crosswalks in Southern California have maintained their appearance after 5-6 years with regular pressure washing.

Fiscal Impact:

The total estimated project cost for the selected intersections ranges from approximately $50,000 to $67,000, depending on design complexity and scope. These estimates were derived from vendor proposals and include surface preparation, traffic control, thermoplastic application, and layout. Further fiscal action as it pertains to this project will adhere to all City procurement guidelines and procedures. Funding for this project is available under GL Account 100-1235-7096-0000, which currently has $1,000,000 available.

The cost to prepare this report is estimated at $150.

Recommended Action:

Review and consider the two abstract patriotic crosswalk designs recommended by the Economic Development Committee and select a preferred design for implementation on Beaumont Avenue at the intersections with 6th, 7th, and 8th Streets; and Provide direction to staff as needed on procurement and installation.

Attachments:

A. Design Option 1
B. Design Option 2

BEAUMONT
-C A L I F O R N A -
Staff Report
TO: City Council
FROM: Jennifer Ustation, Finance Director
Lisa Leach, CPA, Assistant Finance Director
DATE: December 16, 2025
SUBJECT: FY2025 Annual Comprehensive Financial Report and Report of Internal Control Over Financial Reporting
Description: Fiscal Year End 2025 Annual Comprehensive Financial Report and Associated reports.

Background and Analysis:

On an annual basis the City is required to have an independent audit of its financial statements. The audit for Fiscal Year 2025 has been completed and is included as Attachment A.

The audit provides for an unmodified ("clean") opinion, which means that the financial statements present fairly in all material respects, the financial condition of the City. The audit process includes an interim period of review of internal controls and testing of transactions and year-end balances. Both processes are completed by the independent auditors.

The ACFR is divided into the following sections:
• Introductory Section — Includes a Letter of Transmittal to introduce the ACFR and provide a profile of the government, and information that is useful in assessing a government's economic condition and organizational information GFOA Award of Excellence for Financial Reporting for Fiscal Year 2024. • Independent Auditor's Report on Financial Statements — provides an opinion on the reasonable assurance about whether the financial statements as a whole are free from material misstatement.
• Management Discussion and Analysis — provides management's discussion of the financial condition of the City and the results of operations for the year ended Fiscal Year 2025.
• Financial Statements — provides for detailed financial results of both government activities and business type activities along with the change in

financial position for the City during the fiscal year July 1, 2024, through June 30, 2025.
• Notes to the Financial Statements — provides additional information regarding a summary of significant accounting policies, including valuation of assets and liabilities.
• Supplementary Information — provides for comparative data with information from prior years.
• Statistical Section — provides financial trends, revenue capacity, debt capacity, demographic, economic and operating information, which provides a context for assessing a government's economic condition.

Internal Control Over Financial Reporting
The auditors consider the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing their opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control.

Within this report the auditors will identify any deficiencies they encountered in their testing of internal control over financial reporting.

A deficiency in internal controls exists when the design or operation of control does not allow management or employees to prevent or detect and correct misstatements on a timely basis. There are two types of deficiencies, a material weakness and a significant deficiency. A Material Weakness is a deficiency that a material misstatement of the City's financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency in internal control that is less severe than a material weakness.

During the audit this year, RAMS identified no significant deficiencies or material weaknesses.

Finance and Audit Committee Review
The Finance and Audit Committee met on November 17, 2025, to review and discuss the drafts of these reports. The committee recommended to move forward to the City Council once they were in final form.

Financial Highlights
(In Thousands)
City Assets (What We Own)
Current Assets consisting mainly of cash and amounts owed to the City $ 233,922 Net Capital Assets consisting mainly of buildings, equipment, and vehicles $ 524,550 Non -Current Assets consisting mainly of restricted cash and investments, loan receivable $ 67,142 TOTAL CITY ASSETS $ 825,614
Deferred Outflows of Resources, which have a positive effect on Net Position $ 11,096 TOTAL CITY ASSETS AND DEFERRED OUTFLOWS $ 836,710
2025 2024
r$
216,223
507,122
70,794
794,139
13,612
807,751
City Liabilities (What We Owe)
Current Liabilities consisting mainly of all amounts the City owes, except for debt Non -Current Liabilities consisting of long-term obligations, including pension 2025 2024
$ 42,194
$ 168,001
$ 44,568
$ 173,726
TOTAL CITY LIABILITIES ir$ 210,195 ir$ 218,294
Deferred Inflows of Resources, which have a negative effect on Net Positiion $ 338 $ 959 Deferred Inflows related to debt/leases $ 1,669 $ 1,243 TOTAL CITY LIABILITIES AND DEFERRED INFLOWS $ 212,202 $ 220,496 CITY NET FINANCIAL POSITION $ 624,508 $ 587,255

General Fund Revenues 2025
2024
Taxes
Franchise Fees
Intergovernmental
License & Permits
Fines & Forfeitures
Assessments Levies
Use of Money and Property
Charges for Services
Other Revenues
$ 47, 070, 984
$ 3,358,769
$ 9,014,653
$ 3,477,439
$ 330,046
$ 896,446
$ 4,031,830
$ 1,614,849
$ 2,998,469
$ 39, 902, 359
$ 3,347,040
$ 7,768,111
$ 4,724,060
$ 391,623
$ 753,376
$ 3,180, 775
$ 1,488,996
$ 2,511,406

TOTAL GENERAL FUND REVENUES
r$ 72,793,485
$ 64,067,746
General Fund Expenditures
2025
2024
General Government
Public Safety
Public Works
Community Development
Community Services
Capital Outlay
Debt Service
Interest and Fiscal Charges
$ 13, 302, 742
$ 27,086,384
$ 5,139, 580
$ 3,049,103
$ 7,308,053
$ 511,065
$ 640,952
$ 30,500
$ 10, 077, 070
$ 23,534,491
$ 5,121, 943
$ 3,347,519
$ 7,564,225
$ 1,060,491
$ 624,614
$ 13,156

TOTAL GENERAL FUND EXPENDITURES
$ 57,068,379 $ 51,343,509
Other Revenues, including Transfers In $ 8,242,553 $ 8,143,418 Other Expenditures, including Transfers Out $ (18,389,656) $ (14,604,940) INCREASE/(DECREASE) IN FUND BALANCE $ 5,578,003 $ 6,262,715 Budget Results
General Fund
Budgeted
Original
Budgeted
Final
Actual
Variance with
Final Budget
Total Revenues
Expenditures
Other Financing Uses
Net Change in Fund Balance
$ 60, 853, 879
$ (60,807,173)
$ 1,336,033
$ 1,382,739
$ 62, 223, 994 $ 72, 793, 485 $ 10, 569, 491
$ (64, 573, 596) $ (57, 068, 379) $ 7,505,217
$ (11, 071, 667) $ (10,147,103) $ 924,564
$ (13, 421, 269) $ 5,578,003 $ 18, 999, 272
Fiscal Impact:

There is no fiscal impact with this report. The estimated cost to prepare this report is $350.

Recommended Action:

Receive and file the Fiscal Year 2025 Annual Comprehensive Report and associated reports.

Attachments:

A. FY2025 Annual Comprehensive Financial Report
B. FY2025 SAS 114 Letter
C. FY2025 Report on Internal Control Over Financial Reporting

BEAUMONT
-CALIFORNIA
City of Beaumont
Beaumont, California
Annual Comprehensive Financial Report
For the year ended June 30, 2025

City of Beaumont, California

ANNUAL COMPREHENSIVE

FINANCIAL REPORT
For the year ended June 30, 2025
Prepared by the Finance Department
Jennifer Ustation, Finance Director
Lisa Leach, CPA, Assistant Finance Director
Jacqueline Miranda, Accounting Technician II
Sheryl Gomez, Accountant
Candace Vogel, Accounting Technician
Carolina DeLaCruz, Accounting Technician
Brittany Navas, Grants Analyst
Marcia Mason, Budget Analyst

City of Beaumont
Annual Comprehensive Financial Report
For the year ended June 30, 2025
Table of Contents

This page intentionally left blank.

CITY OF BEAUMONT
Annual Comprehensive Financial Report
For the year ended June 30, 2025
Table of Contents
Page

INTRODUCTORY SECTION
Letter of transmittal i
Principal Officials xi
Organizational Chart xii
GFOA Certificate of Achievement xiii

FINANCIAL SECTION
Independent Auditor's Report 1
Management's Discussion and Analysis 5
Basic Financial Statements
Government -Wide Financial Statements:

Statement of Net Position 20
Statement of Activities 22
Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet 25
Reconciliation of the Governmental Funds Balance Sheet
to the Government -Wide Statement of Net Position 27
Statement of Revenues, Expenditures, and Changes in Fund Balances 28 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government -Wide Statement of Activities 30 Proprietary Fund Financial Statements:

Statement of Fund Net Position 32
Statement of Revenues, Expenses, and Changes in Fund Net Position 33 Statement of Cash Flows 34
Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position 37
Statement of Changes in Fiduciary Net Position 38
Notes to the Basic Financial Statements 41

CITY OF BEAUMONT
Annual Comprehensive Financial Report
For the year ended June 30, 2025
Table of Contents (Continued)
Page
FINANCIAL SECTION (continued)
Required Supplementary Information (Unaudited):

Budgetary Information 88
Budgetary Comparison Schedule — General Fund 89
Budgetary Comparison Schedule — Development Impact Fees (DIF) Special Revenue Fund 90
Schedule of Proportionate Share of the Net Pension Liability and Related Ratios 91 Schedule of Pension Plan Contributions 93
Supplementary Information:

Major Governmental Funds:

Budgetary Comparison Schedules
Community Facilities District (CFD) - Capital Projects Fund 95 General Capital Projects - Capital Projects Fund 96
Beaumont Financing Authority - Debt Service Fund 97
Non -Major Governmental Funds:

Combining Balance Sheet 98
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 101 Budgetary Comparison Schedules
State Gas Tax Fund 104
Road Maintenance and Rehabilitation Act Fund 105
Measure A Fund 106
AB 2766 Fund 107
PEG Fees Fund 108
Other Federal Grants Fund 109
COPS Grand Fund 110
State Asset Seizure Fund 111
Federal Asset Seizure Fund 112
Other Special Revenue Fund 113
Community Facilities Districts (CFD) 114
Fiduciary Funds:

Combining Statement of Fiduciary Net Position 115
Combining Statement of Changes in Fiduciary Net Position 116

CITY OF BEAUMONT
Annual Comprehensive Financial Report
For the year ended June 30, 2025
Table of Contents (Continued)
Page

STATISTICAL SECTION (UNAUDITED)
Net Position by Component 118
Changes in Net Position 120
Fund Balances of Governmental Funds 124
Changes in Fund Balances of Governmental Funds 126
Governmental Tax Revenue by Source 128
Top 25 Sales Tax Producers 129
Taxable Sales by Category 131
Assessed Value and Estimated Actual Value of Taxable Property 132 Direct and Overlapping Property Tax Rates 134
Principal Property Taxpayers 135
Property Tax Levies and Collections 136
Ratios of Outstanding Debt by Type 137
Direct and Overlapping Governmental Activities Debt 138 Computation of Legal Debt Margin 140
Pledge Revenue Coverage 142
Demographic and Economic Statistics 143
Principal Employers 144
Full -Time Equivalent City Governmental Employees by Function 145 Operating Indicators by Function 146
Capital Assets Statistics by Function 147

BEAUMONTA -C A L I F O R N I -
December 1, 2025
To the Honorable Mayor, Members of the City Council, and the Citizens of Beaumont:

It is with great pleasure that we present to you the City of Beaumont's (City's) audited Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2025. The financial statements within this report are presented in conformity with the generally accepted accounting principles (GAAP) and have been audited in accordance with generally accepted auditing standards (GAAS) and Government Auditing Standards (GAGAS) by an independent certified public accounting firm.

The ACFR includes the financial activity for all funds of the City, Financing Authority, Public Improvement Authority and Fiduciary Funds. The report is organized into three major sections which include the Introductory Section, the Financial Section, and the Statistical Section.

Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal controls established for this purpose, which include an array of administrative procedures. These controls are designed to provide reasonable, but not absolute, assurance to safeguard City assets against loss from unauthorized use or disposition, as well as the reliability of financial records for accurate and fair presentation of financial reports. The concept of reasonable assurance recognizes that the cost of specific controls should not exceed the benefits likely to be derived from exercising the controls, and that this evaluation involves estimates and judgements by management. It is believed that the City's internal accounting controls adequately safeguard City assets and provide reasonable assurance of proper recording of financial transactions.

Rogers, Anderson, Malody & Scott, LLP, Certified Public Accountants, have issued an unmodified ("clean") opinion on the City of Beaumont's financial statements for the year ended June 30, 2025.

The independent auditor's report is located at the front of the financial section of this report.

Management's discussion and analysis (MD&A) immediately follows the independent auditor's report and provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction with it.

PROFILE OF THE GOVERNMENT
Beaumont has a rich history and is nestled in the foothills of the San Bernardino National Forest.

Originally settled in the mid -1800s as a stop along the Southern Pacific Railroad, people drawn to the beautiful mountain views, crisp air and abundance of apple orchards remained in the area and the City of Beaumont was incorporated on November 18, 1912. The city is located 79 miles east of Los Angeles, 111 miles northeast of San Diego and 28 miles west of Palm Springs.

Beaumont's incorporated area encompasses two of the region's most important highway interchanges, IH-10 and SR -60 and IH-10 and SR -79. Beaumont (beautiful mountain), originally the community of the San Gorgonio Pass, began its roots as an ideal route for the transport of goods and services from the Missouri River to the Pacific Ocean. The Pass Area remains an important route for the transportation of goods and services from the West Coast today.

City of Beaumont 1550 E. 6th Street,I agB-442a®f317 I (951) 769-8520 I BeaumontCA.gov

Beaumont's continued growth can be attributed to its desirable location and its reputation as an affordable community that offers a high quality of life. Local officials, supported by engaged community members, have worked tirelessly to prepare for a sustainable future and a vibrant community. Since the early 2000s Beaumont has undergone a major building boom and for several years has remained one of the fastest growing cities in Riverside County, mainly due to its housing affordability and convenient proximity to major urban centers. Beaumont's median income is $105,164 which is 17% higher than the average for Riverside County. 80,000
60,000
40,000
20,000
o
City of Beaumont
Population History
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N N N N N N N N N N N
As presented in the ten-year population
history chart, Beaumont's population has
significantly increased over the past 10
years. The 2023 US Census estimated the
population to be 56,987. The California
Department of Finance now estimates the
2024 population has grown to 59,708, an
increase of 2,721 from 2023 (4% growth).

Beaumont is a "general law" city governed by a city council/city manager form of government.

Within the City are multiple special districts which are separate entities with their own, duly elected governing boards. Beaumont is governed by a 5 -member City Council, from which the Mayor and the Mayor Pro tempore are selected annually. The City Council appoints the City Manager, who is responsible for the daily operations of all City departments, and the City Attorney. The City's operating departments are City Council, City Clerk, Administration, Finance/Budget, Community Development, Economic Development, Community Services, Public Safety, Public Works, Transit, and Wastewater.

Basic local governmental services are provided including police, fire protection (through contract with Riverside County), maintenance and construction of public improvements, cultural, recreation, planning, zoning, transportation, sewer, and general administration. Financial administration of the City is the responsibility of the Finance Director, who supervises the City's fiscal administration and includes the day-to-day accounting, budgetary and reporting compliance, revenue and cash management, and debt administration operations.

THE REPORTING ENTITY
The ACFR includes all activities carried out by the City as a legal entity, including the activities of the Beaumont Utility Authority (BUA), Beaumont Financing Authority (BFA), Beaumont Parking Authority (BPA), and the Beaumont Public Improvement Authority (BPIA). The City is financially accountable for each of these authorities as specified by the guidance of the Governmental Accounting Standards Board (GASB).
ii

ACCOUNTING SYSTEMS AND BUDGETARY CONTROL
The City's fund accounting records are maintained using a modified accrual basis of accounting, as explained in the Notes to the Financial Statements, and is subject to the accounting practices for governmental units as mandated by (GASB). Basic City operations are accounted for in the City's General Fund, with other activities accounted for in separate funds as required by law or determined by management discretion.

The Government -Wide financial statements (Statement of Net Position and Statement of Activities) follow the accrual basis of accounting. As required by GASB, an accompanying summary reconciliation schedule is presented following the Governmental fund financial statements. These reconciliation schedules are presented on pages 26 and 29 in the body of the financial statements.

The Finance Director is charged with the responsibility for the receipt and disbursement of all monies and to maintain control over all expenditures to ensure that budget appropriations are not exceeded. The level of budgetary control, that is the level at which expenditures are not to exceed Council approved appropriations, is established at the fund and department level. The City Manager has authority to amend the budget within a departmental appropriation; however, changes in employee counts must be approved by the City Council. Adjustments at the object level within major categories of expenditures are permissible at the department level, however, adjustments involving transfers between major categories of expenditures such as movement from personnel budget to operating budget, or capital budget to operating budget, between departmental and division budgets, or between departments within the same fund, require Finance Director recommendation and City Manager approval. The legal level of control lies within the total department budget for the General Fund. All other funds legal budgetary control is at the fund level. All appropriations lapse at year-end and become available for re -appropriation the following year through the appropriate budgetary process, upon recommendation by the City Manager for City Council consideration.

SIGNIFICANT EVENTS AND ACCOMPLISHMENTS
Economic Development
The City's Downtown Incentive Program continued to gain strong traction this year, with multiple businesses applying for funding to support building improvements and new business ventures.

These efforts are already enhancing property values, attracting investment, and creating momentum for additional revitalization.

The City advanced several major downtown projects, including the completion of building renovations and partner leases for the Biz Hub building, as well as physical assessments to prepare City -owned properties for future redevelopment. To expand Beaumont's reach and visibility, the City also invested in a significant presence at ICSC Las Vegas —hosting its own booth for the first time —and launched regional advertising campaigns to highlight the community's business -friendly opportunities. Recognizing the growing demand from the business and development community, the department also expanded staffing to improve service delivery and support.

Together, these initiatives have strengthened Beaumont's reputation as a thriving, business - friendly community where local entrepreneurs and national retailers alike can succeed.

Community Development
Community Development guides the City's growth, supports safe and livable neighborhoods, and promotes economic vitality through planning, building, fire prevention, and community enhancement services.

The Building and Safety Division established a new process for collecting Western Riverside County MSHCP fees, ensuring consistency with regional conservation requirements.

The Community Enhancement Division improved public outreach with a "Common Code Violations" flyer to encourage voluntary compliance and updated the subscription -based weed abatement program to provide more efficient service and reduce fire risks.

The Fire Services Division updated the City's fire hazard severity zone maps in line with state standards and launched an annual business fire inspection program to strengthen public safety and fire prevention efforts.

The Planning Division completed state -required annual progress reports, coordinated community relations projects such as special event deposit waivers (including one for a regional rugby event), and facilitated repeal of the Noble Creek Specific Plan to simplify land use and potentially reduce the strain on the ecology of the land. Major projects included advancing the Regency Center Development Agreement and Oak Valley Village Target project, guiding entitlements for Beaumont Pointe, and adopting a streamlined Home Occupation Permit program to better support home -based businesses.

Together, these efforts demonstrate the department's focus on clear processes, public safety, and responsive community services that align with the City's long-term goals.

Community Services
In alignment with the City of Beaumont's Strategic Plan mission to ensure Beaumont remains a safe and desirable place to live, work, and play, the Community Services Department continues to expand recreational opportunities and enhance public spaces for residents of all ages. In 2025, Beaumont Parks and Recreation significantly grew its community programming. The popular "Beaumont Nights" series expanded from 7 to 15 weeks, drawing an average of 2,800 visitors weekly for live music, local vendors, and family entertainment. New recreational offerings included the launch of an adult volleyball league and the expansion of the Learn to Swim program. Through 60 sessions, our dedicated lifeguards provided essential water safety and swimming instruction to 490 youth participants, reinforcing our commitment to wellness and safety. Overall, recreational programming increased by 42%, with offerings growing from 21 to 30 programs, reflecting the City's investment in diverse, accessible, and inclusive opportunities for all residents.

The completion of the Community Services Master Park Plan marks a major milestone in Beaumont's commitment to long-term community development and quality of life. Developed through extensive public engagement, data analysis, and stakeholder collaboration, the plan identifies current needs, community priorities, and opportunities for growth over the next decade.

It provides a data -driven framework to guide capital investments, improve maintenance practices, and strengthen grant applications, ensuring equitable access to high -quality parks and recreational services for all neighborhoods.
iv

Additionally, the City proudly completed the renovation of the Veterans and First Responders Memorial Plaza at City Hall, just in time for the 2024 Veterans Day celebration. Completed under a Public Works Agreement with R Dependable Construction Inc., the project transformed the plaza into a vibrant and secure space that honors those who have served. The enhancements include upgraded hardscaping, water features, lighting, landscaping, and security measures, all while preserving the integrity of the original memorial monuments. This achievement reflects Beaumont's ongoing dedication to honoring its heroes and fostering civic pride through thoughtfully designed public spaces.

Public Safety
The 2024-2025 fiscal year was one of development, growth, and progress for the Beaumont Police Department. Our commitment to service, innovation, and community partnerships guided every step forward. Below are some of the highlights from the past year.

Strengthening Our Team
Four new positions were created, including one police officer, one lieutenant to strengthen field services management, and two full-time dispatchers to meet increasing call volumes. Our Traffic Enforcement Team grew from three to five motorcycle officers, allowing us to increase traffic safety enforcement. Established in fall 2024, the Commercial Enforcement Unit, now includes two dedicated officers. In spring 2025, we equipped the team with a specialized vehicle to enhance their work. Community Behavioral Assessment Team (CBAT),Added a second clinician in 2025, expanding mental health support services available to the community throughout the week.

Modernizing Operations
The safety team implemented a new Computer Aided Dispatch and Records Management System, advancing technology integration into daily operations. Property & Evidence introduced high -capacity graphic processing computers to handle growing digital evidence needs and acquired a currency counter to improve accuracy and efficiency. Finally, the records division welcomed the department's first crime analyst intern and added a certified notary to better serve both the department and the public.

Community & Animal Services
Our animal control partnerships built a regional rescue network that provided positive outcomes for nearly 100 animals this year. The department expanded specialized services and partnerships, reinforcing our commitment to compassion and care for all members of our community —both human and animal.

Looking to the Future
The City of Beaumont purchased land and partnered with LPA Inc. to begin planning a future police station that will span nearly six acres. This facility will serve as a modern hub for public safety operations and community engagement for decades to come.

The progress made this year reflects our department's ongoing dedication to public safety, transparency, and continuous improvement. As Beaumont grows, so does our commitment to providing the highest quality service to our community. v

Public Works
The City is making exciting progress in building a safer, smoother, and more sustainable community. In fiscal year end 2025, several major infrastructure projects moved forward, including the Second Street Extension, which broke ground in April and is on track to finish ahead of schedule. The Pennsylvania Grade Separation project was selected to potentially receive $50.4 million in funding from the California Transportation Commission, and the Potrero Interchange Project is now fully funded, with construction bidding set to begin soon.

Our local streets also saw major improvements. Through the Annual Citywide Street Rehabilitation and Maintenance Project, the City completed miles of upgrades and finalized the Pavement Management Plan using cutting -edge LiDAR technology to scan pavement conditions.

Safety and traffic flow improved at Cougar Way and Beaumont Avenue with the addition of a dedicated turn signal, and a Citywide study was completed to bring Al smart technology to our traffic signals in the future.

Beyond roads, the Public Works team has worked tirelessly to maintain sidewalks and infrastructure, while also investing in community well-being. Two community cleanup events collected over 120 tons of waste, and residents took part in free composting classes to promote sustainability at home.

Together, these efforts highlight the City's dedication to keeping our community safe, connected, and thriving —today and for years to come.

Wastewater
The City is making significant progress on important sewer infrastructure improvements, including the WWTP Improvements Project and upgrades to the lift stations to meet city growth, commencing with the Mesa Lift Station Upgrade project. In 2025, the City awarded construction contracts for WWTP Improvements which include the addition of a Vactor Dump station, parking lot, erosion and dust control, other necessary improvements, and site landscaping. The capital investment in the WWTP is $4.3M million. Mesa Lift Station is located on Potrero Blvd next to San Timoteo Canyon and is a critical facility receiving wastewater conveyed from five smaller lift stations.

The capital improvements to Mesa Lift Station involve two complementary capital projects. The force main project comprised of a new 1.4 -mile sewer force main having a 16 -inch diameter, which addressed the current limited capacity of the existing 12 -inch force main to enable the lift station to convey wastewater to the treatment plant to meet the demands of the current and future development in the northwestern part of the City. The construction cost of this force main project was $3.2 million and was substantially completed in October 2024.

In 2024, the City also awarded a construction contract for $6.8M to upgrade the Mesa lift station to increase pump and storage capacity needed to accommodate future growth in this western area of the City, to be completed in Spring 2026. In total, the combined capital improvements for the Mesa Lift Station are estimated to be $10M in construction value.

The City is now studying the Upper Oak Valley Lift Station for a future upgrade as well as planning for additional lift stations to bring online. The City has accepted one new lift station and is anticipating the completion of two other developer -built lift stations by the end of 2025. vi

City staff are performing sewer video inspections on a periodic basis to build a condition assessment log. The resulting condition information will be added to the City's GIS for future planning purposes. Other capital improvement projects include sewer bridge maintenance, manhole grading, and pipeline air vac replacements. The City added Rudolph Foods, a Significant Industrial User (SIU), to its list of dischargers.

LOCAL ECONOMY AND PROSPECTS FOR THE FUTURE
As presented in the 2040 General Plan Update, the City will support downtown revitalizations as well as growth and business expansion in targeted industries that include healthcare, retail, and technology -based industries. Beaumont has continued to experience growth in its retail, commercial and industrial sectors. The City is approximately 70% built out and has significant land available to add to its numerous retail anchors that include Walmart, Home Depot, Kohls, Best Buy and Ross Dress for Less. The City's commercial and industrial sectors include major companies like Amazon, Duraplastics, Perricone Juices, iFit Health and Fitness, United Legwear, Wolverine Worldwide, CJ Foods, and Rudolph Foods. Amazon and these other national brands provide much of the economic base of the community through the employment of the local labor force. Due to Beaumont's prime location, available land, and growing population base it is anticipated that it will remain attractive to future commercial and industrial prospects. Planning policies have been adopted to support balanced growth the achieve fiscal sustainability while maintaining a high quality of life. These policies are in concert with the City Council's official goals and objectives in the areas of public safety, quality of life, economic development, sustainable community, and intergovernmental/interagency relationships.

In 2025, the median price of a home in Beaumont remained flat at $528,750, a decrease of $4,750 or 0.89% from $532,391 in 2024, according to the Riverside County Recorder via HDL, Coren & Cone. Beaumont is reaching the end of its single-family residential development which is expected to be completed in 2026 with only one development plan for the future. The continuous past growth continues to attract skilled and educated residents who are expanding the local workforce with the requisite skills to meet the City's economic development objectives.

City of Beaumont
Sales Tax History
40,000,000
20,000,000
c -I
O
N
c-1
O
N
olid li/
co
ci
O
N
c -I
O
N
O
N
O
N
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O
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O O
N N
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O
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The Sales Tax History chart is a ten-year
historical presentation of the City's sales tax
revenue through fiscal year ending June 30,
2025. In 2025, the city received $35,903,161
in sales tax revenues, an increase of 19.3%
or $5,817,736 from $30,085,425. The
majority of this increase was due to a sales
tax audit performed by HDL on behalf of the
City.

As with most California communities, a large
portion of General Fund revenues are
derived from sales and use tax receipts.

Continued growth in the retail and
commercial sectors will be critically vital to
the long-term fiscal health of the community.

A retail -oriented economic development
program has been launched to expand local
business and attract new prospects.

Existing, entitled land exists for significant
expansion of the retail center at Highland
Springs and Second Street and Oak Valley
Parkway with other vacant sites at key
locations being targeted for retail -specific
economic development recruitment. The City
is in its second year of the Downtown
Business Incentive Program to attract new
businesses.
vii

10,000,000
5,000,000
City of Beaumont
Property Tax History
� ��i�lllll
lD N CO O1 O -1 N CO V V1
ci ci ci c1 N N N N N N

OOOOOOOOOO
CNI NI NI NJ NI (NI rsi
The Property Tax History chart is a ten-year
historical presentation of the City's property
taxes through fiscal year ending June 30, 2025
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
City of Beaumont
VLF History

1.0 N CO O1e NO N N N N N
o o 0 0 0 0 0 o o o
In fiscal year 2004/2005, as part of the
California Governor's Budget/Constitutional
On June 30, 2025, property tax revenues
were reported at $8,880,402, a net increase
of $1,073,570 or 13.75% from fiscal year
2024 due to the completion of new home
sales.

Protection Package, a Vehicle License Fee
(VLF) program was implemented. The
program provides for the exchange of the
current VLF backfill from the State's general
fund for an equivalent amount of property tax
revenues in FY2004/2005. Any future growth
in VLF revenue would be calculated in
proportion to growth in gross assessed
valuation. As presented in the ten-year
history chart, VLF has steadily increased. In
fiscal year 2024/2025, the City collected
$8,892,724 in VLF revenue, an increase of
$1,199,342 or 15.58% due to an increase in
property values within the City.
viii

LONG-TERM FINANCIAL PLANING AND FINANCIAL POLICIES
The City develops a five-year financial projection for all city funds, covering all foreseeable elements of revenue and expenditures. This practice allows the City to identify potential fiscal challenges early on and gives it time to plan strategically to weather economic cycles and provide stable and consistent services to its readers.

For capital projects, the City maintains a five-year capital improvement plan which is updated annually. This plan provides a long-term forecast of identified capital improvement projects and serves as a tool for the City management and City Council to plan, prioritize and monitor the City's capital projects.

The City has established a reserve policy to set aside unrestricted general fund balance for working capital, budget stabilization and emergency disaster Reserves. Working capital reserve requirements are to remain at 16% of the Operating Budget. This allows sufficient cash flow throughout the year when revenue receipts are not timely to expenditures. Budget Stabilization Reserve set at $5M to provide city staff time to address an economic downturn without having to dip into the Working Capital Reserve. Emergency Disaster Reserve set to $1 M to provide funds as an insurance reserve within the budget to address unforeseen emergency disaster brought upon by nature or huma. The City plans to continue to enhance financial policies including the reserve policy and to review these policies each year.

INDEPENDENT AUDIT
An independent audit of the City's records was performed for the year ended June 30, 2025, by the certified public accounting firm Rogers, Anderson, Malody & Scott, LLP. The auditor's report on the basic financial statements (government -wide financial statements and the fund financial statements), the notes to the basic financial statements and supplementary information is included in the Financial Section of the ACFR.

In general, the auditors concluded that the basic financial statements and supplementary information referred to above present fairly, in all material respects, the financial position of the City of Beaumont, Beaumont Financing Authority and the Beaumont Public Improvement Authority, as of June 30, 2025, and the results of its operations and cash flows of its proprietary fund types for the year ended in accordance with accounting principles generally accepted in the United States of America. The professionalism and knowledge by Rogers, Anderson, Malody & Scott, LLP during the audit is appreciated.

AWARD AND ACKNOWLEDGMENTS
The Government Finance Officer Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Beaumont for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2024. This was the second year the City received the extinguished award. To be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized ACFR. This report must satisfy both GAAP 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 continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
ix

The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Finance Department and other City Departments that provided data for preparation of the Statistical section of the Report. We would like to express our appreciation to the members of all departments who assisted and contributed to the preparation of this report. We would like to extend our appreciation to the Mayor, City Council, and each City Department for their cooperation and support in conducting fiscal operations of the City.

Lastly, we would like to thank the City's independent auditors, Rogers, Anderson, Malady & Scott, for their assistance in preparing this important financial document.

Respectfully submitted,
Jennifer !ation
Finance'Iirector
x

CITY OF BEAUMONT

PRINCIPAL OFFICIALS
Elected Officials
Mike Lara
Mayor
Jessica Voigt
Mayor Pro Tem
Lloyd White
Council Member

APPOINTED OFFICIALS
Elizabeth Gibbs
City Manager
John Pinkney
City Attorney
Julio Martinez III
Council Member
David Fenn
Council Member
Elain Morgan City Clerk
Nicole Wheelwright Deputy City Clerk
AJ Patel City Treasurer
Shannon Doyle Executive Assistant
Kari Mendoza Administrative Services Director
Chris Ramos Chief of Police
Jennifer Ustation Finance Director
xi

City of Beaumont
Organizational Chart

BEAUMONT
CITYWIDE FY 25/26

ORGANIZATIONAL CHART
Beaumont Citizens
City Clerk City Council City Treasurer
City Attorney
(Contracted)
City Manager
Director of Deputy Crty Director of Public
Administrative Manager Works
Services
Director of Water Director of
Reclamation Police Chief Finance
Director of Director of Director of
Community Community Economic
Development Services Development
Principal Public
Management Informational
Analyst Officer
Fire Chief
(Contracted)
Executive
Assistant

FILLED POSITIONS

PROPOSED POSITIONS
xii

G�9
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
rtin
Presented to
City of Beaumont
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2024
Executive Director.+'CEO
xiii

R
A
M
S

CERTIFIED PUBLIC ACCOUNTANTS
Independent Auditor's Report
To the Honorable City Council
City of Beaumont, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Beaumont (the City), as of and for the fiscal year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents.

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

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

Emphasis of Matter
As described in Note 1 to the financial statements during the year ended June 30, 2025, the City adopted new accounting guidance under Governmental Accounting Standards Board (GASB) Statement No. 101, Compensated Absences and No. 102, Certain Risk Disclosures. Our opinions are not modified with respect to this matter.
1 Tel. 909-889-0871 I www.ramscpa.net i :35 E. Carneg e Dr. Suite 100, San Bernardino, CA 92408

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.

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

In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks.

Such procedures include examining on a test basis, the 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. 2

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the required supplementary information, as listed in 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 GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the accompanying 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 comprehensive financial report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. 3

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 1, 2025 on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance.
koyeAs, 11.44244.014-,
San Bernardino, California
December 1, 2025
i( 1/, LLP.
4

MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the City of Beaumont, we offer readers of the City of Beaumont's financial statements this narrative overview and analysis of the City's financial activities for the fiscal year ended June 30, 2025. We encourage readers to consider the information presented here in conjunction with the enclosed letter of transmittal and basic financial statements.

Financial Highlights
The City of Beaumont's overall financial condition remained strong during fiscal year 2025, with continued growth in both governmental and business -type activities. The City's total net position increased by $37 million, or 6 percent, reaching $625 million at June 30, 2025. Of this amount, $487 million is attributable to governmental activities and $137 million to business -type activities.

Governmental activities benefited from robust sales tax performance, increasing 19 percent due to a one-time audit recovery of misallocated county allocations and continued local economic expansion. Property tax revenues also grew 15 percent, reflecting new home construction and property transfers. The City's investment earnings rose 16 percent, supported by improved interest rates and higher cash reserves.

Despite these gains, governmental expenses increased 29 percent, primarily due to staffing realignment within Community Development, additional costs in public safety for the operation of a new fire station, and one-time infrastructure allocations for capital facilities. Interest and fiscal charges, however, decreased by 44 percent due to a reduction in outstanding bonded debt.

On the fund level, the General Fund's fund balance increased 13 percent, supported by one-time sales tax recovery and solid revenue performance. The Community Facilities District (CFD) Capital Projects Fund reported higher revenues from unbonded improvement areas operating on a pay-as-you-go basis but experienced a net decrease in fund balance due to transfers out to support debt service refunding's. The General Capital Projects Fund balance decreased by 31 percent due to major capital outlays, while the Development Impact Fees Fund saw a modest decline of 4 percent due to reduced permit activity.

Business -type activities also showed a $4.5 million, or 3 percent, increase in net position, supported by the transfer of ARPA funding for the Mesa Lift Station project. Operating expenses in the Sewer and Transit Funds increased due to higher depreciation, but overall fund balance growth was maintained through capital subsidies and investment income.

Overall, the City's financial position improved in 2025, reflecting prudent financial management, strong local economic conditions, and effective cost controls that have positioned the City for sustained fiscal stability. In addition, certain prior -year revenues totaling $1,940,086 were reclassified from Operating Grants and Contributions to Capital Grants and Contributions to better reflect the nature of those revenues; this reclassification does not affect total revenues or the change in net position.

Overview of the Financial Statements
The City's financial report contains basic financial statements. Those financial statements present the City's finances at both an overall and a detailed level. The first two — the government -wide financial statement -cover the City's governmental activities and business -type activities (together, 5

the primary government) and discretely presented component units. (See the diagram in Figure A-1.)
• Governmental activities comprise the City's most basic functions, such as public safety, parks and recreation, public works, and economic development. Governmental activities primarily are financed by taxes paid by City residents, businesses and visitors. • Business -type activities are City services primarily financed in whole or in part with charges to customers -wastewater utility and transit services.

The remaining basic financial statements present the City's finances in greater detail and present fiduciary activities. As their name implies, the fund financial statements disaggregate financial information by separate funds to report on the specific purposes for which resources are used or for which they are restricted. The City reports three groups of funds:
• Governmental fund financial statements report on all of the governmental activities except those that involve providing services to City departments. In addition to the City's main operating fund -the general fund -those financial statements report a special revenue fund to track the use of development impact fees, a community facilities district capital fund to account for capital projects benefiting specific areas, a general capital projects fund to account for resources used to acquire transportation infrastructure and certain other long- lived assets, a debt service fund to record the repayment of outstanding bonds, and an other government fund to account for other special revenues such as grants and donations.
• Proprietary fund financial statements report all of the business -type activities (enterprise funds) and the services provided to City departments (internal service funds). • Fiduciary fund financial statements report resources for which the City acts as a trustee or custodian, including the Community Facilities Districts and Evidence funds. The resources in those funds do not belong to the City and cannot be used to provide services, which is why they are not included in the government -wide financial statements. 6

Figure A-1. Contents of the City's Basic Financial Statements Mde Fvnenciel
Fmtu mry
timing.

Gcrsrnmemrled
Funds
am.4 MidSl�Mse.

Pvage
Ents.prtse
FuMr
epeer
IAA P:naan•l
Stataaee
&oem mo Feunml 9eeeemenn
The next section of this financial report contains notes to financial statements, which delve deeper into the City's finances as reported in the financial statements. The information in the notes is as important to understanding the City's finances as the information in the financial statements. The City uses notes to (1) present information in greater detail than is possible within the financial statements themselves, (2) explain the nature of amounts reported in the financial statements and how those amounts were determined, and (3) report certain information that does not meet the requirements for inclusion in the financial statements (such as certain contingencies).

Types of Information in the Financial Statements
All of the City's financial statements, except for the governmental fund financial statements, use the economic resources measurement focus and accrual basis accounting. (See Figure A-2.) In other words, they comprehensively report all types of financial statement elements:
• Assets -resources the City controls, from short-term assets like cash to long-term assets like roads and bridges
• Liabilities -amounts the City owes, from short-term liabilities such as salaries payable to long-term liabilities such as outstanding debt and net amounts owed to employees for pensions
• Deferred outflows of resources and deferred inflows of resources -flows that occurred during the year, or in prior years, that will not be reported as expenses and revenues until the future year to which they are related
• Revenues and expenses -inflows and outflows of economic resources, respectively, related to the current year.

Governmental fund financial statements use the current financial resources measurement focus and modified accrual basis of accounting to report on the sources, uses, and balances of current financial resources. The governmental funds do not report nonfinancial assets, such as capital assets, or certain other long-term items, such as general obligation bonds, but they do report the flows of current financial resources related to those long-term items; for example, the proceeds 7

from issuing bonds or selling equipment, as well as principle and interest payments on bonds and spending on the construction of a City building.

Figure A-2. Types of Information Reported in the City's Financial Statements Financial Statements
Government-
%ride
Proprietary
Fund
Fiduciary
Fund
Component
Unit
Governmental Fund
Types of assets and
liabilities i
All assets and liabilities. both financial and
nonfinancial, short lerm and long term
Only current financial
resources, such as cash.
taxes receivable, and
accounts payable
Types of
revenues/additions
All types of revenues/additions that flow into the
government during the year that relate to that year,
regardless or when cash Is received
Only revenues that are
measurable and available to
finance expenditures of that
year
Types of
expensesldeductions,
expenditures
Ail types of expenses/deductions that flow out of
tree government during the year that relate to that
year, regardless of when cash is paid
Only expenditures for which
the related governmental
fund liability is incurred in
that year
Types of deferred
outflows of resources
and deferred inflows of
resources
Ail types of resources that flow into and out of the
government during the year that relate to a future year Current financial resources
that now into and out of the
governmental hinds during
the year that relate to a
future year
More detail about the measurement focuses and bases of accounting can be found in the first note to financial statements, the summary of significant policies, beginning on page 40. 8

Analysis of the City's Finances
Table 1
Statement of Net Position
As of June 30,
(Dollars in Thousands)
Assets:

Current and other assets
Capital assets
Total assets
Deferred outflows:

Deferred outflows related to pension
Liabilities:

Current and other liabilities
Noncurrent liabilities
Total liabilities
Deferred inflows:

Deferred inflows related to debt
Deferred inflows related to leases
Total deferred inflows
Governmental Activities
2025 2024 2025 2024 2025 2024
Business -type Activities Total
$ 269,559 $ 259,709 $ 31,506 $ 27,307 $ 301,065 $ 287,016 332,881 314,934 191,669 192,188 524,550 507,122
602,440 574,643 223,175 219,495 825,615 794,138
9,842 12,108 1,254 1,504 11,096 13,612
34,782 38,302 7,412 6,266 42,194 44,568
88,058 91,597 79,944 82,129 168,002 173,726
122,840 129,899 87,356 88,395 210,196 218,294
1,669 1,243
1989 2,156 18 46 2,007 2,202
1,669 1,243
Net position:

Net investment in capital assets 271,685 250,261 112,573 111,188 384,258 361,449 Restricted 179,011 171,745 17,207 12,860 196,218 184,605 Unrestricted 36,757 32,690 7,275 8,510 44,032 41,200
Total net position $ 487,453 $ 454,696 $ 137,055 $ 132,558 $ 624,508 $ 587,254 Table 1 shows that as of June 30, 2025, the City's total net position -assets and deferred outflows minus liabilities and deferred inflows -was over $625 million, an increase of $37 million or 6 percent compared with 2024. This increase is primarily due to a $8 million or 19 percent increase in unrestricted net position for governmental activities. The increase in net position was the result of financial performance of the governmental and business -type activities. The following sections of MD&A analyze the finances of the governmental activities and business -type activities separately.

Governmental Activities
Table 2 shows that revenues continued to exceed expenses in the current year, resulting in an increase in net position. The total net position of the City's governmental activities was over $488 million, an increase of $33 million or 7 percent compared with 2024. Various events contributed to this increase in net position; however, the five primary factors affecting the change in net position are as follows:
1) Increase in sales taxes mostly due to a one-time audit correction due to misallocation 2) Growth in various revenues due to the strength of the local economy 3) Increase in investment earnings
4) Increases in expenses for certain programs and functions 5) Transfers to the business -type activities and custodial funds 9

Table 2
Statement of Activities
For the years ended June 30,
(Dollars in Thousands)
Revenues:

Program Revenues:

Charges for services
Operating grants
Capital grants
General Revenues:

Property taxes/in-lieu
Sales taxes
Motor vehicle in lieu taxes
Utility users tax
Franchise taxes
Transient occupancy taxes
Business licenses
Other taxes
Capital contribution
Investment earnings
Miscellaneous
Loss on sale of assets
Total revenues
Expenses:

General government
Public safety
Public works
Comm unity development
Refuse
Interest and fiscal charges
Sewer
Transit
Total expenses
Governmental Activities
Business -type Activities Total
2025 2024 2025 2024 2025 2024
$ 8,746 $ 9,193 $ 15,850 $ 17,009 $ 24,596 $ 26,202
4,783 3,941 2,199 3,867 6,982 7,808
21,762 27,372 7,235 1,669 28,997 29,041
17,774 15,500 - 17,774 15,500
35,903 30,085 - 35,903 30,085
91 70 - 91 70
2,791 2,549 - 2,791 2,549
3,359 3,347 - 3,359 3,347
441 397 - - 441 397
432 430 - 432 430
896 753 - 896 753
11,589 10,446 1,124 1,039 12,713 11,485
87 562 228 361 315 923
- - (19) - (19)
108,954 104,645 26,617 23,945 135,571 128,590
14,275
29,063
10,791
10,030
1,834
9,732
23,792
10,238
2,774
3,263
- 14,275 9,732
- 29,063 23,792
- 10,791 10,238
- 10,030 2,774
- 1,834 3,263
20,032 18,723 20,032 18,723
4,136 3,393 4,136 3,393
74,149 57,411 24,168 22,116 98,317 79,527
Changes in net position before
Transfers 34,805 47,234 2,449 1,829 37,254 49,063
Transfers (2,047) (77) 2,047 77 -
Change in net position 32,758 47,157 4,496 1,906 37,254 49,063 Net position, beginning of year 454,696 407,539 132,559 130,653 587,255 538,192 Net position, end of year $ 487,454 $ 454,696 $ 137,055 $ 132,559 $ 624,509 $ 587,255 10

Figure A. Governmental Activities Revenues by Source
Invest
Earnings
11%
Charges for
Services
8%
Other Taxes
7%
Capital Grants
20%
Operating
Grants
5%
Miscellaneous
Property Taxes
16%
Sales Taxes
33%
Decline in intergovernmental grant revenues
There were notable decreases in 2025 in both operating and capital grants and contributions.

Capital grants and contributions, which account for 20 percent of overall revenues for governmental activities, decreased $5.5 million from 2024 to 2025. Most of that decline came from a reduction of development impact fees and one-time debt proceeds.

Operating grants and contributions, which account for 5 percent of overall revenues for governmental activities, increased 21 percent to $4.8 million in 2025. Most of that increase came from a recognition of ARPA funds for capital projects.

Increase in revenues due to economic growth
The strength of the City and national economies has resulted in growth of several of the City's most significant revenue sources. Property taxes, which are 16 percent of the City's governmental activities revenue sources, rose 15 percent as a result of new home purchases and property transfers. Sales taxes, which are 33 percent of the City's governmental activities and the largest revenue source, rose 19 percent as a result of steady revenues and a one-time audit of county allocations.

Other taxes include franchise fees and utility users tax, which are the City's next two largest sources of revenue from taxes. Revenues from franchise fees- which derive from a franchisee as a rent or toll for the use of the streets and rights -of -way of a municipality -increased less than 1 percent. Utility users tax revenues grew 9 percent due to an increase in population and use of utility services.

Lastly, earnings on the City's investments, which were 11 percent of the governmental activities revenues, rose 16 percent from the prior year as local economic growth extended throughout all of 2025 leading to more cash to invest. The value of the City's investments related to governmental activities increased 7 percent last year, accounting for the majority of the overall 8 percent increase in current assets.
11

Growth in expenses
Community Interest and
Services fiscal charges
11%
Community
Developmen
14%
Public Work
15%
Table 3
Net Cost of Governmental Activities
(Dollars in Thousands)
General
Government
19%
Public Safety
39%
Total Cost Net Cost
2025 2024 Change 2025 2024 Change
Functions:

General government $ 14,275 $ 9,732 $ 4,543 $ 8,769 $ 5,650 $ 3,119 Public safety 29,063 23,792 5,271 21,247 13,186 8,061
Public works 10,791 10,238 553 (2,161) (5,697) 3,536
Community development 10,030 2,774 7,256 6,454 (1,482) 7,936 Community services 8,156 7,612 544 2,715 1,986 729
Interest and fiscal charges 1,834 3,263 (1,429) 1,834 3,263 (1,429) Total Governmental Activities $ 74,149 $ 57,411 $ 16,738 $ 38,858 $ 16,906 $ 21,952 The increases in revenue were accompanied by a more rapid increase in the City's cost of providing services. Governmental activities expenses rose 29 percent overall. Most notably, community development expenses increased significantly to over $10 million in 2025. As a result, community development expenses represented 14 percent of total expenses (see Table 2); by contrast, they were just 4.8 percent in of expenses in 2024. The increase in 2025 was attributable to staffing being aligned to the appropriate level required to adequately support this function, with the largest increase driven by the allocation of funds for capital facilities.

Public safety activity expenses increased, in part, due to higher contracted service costs required to staff the new fire station under the City's agreement with Riverside County and Cal Fire. Overall, public safety activities increased by more than $5 million, or 22 percent. 12

Expenses for governmental activities related to finance programs increased, in part, due to contractual payments to the sales tax compliance auditor for the recovery of misallocated sales tax. While these costs were more than offset by the corresponding increase in sales tax revenue, they accounted for approximately $1 million of the $4.5 million total increase. The remaining increase was primarily driven by higher insurance costs and software purchases.

Expenses for public works programs, at 15 percent of total expenses, increased 5 percent in 2025. The expense in this area related primarily to the one-time cost for traffic and engineering studies for potential future capital projects.

Community services programs accounted for 11 percent of total expenses and increased by 7 percent in 2025. The increase was primarily related to expanded programming for Beaumont Nights summer concerts and additional maintenance services for newly acquired facilities.

By contrast, interest and fiscal charges decreased by 44 percent in 2025. This reduction is primarily due to the City having fewer outstanding bonds requiring debt service payments, resulting in lower interest costs and related fiscal charges for the year.

Other changes in net position
Total governmental activities revenues exceeded total expenses in 2025 by 34.9 million. That amount is greater than the $32.9 million increase in net position due to resources were transferred from governmental activities to business -type activities (enterprise funds) for the purpose of financing capital projects for those activities. The total transfer of $2 million to the sewer fund was ARPA funding for the Mesa Lift Station project.

Governmental funds
The City reports five major funds individually in the governmental fund financial statements. Those funds are the general fund, development impact fees fund, community facilities district capital projects fund, general capital projects fund, and the debt service fund. Most of the discussion regarding governmental activities is equally applicable to the finances of those governmental funds. However, certain factors that are relevant to the City's current financial health are more apparent in the fund financial statements than in the government -wide financial statements. 13

There were significant changes to three of the five major funds. Those five major funds are shown in Table 4 and are discussed in more detail below (for the years ending June 30,).

Table 4
Revenues, Expenditures, and Changes in Fund Balance
(Dollars in Thousands)
Community Facilities District
General Fund Development Impact Fees (CFD) Capital Projects 2025 2024 2025 2024 2025 2024
Total Revenues
Total Expenditures
Excess (deficiency) of revenues
over expenditures
$ 72,793 $ 64,068 $ 7,918 $ 19,087 $ 1,145 $ 585
57,068 51,343 - 5,908
15,725 12,725 7,918 19,087 (4,763) 585
Other Financing Sources (Uses)
Other debt activity (net) 1,214 752 -
Proceeds from the sale of capital assets - -
Transfers in 7,029 7,391 -
Transfers out (18,390) (14,605) (8,990) (9,854) (2,584) (1,182) Total other financing sources (uses) (10,147) (6,462) (8,990) (9,854) (2,584) (1,182) Net change in fund balance 5,578 6,263 (1,072) 9,233 (7,347) (597) Fund balances, beginning of year 48,048 41,785 28,306 19,073 12,617 13,214 Fund balances, end of year $ 53,626 $ 48,048 $ 27,234 $ 28,306 $ 5,270 $ 12,617 Table 5
Revenues, Expenditures, and Changes in Fund Balance
(Dollars in Thousands)
Total Revenues
Total Expenditures
Excess (deficiency) of revenues
over expenditures
Other Financing Sources (Uses)
Other debt activity (net)
Proceeds from the sale of capital assets
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balances, beginning of year
Fund balances, end of year
General Capital Pro ects Beaumont Financing Authority Other Governmental Funds 2025 2024 2025 2024 2025 2024
$ 8,008 $ 4,287 $ 2,586 $ 2,403 $ 16,194 $ 13,927
24,425 22,562 6,250 6,295 1,803 694
(16,417) (18,275) (3,664) (3,892) 14,391 13,233
32,287 30,231 - - 402
- - (11,399) (12,460)
32,287 30,231 - (11,399) (12,058)
15,870 11,956 (3,664) (3,892) 2,992 1,175
51,058 39,102 71,039 74,931 9,180 8,005
$ 66,928 $ 51,058 $ 67,375 $ 71,039 $ 12,172 $ 9,180
Fund balance represents the financial standing of a governmental fund as of the end of the fiscal year from a short-term perspective.
14

General fund
The fund balance of the City's general fund increased by 13 percent. This increase in fund balance is attributable to (1) the $6.4 million one-time audit recovery of county allocated sales tax, and (2) growth in revenues (previously discussed).

Development impact fees fund
The fund balance of the Development Impact Fees Fund decreased by 4 percent. This decrease is attributable to a 59 percent reduction in revenue resulting from fewer building permits issued due to a slowdown in single-family housing development.

Community facilities district capital projects fund
The fund balance of the Community Facilities District (CFD) Capital Projects Fund decreased in 2025. Although revenues increased due to higher collections from unbonded improvement areas operating on a pay-as-you-go basis, these additional resources were more than offset by transfers out to support debt service refunding's. The transfers were made to reduce future debt service costs and provide long-term savings for property owners within the CFD, resulting in a net decrease in fund balance for the year.

General capital projects fund
Outlays for capital assets increased in 2025 in the capital projects fund to the highest level in 10 years. The increase was the product of several major components of the city-wide street improvement program and substantial progress being made on others. (Capital asset activity is discussed further below.) The progress in projects decreased fund balance by 31 percent.

Beaumont Financing Authority
The fund balance of the Beaumont Financing Authority Fund decreased 5 percent in 2025 due to the continued scheduled payments on outstanding bonds. As debt service obligations were fulfilled during the year, the use of accumulated resources resulted in a reduction in fund balance, consistent with the Authority's long-term financing plan and repayment schedule.

Other governmental funds
The Other Governmental Fund balance increased by 34 percent, primarily due to higher State SB 1 revenues and the delay of related capital project expenditures.

Business -type activities and enterprise funds
The total net position of the City's business -type activities (which also are reported as major enterprise funds) increased in 2025, though more modestly than that of the governmental activities. The business -type activities net position increased $4.5 million or 3 percent to $137 million from the prior year. The increase reflects the transfer of ARPA funds to the sewer fund for the Mesa Lift Station capital project.
15

Table 6
Revenues and Expenses and Changes in Net Position
For the years ending June30,
(Dollars in Thousands)
Enterprise Funds Governmental Activities
Total operating revenues
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses)
Local transport funds
Lease revenue
Gain/(loss) on sale of capital assets
Mitigation fees
Intergovernmental
Total nonoperating revenues (expenses)
Income (loss) before operating transfers and
noncapital subsidies
Investment earnings
Interest expense
Riverside county transportation commission
Capital contributions
Transfers in restricted for capital assets
Transfers out
Total other nonoperating revenues
(expenses)
Change in net position
Net position, beginning of year
Net position, end of year
Sewer Fund Transit Fund
Internal Service Funds
2025 2024 2025 2024 2025 2024
$ 15,392 $ 13,746 $ 149 $ 102 $ 1,585 $ 1,814
17,022 15,650 4,136 3,392 961 747
(1,630) (1,904) (3,987) (3,290) 624 1,067
494 3,396
1,840
43 (18)
2,291
126
359 1,576
10 15
494 3,396 2,224 3,993 10 15
(1,136) 1,492 (1,763) 703 634 1,082
1,068 1,053 55 (15) 297 279
(3,009) (3,073) -
5,666
1,567 9 1,660
2,047 41 36
1,673 (1,970) 5,721 1,681 297 279
537 (478) 3,958 2,384 931 1,361
127,223 127,701 5,336 2,952 9,720 8,359
$ 127,760 $ 127,223 $ 9,294 $ 5,336 $ 10,651 $ 9,720
Both enterprise funds had a negative financial performance from operations in 2025. (See Table

6.) Operating expenses for the sewer utility rose 8.6 percent, predominantly because of a significant increase in depreciation expense of $2.1 million. Operating revenues, of which 98.6 percent were charges for services, fell short of expenses by 9.5 percent. Overall net position of the sewer fund increased by $537 thousand mostly due to the use of ARPA funds for the Mesa Lift Station project.

The transit fund operating expenses exceeded operating revenues, which was primarily caused by an increase in depreciation expenses of $512 thousand. Overall net position of the transit fund increased by $3.9 million mostly due to the subsidy provided by Riverside County Transportation Commission.

The Internal Service Funds reported positive operating results in 2025, with operating revenues exceeding operating expenses by $624 thousand. (See Table 6.) Operating revenues, of which 100 percent were charges for services to City departments, decreased by 12.6 percent from the prior year; however, expenses increased by a greater margin of 28.2 percent, resulting in an improvement in operating income. Non -operating revenues contributed an additional $307 thousand, primarily from investment earnings. After accounting for all non -operating items, the Internal Service Funds experienced an increase in net position of $297 thousand, bringing the ending net position to $10.7 million at year-end.
16

General Fund Budgetary Highlights
The General Fund ended fiscal year 2025 in a stronger position than anticipated in the adopted budget. Actual revenues exceeded budget estimates by approximately $10.5 million, while expenditures were $7.5 million less than the final budget. The resulting positive budget variance totaled $19 million, contributing to a net fund balance increase of 13 percent for the year.

Revenue performance was driven primarily by a $6.4 million one-time sales tax audit recovery from county reallocation adjustments, coupled with higher property tax receipts and interest earnings. Several key revenue categories outperformed expectations, including:
• Sales and use taxes: up 19 percent from the prior year. • Property taxes: up 15 percent due to continued housing growth. • Investment earnings: up 16 percent due to favorable market rates.

On the expenditure side, the City achieved savings through position vacancies, project timing differences, and reduced operating costs. Delayed start times on select capital and contractual projects further contributed to the year-end expenditure savings.

During the year, the City Council approved several budget amendments, including an appropriation of $5 million of General Fund reserves to support the Potrero Phase 2 Capital Project, a key infrastructure investment. Even with this amendment, the General Fund maintained reserves well above policy thresholds, including the 16 percent working capital reserve and the $5 million budget stabilization reserve.

Overall, the City concluded fiscal year 2025 with a structurally balanced General Fund, a healthy reserve position, and improved liquidity —demonstrating strong fiscal discipline and the ability to adapt to evolving economic conditions.

Significant capital asset and long-term financing activity Table 7
Capital Assets (net of depreciation)
(Dollars in Thousands)
Governmental Activities Business -Type Activities Total 2025 2024 2025 2024 2025 2024
Asset Type:

Land $ 32,853 $ 32,803 $ 3,454 $ 3,458 $ 36,307 $ 36,261 Construction in progress 37,576 34,228 6,356 3,600 43,932 37,828 Structures, machinery & equipment 36,262 22,603 21,733 18,584 57,995 41,187 Infrastructure 224,298 223,997 159,866 166,262 384,164 390,259 Right -to -use assets 1,892 1,303 260 284 2,152 1,587
Total
$ 332,881 $314,934 $ 191,669 $192,188 $524,550 $507,122 The discussion thus far has only touched upon certain significant transactions and events during 2025 with respect to capital assets and long-term debt. Overall, the carrying value of capital assets -original costs minus accumulated depreciation -increased 6 percent over 2024. However, that relatively small change does not completely capture the substantial amount of capital investment activity that occurred in 2025.
17

The City's governmental activities had $34.2 million in its beginning balance of construction in progress with another $23.5 million in capital projects started during 2025. Of those amounts, the City put $20.2 million into operation during the year and, therefore, reclassified that amount to the other capital asset classifications of infrastructure and buildings and improvements. This resulted in an ending balance of construction in progress of $37.5 million. Many of the completed and ongoing capital projects are a part of the city-wide highway and street improvement program.

Long -Term Liabilities
Table 8
Long -Term Liabilities
(Dollars in Thousands)
Governmental Activities Business -Type Activities Total 2025 2024 2025 2024 2025 2024
2015 Refunding Revenue Bonds, Series A $ 8,755 $ 9,005 $ - $ - $ 8,755 $ 9,005 2015 Refunding Revenue Bonds, Series B 12,640 13,530 - - 12,640 13,530 2015 Refunding Revenue Bonds, Series C 3,100 3,355 - - 3,100 3,355 2015 Refunding Revenue Bonds, Series D 4,555 4,930 - - 4,555 4,930 2019 Refunding Revenue Bonds, Series A 3,695 4,060 - - 3,695 4,060 2020 Revenue Bonds, Series A 15,125 15,670 - - 15,125 15,670 2021 Revenue Bonds, Series A 14,540 15,895 - - 14,540 15,895 Bond premium
2019 revenue bond series A 625 703 - - 625 703
Wastewater Revenue Bonds, Series 2018A - 73,290 74,785 73,290 74,785 Bond premium - 5,538 6,084 5,538 6,084
Lease Liability 1,099 1,015 167 109 1,266 1,124
Subscription liability 637 149 - 21 637 -
Compensated absences 3,638 3,511 482 437 4,120 3,948
Claims payable 2,181 1,544 - - 2,181 1,544
Net pension liability 23,472 23,720 2,803 2,935 26,275 26,655 Total $ 94,062 $ 97,087 $ 82,280 $ 84,371 $ 176,342 $ 181,288 Total bonds and notes payable outstanding decreased 3 percent to $94 million in 2025. The most prominent aspect of that change was the reduction of $4 million bonds backed by special district taxes. Netted against the principle that was repaid during the year, that new decreased tax -backed bonds outstanding by 6 percent.

In July 2025, the City's 2025 refunding bonds issued received a credit rating of A+.

Currently known facts, decision, or conditions
The City is aware of 3 developments that will have an impact on the City's finances in the future and were therefore incorporated into next year's budget:
1) Additional 27 new full-time positions and 1 position upgrade 2) New animal control shelter contract
3) Additional funding for capital improvements
Amendments to the City budget
The first mid -year amendment to the City's operating budget addresses budgetary variances that are found in the actual results for the first quarter ending September 30, 2025. An additional $800 thousand general fund reserves were appropriated to the Potrero Phase 2 capital project, a priority project to the City. This amount has been committed in the fund balance of the general fund in this report. 18

Recent economic reports
The unemployment rate for the City of Beaumont as of August 2025 is 5.2% slightly higher than the 5% in August of 2024.

Building permit applications for single family units were assumed in the adopted budget for fiscal year 2026 to increase by 66 percent and decrease for commercial by 12 percent, a higher level than the average annual decrease of 6 percent since 2020. However, through the first quarter of fiscal year 2026, applications decreased 71 percent compared with the same period last year.

Adoption of the State budget
In June 2025, the State adopted its operating budget for the fiscal year ending June 30, 2026. California's general fund and overall budget outlook for 2025-26 are weaker than initially projected: the state is facing a structural deficit in the range of $12 billion or more. The enacted budget for 2025-26 continues to draw on reserves, shift funds, borrow internally and make program adjustments to balance the year. If state grants become more competitive or funding criteria change (because of budget pressure), the City may face higher competition for state grant programs that support the five-year CIP.

As far as the City is aware, there is no jeopardy to city funding or grants in relation to the state's budget deficit.

Pension plan changes
The City provides pension benefits to its employees through CaIPERS, a cost -sharing defined benefit plan.

CaIPERS reported preliminary investment returns of 11.6 percent for fiscal year 2025, significantly above the assumed 6.8 percent return rate. These favorable variances are not yet reflected in the annual valuation but are expected to reduce the City's unfunded liability over time.

The 2025 Asset Liability Management (ALM) review proposes maintaining the discount rate at 6.8 percent, increasing inflation to 2.5 percent, and raising wage growth assumptions to 3 percent. Minor mortality adjustments are also anticipated, with final approval in November. The effect of these changes on the City's required contributions is not yet known.

Contacting the City's Financial Management
The purpose of management's discussion and analysis (MD&A) is to help City residents and other readers understand what the financial statements and notes in this financial report say about the City's financial health and why it has changed since last year. It contains information drawn from those other parts of the report, accompanied by explanations informed by the finance staff's knowledge of the City's finances.

If you have questions about this report or require further information, contact the Finance Department at finance(abeaumontca.gov or 951-572-3236.
19

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Government -Wide Financial Statements

CITY OF BEAUMONT
Statement of Net Position
June 30, 2025
Primary Government
ASSETS
Current assets:

Cash and investments
Restricted cash and investments
Receivables:

Accounts, net
Interest
Intergovernmental
Leases
Prepaid items
Total current assets
Noncurrent assets:

Restricted cash and investments with fiscal agent
Restricted investment in CFDs
Capital assets:

Nondepreciable
Depreciable, net
Total capital assets, net
Total noncurrent assets
Total assets

DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows
Total deferred outflows of resources
Governmental Business -Type
Activities Activities
Total
$ 187,283,289 $ 29,485,929 $ 216,769,218
4,372,256 - 4,372,256
678,180 1,919,482 2,597,662
722,564 - 722,564
7,069,556 84,163 7,153,719
1,635,418 - 1,635,418
659,345 12,332 671,677
202,420,608
4,103,821
63,034,565
70,429,325
262,451, 782
332,881,107
400,019,493
31,501,906 233,922,514
4,284
9,810,357
181,858,632
191,668,989 524,550,096
191,673,273 591,692,766
4,108,105
63,034,565
80,239,682
444,310,414
602,440,101 223,175,179 825,615,280
9,842,287
1,253,718 11,096,005
9,842,287 1,253,718 11,096,005
See accompanying Notes to the Basic Financial Statements 20

CITY OF BEAUMONT
Statement of Net Position (Continued)
June 30, 2025
Primary Government

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities
Salaries payable and related liabilities
Interest payable
Deposits payable
Unearned revenue
Compensated absences - due within one year
Claims payable - due within one year
Long-term liabilities - due within one year
Total current liabilities
Long-term liabilities:

Compensated absences - due in more than one year
Claims payable - due in more than one year
Long-term liabilities - due in more than one year
Net pension liability
Total long-term liabilities
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows
Leases
Total deferred inflows of resources

NET POSITION
Net investment in capital assets
Restricted for:

Special projects
Debt service
Capital projects
Pension trust
Total restricted
Unrestricted
Total net position
Governmental Business -Type
Activities Activities
Total
$ 8,977,346 $ 2,696,838 $ 11,674,184
747,010 97,674 844,684
675,270 1,173,241 1,848,511
5,185,117 1,686 5,186,803
13,192,790 1,105,708 14,298,498
909,493 168,679 1,078,172
332,771 - 332,771
4,762,258 2,168,048 6,930,306
34,782,055 7,411,874 42,193,929
2,728,478
1,847,890
60,008,695
23,472,702
88,057,765 79,943,633 168,001,398
313,260
76,827,698
2,802,675
3,041,738
1,847,890
136,836,393
26,275,377
122,839,820
319,833
1,669,193
1,989,026
87,355,507 210,195,327
18,452
338,285
1,669,193
18,452 2,007,478
271,684,799 112,572,835 384,257,634
39,405,940
63,034,565
72,198,680
4,372,256
39,405,940
63,034,565
17,206,609 89,405,289
4,372,256
179, 011, 441 17, 206, 609 196, 218, 050
36,757,302 7,275,494 44,032,796
$ 487,453,542 $ 137,054,938 $ 624,508,480
See accompanying Notes to the Basic Financial Statements 21

CITY OF BEAUMONT
Statement of Activities
For the year ended June 30, 2025
Procram Revenues
Functions/Programs
Primary government:

Governmental activities:

General government
Public safety
Public works
Community development
Community services
Interest on long-term debt
Total governmental activities
Business -type activities:

Sewer
Transit
Total business -type activities
Total primary government
Expenses
$ 14,274,771
29,062,548
10,790,631
10,029,825
8,156,073
1,834,423
74,148,271
20,031,796
4,135,850
24,167,646
Charges for
Services
$ 3,101,375
1,665,394
798,677
3,074,389
105,680
8,745,515
15,791,543
58,668
15,850,211
$ 98,315,917 $ 24,595,726
Operating
Grants and
Contributions
$ 2,253,345
845,525
1,619,226
64,559
4,782,655
Capital
Grant and
Contributions
$ 151,522
5,305,049
10,533,475
436,745
5,335,641
21,762,432
Total
$ 5,506,242
7,815,968
12,951,378
3,575,693
5,441,321
35,290,602
- 1,567,953 17,359,496
2,199,300 5,667,038 7,925,006
2,199,300 7,234,991 25,284,502
$ 6,981,955 $ 28,997,423 $ 60,575,104
See accompanying Notes to the Basic Financial Statements 22

CITY OF BEAUMONT
Statement of Activities (Continued)
For the year ended June 30, 2025
Net (Expense) Revenue
and Change in Net Position
Functions/Programs
Primary government:

Governmental activities:

General government
Public safety
Public works
Community development
Community services
Interest and fiscal charges
Total governmental activities
Business -type activities:

Sewer
Transit
Total business -type activities
Total primary government
General revenues:

Taxes:

Property taxes
Property taxes in -lieu of motor vehicle taxes
Sales taxes
Vehicle License
Utility users tax
Franchise tax
Transient occupancy tax
Business licenses
Other taxes
Total taxes
Other revenue
Loss on disposal of capital assets
Investment earnings
Miscellaneous
Transfers
Total general revenues and transfers
Change in net position
Net position:

Beginning of year
Governmental Business -Type
Activities Activities
$ (8,768,529) $
(21,246,580)
2,160,747
(6,454,132)
(2,714,752)
(1,834,423)
(38,857,669)
Total
$ (8,768,529)
(21,246,580)
2,160,747
(6,454,132)
(2,714,752)
(1,834,423)
- (38,857,669)
(2,672,300) (2,672,300)
3,789,156 3,789,156
1,116,856 1,116,856
(38,857,669) 1,116,856 (37,740,813)
8,880,402
8,892,724
35,903,161
90,529
2,790,575
3,358,769
441,328
431,759
896,446
8,880,402
8,892,724
35,903,161
90,529
2,790,575
3,358,769
441,328
431,759
896,446
61,685,693 - 61,685,693
300,000 300,000
(19,219) (19,219)
11,589,261 1,123, 702 12, 712,963
86,924 227,882 314,806
(2,047,090) 2,047,090 -
71,614,788 3,379,455 74,994,243
32,757,119 4,496,311 37,253,430
454,696,423 132,558,627 587,255,050
End of year $ 487,453,542 $ 137,054,938 $ 624,508,480
See accompanying Notes to the Basic Financial Statements 23

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Governmental Fund Financial Statements

GOVERNMENTAL FUND FINANCIAL STATEMENTS
Major Governmental Funds of the City are outlined below:

General Fund - This fund accounts for all revenues and expenditures used to finance the traditional services associated with a municipal government which are not accounted for in the other funds. In Beaumont, these services include general government, public safety, public works, community development, community service, refuse and self-insurance.

Development Impact Fees Special (DIF) Special Revenue Fund - This fund is used to account for the receipt and expenditure of mitigation fees on specified capital projects.

Community Facilities Districts (CFD) Capital Projects Fund - This fund is used to account for bond and annual tax assessments proceeds to be used for the construction and implementation of off -site infrastructure improvements. In addition, the fund accounts for services and administration assessments received annually.

General Capital Projects Fund - This fund is used to account for financial resources to be used for acquisition, construction and improvement of the city's major capital facilities.

Beaumont Financing Authority/Beaumont Public Improvement Authority Debt Service Funds - These funds are authorized to borrow money for the purpose of financing the acquisition of bonds, notes and other obligations of, or for the purpose of making loans to the City and/or to refinance outstanding obligations of the City.
24

CITY OF BEAUMONT
Balance Sheet
Governmental Funds
June 30, 2025
Special Revenue Fund Capital Pro'ects Funds
General Development Community Facilities
Fund Impact Fees (DIF) District (CFD)
ASSETS
Cash and investments
Cash and investments with fiscal agent
Restricted investments in Section 115 Trust
Investment in CFDs
Receivables:

Accounts, net
Interest
Lease
Due from other governments
Prepaids
Total assets

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities
Accrued payroll and related liabilities
Deposits payable
Unearned revenue
Total liabilities
Deferred Inflows of Resources:

Leases
Total deferred inflows of resources
Fund Balances:

Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balances
Total liabilities, deferred inflows
of resources and fund balances
$ 53,940,594 $ 38,249,096 $ 5,270,302
4,372,256
599,685
722,564
1,635,418
6,063,526
422,889
76,288
$ 67,756,932 $ 38,325,384 $ 5,270,302
$ 5,936,380 $
747,010
5,057,292
720,841
12,461,523
1,669,193
1,669,193
422,889
4,372,256
7,687, 325
569,092
40,574,654
53,626,216
491,676 $
10,599,408
11,091,084
27,234,300
5,270,302
27,234,300 5,270,302
$ 67,756,932 $ 38,325,384 $ 5,270,302
See accompanying Notes to the Basic Financial Statements 25

CITY OF BEAUMONT
Balance Sheet (Continued)
Governmental Funds
June 30, 2025
ASSETS
Cash and investments
Cash and investments with fiscal agent
Restricted investments in Section 115 Trust
Investment in CFDs
Receivables:

Accounts, net
Interest
Lease
Due from other governments
Prepaids
Total assets

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities
Accrued payroll and related liabilities
Deposits payable
Unearned revenue
Total liabilities
Deferred Inflows of Resources:

Leases
Total deferred inflows of resources
Fund Balances:

Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balances
Capital Pro'ects Funds
General
Capital Pro'ects
Debt Service Fund
Beaumont
Financing Authority
69,007,495 $
392,375
4,103,821
63,034,565
236,456
Other
Governmental
Funds
Total
Governmental
Funds
$ 13,592,113 $ 180,059,600
4,103,821
4,372,256
63,034,565
2,207
613,655
678,180
722,564
1,635,418
7,069,556
659,345
69,399,870 $ 67,374,842 $ 14,207,975 $ 262,335,305
2,471,492 $
2,471,492
66,928,378
66,928,378
Total liabilities, deferred inflows
of resources and fund balances $
236,456
67,138,386
67,374,842
$ 35,969 $ 8,935,517
747,010
127,825 5,185,117
1,872,541 13,192,790
2,036,335 28,060,434
12,171, 640
12,171, 640
1,669,193
1,669,193
659,345
116,186, 884
74,615,703
569,092
40,574,654
232,605,678
69,399,870 $ 67,374,842 $ 14,207,975 $ 262,335,305
See accompanying Notes to the Basic Financial Statements 26

CITY OF BEAUMONT
Reconciliation of the Governmental Funds Balance Sheet
to the Government -Wide Statement of Net Position
June 30, 2025
Total Fund Balances - Total Governmental Funds $ 232,605,678 Capital assets used in governmental activities were not financial resources and therefore, were not reported in governmental funds.

Capital assets, nondepreciable
Capital assets, depreciable/amortized
Less internal service fund capital assets
Long-term liabilities were not due and payable in the current period and therefore, were not reported in the governmental funds.

Compensated absences
Claims payable
Long-term liabilities
Interest payable
Aggregate collective net pension liability is not due and payable in the current period and therefore is not required to be reported in the governmental funds.

Pension -related deferred outflows/inflows of resources in the governmental activities were not financial resources (uses) and therefore were not reported in the Governmental Funds Balance Sheet.

Pension -related deferred outflows of resources
Pension -related deferred inflows of resources
Internal service funds are used by management to charge the costs of certain activities, for equipment and risk management, to individual funds. The assets and liabilities of the internal service funds must be added to the Statement of Net Position. 70,429,325
262,451,782
(3,469,358)
(3,637,971)
(2,180,661)
(64,770,953)
(675,270)
(23,472,702)
9,842,287
(319,833)
10,651,218
Net Position of Governmental Activities $ 487,453,542
See accompanying Notes to the Basic Financial Statements 27

CITY OF BEAUMONT
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2025
Special Revenue Fund Capital Projects Funds
General Development Community Facilities
Fund Impact Fees (DIF) District (CFD)

REVENUES
Taxes
Franchise fees
Intergovernmental
License and permits
Fines and forfeitures
Assessments levied
Use of money and property
Charges for services
Other revenues
Total revenues

EXPENDITURES
Current:

General government
Public safety
Public works
Community development
Community services
Capital outlay
Debt service:

Principal
Interest, fiscal, and other charges
Total expenditures
$ 47,070,984 $ - $
3,358,769 -
9,014,653 -
3,477,439 6,219,813
330,046 -
896,446 -
4,031,830 1,698,621
1,614,849 -
2,998,469 -
72,793,485 7,918,434
13,302,742
27,086,384
5,139,580
3,049,103
7,308,053
511,065
640,952
30,500
669,994
475,152
1,145,146
214,799
5,693,298
57,068,379 - 5,908,097

REVENUES OVER
(UNDER) EXPENDITURES 15,725,106

OTHER FINANCING SOURCES (USES)
Lease acquisition
Subscription acquisition
Proceeds from sale of property
Transfers in
Transfers (out)
Total other financing sources (uses)
7,918,434 (4,762,951)
447,840 - -
765,777 -
105 -
7,028,831 -
(18,389,656) (8,990,571) (2,583,548)
(10,147,103)
Net changes in fund balances 5,578,003
(8,990,571) (2,583,548)
(1,072,137) (7,346,499)

FUND BALANCES
Beginning of year 48,048,213 28,306,437 12,616,801
End of year
$ 53,626,216 $ 27,234,300 $ 5,270,302
See accompanying Notes to the Basic Financial Statements 28

CITY OF BEAUMONT
Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Governmental Funds
For the year ended June 30, 2025
Capital Pro'ects Funds Debt Service Fund Other Total
General Beaumont Governmental Governmental
Capital Pro'ects Financing Authority Funds Funds

REVENUES
Taxes
Franchise fees
Intergovernmental
License and permits
Fines and forfeitures
Assessments levied
Use of money and property
Charges for services
Other revenues
Total revenues

EXPENDITURES
Current:

General government
Public safety
Public works
Community development
Community services
Capital outlay
Debt service:

Principal
Interest, fiscal, and other charges
Total expenditures

REVENUES OVER
(UNDER) EXPENDITURES
732,866
2,275,394
5,000,000
8,008,260 2,586,319 16,193,794 108,645,438
2,286,319
300,000
$ 9,225,548 $ 56,296,532
3,358,769
6,091,486 15,839,005
13,809 9,711,061
330,046
1,566,440
580,564 11,347,880
1,614,849
282,387 8,580,856
24,425,124
8,711 13,311,453
501,188 27,587,572
5,354,379
1,075,973 9,818,374
79 7,308,132
216,843 25,153,032
4,035,000 - 4,675,952
2,215,474 - 2,245,974
24,425,124 6,250,474
(16,416,864) (3,664,155)
1,802,794 95,454,868
14,391,000 13,190,570

OTHER FINANCING SOURCES (USES)
Lease acquisition - 447,840
Subscription acquisition - 765,777
Proceeds from sale of property - 105
Transfers in 32,287,675 - 39,316,506
Transfers (out) - (11,399,821) (41,363,596)
Total other financing sources (uses) 32,287,675 (11,399,821) (833,368) Net changes in fund balances 15,870,811 (3,664,155) 2,991,179 12,357,202

FUND BALANCES
Beginning of year 51,057,567 71,038,997 9,180,461 220,248,476 End of year $ 66,928,378 $ 67,374,842 $ 12,171,640 $ 232,605,678 See accompanying Notes to the Basic Financial Statements 29

CITY OF BEAUMONT
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government -Wide Statement of Activities For the Year Ended June 30, 2025
Net Change in Fund Balances - Total Governmental Funds $ 12,357,202 Governmental funds report capital outlays as expenditures. However, in the Government -Wide Statement of Activities, the costs of those assets are allocated over their estimated useful lives as depreciation expense.

Capital outlay capitalized (net of Internal Service Fund) Depreciation expense (net of Internal Service Fund)
The issuance of long-term liabilities provided current financial resources to governmental funds, but issuing debt increased long-term liabilities in the Government -Wide Statement of Net Position. Repayment of long-term liabilities was an expenditure in governmental funds, but the repayment reduced long-term liabilities in the Government -Wide Statement of Net Principal payments on long term liabilities
Lease/SBITA acquisition
Premium amortization
Change in Interest payable
Governmental funds report revenues and expenditures primarily pertaining to long-term liabilities, which are not reported in the statement of activities. At the government -wide level, these activities are reported in the statement of net position. This is the net expenditure reported in the governmental funds, which is not reported in the statement of activities. 26, 014, 329
(8,231,155)
4,675,952
(1,213,617)
78,071
333,480
Pension related net adjustments (1,424,890)
Certain long-term assets and liabilities were reported in the Government -Wide Statement of Activities, but they did not require the use of current financial resources. Therefore, long-term assets and liabilities were not reported as expenditures in governmental funds. These amounts represented the changes in long-term liabilities from prior year.

Changes in compensated absences
Changes in claims payable
Internal service funds are used by management to charge the costs of certain activities, for equipment and risk management, to individual funds. The net revenues (expenses) of the internal service funds are reported with governmental activities. (126, 880)
(636,705)
931,332
Change in Net Position of Governmental Activities $ 32,757,119 See accompanying Notes to the Basic Financial Statements 30

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Proprietary Fund Financial Statements

PROPRIETARY FUND FINANCIAL STATEMENTS
Enterprise Funds:

Sewer Fund - The Sewer Fund was established to receive and disburse funds collected through sewer services charge fees and sewer facilities charges. These funds are used for the operation and maintenance of sewer disposal facilities and the financing of construction outlet sewers.

Transit Fund - The Transit Fund is intended to show the financial position and the operation and maintenance of the City's fixed route and dial -a -ride transit systems.

Internal Service Fund - The Internal Service Fund was established to account for future replacement of vehicles, equipment, and IT infrastructure. These funds are used to track goods and services shifted between departments on a cost reimbursement basis. 31

CITY OF BEAUMONT
Statement of Fund Net Position
Proprietary Funds
June 30, 2025
ASSETS
Current assets:

Cash and investments
Receivables:

Accounts, net
Due from other governments
Prepaids
Total current assets
Noncurrent assets:

Restricted cash and investments with fiscal agent
Capital assets:

Nondepreciable
Depreciable
Less: accumulated depreciation and amortization
Business -type Activities -
Enterprise Funds
Sewer Transit
Fund Fund
Total
Governmental
Activities
Internal Service
Fund
27,587,252 $ 1,898,677 $ 29,485,929 $ 7,223,689
1,919,482 - 1,919,482
13,791 70,372 84,163
11,345 987 12,332
29,531,870 1,970,036 31,501,906 7,223,689
4,284
8,721,772
304,765,266
(131,446,207)
Total capital assets 182,040,831
Total noncurrent assets 182,045,115
Total assets 211,576,985

DEFERRED OUTFLOWS OF RESOURCES
Pension -related deferred outflows 752,230
Total deferred outflows of resources 752,230

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities
Salaries payable and related liabilities
Interest payable
Unearned revenue
Deposits payable
Compensated absences - due within one year
Long-term liabilities- due within one year
Total current liabilities
Noncurrent liabilities:

Compensated absences - due in more than one year
Long-term liabilities - due in more than one year
Net pension liability
1,847,000
49,645
1,173,227
538,348
1,686
98,386
2,165, 727
4,284
1,088,585 9,810,357
14,464,449 319,229,715
(5,924,876) (137,371,083)
9,628,158 191, 668,989
553,873
4,154,839
(1,239,354)
3,469,358
9,628,158 191,673,273 3,469,358
11,598,194 223,175,179 10,693,047
501,488 1,253,718
501,488 1,253,718
849,838 2,696,838
48,029 97,674
14 1,173,241
567,360 1,105,708
1,686
70,293 168,679
2,321 2,168,048
41,829
5,874,019 1,537,855 7,411,874 41,829
182,716
76,819,338
1,681,605
Total noncurrent liabilities 78,683,659
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Pension -related deferred inflows
Total deferred inflows of resources

NET POSITION (DEFICIT)
Net investment in capital assets
Restricted for capital projects
Unrestricted
Total net position
130,544
8,360
1,121,070
313,260
76,827,698
2,802,675
1,259,974 79,943,633
84,557,678 2,797,829 87,355,507 41,829
11,072 7,380 18,452
11,072 7,380 18,452
102,955,358 9,617,477 112,572,835 3,469,358
17,206,609 17,206,609
7,598,498 (323,004) 7,275494 7,181,860
$ 127,760,465 $ 9,294,473 $ 137,054,938 $ 10,651,218
See accompanying Notes to the Basic Financial Statements 32

CITY OF BEAUMONT
Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds
For the year ended June 30, 2025

OPERATING REVENUES
Charges for services
Other revenue
Business -type Activities -
Enterprise Funds
Sewer Transit
Fund Fund
Total
Governmental
Activities
Internal Service
Fund
$ 15,297,285 $ 58,668 $ 15,355,953 $ 1,585,018
94,492 90,190 184,682
Total operating revenues 15,391,777 148,858 15,540,635 1,585,018

OPERATING EXPENSES
Salaries
Fringe benefits
Administration
Contract services
Fuels, lubricants, and maintenance
Replacement expense
Supplies
Office
Utilities
Depreciation and amortization
Total operating expenses

OPERATING INCOME (LOSS)

NONOPERATING REVENUES (EXPENSES)
Local transportation funds
Lease revenue
Gain on sale of capital assets
Loss on disposal of capital assets
Mitigation fees
Intergovernmental
Investment earnings
Interest expense
Total nonoperating revenues (expenses)
Income (loss) before transfers and
capital contributions

TRANSFERS AND CAPITAL CONTRIBUTIONS
Riverside County Transportation Commission
Developer capital contributions
Transfers in
Transfers (out)
Total transfers and capital contributions
Change in net position

NET POSITION
Beginning of year
End of year
1,848,317 1,720,145 3,568,462
698,929 704,140 1,403,069
327,715 163,653 491,368
1,762,569 36,954 1,799,523
720,431 161,203 881,634 -
- - - 369,623
891,651 49,708 941,359 -
61,173 36,304 97,477 -
1,281,921 105,704 1,387,625 -
9,429,702 1,157,821 10,587,523 591,000
17,022,408 4,135,632 21,158,040 960,623
(1,630,631) (3,986,774) (5,617,405) 624,395
1,839,921 1,839,921
43,200 43,200 -
835 835 10,355
(19,219) (19,219) -
494,258 - 494,258
359,379 359,379 -
1,068,547 55,155 1,123,702 296,582
(3,009,388) (218) (3,009,606) -
(1,446,583) 2,279,053 832,470 306,937
(3,077,214) (1,707,721) (4,784,935) 931,332
1,567,953
2,047,090
5,666,203
5,666,203
1,567,953
2,047,090
3,615,043 5,666,203 9,281,246
537,829 3,958,482 4,496,311 931,332
127,222,636 5,335,991 132,558,627 9,719,886
$ 127,760,465 $ 9,294,473 $ 137,054,938 $ 10,651,218
See accompanying Notes to the Basic Financial Statements 33

CITY OF BEAUMONT
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2025
Business -type Activities -
Enterprise Funds
Sewer Transit
Fund Fund
Total
Governmental
Activities
Internal Service
Fund

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users $ 15,583,347 $ 110,212 $ 15,693,559 $ 1,585,018 Payments to suppliers for goods and services (4,185,267) 401,071 (3,784,196) (327,459) Payments for general and administrative expenses (2,727,068) (2,580,249) (5,307,317) - Cash received from developers and others 94,492 90,190 184,682 Other cash reciepts - 43,200 43,200
Net cash provided by (used in) operating activities 8,765,504 (1,935,576) 6,829,928 1,257,559

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Local transportation funds
Proceeds from other governmental entities
Transfers in
Transfers (out)
Net cash provided by noncapital
financial activities

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Acquisition of capital assets
Proceeds from disposition of capital assets
Mitigation fees
Developer capital contributions
Capital grants received
Payment of principal on long-term liabilities
Payment of interest on long-term liabilities
Net cash used in capital
and related financing activities

CASH FLOWS FROM INVESTING ACTIVITIES
Investment income
Net cash provided by investing activities
Net change in cash and cash equivalents

CASH AND CASH EQUIVALENTS
Beginning of year
End of year

RECONCILATION TO STATEMENT OF NET POSITION
Cash and investments
Restricted cash and investments with fiscal agent
Total cash and cash equivalents
2,047,090
1,839,921 1,839,921
2,005,584 2,005,584
2,047,090
2,047,090 3,845,505 5,892,595
(4,250,603) (5,733,079) (9,983,682) (754,695)
835 835 10,355
494,258 - 494,258 -
1,570,138 - 1,570,138
5,666,202 5,666,202
(1,557,423) (6,794) (1,564,217)
(3,580,131) (204) (3,580,335)
(7,323,761) (73,040) (7,396,801) (744,340)
1,069,810 55,155 1,124,965 296,582
1,069,810 55,155 1,124,965 296,582
4,558,643 1,892,044 6,450,687 809,801
23,032,893 6,633 23,039,526 6,413,888
$ 27,591,536 $ 1,898,677 $ 29,490,213 $ 7,223,689
$ 27,587,252 $ 1,898,677 $ 29,485,929 $ 7,223,689
4,284 - 4,284 -
$ 27,591,536 $ 1,898,677 $ 29,490,213 $ 7,223,689
See accompanying Notes to the Basic Financial Statements 34

CITY OF BEAUMONT
Statement of Cash Flows (Continued)
Proprietary Funds
For the year ended June 30, 2025

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET

CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
Operating income (loss)
Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

Depreciation and amortization
Other adjustments
Changes in current assets, deferred outflows of resources, liabilities, and deferred inflows of resources:

Accounts receivable
Due from other governments
Prepaids
Pension -related deferred outflows of resources
Accounts payable and accrued liabilities
Salaries payable and related liabilities
Unearned revenue
Deposits payable
Compensated absences
Aggregate net pension liability
Pension -related deferred inflows of resources
Total adjustments
Net cash provided by (used in) operating activities
Business -type Activities -
Enterprise Funds
Sewer Transit
Fund Fund
Total
Governmental
Activities
Internal Service
Fund
$ (1,630,631) $ (3,986,774) $ (5,617,405) $ 624,395
9,429,702
1,157,821 10,587,523
43,200 43,200
591,000
693,960 51,544 745,504
(2,580) - (2,580)
(11,345) 13 (11,332) 335
115,252 134,666 249,918
542,137 790,931 1,333,068 41,829
8,216 11,523 19,739
(405,318) (405,318)
1,686 1,686
51,325 (5,928) 45,397
(11,445) (120,500) (131,945)
(15,455) (12,072) (27,527)
10,396,135 2,051,198 12,447,333 633,164
$ 8,765,504 $ (1,935,576) $ 6,829,928 $ 1,257,559

NONCASH FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Assets acquired with leases $
Loss on disposal of capital assets
114,576 $ 12,010 $ 126,586 $
(19,219) (19,219)
See accompanying Notes to the Basic Financial Statements 35

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Fiduciary Fund Financial Statements

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FIDUCIARY FUND FINANCIAL STATEMENTS
Custodial Funds - To account for collections received from special assessment district and their disbursement to bondholders.
36

CITY OF BEAUMONT
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
Custodial Funds
ASSETS
Cash and investments
Restricted cash and investments with fiscal agent
Due from other governments
Total assets

LIABILITIES
Interest payable
Deposits payable
Due to other governments
Due to bondholders
Total liabilities

NET POSITION (DEFICIT)
Restricted for:

Individuals, organizations and other governments
Total net position
$ 7,920,536
36,979,612
265,608
45,165,756
4,004,622
142,987
63,034,565
189,293,459
256,475,633
(211,309,877;
$ (211,309,877)
See accompanying Notes to the Basic Financial Statements 37

CITY OF BEAUMONT
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2025
Custodial Funds

ADDITIONS
Investment income
Assessments
Bond proceeds
Payments from City
Total additions

DEDUCTIONS
Administration
Payments to trustee
Interest expense
Payments to the City
Bond proceeds to developer
Total deductions
$ 1,333,094
21,886,445
11,294,424
6,329,280
40,843,243
1,029,600
11,071,101
11,431,064
300,000
23,002,289
46,834,054
Change in net position (5,990,811)

NET POSITION (DEFICIT)
Beginning of year (205,319,066)
End of year $ (211,309,877)
See accompanying Notes to the Basic Financial Statements 38

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Notes to the Basic Financial Statements

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CITY OF BEAUMONT
Index to the Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 1 — Reporting Entity and Summary of Significant Accounting Policies 40 A. Reporting Entity 40
B. Basis of Accounting and Measurement Focus 42
C. Cash, Cash Equivalents and Investments 46
D. Restricted Cash and Investments 47
E. Prepaids and Inventory 47
F. Capital Assets 47
G. Long -Term Debt 48
H. Compensated Absences 48
I. Pensions 49
J. Property Taxes 49
K. Net Position 50
L. Fund Balances 50
M. Use of Estimates 51
N. Fair Value Measurement 51
O. Implementation of New GASB Pronouncements 52
P. Upcoming Governmental Standards Implementation 52
Note 2 — Cash and Investments 53
A. Summary 53
B. Investments 55
C. External Investment Pool 56
D. Investment in CFD Bonds 56
E. Risk Disclosures 57
Note 3 — Receivables 59
A. Governmental Activities 59
Note 4 — Interfund Balances and Transactions 60
A. Transfers 60
Note 5 — Capital Assets 61
A. Governmental Activities 61
B. Business -Type Activities 62
Note 6 — Long -Term Liabilities 63
A. Governmental Activities 63
B. Business -Type Activities 68
Note 7 — Debt Without City Commitment 70
39

CITY OF BEAUMONT
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025
Note 8 — Compensated Absences 72
A. Governmental Activities 72
B. Business -Type Activities 72
Note 9 — Risk Management 72
Note 10 — Pension Plans 73
Note 11 — Other Required Disclosures 82
A. Deficit Fund Balances 82
B. Expenditures Exceeding Appropriations 82
Note 12 — Equity Classification 83
A. Fund Balances 83
B. Net Position 84
Note 13 — Commitments and Contingencies 84
A. Litigation 84
B. Grants 85
C. Construction Commitments 85
D. WRCOG Related Settlement Agreement 85
40

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 1 - Reporting Entity and Summary of Significant Accounting Policies The basic financial statements of the City of Beaumont, California (the "City") have been prepared in conformity with accounting principles generally accepted of the United States of America ("US 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. Reporting Entity
The City was incorporated November 18, 1912 under the general laws of the State of California. The City operates under a Council -Manager form of government and provides basic local governmental services including public safety (police and fire), maintenance and construction of public improvements, cultural, recreation, planning, zoning, transportation, sewer and general administration.

In evaluating how to define the City for financial reporting purposes, management has considered all potential component units. The primary criteria for including a potential component unit within the reporting entity are the governing body's financial accountability and a financial benefit or burden relationship and whether it is misleading to exclude. A primary government is financially accountable and shares a financial benefit or burden relationship if it appoints a voting majority of an organization's governing body and it is able to impose its will on the organization, or if there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on the primary government.

A primary government may also be financially accountable if an organization is fiscally dependent on the primary government regardless of whether the organization has a separately elected governing board, a governing board appointed by a higher level of government, or a jointly appointed board, and there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on the primary government.

Blended Component Units
The financial reporting entity consists of the primary government, the City, and its component units. In addition, component units can be other organizations for which the primary government is accountable and their exclusion would cause the reporting entity's financial statements to be misleading or incomplete.

Blended component units, although legally separate entities, are, in substance part of the government's operation and so data from these units are combined with data of the primary government.
41

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 1 - Reporting Entity and Summary of Significant Accounting Policies (Continued) A. Reporting Entity (Continued)
Although the following are legally separate from the City, they have been "blended" as though they are part of the City because the component unit's governing body is substantially the same as the City's and there is a financial benefit or burden relationship between the City and the component unit; management of the City has operational responsibilities for the component units; and/or the component units provide services entirely, or almost entirely, to the City or otherwise exclusively, or almost exclusively, benefits the City, even though it does not provide services directly to it.

The following specific criteria were used in determining the status of the component unit:
• Members of the City Council also act as the governing body of the component unit. • The City and the component unit are financially interdependent. • The component unit is managed by employees of the City. A portion of the City's salary and overhead expenses is billed to the component unit each year.

Beaumont Financing Authority
The Beaumont Financing Authority (the "BFA") was founded by the execution of a joint exercise of powers agreement dated April 1, 1993, by the City of Beaumont and the former Beaumont Redevelopment Agency. The BFA is authorized to issue revenue bonds to be repaid from the proceeds of public obligations and to provide financing and refinancing for public capital improvements of public entities, including the City, the former Redevelopment Agency, and the Community Facilities Districts. The City Council of the City of Beaumont serves as the governing board for the BFA and the City has fiduciary responsibility for the BFA. The BFA exclusively benefits the City. Transactions are reported in the Beaumont Financing Authority Debt Service fund. There are no separate financial statements available.

Beaumont Utility Authority
The Beaumont Utility Authority (the "BUA") was established on May 15, 2001 by a joint powers agreement between the City of Beaumont and the former Beaumont Redevelopment Agency.

The BUA was created to provide a binding framework for the relationship between the City's utility enterprise fund and the City's General Fund, to address possible impacts of Proposition 218, and to provide greater fiscal strength for the City's fund. The City Council serves as the governing board for the BUA and the City has operational responsibility for the BUA.

Transactions are reported in an enterprise fund. There are no separate financial statements available.
42

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 1 - Reporting Entity and Summary of Significant Accounting Policies (Continued) A. Reporting Entity (Continued)
Beaumont Parking Authority
The Beaumont Parking Authority (the "BPA") was established on May 1, 2018 by the City of Beaumont City Council through resolution 2018-12 that declared a need fora parking authority in the city. The BPA was created to establish the Beaumont Public Improvement Authority though a joint powers agreement. The City Council serves as the governing board for the BPA and the City has operational responsibility for the BPA. There was no financial activity for the BPA during the fiscal year ending June 30, 2025.

Beaumont Public Improvement Authority
The Beaumont Public Improvement Authority (the "BPIA") was established on May 15, 2018 by a joint powers agreement between the City of Beaumont and the Beaumont Parking Authority. The BPIA is authorized to issue revenue bonds to be repaid from the proceeds of wastewater services and to provide financing and refinancing for public capital improvements of the City's wastewater system The City Council serves as the governing board for the BPIA and the City has operational responsibility for the BPIA. There was no financial activity for the BPIA since inception through the fiscal year ending June 30, 2025.

B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self -balancing accounts that comprise its assets, liabilities, fund balance, revenues, and expenditures, or expenses as appropriate.

Government resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled.

The Statement of Net Position reports separate sections for Deferred Outflows of Resources, and Deferred Inflows of Resources, when applicable.

Deferred Outflows of Resources represent outflows of resources (consumption of net assets) that apply to future periods and therefore, will not be recognized as an expense until that time.

Deferred Inflows of Resources represent inflows of resources (acquisition of net assets) that apply to future periods and therefore, are not recognized as revenue until that time. 43

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 1 - Reporting Entity and Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) 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 the government -wide financial statements.

These financial statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the City's assets, liabilities and deferred amounts, 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.

Certain types of transactions are reported as program revenues within three categories in the statement of activities:
➢ Charges for services
➢ Operating grants and contributions
➢ Capital grants and contributions
Certain eliminations have been made in regards to interfund activities, payables and receivables. All internal balances in the statement of net position have been eliminated except those representing balances between the governmental activities and the business -type activities, which are presented as internal balances and eliminated in the total primary government column. However, those transactions between governmental and business -type activities have not been eliminated. The following interfund activities have been eliminated:
> Due from/to other funds
➢ Transfers in/out
Governmental Fund Financial Statements
Governmental fund financial statements include a balance sheet and a statement of revenues, expenditures and changes in fund balances for all major governmental funds and non -major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences between fund balance as presented in these statements to the net position presented in the government -wide financial statements. The City has presented all major funds that meet the applicable criteria.
44

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 1 - Reporting Entity and Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the balance sheet. The statement of revenues, expenditures and changes in fund balances present increases (revenue and other financing sources) and decreases (expenditures and other financing uses) in fund balances. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. 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.

Revenues are recognized as soon as they are both "measurable" and "available". Revenues are considered to be available when they are collectible within the current period as soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the providers have been met.

Major governmental funds of the City are outlined below:

General Fund - This fund accounts for all revenues and expenditures to finance the traditional services associated with a municipal government which are not accounted for in the other funds. In the City, these services include general government, public safety, public works, community development, community service, and refuse.

Development Impact Fees (DIF) Special Revenue Fund - This fund is used to account for the receipt and expenditure of mitigation fees on specified capital projects.

Community Facilities Districts (CFD) Capital Projects Fund - This fund is used to account for bond and annual tax assessments proceeds to be used for the construction and implementation of off -site infrastructure improvements.

General Capital Projects Fund - This fund is used to account for financial resources to be used for acquisition, construction and improvement of the city's major capital facilities. 45

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 1 - Reporting Entity and Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Beaumont Financing Authority/Beaumont Public Improvement Authority Debt Service Funds - These funds are authorized to borrow money for the purpose of financing the acquisition of bonds, notes and other obligations of, or for the purpose of making loans to the City and/or to refinance outstanding obligations of the City.

Other Governmental Funds - Other Governmental Funds is the aggregate of all the non - major governmental funds.

Proprietary Fund Financial Statements
Proprietary fund financial statements include a statement of net position, a statement of revenues, expenses and changes in net position, and a statement of cash flows for each major proprietary fund.

Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the statement of net position. The statement of revenues, expenses and changes in net position presents increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. In these funds, receivables have been recorded as revenue and provisions have been made for uncollectible amounts.

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

Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non -operating expenses.

Proprietary funds of the City are outlined below:

Enterprise Funds (major)
Sewer Fund - This fund was established to receive and disburse funds collected through sewer services charge fees and sewer facilities charges. These funds are used for the operation and maintenance of sewer disposal facilities and the financing of construction outlet sewers.

Transit Fund - The Transit Fund is intended to show the financial position and the operation and maintenance of the City's fixed route and dial -a -ride transit systems. The Transit Fund is presented separately since it is the only nonmajor proprietary fund type, it is not considered a major fund.
46

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 1 - Reporting Entity and Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Internal Service Funds
Internal Service Fund - This fund was established to account for future replacement of vehicles, equipment, and IT infrastructure. These funds are used to track goods and services shifted between departments on a cost reimbursement basis.

Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a statement of fiduciary net position and a statement of changes in fiduciary net position. The City has one type of fiduciary fund presented: a custodial fund, which is used to account for Community Facilities District assessments, debt issuances, the financing of eligible public facilities and debt service. In addition, it also includes an Evidence Fund, used to store and manage evidence collected by law enforcement agencies.

The custodial funds are used to report resources held by the City in a purely custodial capacity, which involves only the receipt, temporary investment and remittance of fiduciary resources to individuals, private organizations or other governments. Custodial funds use the economic resource measurement focus.

C. Cash, Cash Equivalents and Investments
The City pools its available cash for investment purposes. The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three months or less from the date of acquisition. Cash and cash equivalents are combined with investments and displayed as Cash and Investments.

Highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value.

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

The City participates in an investment pool managed by the State of California titled Local Agency Investment Fund (LAIF) which has invested a portion of the pool funds in structured notes and asset -backed securities. LAIF's investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these structured notes and asset -backed securities are subject to market risk as to change in interest rates.
47

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 1 - Reporting Entity and Summary of Significant Accounting Policies (Continued) C. Cash, Cash Equivalents and Investments, (Continued)
The City holds investments in California Class securities, which are primarily comprised of municipal bonds issued by the State of California and other California -based local government securities. These investments are managed in accordance with the City's investment policy.

D. Restricted Cash and Investments
Certain restricted cash and investments are held 1) for transit related activities or 2) by a fiscal agent for the redemption of bonded debt and for acquisition and construction of capital projects.

E. Prepaids and Inventory
Inventories are valued at cost using the first-in/first-out (FIFO) method and consist of repair parts.

Certain payments to vendors reflect cost applicable to future accounting periods and are recorded as prepaid items in both government -wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.

F. Capital Assets
Capital assets are valued at historical cost or estimated historical cost if actual historical cost was not available. Donated capital assets are valued at acquisition value on the date of the donation. City policy has set the capitalization threshold for reporting capital assets at $5,000.

Depreciation is recorded on a straight-line basis over estimated useful lives of the assets as follows:

Years
Buildings
Infrastructure
Machinery and equipment
Furniture and fixtures
Vehicles
Computer equipment
30 35 - 120
3-5
3-5
3 3
The City defines infrastructure as the basic physical assets that allow the City to function. The infrastructure assets include streets (including bridges, streetlights, sidewalks, culverts and curbs), sewer system (including plant, collection systems, drains, lift stations), and park lands.

Each major infrastructure system can be divided into subsystems. For example, the street system can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, landscaping and land. These subsystems were not delineated in the basic financial statements.
48

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 1 - Reporting Entity and Summary of Significant Accounting Policies (Continued) F. Capital Assets, (Continued)
The appropriate operating department maintains information regarding the subsystems.

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

G. Long -Term Debt
Government -Wide Financial Statements
Long-term debt and other financial obligations are reported as liabilities in the appropriate funds. Bond premiums and discounts, as well as insurance premiums paid to bond insurers, are deferred and amortized over the life of the bonds using the effective interest method.

Bonds payable are reported net of the applicable premium or discount. Issuance costs are expensed in the period when incurred.

Fund Financial Statements
The fund financial statements do not present long-term assets or liabilities. These amounts are shown in the reconciliation of the governmental funds balance sheet to the government - wide statement of net position.

H. Compensated Absences
Government -Wide Financial Statements
City employees have vested interest in varying levels of vacation and sick leave based on their length of employment and related bargaining unit. Vacation leave is payable to employees at the time a vacation is taken or upon termination of employment. Vacation leave balance accruals are capped at the employee's annual accrual rate. Sick leave is payable only when an employee is unable to work due to personal or family illness or at separation from employment at different levels depending on the length of employment and the bargaining unit. There is no cap on the amount of sick leave that can be accrued but there is a cap on the amount that can be cashed out upon termination. Employees with less than five years of employment do not have vested privilege on sick leave and their sick leave is forfeited upon termination. The amount of compensated absences is accrued when incurred in the government -wide financial statements.

Fund Financial Statements
In governmental funds, compensated absences are recorded as expenditures in the years paid. It is the City's policy to liquidate unpaid compensated absences from future resources, rather than currently available financial resources. When an employee is terminated at fiscal year end, the amount of his or her reimbursable unused vacation and/or sick leave is recorded as a liability in the governmental funds.
49

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 1 - Reporting Entity and Summary of Significant Accounting Policies (Continued) H. Compensated Absences, (Continued)
In proprietary funds, compensated absences are expensed to the various funds in the period they are earned, and such fund's share of the unpaid liability is recorded as a long-term liability of the fund.

I. Pensions
The City contracts with the California Public Employees' Retirement System (CaIPERS) to provide a defined benefit pension plan for its employees and retirees. For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources, and pension expense, information about the fiduciary net position of the plans and additions to/deductions from the plans' fiduciary net position have been determined on the same basis as they are reported by the plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value.

GAAP requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following time frames are used.

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

J. Property Taxes
Property taxes are levied on January 1 and are payable in two installments: November 1 and February 1 of each year. Property taxes become delinquent on December 10 and April 10, for the first and second installments, respectively. The lien date is March 1. The County of Riverside, California (County) bills and collects the property taxes and remits them to the City according to a payment schedule established by the County. City property tax revenues are recognized when received in cash except at year end when they are accrued pursuant to the modified accrual basis of accounting. The City recognizes as revenues as of June 30 available taxes or those collected within 60 days.
50

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 1 - Reporting Entity and Summary of Significant Accounting Policies (Continued) J. Property Taxes, (Continued)
The County is permitted by State law to levy taxes at 1% of full market value (at time of purchase) and can increase the property tax rate no more than 2% per year. The City receives a share of this basic levy proportionate to what it received during the years 1976 to 1978.

K. Net Position
For government -wide and proprietary fund financial statements, net position is categorized as follows:

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

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

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

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

L. Fund Balances
For governmental fund financial statements, fund balances are categorized as follows:

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

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

Committed - Committed fund balances encompass the portion of net fund resources, the use of which is constrained by limitations imposed by the formal action of the government's highest level of decision -making authority normally through resolutions, etc., and that remain binding unless rescinded or modified in the same manner. The City Council is considered the highest authority for the City.
51

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 1 - Reporting Entity and Summary of Significant Accounting Policies (Continued) L. Fund Balances (Continued)
Assigned - Assigned fund balances encompass the portion of net fund balance reflecting the government's intended use of resources. Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose. On May 16, 2023, the City Council adopted the financial management policies that includes a fund balance policy authorizing the City Manager to make these determination.

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

When expenditures are incurred for purposes for which both restricted and unrestricted fund balances are available, the City's policy is to apply restricted fund balances first, then unrestricted fund balances as they are needed. When expenditures are incurred for purposes where only unrestricted fund balances are available, the City uses the unrestricted resources in the following order: committed, assigned, and unassigned.

M. Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosure.

Accordingly, actual results could differ from those estimates.

N. Fair Value Measurement
U.S. GAAP defines fair value, establishes a framework for measuring fair value and establishes disclosures about fair value measurement. Investments, unless otherwise specified, recorded at fair value in the Statements of Net Position, are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Levels of inputs are as follows:

Level 1 - Inputs are unadjusted, quoted prices for identical assets and liabilities in active markets at the measurement date.

Level 2 - Inputs, other than quoted prices included in Level 1, that are observable for the assets or liabilities through corroboration with market data at the measurement date.

Level 3 - Unobservable inputs that reflect management's best estimate of what market participants would use in pricing the assets or liabilities at the measurement date. 52

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 1 - Reporting Entity and Summary of Significant Accounting Policies (Continued) O. Implementation of New GASB Pronouncements
GASB Statement No. 101 - Compensated Absences. The primary objective of this Statement is to establish accounting and financial reporting guidance for compensated absences, which are leave benefits that are attributable to services already rendered, relate to rights that accumulate, and are more likely than not to be used for time off or otherwise paid to employees. The Statement requires governments to recognize a liability for certain types of compensated absences, such as vacation, sick leave, and paid time off, when the leave is earned rather than when it is taken.

The adoption of GASB Statement No. 101 did not result in a restatement of beginning net position, as the entity's existing policies and practices for compensated absences were consistent with the provisions of the Statement. The entity has updated its disclosures to conform with the new requirements.

GASB Statement No. 102 - Certain Risk Disclosures. The primary objective of this Statement is to provide users of financial statements with better insight into risks that could have a material impact on the government's ability to provide services or meet obligations. These risks include concentration in revenue sources, investments, or loans; constraints imposed by external parties or legislation; and other conditions that may expose the entity to significant vulnerabilities.

Upon evaluation, management determined that there were no concentrations, constraints, or vulnerabilities that met the disclosure criteria under GASB Statement No. 102 for the current fiscal year. The entity has incorporated the applicable disclosure considerations in accordance with the new requirements.

P. Upcoming Governmental Accounting Standards Implementation The City is currently analyzing its accounting practices to determine the potential impact on the financial statements for the following GASB statements:

Government Accounting Standards Board Statement No. 103 GASB Statement No. 103, Financial Reporting Model Improvements is effective for periods beginning after June 15, 2025
Government Accounting Standards Board Statement No. 104 GASB Statement No. 104, Disclosures of Certain Capital Assets is effective for fiscal years beginning after June 15, 2025.
53

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 2 - Cash and Investments
A. Summary
The following is a summary of pooled cash and investments and restricted cash and investments as of June 30, 2025:

Statement of Net Position
Cash and investments
Restricted cash and investments
Restricted cash and investments with fiscal agent
Restricted investments in CFDs
Statement of Fiduciary Net Position
Cash and investments
Restricted cash and investments with fiscal agent
$ 216,769,218
4,372,256
4,108,105
63,034,565
7,920,536
36,979,612
Total $ 333,184,292
Cash, cash equivalents, and investments, consisted of the following as of June 30, 2025:

Deposits with financial institutions
Deposits with fiscal agents
Petty cash
Investments
$ 49,646,968
41,087,717
5,254
242,444,353
Total cash and investments $ 333,184,292
The remainder of the is page left intentionally blank
54

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 2 - Cash and Investments (Continued)
A. Summary (Continued)
As of June 30, 2025, cash and investments, are reported at fair value based on quoted market prices. The following table represents the fair value measurements of investments recognized in the accompanying Statement of Net Position measured at on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall as of June 30, 2025:

Investment Type
State investment pool
California CLASS pool
Certificate of deposit
Medium Term Notes
Money market funds
US Treasury Bills
US Treasury Notes
Federal Home Loan Bank
Federal Farm Credit Bank
Restricted investments in CFDs
Highmark Plus
Total
Total as of
June 30, 2025
$ 52,413,792
40,611,319
5,310,198
7,245,670
812,894
426,558
62,168,469
1,414,532
4,634,100
63,034,565
4,372,256
$ 242,444,353
Measurement
Inputs
Uncategorized
Uncategorized
Uncategorized
Level 2
Level 2
Level 2
Level 2
Level 2
Level 2
Uncategorized
Uncategorized
The California Government Code requires California banks and savings and loan associations to secure the City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name.

The market value of pledged securities must equal at least 110% of the City's cash deposits.

California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City's total cash deposits. The City may waive collateral requirements for cash deposits; however, the City has not waived the collateralization requirements.
55

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 2 - Cash and Investments (Continued)
B. Investments
Investments Authorized by the California Government Code and the City's Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code (or the City's investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City's investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of bond proceeds held by the City's bond trustee (fiscal agent) which is described below.

Authorized
Investment Type
Local Agency Investment Fund (LAIF)
Negotiable Certificates of Deposits
Medium Term Notes
Money Market Funds
US Treasury Notes
Federal Home Loan Banks
Federal Farms Credit Banks
Guaranteed Investment Contracts
Local Obligation Bonds
Maximum
Maturity
N/A
5 Years
5 Years
N/A
5 Years
5 Years
5 Years
5 Years
5 Years
Maximum
Percentage
of Portfolio
None
5%
5%
None
None
5%
5%
None
5%
Maximum
Investment
in One Issuer
$75 million
30%
30%
20%
None
10%
10%
None
30%
Investments Authorized by Debt Agreements
Investments of bond proceeds held by the City's bond trustee are governed by provisions of the related debt agreement rather than the general provisions of the California Government Code or the City's investment policy. The table below identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Authorized
Investment Type
Local Agency Investment Fund (LAIF)
Negotiable Certificates of Deposits
Medium Term Notes
Money Market Funds
US Treasury Notes
Federal Home Loan Banks
Federal Farms Credit Banks
Guaranteed Investment Contracts
Local Obligation Bonds
Maximum
Maturity
N/A
None
N/A
N/A
None
None
None
None
None
Maximum
Percentage
of Portfolio
None
None
None
None
None
None
None
None
None
Maximum
Investment
in One Issuer
$75 million
None
None
None
None
None
None
None
None
56

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 2 - Cash and Investments (Continued)
C. External Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF), which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. LAIF determines fair value on its investment portfolio based on market quotations for those securities where market quotations are readily available and based on amortized cost or best estimate for those securities where market value is not readily available. The value of the City's position in the pool is the same as the value of the pool shares. LAIF is unrated as of June 30, 2025.

Currently, LAIF does not have an investment rating. LAIF has a minimum $5,000 transaction amount in increments of $1,000 with a maximum of 15 transactions (combination of deposits and withdrawals) per month. LAIF requires a one -day prior notice for deposits and withdrawals of $10 million or more.

The City participates in California CLASS, a local government investment pool established for California public agencies. California CLASS is not registered with the Securities and Exchange Commission; however, it is managed by a governing board comprised of public agency participants. The City's investment in California CLASS is measured at fair value based on the City's pro -rata share of the pool's underlying investments, in accordance with GASB Statement No. 72.

California CLASS is rated AAA by Standard & Poor's. The pool's investment guidelines limit holdings to high -quality, short-term securities to minimize credit risk. The pool maintains a weighted average maturity of less than 60 days, thereby reducing exposure to interest rate fluctuations. The City's investment is not evidenced by securities that exist in physical or book - entry form. Instead, the City's ownership interest is represented by shares in the pool. Funds are available for withdrawal on a same -day basis, providing the City with immediate access to cash when needed.

D. Investment in CFD Bonds
The Beaumont Financing Authority (BFA) and the Beaumont Public Improvement Authority (BPIA) issued Local Agency Revenue Bonds ("Authority Bonds") for investment in the City of Beaumont Community Facilities District (CFD) Special Tax Bonds ("District Bonds"). The District Bonds are local obligation bonds secured solely by special assessments on property owners within the CFD. The Authority Bonds issued by the BFA are repaid solely by debt service payments made on the District Bonds to the BFA. The repayment schedules of the District Bonds, and interest thereon, to the BFA are concurrent and sufficient to satisfy the debt service requirements of the respective Authority Bonds. 57

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 2 - Cash and Investments (Continued)
E. Risk Disclosures
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity, the greater the sensitivity its fair value is to changes in market interest rates. As a means of limiting its exposure to fair value losses arising from rising interest rates, the City's investment policy provides that final maturities of securities cannot exceed five years. Investments governed by the bond indentures may be longer. Maturities of investments vary and depend on liquidity needs of the City.

As of June 30, 2025, the City had the following investments and maturities:

Maturities
Investment Type
Amount 1 year or Tess 1 - 5 years More than 5 years
State investment pool $ 52,413,792 $ 52,413,792 $ - $
California CLASS pool 40,611,319 40,611,319
Certificates of deposit 5,310,198 5,310,198
Medium Term Notes 7,245,670 730,365 6,515,305
Money market funds 812,894 - 812,894
Municipal bonds 426,558 230,255 196,303
US Treasury Notes 62,168,469 62,168,469
Federal Home Loan Bank 1,414,532 1,414,532
Federal Farm Credit Bank 4,634,100 4,634,100
Restricted:

Investments in CFDs 63,034,565 4,120,000 21,135,000 37,779,565 Pension trust - Highmark Plus 4,372,256 4,372,256
Total $ 242,444,353 $ 107,788,185 $ 96,876,603 $ 37,779,565 58

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 2 - Cash and Investments (Continued)
E. Risk Disclosures (Continued)
Credit Risk
Credit Risk is the risk of loss due to failure of the security issuer. The risk can be identified thru the rating assigned by a nationally recognized statistical rating organization to the issuers of securities. The City minimizes this risk by investing only in the type of investments allowed for municipalities by the Government Code as listed on the City's investment policy and investing only in instruments that are most credit worthy.

Investment Type
Amount
State investment pool
California CLASS pool
Certificates of deposit
Medium Term Notes
Money market funds
US Treasury Notes
Municipal bonds
Federal Home Loan Banks
Federal Farms Credit Banks
Restricted investments in CFDs
Pension trust - Highmark Plus
Total
Custodial Credit Risk
$ 52,413,792
40,611,319
5,310,198
7,245,670
812,894
426,558
62,168,469
1,414,532
4,634,100
63,034,565
4,372,256
$ 242,444,353
Credit Quality Ratings
Standard &
Moody's Poor's
Not Rated Not Rated
Not Rated AAA
Not Rated Not Rated
A1-Aaa A1-Aaa
Aaa-mf AAAm
A1-Aaa A1-Aaa
A1-Aaa A1-Aaa
A1-Aaa A1-Aaa
A1-Aaa A1-Aaa
Not Rated Not Rated
Not Rated Not Rated
For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. None of the City's investments were subject to custodial credit risk.
59

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 2 - Cash and Investments (Continued)
E. Risk Disclosures (Continued)
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond the amount stipulated by the California Government Code. City investments that are greater than 5 percent of the total investments are in either an external investment pool or mutual funds and are therefore exempt. The City's investment in CFDs is restricted and is secured by special assessments from property owners and a tax lien on the underlying property.

Investment Type
State investment pool
California CLASS pool
Certificates of deposit
Medium Term Notes
Money market funds
US Treasury Notes
Municipal bonds
Federal Home Loan Banks
Federal Farms Credit Banks
Restricted investments in CFDs
Pension trust - Highmark Plus
Total
Note 3 - Receivables
A. Governmental Activities
Lease receivables
Total as of Percentage of
June 30, 2025 Investments
$ 52,413,792
40,611,319
5,310,198
7,245,670
812,894
426,558
62,168,469
1,414,532
4,634,100
63,034,565
4,372,256
$ 242,444,353

21.62%

16.75%

2.19%

2.99%

0.34%

0.18%

25.64%

0.58%

1.91%

26.00%

1.80%
As of June 30, 2025, the City had 3 active leases. The leases have receipts that range from $24,000 to $57,315 and interest rates that range from 1.3310% to 3.3560%. As of June 30, 2025, the total combined value of the lease receivable is $1,635,418, the total combined value of the short-term lease receivable is $91,501, and the combined value of the deferred inflow of resources is $1,669,193.
60

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 4 - Interfund Balances and Transactions
A. Transfers
Transfers in and out for the year ended June 30, 2025, were as follows:

Transfers In Transfers Out
General Fund
Amount Purpose
Non -major Funds $ 7,028,831 CFD - City maintenance/admin; Council approved project funding
Subtotal 7,028,831
General Capital Projects Fund General Fund 18,389,656 Capital projects CFD Capital Project Fund 2,583,548 Capital Projects
Development Impact Fees Fund 8,990,571 Capital Projects Non -major fund 2,323,900 Capital Projects
Subtotal 32,287,675
Wastewater Fund Non -major funds 2,047,090 Capital Projects Subtotal 2,047,090
Total $ 41,363,596
The remainder of the is page left intentionally blank
61

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 5 - Capital Assets
A. Governmental Activities
Summary of changes in capital assets for governmental activities for the year ended June 30, 2025 is as follows:

Balance Balance
July 1, 2024 Additions Deletions Adjustment June 30, 2025 Nondepreciable assets:

Land
Construction in progress
Total nondepreciable assets
Depreciable/amortized assets:

Building and improvements
Machinery, furniture, and equipment
Vehicles
Infrastructure
Intangible right to use assets - building
Intangible right to use assets - equipment
Intangible right to use assets - subscriptions
Subtotal
Less accumulated depreciation/amortization:

Building and improvements
Machinery, furniture, and equipment
Vehicles
Infrastructure
Intangible right to use assets - building
Intangible right to use assets - equipment
Intangible right to use assets - subscriptions
Subtotal
Total depreciable/amortized assets, net
Totals
$ 32,803,234 $ 50,000 $ - $ - $ 32,853,234
34,228,340 23,886,479 (20,538,728) 37,576,091
67,031,574 23,936,479 (20,538,728) 70,429,325
24,362,883
12,224,116
6,693,097
460,774,397
696,732
609,072
563,142
505,923,439 23,451,163 (855,149) (99,563) 528,419,890
14,664,462
811,936
794,601
5,966,545
447,841
765,778 (337,667)
(208,856)
(146,111)
(162,515)
38,818,489
12,889,941
7,325,183
466,740,942
(99,563) 597,169
1,056,913
991,253
(11,768,494) (813,859) 208,856 - (12,373,497)
(5,524,429) (786,082) 143,525 (6,166,986)
(3,384,650) (1,008,788) 162,515 (4,230,923)
(236,776,906) (5,666,068) - - (242,442,974)
(155,767) (118,382) 22,259 (251,890)
(98,175) (172,919) - - (271,094)
(312,354) (256,057) 337,667 (230,744)
(258,020,775) (8,822,155) 852,563 22,259 (265,968,108)
247,902,664 14,629,008 (2,586) (77,304) 262,451,782
$ 314,934,238 $ 38,565,487 $ (20,541,314) $ (77,304) $ 332,881,107 Governmental activities depreciation/amortization expense for capital assets for the year ended June 30, 2025, are as follows:

General government $ 513,367
Public safety 1,268,664
Public works 6,079,713
Community development 185,092
Community services 775,319
Total depreciation/amortization expense $ 8,822,155
62

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 5 - Capital Assets (Continued)
B. Business -Type Activities
Summary of changes in capital assets for business -type activities for the year ended June 30, 2025, is as follows:

Balance Balance
July 1, 2024 Additions Deletions Adjustments June 30, 2025 Nondepreciable assets:

Land and Land improvements
Construction in progress
Total nondepreciable assets
$ 3,458,322 $
3,600,035
2,756,200
7,058,357 2,756,200
$ (4,200) $
$ 3,454,122
6,356,235
(4,200) 9,810,357
Depreciable/amortized assets:

Building and improvements 730,835 - (63,568) 667,267
Machinery, furniture, and equipment 44,482,630 376,410 (245,265) 44,613,775 Vehicles 9,515,248 5,685,358 (1,765,141) - 13,435,465
Infrastructure 258,821,935 1,165,714 - - 259,987,649
Intangible right to use assets - building 99,563 99,563 Intangible right to use assets - equipment 109,094 27,023 - - 136,117 Intangible right to use assets - subscriptions 337,395 - (47,516) - 289,879 Subtotal 313,997,137 7,254,505 (2,121,490) 99,563 319,229,715 Less accumulated depreciation/amortization:

Building and improvements
Machinery, furniture, and equipment
Vehicles
Infrastructure
Intangible right to use assets - building
Intangible right to use assets - equipment
Intangible right to use assets - subscriptions
Subtotal
Total depreciable/amortized assets, net
Totals
(690,574) (27,767) 67,768 (650,573)
(29,863,937) (1,760,658) 245,265 (31,379,330)
(5,590,283) (1,110,335) 1,745,922 - (4,954,696)
(92,560,051) (7,561,358) - - (100,121,409)
(19,737) (22,259) (41,996)
(2,046) (30,694) - (32,740)
(160,881) (76,974) 47,516 - (190,339)
(128,867,772) (10,587,523) 2,106,471 (22,259) (137,371,083) 185,129,365 (3,333,018) (15,019) 77,304 181,858,632
$ 192,187,722 $ (576,818) $ (19,219) $ 77,304 $ 191,668,989 Business -type activities depreciation/amortization expense for capital assets for the year ended June 30, 2025, are as follows:

Sewer
Transit
Total depreciation/amortization expense
$ 9,429,702
1,157,821
$ 10,587,523
63

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 6 - Long -Term Liabilities
A. Governmental Activities
Summary of changes in long-term liabilities for the governmental activities for the year ended June 30, 2025, is as follows:

Classification
Balance Balance Due Within Due in More
July 1, 2024 Additions Deletions June 30, 2025 One Year Than One Year Governmental Activities:

City
Lease Liability
Subscription Liability
Beaumont Public Financing Authority
2015 Refunding Revenue Bonds, Series A
2015 Refunding Revenue Bonds, Series B
2015 Refunding Revenue Bonds, Series C
2015 Refunding Revenue Bonds, Series D
2019 Refunding Revenue Bonds, Series A
2020 Revenue Bonds, Series A
2021 Revenue Bonds, Series A
Bond premium 2019 Revenue Bond, Series A
Total Revenue Bonds
Total governmental activities
Lease liabilities
$ 1,015,051 $ 447,840 $ (363,933) $ 1,098,958 $ 316,166 $ 782,792 148,672 765,777 277,019) 637,430 248,021 389,409
9,005,000 (250,000) 8,755,000 260,000 8,495,000
13,530,000 (890,000) 12,640,000 935,000 11,705,000
3,355,000 - (255,000) 3,100,000 260,000 2,840,000
4,930,000 - (375,000) 4,555,000 390,000 4,165,000
4,060,000 - (365,000) 3,695,000 385,000 3,310,000
15,670,000 - (545,000) 15,125,000 555,000 14,570,000
15,895,000 - (1,355,000) 14,540,000 1,335,000 13,205,000 702,636 (78,071) 624,565 78,071 546,494
67,147,636 - (4,113,071) 63,034,565 4,198,071 58,836,494 $ 68,311,359 $ 1,213,617 $ (4,754,023) $ 64,770,953 $ 4,762,258 $ 60,008,695 As of June 30, 2025, the City had 5 active leases. The leases have payments that range from $7,758 to $142,495 and interest rates that range from 0.6900% to 5.0000%. As of June 30, 2025, the lease liability is $1,098,958 with the right to use asset of $1,654,082 with accumulated amortization of $522,894.

Estimated future lease liability requirements are as follows:

Year Ending
June 30, Principal Interest Total
2026 $ 316,166 $ 33,598 $ 349,764
2027 330,450 23,088 353,538
2028 333,906 12,092 345,998
2029 94,407 2,317 96,724
2030 24,029 143 24,172
Totals $ 1,098,958 $ 71,238 $ 1,170,196
64

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 6 - Long -Term Liabilities (Continued)
A. Governmental Activities (Continued)
Subscription liabilities
As of June 30, 2025, the City had 20 active subscriptions. The subscriptions have payments that range from $3,726 to $58,611 and interest rates that range from 0.0000% to 3.1790%.

As of June 30, 2025, the subscription liability is $637,430 with a value of the right to use asset of $991,253 with accumulated amortization of $230,744.

Estimated future subscription liability requirements are as follows:

Year Ending
June 30,
Principal
Interest Total
2026 $ 248,021 $ 14,840 $ 262,861
2027 229,207 10,493 239,700
2028 83,424 3,965 87,389
2029 62,754 2,185 64,939
2030 14,024 352 14,376
Totals $ 637,430 $ 31,835 $ 669,265
Revenue Bonds
Local Agency Refunding Revenue Bonds - 2015 Series A
On March 17, 2015, the BFA issued $11,110,000 of 2015 Local Agency Revenue Bonds, Series A (the "Authority Bonds") for the purpose of refunding the Beaumont Financing Authority 2005 Local Agency Revenue Bonds Series B.

The Authority Bonds are payable from and secured by repayment of the District Bonds.

Interest is payable semiannually on March 1 and September 1 of each year, commencing September 1, 2015 until maturity or earlier redemption. Interest on the bonds ranges from

2.00% to 5.00%.

Neither the Authority Bonds nor the District Bonds are general obligations of the City nor any other political subdivision and the full faith and credit of the City is not pledged for repayment thereof. The outstanding indebtedness as of June 30, 2025 was $8,755,000 for the Authority Bonds and is reported in the City's financial statements as the BFA is a component unit of the City.

The District Bonds do not constitute an obligation of the City and the City is not obligated to make payment beyond the special taxes and available bond reserves. 65

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 6 - Long -Term Liabilities (Continued)
A. Governmental Activities (Continued)
Local Agency Refunding Revenue Bonds - 2015 Series B
On April 23, 2015, the BFA issued $20,095,000 of 2015 Local Agency Refunding Revenue Bonds, Series B (the "Authority Bonds") for the purpose of refunding the Beaumont Financing Authority 2004 Local Agency Revenue Bonds Series D.

The Authority Bonds are payable from and secured by repayment of the District Bonds.

Interest is payable semiannually on March 1 and September 1 of each year, commencing September 1, 2015 until maturity or earlier redemption. Interest on the bonds ranges from

2.00% to 5.00%.

Neither the Authority Bonds nor the District Bonds are general obligations of the City nor any other political subdivision and the full faith and credit of the City is not pledged for repayment thereof. The outstanding indebtedness as of June 30, 2025 was $12,640,000 for the Authority Bonds and is reported in the City's financial statements as the BFA is a component unit of the City.

The District Bonds do not constitute an obligation of the City and the City is not obligated to make payment beyond the special taxes and available bond reserves.

Local Agency Refunding Revenue Bonds - 2015 Series C
On May 15, 2015, the BFA issued $5,335,000 of 2015 Local Agency Refunding Revenue Bonds, Series C (the "Authority Bonds") for the purpose of refunding the Beaumont Financing Authority 2004 Local Agency Revenue Bonds Series A.

The Authority Bonds are payable from and secured by repayment of the District Bonds.

Interest is payable semiannually on March 1 and September 1 of each year, commencing September 1, 2015 until maturity or earlier redemption. Interest on the bonds ranges from

2.00% to 4.125%.

Neither the Authority Bonds nor the District Bonds are general obligations of the City nor any other political subdivision and the full faith and credit of the City is not pledged for repayment thereof. The outstanding indebtedness as of June 30, 2025 was $3,100,000 for the Authority Bonds and is reported in the City's financial statements as the BFA is a component unit of the City.

The District Bonds do not constitute an obligation of the City and the City is not obligated to make payment beyond the special taxes and available bond reserves. 66

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 6 - Long -Term Liabilities (Continued)
A. Governmental Activities (Continued)
Local Agency Refunding Revenue Bonds - 2015 Series D
On May 15, 2015, the BFA issued $7,820,000 of 2015 Local Agency Refunding Revenue Bonds, Series D (the "Authority Bonds") for the purpose of refunding the Beaumont Financing Authority 2004 Local Agency Revenue Bonds Series B.

The Authority Bonds are payable from and secured by repayment of the District Bonds.

Interest is payable semiannually on March 1 and September 1 of each year, commencing September 1, 2015 until maturity or earlier redemption. Interest on the bonds ranges from

2.00% to 4.250%.

Neither the Authority Bonds nor the District Bonds are general obligations of the City nor any other political subdivision and the full faith and credit of the City is not pledged for repayment thereof. The outstanding indebtedness as of June 30, 2025 was $4,555,000 for the Authority Bonds and is reported in the City's financial statements as the BFA is a component unit of the City.

The District Bonds do not constitute an obligation of the City and the City is not obligated to make payment beyond the special taxes and available bond reserves.

Local Agency Refunding Revenue Bonds - 2019 Series A
On August 8, 2019, the BPIA issued $5,375,000 of 2019 Local Agency Refunding Revenue Bonds, Series A (the "Authority Bonds") for the purpose of refunding the Beaumont Financing Authority Local Agency Revenue Bonds Series 2007 A, C and D.

The Authority Bonds are payable from and secured by repayment of the District Bonds.

Interest is payable semiannually on March 1 and September 1 of each year, commencing September 1, 2021 until maturity or earlier redemption. Interest on the bonds ranges from

3.0% to 5.0%.
67

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 6 - Long -Term Liabilities (Continued)
A. Governmental Activities (Continued)
Neither the Authority Bonds nor the District Bonds are general obligations of the City nor any other political subdivision and the full faith and credit of the City is not pledged for repayment thereof. The outstanding indebtedness as of June 30, 2025 was $3,695,000 for the Authority Bonds and is reported in the City's financial statements as the BFA is a component unit of the City.

The District Bonds do not constitute an obligation of the City and the City is not obligated to make payment beyond the special taxes and available bond reserves.

Local Agency Refunding Revenue Bonds - 2020 Series A
On August 13, 2020, the BPIA issued $17,200,000 of 2020 Local Agency Refunding Revenue Bonds, Series A (the "Authority Bonds") for the purpose of refunding the Beaumont Financing Authority Local Agency Revenue Bonds Series 2011 Series A & B and 2012 Series A.

The Authority Bonds are payable from and secured by repayment of the District Bonds.

Interest is payable semiannually on March 1 and September 1 of each year, commencing March 1, 2021 until maturity or earlier redemption. Interest on the bonds ranges from 0.773% to 2.245%.

Neither the Authority Bonds nor the District Bonds are general obligations of the City nor any other political subdivision and the full faith and credit of the City is not pledged for repayment thereof. The outstanding indebtedness as of June 30, 2025 was $15,125,000 for the Authority Bonds and is reported in the City's financial statements as the BFA is a component unit of the City.

The District Bonds do not constitute an obligation of the City and the City is not obligated to make payment beyond the special taxes and available bond reserves.

Local Agency Refunding Revenue Bonds - 2021 Series A
On June 30, 2021, the BPIA issued $18,675,000 of 2021 Local Agency Refunding Revenue Bonds, Series A (the "Authority Bonds") for the purpose of refunding the Beaumont Financing Authority Local Agency Revenue Bonds Series 2012 Series B & C, 2013 Series A & B.

The Authority Bonds are payable from and secured by repayment of the District Bonds.

Interest is payable semiannually on March 1 and September 1 of each year, commencing March 1, 2022 until maturity or earlier redemption. Interest on the bonds ranges from 0.265% to 2.397%.
68

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 6 - Long -Term Liabilities (Continued)
A. Governmental Activities (Continued)
Neither the Authority Bonds nor the District Bonds are general obligations of the City nor any other political subdivision and the full faith and credit of the City is not pledged for repayment thereof. The outstanding indebtedness as of June 30, 2025 was $14,540,000 for the Authority Bonds and is reported in the City's financial statements as the BFA is a component unit of the City.

The District Bonds do not constitute an obligation of the City and the City is not obligated to make payment beyond the special taxes and available bond reserves.

Annual Debt Service Requirements to Maturity
The annual debt service requirements to maturity are as follows:

Year Ending
June 30, Principal Interest Total
2026 $ 4,120,000 $ 2,084,450 $ 6,204,450
2027 4,230,000 1,965,516 6,195,516
2028 4,320,000 1,823,683 6,143,683
2029 4,430,000 1,692,241 6,122,241
2030 4,535,000 1,622,151 6,157,151
2031-2035 23,445,000 5,421,699 28,866,699
2036-2040 9,490,000 2,296,038 11,786,038
2041-2045 7,200,000 718,275 7,918,275
2046-2050 640,000 15,375 655,375
Totals $ 62,410,000 $ 17,639,428 $ 80,049,428
B. Business -Type Activities
Summary of changes in long-term liabilities for the business -type activities for the year ended June 30, 2025, is as follows:

Classification
Business -Type Activities:

Wastewater Revenue Bonds
Bond Premium
Lease Liabilities
Subscription Liabilities
Total business -type activities
Balance
July 1, 2024
$ 74,785,000
6,084,194
109,094
21,317
$ 80,999,605
Balance
Additions Deletions June 30, 2025
Due Within
One Year
Due in More
Than One Year
$ $ (1,495,000) $ 73,290,000 $ 1,570,000 $ 71,720,000
(546,153) 5,538,041 546,153 4,991,888
106,511 (47,900) 167,705 51,895 115,810
(21,317) - - -
$ 106,511 $ (2,110,370) $ 78,995,746 $ 2,168,048 $ 76,827,698 69

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 6 - Long -Term Liabilities (Continued)
B. Business -Type Activities (Continued)
Lease liabilities
As of June 30, 2025, the City had 3 active leases. The leases have payments that range from $7,758 to $142,495 and interest rates that range from 0.6900% to 5.0000%. As of June 30, 2025, the total combined value of the lease liability is $167,705 with a value of the right to use asset of $235,680 with accumulated amortization of $74,736.

Estimated future lease liability requirements are as follows:

Year Ending
June 30, Principal Interest Total
2026 $ 51,895 $ 3,615 $ 55,510
2027 53,852 2,287 56,139
2028 53,972 910 54,882
2029 5,609 129 5,738
2030 2,377 14 2,391
Totals $ 167,705 $ 6,955 $ 174,660
Subscription liabilities
As of June 30, 2025, the City had 2 active subscriptions. The subscriptions have payments that range from $3,726 to $58,611 and interest rates that range from 0.0000% to 3.1790%.

As of June 30, 2025, the subscription liability is $0 with a value of the right to use asset of $289,879 with accumulated amortization of $190,339.

Revenue Bonds
Wastewater Revenue Bonds, Series 2018A
On September 27, 2018, the Beaumont Public Improvement Authority issued $81,105,000 of revenue bonds, to finance the acquisition and construction of certain improvements to the City's Wastewater System and to purchase a debt service reserve surety policy. The bonds were issued at a premium of $9,698,952 which is amortized over the life of the bonds. Interest on the bonds is payable semi-annually on March 1 and September 1 of each year through September 1, 2049. The bonds bear interest ranging from 3% to 5%. Principal payments are due annually beginning on September 1, 2019. The bonds are a special limited obligation of the Authority payable solely from Authority Revenues.
70

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 6 - Long -Term Liabilities (Continued)
B. Business -Type Activities (Continued)
The annual debt service requirements to maturity for the revenue bonds is as follows:

Year Ending
June 30,
Principal
2026 $ 1,570,000
2027 1,655,000
2028 1,740,000
2029 1,825,000
2030 1,920,000
2031-2035 11,000,000
2036-2040 13,665,000
2041-2045 17,475,000
2046-2050 22,440,000
Totals $ 73,290,000
Note 7 - Debt Without City Commitment
Interest
$ 3,499,088
3,418,463
3,333,558
3,244,463
3,150,838
14,354,644
11,686,750
7,881,875
2,917,250
$ 53,486,929 $ 126,776,929
Total
$ 5,069,088
5,073,463
5,073,558
5,069,463
5,070,838
25,354,644
25,351,750
25,356,875
25,357,250
The City authorized the formation of the various Community Facilities District's (the "CFD's") for purpose of the issuance of bonds under improvement acts of the State of California to finance eligible public facilities to serve developing commercial, industrial, residential, and/or mixed -use developments. Bonds issued by the CFD's are secured by annual special tax levies or liens placed on properties within each CFD. The City, and the BFA, are not liable for repayment and the City, acting as an agent on behalf of the CFD's, is only responsible for levying and collecting the special tax assessments, forwarding the collections to the bond trustee on behalf of bondholders, and initiating foreclosure proceedings on faulted special tax payments when necessary. 71

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 7 - Debt Without City Commitment (Continued)
The bonds issued by the CFD are limited obligations and are payable solely from special tax assessments, specific bond reserves, and the proceeds from property foreclosures. Since these debts do not constitute an obligation of the City or the BFA/BPIA and the City or BFA/BPIA is not obligated to make payments on the bonds, the District Bonds (whose terms are disclosed in Note 6) are not reported as long-term liabilities in the accompanying City financial statements. The activities related to the District Bond reserves, special assessment tax collection, remittance to the bond trustee, repayment of District Bonds and use of new bond proceeds for developer capital projects for infrastructure, are reported as a custodial fund.

As of June 30, 2025, debt without City or BFA/BPIA commitment is as follows:

Balance
June 30, 2025
2015 Special Tax Bonds, Series A $ 8,755,000
2015 Special Tax Bonds, Series B 12,640,000
2015 Special Tax Bonds, Series C 3,100,000
2015 Special Tax Bonds, Series D 4,555,000
2019 Refunding Revenue Bonds, Series A 3,695,000
2020 Refunding Revenue Bond, Series A 15,125,000
2021 Refunding Revenue Bond, Series A 14,540,000
Premium 624,565
Subtotal 63,034,565
2017 Special Tax Refunding Bonds, Series A 64,393,033
2018 Special Tax Bonds, Series A 32,405,000
2018 Special Tax Bonds, 1A 7B 1,685,000
2018 Special Tax Bonds, 1A 7D 3,250,000
2018 Special Tax Bonds, 1A 8E 12,075,000
2019 Special Tax Bonds, 1A2016-1 7,940,000
2019 Revenue Bonds, IA 2016-2 9,335,000
2019 Revenue Bonds, IA 2016-4 3,760,000
2020 Revenue Bonds, IA 8F 12,450,000
2020 Revenue Bonds, CFD 2019-1 2,165,000
2023 Revenue Bonds, CFD 2016-3 8,665,000
2024 Revenue Bonds, CFD 14,240,000
2024 Revenue Bonds, CFD 9,400,000
2025 Revenue Bonds 6,580,000
Total Limited Obligation Bond Debt $ 251,377,598
72

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 8 - Compensated Absences
The City's total liability for vested and unpaid compensated absences (vacation and vested sick leave) was $4,119,910 as of June 30, 2025.

A. Governmental Activities
Summary of changes in compensated absences for the year ended June 30, 2025, is as follows:

Classification
Balance Balance Due Within Due in More
July 1, 2024 Net Change June 30, 2025 One Year Than One Year Governmental Activities:

Compensated absences $ 3,511,091 $ 126,880 $ 3,637,971 $ 909,493 $ 2,728,478 Total governmental activities $ 3,511,091 $ 126,880 $ 3,637,971 $ 909,493 $ 2,728,478 B. Business -Type Activities
Summary of changes in compensated absences for the year ended June 30, 2025, is as follows:

Classification
Balance Balance Due Within Due in More
July 1, 2024 Net Change June 30, 2025 One Year Than One Year Business -Type Activities:

Compensated absences $ 436,542 $ 45,397 $ 481,939 $ 168,679 $ 313,260 Total business -type activities $ 436,542 $ 45,397 $ 481,939 $ 168,679 $ 313,260 Note 9 - Risk Management
The City is exposed to various risks of loss related to torts: theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. The City, including its component units, uses the General Fund to account for and finance risks for general liability, workers' compensation, and property damage. There were no settlements in excess of insurance coverage in any of the three prior fiscal years. There were no reductions in the City's limits of coverage during the fiscal year ended June 30, 2025.

General Liability and Property Damage Insurance
The City is self -insured to some extent for general liability claims. The City maintains a self -insured retention level of $250,000 for general liability with excess coverage up to $50,000,000, as a participant in the Exclusive Risk Management Authority of California (ERMAC), a Joint Powers Authority. Property damage is also insured through participation in ERMAC.

The City has entered into contracts with claims administrators to process claims against the City for general liability claims.
73

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 9 - Risk Management (Continued)
Workers' Compensation
The City of Beaumont maintains a self -insured workers' compensation plan, whereby the City covers the cost of medical claims its employees incur. The City has stop loss coverage for this plan to cover claims in excess of $300,000 per participant per year. The City utilizes a third -party administrator to manage claims in accordance with state law.

Government Crime Policy
The City carries government crime insurance, including faithful performance/employee dishonesty, forgery or alteration, computer fraud, etc., in the amount of $15 million, with a $2,500 deductible.

The change in claims for the year was as follows:
2022-2023
2023-2024
2024-2025
Beginning of
Fiscal Year
Liability
$ 2,290,751
2,301,856
1,543,956
Current Year
Claims and
Changes in
Estimates
$ 70,625
(578,397)
939,224
Claim
Payme nts
Balance at
Fiscal Year
End
$ (59,520) $
(179,503)
(302,519)
2,301,856
1,543,956
2,180,661
Note 10 - Pension Plans
For the governmental activities, pensions are generally liquidated by the General Fund.

Summary
Deferred outflows of resources:

CaIPERS Miscellaneous
CaIPERS Safety
Total deferred outflows of resources
Deferred inflows of resources:

CaIPERS Miscellaneous
CaIPERS Safety
Total deferred inflows of resources
Net pension liabilities:

CaIPERS Miscellaneous
CaIPERS Safety
Total net pension liabilities
Pension expenses:

CaIPERS Miscellaneous
CaIPERS Safety
Total net pension expenses
Governmental
Activities
$ 3,761,153
6,081,134
$ 9,842,287
$ 55,355
264,478
$ 319,833
$ 8,408,022
15,064,680
$ 23,472,702
$ 2,213,161
3,647,600
$ 5,860,761
Business -Type
Activities
Total
$ 1,253,718 $ 5,014,871
- 6,081,134
$ 1,253,718 $ 11,096,005
$ 18,452
$ 18,452
$ 73,807
264,478
$ 338,285
$ 2,802,675 $ 11,210,697
- 15,064,680
$ 2,802,675 $ 26,275,377
$ 737,720
$ 2,950,881
3,647,600
$ 737,720 $ 6,598,481
74

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 10 - Pension Plans (Continued)
General Information about the Pension 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 or PERF C) administered by the California Public Employees' Retirement System (CaIPERS). The Plan consists of a miscellaneous pool and a safety pool (also referred to as "risk pools"), which are comprised of individual employer miscellaneous and safety rate plans, respectively. Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under generally accepted accounting principles. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City participates in four rate plans (two miscellaneous and two safety). Benefit provisions under the Plan are established by State statute and Local Government resolution. CaIPERS 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 CaIPERS' website, at www.calpers.ca.gov .

Benefit Provided
CaIPERS 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 5 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost -of -living adjustments for each plan are applied as specified by the Public Employees' Retirement Law.

The Plan operates under the provisions of the California Public Employees' Retirement Law (PERL), the California Public Employees' Pension Reform Act of 2013 (PEPRA), and the regulations, procedures and policies adopted by the CaIPERS Board of Administration. The Plan's authority to establish and amend the benefit terms are set by the PERL and PEPRA, and may be amended by the California state legislature and in some cases require approval by the CaIPERS Board.

The Plan's provisions and benefits in effect on June 30, 2025 are summarized as follows:

Benefit formula
Benefit vesting schedule
Benefit payments
Retirement age
Monthly benefits, as a % of
eligible compensation
Required employer contribution rate
Miscellaneous

3.0% @ 60
5 years service
Monthly for life
50-67

2.0% to 3.0%

17.33%
Miscellaneous
PEPRA

2.0% @ 62
5 years service
Monthly for life
52-67

1.0%to2.5%

7.87%
Safety

3.0%@50
5 years service
Monthly for life
50-55

3.0%

27.32%
Safety
PEPRA

2.7% @ 57
5 years service
Monthly for life
50-57

2.0% to 2.7%

13.76%
75

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 10 - Pension Plans (Continued)
General Information about the Pension Plans (Continued) Contributions
Section 20814(c) of the California Public Employees' Retirement Law (PERL) requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CaIPERS' annual actuarial valuation process.

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 employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. Employer contributions to the Plan for the fiscal year ended June 30, 2025 were $5,083,144.

Net Pension Liability
The City's net pension liability for the Plan is measured as the total pension liability, less the pension plan's fiduciary net position. The net pension liability is measured as of June 30, 2024, using an annual actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is as follows.

The remainder of the is page left intentionally blank
76

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 10 - Pension Plans (Continued)
Net Pension Liability (Continued)
Actuarial Methods and Assumptions Used to Determine Total Pension Liability The collective total pension liability for the June 30, 2024 measurement period was determined by an actuarial valuation as of June 30, 2023, with update procedures used to roll forward the total pension liability to June 30, 2024. The collective total pension liability was based on the following assumptions:

Valuation Date
Measurement Date
Actuarial Cost Method
Asset Valuation Method
Actuarial Assumptions:

Discount Rate
Inflation
Salary Increases
Mortality Rate Table (1)
Post Retirement Benefit
Increase
June 30, 2023
June 30, 2024
Entry Age Actuarial Cost Method
Fair Value of Assets

6.90%

2.30%
Varies by Entry Age and Service
Derived using CALPERS' membership data for all Funds
Contract COLA up to 2.30% until Purchasing Power
Protection Allowance floor on purchasing power applies,

2.30% thereafter
(1) The mortality table used was developed based on CaIPERS-specific data. The rates incorporate Generational Mortality to capture ongoing mortality im provement using 80% of Scale MP -2020 published bythe Society of Actuaries. For more details to the 2021 experience study report from November 2021 that can be found on the CaIPERS website.

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

In determining the long-term expected rate of return, CaIPERS took into account both short- term and long-term market return expectations. Using historical returns of all of the funds' asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points.
77

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 10 - Pension Plans (Continued)
Net Pension Liability (Continued)
The expected real rates of return by asset class are as follows:

Asset Class
Global equity - cap -weighted
Global equity - non -cap -weighted
Private equity
Treasury
Mortgage -backed securities
Investment grade corporates
High yield
Emerging market debt
Private debt
Real assets
Leverage
Assumed
Asset
Allocation

30.00%

12.00`)/0

13.00%

5.00')/0

5.00%

10.00%

5.00%

5.00%

5.00`)/0

15.00%
(5.00%)
An expected inflation of 2.30% used for this period.
2 Figures are based on the 2021-22 Asset Liability Management study.

Discount Rate
Real Return1'2

4.54%

3.84%

7.28%

0.27%

0.50%

1.56%

2.27%

2.48%

3.57%

3.21%
(0.59%)
The discount rate used to measure the total pension liability for PERF C was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Subsequent Events
There were no subsequent events that would materially affect the results presented in this disclosure.
78

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 10 - Pension Plans (Continued)
Net Pension Liability (Continued)
Pension Plan Fiduciary Net Position
Information about the pension plan's assets, deferred outflows of resources, liabilities, deferred inflows of resources, and fiduciary net position are presented in CaIPERS' audited financial statements, which are publicly available reports that can be obtained at CaIPERS' website, at www.calpers.ca.gov . The plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis used by the pension plan, which is the economic resources measurement focus and the accrual basis of accounting. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Investments are reported at fair value.

Proportionate Share of Net Pension Liability
The following table shows the Plan's proportionate share of the net pension liability over the measurement period.

Increase(Decrease)
Total Fiduciary Net Pension
Pension Liability Net Position Liability
Miscellaneous
Balance at: 6/30/23 (Valuation date) $ 49,834,513 $ 38,547,510 $ 11,287,003 Balance at: 6/30/24 (Measurement date) 54,420,834 43,210,137 11,210,697 Net changes during 2023-2024 $ 4,586,321 $ 4,662,627 $ (76,306) Valuation Date (VD), Measurement Date (MD).

Safety
Balance at: 6/30/23 (Valuation date) $ 63,546,139 $ 48,178,097 $ 15,368,042 Balance at: 6/30/24 (Measurement date) 69,144,044 54,079,364 15,064,680 Net changes during 2023-2024 $ 5,597,905 $ 5,901,267 $ (303,362) Valuation Date (VD), Measurement Date (MD).
79

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 10 - Pension Plans (Continued)
Proportionate Share of Net Pension Liability (Continued) The City's proportion of the net pension liability was determined by CaIPERS using the output from the Actuarial Valuation System and the fiduciary net position, as provided in the CaIPERS Public Agency Cost -Sharing Allocation Methodology Report, which is a publicly available report that can be obtained at CaIPERS' website, at www.calpers.ca.gov . The City's proportionate share of the net pension liability/(asset) for each Plan as of June 30, 2023 and 2024 measurement dates was as follows:

Proportion - June 30, 2023
Proportion - June 30, 2024
Change - Increase (Decrease)
Miscellaneous

0.22572%

0.23179%

0.00607%
Safety Total

0.20559%

0.20662%

0.21366%

0.21666%

0.00103% 0.00300%
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 of the Plan as of the measurement date, calculated using the discount rate of 6.90%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage -point lower (5.90%) or 1 percentage -point higher (7.90%) than the current rate:

Plan's Net Pension Liability/(Asset)
Discount Rate - 1% Current Discount Discount Rate + 1%
(5.90%)
Miscellaneous $ 18,554,265
Safety 24,509,690
Total
$ 43,063,955
Rate (6.90%) (7.90%)
$ 11,210,697 $ 5,165,858
15,064,680 7,339,990
$ 26,275,377 $ 12,505,848
80

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 10 - Pension Plans (Continued)
Proportionate Share of Net Pension Liability (Continued) Amortization of Deferred Outflows and Deferred Inflows of Resources Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.

The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.

The amortization period differs depending on the source of the gain or loss:

Net difference between
projected and actual earnings
on pension plan investments
All other amounts
5 -year straight-line amortization
Straight-line amortization over the expected average
remaining service lives (EARSL) of all members that
are provided with benefits (active, inactive and
retired) as of the beginning of the measurement
period
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
As of the start of the measurement period (July 1, 2023), the City's net pension liabilities were $11,287,003 and $15,368,042 for the Miscellaneous and Safety plans, respectively. For the measurement period ending June 30, 2024 (the measurement date), the City incurred a pension expense of $2,950,881 and $3,647,600 for the Miscellaneous and Safety Plans, respectively.
81

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 10 - Pension Plans (Continued)
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions (Continued)
As of June 30, 2025, the City has deferred outflows and deferred inflows of resources related to pensions as follows:

Miscellaneous Plan
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions made subsequent to measurement date $ 2,361,882 $ - Difference between projected and actual earning on
pension plan investments 645,388
Change in Employer's Proportion 364,187
Changes in assumptions 288,138
Difference between actual and expected experience 969,267 37,820 Difference between employer's actual contributions
and proportionate share of contributions 386,009 35,987 Totals $ 5,014,871 $ 73,807
Safety Plan
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions made subsequent to measurement date $ 2,721,262 $ - Difference between projected and actual earning on
pension plan investments 728,158 -
Change in Employer's Proportion 467,330 -
Changes in assumptions 371,163 -
Difference between actual and expected experience 1,229,412 39,973 Difference between employer's actual contributions
and proportionate share of contributions 563,809 224,505 Totals $ 6,081,134 $ 264,478
The amounts above are net of outflows and inflows recognized in the 2023-24 measurement period expense. Contributions subsequent to the measurement date of $2,361,882 and $2,721,262, for the Miscellaneous and Safety Plans, respectively reported with deferred outflows of resources will be recognized as a reduction of the net pension liability in the upcoming fiscal year.
82

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 10 - Pension Plans (Continued)
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions (Continued)
Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:

Year Ended Miscellaneous Safety
June 30, Plans Plans
Total
2026 $ 982,627 $ 1,252,590 $ 2,235,217
2027 1,697,294 1,965,567 3,662,861
2028 120,426 126,381 246,807
2029 (221,165) (249,144) (470,309)
2030 -
Thereafter -
Totals $ 2,579,182 $ 3,095,394 $ 5,674,576
Payable to the Pension Plan
The City had $136,257 in outstanding amounts owed to the pension plan for contributions for the year ended June 30, 2025.

Note 11 - Other Required Disclosures
A. Deficit Fund Balances
As of June 30, 2025, there were no funds with deficit fund balances.

B. Expenditures Exceeding Appropriations
For the year ended June 30, 2025, expenditures exceeded appropriations in the following functions for the following:

Fund
General Fund
Function
General government: city clerk
General government: information technology
Capital outlay
Debt service: principal
Debt service: interest
Excess
Expenditures
$ (30,764)
(81,253)
(145,918)
(633,247)
(30,447)
83

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 11 - Other Required Disclosures
B. Expenditures Exceeding Appropriations (Continued)
The budget was established in a manner different than the reporting, and though certain line items were over the departments were within total budget appropriation. Future budgets will consider all reporting elements for proper alignment. The capital budget includes estimated resources and capital expenditures based on the first year of the current capital improvements plan. The expenses are not always in the first year of the plan. The implementation of GASB 96 was not determinable at the time of budget and will be calculated for future years.

Note 12 - Equity Classification
A. Fund Balances
Major Funds
Community Beaumont
Development Facilities Financing
Impact Fees (DIF) District (CFD) General Authority Other General Special Revenue Capital Projects Capital Projects Debt Service Governmental Fund Fund Fund Fund Fund Funds
Total
Nonspendable:

Prepaid expenditures $ 422,889 $ - $ - $ - $ 236,456 $
Total nonspendable 422,889 -
Restricted
State Gas Tax

RMRA - - -
MeasureA - - -
AB 2766 - - -
PEG Fees - - -
Other Federal Grants - - -
COPS Grant - - -
State Asset Forfeiture - - -
Federal Asset Forfeiture
Other Special Projects - -
Capital Projects - 27,234,300 5,270,302
Debt Service - - -
Community Facilities Districts -
Investment in Section 115 Trust 4,372,256
Total restricted 4,372,256 27,234,300 5,270,302 - 67,138,386 Committed:

Capital Projects
Self Insurance
MOU Revenue Bonds
Total Committed
Assigned:

Re -appropriation
Total Assigned
Unassigned
Total Fund Balances
$ 659,345
236,456 - 659,345
67,138,386
552,573 552,573
3,475,975 3,475,975
2,727,646 2,727,646
241,099 241,099
45748 45,748
511578 511,578
445,519 445,519
110,626 110,626
125825 125,825
600,474 600,474
- 32,504,602
- 67,138,386
3,334577 3,334,577
4,372,256
12,171,640 116,186,884
800,000
6,304,943
582,382
7,687,325 - 66,928,378 - 74,615703
66,928,378
67,728,378
6,304,943
582,382
569,092 - - 569,092
569,092 - - - - 569,092
40,574,654 - - - 40,574,654
$ 53,626,216 $ 27,234,300 $ 5,270,302 $ 66,928,378 $ 67,374,842 $ 12,171,640 $ 232,605,678 84

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 12 - Equity Classification (Continued)
B. Net Position
Governmental Activities
Net Investment in Capital Assets
Net position for governmental activities and business -type activities is classified as 1) net investment in capital assets, 2) restricted, or 3) unrestricted. Net position that was classified as net investment in capital assets as of June 30, 2025, was determined as follows:

Capital assets, net of accumulated depreciation
Less capital related debt balance:

Outstanding principal balance of lease liability
Outstanding principal balance of subscription liability Outstanding principal balance of Beaumont Public Financing Authority debt Less retainage payable related to capital assets
Plus capital related unspent proceeds
Governmental
Activities
$ 332,881,107
(1,098, 958)
(637,430)
(63, 034, 565)
(529,176)
4,103, 821
Net investment in capital assets $ 271,684,799
Business -type Activities
Business -type Activities
Total
Sewer Transit Enterprise
Fund Fund Funds
Capital assets, net of accumulated depreciation $ 182,040,831 $ 9,628,158 $ 191,668,989 Less capital related debt balance:

Capital related borrowings
Outstanding unamortized bond premium balance
Outstanding balance of lease liability
Less retainage payable related to capital assets
(73,290,000)
(5,538,041)
(157,024)
(100,408)
(10,681)
(73,290,000)
(5,538,041)
(167,705)
(100,408)
Net investment in capital assets $ 102,955,358 $ 9,617,477 $ 112,572,835 Note 13 - Commitments and Contingencies
A. Litigation
The City is a defendant in a number of lawsuits and a recipient of various claims that have arisen in the normal course of business. Subsequent to June 30, 2025, the City settled one such claim on November 13, 2025, resulting in a payment of $950,000. 85

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 13 - Commitments and Contingencies (Continued)
B. Grants
Amounts received or receivable from granting agencies are subject to audit and adjustment by grantor agencies. While no matters of non-compliance were disclosed by the audit of the financial statements or single audit of the Federal grant programs, grantor agencies may subject grant programs to additional compliance tests, which may result in disallowed costs.

In the opinion of management, future disallowances of current or prior grant expenditures, if any, would not have a material adverse effect on the financial position of the City.

C. Construction Commitments
Various construction projects in all fund types were in progress as of June 30, 2025 with a planned cost to complete of approximately $177,677,294.

D. WRCOG Restated Settlement Agreement
In May 2017, the City and Western Riverside Council of Governments ("WRCOG") entered into an Amended and Restated Settlement Agreement and Release (the "WRCOG Settlement"), which resolved the approximately $62 million judgment WRCOG had obtained against the City. Under the terms of the WRCOG Settlement, the City and WRCOG agreed that the City would rejoin WRCOG and adopt the WRCOG TUMF ordinance. Since the settlement, the City rejoined WRCOG and the TUMF program and as a result, and pursuant to the WRCOG Settlement, the City is now eligible to receive Measure A revenues from the Riverside County Transportation Commission (RCTC) based on the following schedule:

Period
WRCOG* City
Approval Date thru 5th Anniversary of Approval 0% 100%
Second five year period 25% 75%
Third five year period 40% 60%
Fourth five year period 60% 40%
End of fourth five year period through June 2039 75% 25% *WRCOG's share of Measure A revenues shall not exceed a total of $9,400,000 In October 2017, the City segregated $3,000,000, designated for funding Pennsylvania Avenue improvements in accordance with the agreement. The City agreed to complete needed transportation improvements as follows:

Improvement Estimated Cost Completion Deadline
Oak Valley Parkway, Segments 3, 4, and 15 $ 1,200,000 By January 1, 2022 Pennsylvania Avenue 3,800,000 None
86

CITY OF BEAUMONT
Notes to the Basic Financial Statements
For the year ended June 30, 2025
Note 13 - Commitments and Contingencies (Continued)
D. WRCOG Restated Settlement Agreement (Continued)
The City also agreed to assign Third Party Claims to WRCOG to diligently pursue civil lawsuits and through requests/applications for restitution in the criminal actions pending against Third Parties. Recovery related to Third Party Claims would be shared on the following schedule:

Re cove ry Amount
First $9,000,000
$9,000,001 - $12,000,000
$12,000,001 - $18,000,000
$18,000,001 and above
WRCOG City**
100% 0%
85% 15%
65% 35%
50% 50%
**City guarantees $7,000,000 recovery to WRCOG and will pay 50% of the legal fees not to exceed $1,000,000
The settlement agreement stipulates that if Third Party Claims have not produced recoveries of at least $8,000,000 by July 2, 2022, the City will begin making payments to WRCOG in 20 equal annual installments beginning August 1, 2022. Any subsequent recoveries would adjust the annual installments as necessary. As of June 30, 2025, recoveries are approximately $24.7 million. The City continues to share in recoveries at the 35% rate until recoveries total $18 million at which time the City will begin collecting 50% of any recoveries. The City now shares in recoveries based on the settlement agreement; therefore, a liability has not been accrued.

Additionally, in October 2017, two of the seven criminal cases were resolved with guilty pleas with a restitution payment due to the City of $3,000,000. In December 2017, four more of the seven criminal cases were resolved with guilty pleas and restitution payments due of another $8,000,000. The last case was settled in September 2018 with a guilty plea.

WRCOG has released and discharged the City from the WRCOG judgment and Attorneys' Fee Award and interest, which collectively exceeded $62 million. WRCOG and the City also agreed that the litigation, judgment and pending appeals would be dismissed thereby ending the litigation between WRCOG and the City.

Note 14 - Reclassification of Prior -year amounts
Certain amounts in the prior year's government -wide Statement of Activities have been reclassified to conform to the current -year presentation. Specifically, $1,940,086 previously reported as Operating Grants and Contributions has been reclassified to Capital Grants and Contributions to better reflect the nature of the underlying revenues.

These reclassifications had no effect on total revenues, the change in net position, or beginning net position.
87

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Required Supplementary Information (Unaudited)

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CITY OF BEAUMONT
Budgetary Information
For the Year Ended June 30, 2025
Note 1 - Budgetary Information
The City Council approves each year's budget submitted by the City Manager prior to the beginning of the new fiscal year. Public hearings are conducted prior to its adoption by the Council. All supplementary appropriations, where required during the period, are also approved by the Council. Intradepartmental budget transfers are approved by the City Council. In most cases, expenditures may not exceed appropriations at the departmental level within the General Fund and at the fund level for other major special revenue funds. At fiscal year-end, all operating budget appropriations lapse.

Budgets for governmental funds are adopted on a basis consistent with generally accepted accounting principles (GAAP).

Budgets were adopted for all funds.
88

CITY OF BEAUMONT
Required Supplementary Information
Budgetary Comparison Schedule
General Fund
For the Year Ended June 30, 2025
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Taxes
Franchise fees
Intergovernmental
License and permits
Fines and forfeitures
Assessments levied
Use of money and property
Charges for services
Other revenues
Total revenues

EXPENDITURES
Current:

General government
City council
City clerk
Administration services
Finance and budget
Information Technology
HR / Risk Management
Legal
Communications
Nondepartmental
Public safety
Animal control
Police department
K-9 Unit
Police support
Fire
Public works
Public works
Street maintenance
Community development
Planning and community development
Community enhancement
Building and safety
Community development
Community services
Parks and recreation
Building maintenance
Parks and ground maintenance
Capital outlay
Debt service:

Principal
Interest
Total expenditures

REVENUES OVER (UNDER)

EXPENDITURES

OTHER FINANCING SOURCES (USES)
Lease acquisition
Subscription acquistion
Proceeds from sale of capital assets
Transfers in
Transfers (out)
Total other financing sources
Net change in fund balance

FUND BALANCE
Beginning of year
End of year
$ 38,796,804 $ 39,756,919 $ 47,070,984 $ 7,314,065
3421,662 3421,662 3,358,769 (62,893)
8,195,586 8,195,586 9,014,653 819,067
3,801,037 4,051,037 3,477,439 (573,598)
174,194 174,194 330,046 155,852
710,681 710,681 896,446 185,765
1,575,134 1,735,134 4,031,830 2,296,696
1,344,312 1,344,312 1,614,849 270,537
2,834,469 2,834,469 2,998,469 164,000
60,853,879 62,223,994 72,793,485 10,569,491
258,132 358,132 351,722 6,410
735,687 736,213 766,977 (30,764)
1,415425 1,446,925 1,333,315 113,610
1,947,981 2,930,837 2,895,044 35,793
1,927,193 1,927,193 2,008,446 (81,253)
3,780,143 3,780,143 3,531,773 248,370
1,500,000 1,500,000 1,134,920 365,080
583,904 603,904 494,726 109,178
608,102 1,380,741 785,819 594,922
368,025 372,247 313,763 58,484
17,309,612 17,391,191 16,812,249 578,942
17,463 27,327 24,666 2,661
3,306,054 3,310,412 2,872,267 438,145
9,271,237 9,271,237 7,063,439 2,207,798
2,820,992 2,916,507 2420,803 495,704
2,922,935 3,017,744 2718,777 298,967
964,171 999,478 764,998 234,480
385,343 425,068 343,416 81,652
1,430,099 1,699,509 1,310,056 389,453
928,647 2,005,145 630,633 1,374,512
2,122,288 2,134,756 1,761,412 373,344
1,403,328 1,403,328 1,276,863 126,465
4,517,654 4,562,654 4,269,778 292,876
275,000 365,147 511,065 (145,918)
7,705 7,705 640,952 (633,247)
53 53 30,500 (30,447)
60,807,173 64,573,596 57,068,379 7,505,217
46,706 (2,349,602) 15,725,106 18,074,708
- - 447,840 447,840
- - 765,777 765,777
- - 105 105
7,263,776 7,341,076 7,028,831 (312,245)
(5,927,743) (18,412,743) (18,389,656) 23,087
1,336,033 (11,071,667) (10,147,103) 924,564
$ 1,382,739 $ 513,421,269) 5,578,003 $ 18,999,272
48,048,213
$ 53,626,216
89

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CITY OF BEAUMONT
Required Supplementary Information
Budgetary Comparison Schedule
Development Impact Fees (DIF) Special Revenue Fund
For the Year Ended June 30, 2025

REVENUES
License and permits
Use of money and property
Total revenues

REVENUES OVER (UNDER)

EXPENDITURES
Budceted Amounts
Original Final
Actual Variance with
Amounts Final Budget
$ 5,191,154 $ 5,191,154 $ 6,219,813 $ 1,028,659
182,234 182,234 1,698,621 1,516,387
5,373,388 5,373,388 7,918,434 2,545,046
5,373,388 5,373,388 7,918,434 2,545,046

OTHER FINANCING SOURCES (USES)
Transfers (out) (2,352,651) (31,550,210) (8,990,571) 22,559,639 Total other financing (uses) (2,352,651) (31,550,210) (8,990,571) 22,559,639 Net change in fund balance $ 3,020,737 $ (26,176,822) (1,072,137) $ 25,104,685

FUND BALANCE
Beginning of year
End of year
28,306,437
$ 27,234,300
90

CITY OF BEAUMONT
Required Supplementary Information
Schedule of Proportionate Share of the Net Pension Liability and Related Ratios
Last Ten Years
Miscellaneous Plan
Measurement
Date
6/30/2015
6/30/2016
6/30/2017
6/30/2018
6/30/2019
6/30/2020
6/30/2021
6/30/2022
6/30/2023
6/30/2024
Employer's
Proportion of
the Collective
Net Pension
Liability

0.12477%

0.16750%

0.17352%

0.17792%

0.18574%

0.19475%

0.20727%

0.21542%

0.22572%

0.23179%
Employer's
Proportion
Share of the
Collective Net
Pension Liability
$ 3,423,018
5,818,570
6,840,289
6,705,339
7,438,139
8,214,777
3,935,827
10,080,434
11,287,003
11,210,697
Employer's
Covered Payroll
$ 5,411,229
4,722,459
4,864,133
5,052,100
5,203,663
5,145,199
8,181,668
8,512,450
10,099,832
11,642,973
Employer's
Proportionate
Share of the
Collective Net
Pension Liability
as a Percentage
of the Employer's
Covered
Payroll

63.26%
123.21%
140.63%
132.72%
142.94%
159.66%

48.11%
118.42%
111.75%

96.29%
Miscellaneous
Pension Plan
Fiduciary Net
Position as a
Percentage of
the Total
Pension Liability

77.28%

73.03%

71.64%

72.71%

70.85%

69.88%

90.49%

78.19%

77.97%

79.91%
Proportion of the net pension liability represents the plan's proportion of PERF C, which includes both the Miscellaneous and Safety Risk Pools excluding the 1959 Survivors Risk Pool. 91

CITY OF BEAUMONT
Required Supplementary Information
Schedule of Proportionate Share of the Net Pension Liability and Related Ratios (Continued)
Last Ten Years
Safety Plan
Employer's
Proportionate
Share of the Safety
Collective Net Pension Plan
Employer's Employer's Pension Liability Fiduciary Net
Proportion of Proportion as a Percentage Position as a
the Collective Share of the of the Employer's Percentage of Measurement Net Pension Collective Net Employer's Covered the Total Date Liability Pension Liability Covered Payroll Payroll Pension Liability 6/30/2015 0.17862% $ 7,359,819 $ 4,134,515 178.01% 74.99% 6/30/2016 0.17381% 9,002,206 3,613,896 249.10% 70.87%
6/30/2017 0.17034% 10,177,973 3,722,313 273.43% 70.93%
6/30/2018 0.17176% 10,078,078 3,862,606 260.91% 72.39%
6/30/2019 0.17251% 10,769,243 3,978,484 270.69% 73.25%
6/30/2020 0.17600% 11,725,412 3,676,631 318.92% 72.59%
6/30/2021 0.16273% 5,710,864 4,334,892 131.74% 86.61%
6/30/2022 0.20172% 13,861,509 5,303,955 261.34% 75.52%
6/30/2023 0.20594% 15,368,042 6,360,725 241.61% 74.87%
6/30/2024 0.20662% 15,064,680 6,886,421 218.76% 76.66%
1 Proportion of the net pension liability represents the plan's proportion of PERF C, which includes both the Miscellaneous and Safety Risk Pools excluding the 1959 Survivors Risk Pool. 92

CITY OF BEAUMONT
Required Supplementary Information
Schedule of Pension Plan Contributions
Last Ten Years
Miscellaneous Plan
Contractually
Determined
Fiscal Year Contributions
Contribution in
Relation to the
Contractually
Determ ined
Contributions
Contribution
Deficiency
(Excess)
2015-16 $ 732,914 $ (732,914) $
2016-17 816,082 (816,082)
2017-18 956,792 (956,792)
2018-19 1,156,583 (1,156,583)
2019-20 1,390,388 (1,390,388)
2020-21 1,595,185 (1,595,185)
2021-22 1,667,472 (1,667,472)
2022-23 1,931,600 (1,931,600)
2023-24 1,961,630 (1,961,630)
2024-25 2,361,882 (2,361,882)
Notes to Schedule:

Contributions as
a Percentage of
Em ployer's Covered
Covered Payroll Payroll
$ 4,722,459
4,864,133
5,052,100
5,203,663
5,145,199
8,181,668
8,512,450
10,099,832
11,642,973
11,522,470

15.52%

16.78%

18.94%

22.23%

27.02%

19.50%

19.59%

19.13%

16.85%

20.50%
Changes in Benefit Terms: There were no changes to benefit terms that applied to all members of the Public Agency Pool.

However, individual employers in the Plan may have provided a benefit improvement to their employees such as Golden Handshakes, service purchases, and other prior service costs. Employers that have done so may need to report this information as a separate liability in their financial statement as CaIPERS considers such amounts to be separately financed employer -specific liabilities. These employers should consult with their auditors. Additionally, the figures above do not include any liability impact that occurred after the June 30, 2023, valuation date, unless the liability impact is deemed to be material to the Public Agency Pool.

Change in Assumptions: There were no assumption changes in 2023 or 2024. Effective with the June 30, 2021, valuation date (June 30, 2022, measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CaIPERS took into account long-term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CaIPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017, through June 30, 2021, and 7.65% for measurement dates June 30, 2015, through June 30, 2016.
93

CITY OF BEAUMONT
Required Supplementary Information
Schedule of Pension Plan Contributions (Continued)
Last Ten Years
Safety Plan
Contractually
Determined
Fiscal Year Contributions
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2023-24
2024-25
$ 1,181,118
1,281,860
1,402,549
1,645,661
1,838,564
1,751,746
1,921,364
2,312,019
2,510,413
2,721,262
Notes to Schedule:

Contribution in
Relation to the
Contractually
Determined
Contributions
$ (1,181,118)
(1,281,860)
(1,402,549)
(1,645,661)
(1,838,564)
(1,751,746)
(1,921,364)
(2,312,019)
(2,510,413)
(2,721,262)
Contribution
Deficiency
(Excess)
Employer's
Covered Payroll
$ 3,613,896
3,722,313
3,862,606
3,978,484
3,676,631
4,334,892
5,303,955
6,360,725
6,886,421
6,576,782
Contributions as
a Percentage of
Covered
Payroll

32.68%

34.44%

36.31%

41.36%

50.01%

40.41%

36.23%

36.35%

36.45%

41.38%
Changes in Benefit Terms: There were no changes to benefit terms that applied to all members of the Public Agency Pool.

However, individual employers in the Plan may have provided a benefit improvement to their employees such as Golden Handshakes, service purchases, and other prior service costs. Employers that have done so may need to report this information as a separate liability in their financial statement as CaIPERS considers such amounts to be separately financed employer -specific liabilities. These employers should consult with their auditors. Additionally, the figures above do not include any liability impact that occurred after the June 30, 2023, valuation date, unless the liability impact is deemed to be material to the Public Agency Pool.

Change in Assumptions: There were no assumption changes in 2023 or 2024. Effective with the June 30, 2021, valuation date (June 30, 2022, measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CaIPERS took into account long-term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017, through June 30, 2021, and 7.65% for measurement dates June 30, 2015, through June 30, 2016.
94

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Supplementary Information

Major Governmental Funds
Budgetary Comparison Schedule

CITY OF BEAUMONT
Major Governmental Fund Budgetary Comparison Schedule
Community Facilities District (CFD) - Capital Projects Fund For the Year Ended June 30, 2025

REVENUES
Assessments levied
Use of money and property
Total revenues

EXPENDITURES
Current:

Public works
Community development
Total expenditures
$
Budceted Amounts
Original Final
2,127
2,127 2,127 1,145,146 1,143, 019
Actual
Amounts
$ - $
2,127
Variance with
Final Budget
669,994 $ 669,994
475,152 473,025

REVENUES OVER (UNDER)
EXPENDITURES 2,127
OTHER FINANCING SOURCES (USES):

Transfers (out) (75,000)
Total other financing (uses) (75,000)
Net change in fund balance

FUND BALANCE
Beginning of year
End of year
214,799
5,693,298
5,908,097 (5,908,097)
(214,799)
(5,693,298)
2,127 (4,762,951) (4,765,078)
(8,394,734)
(8,394,734)
$ (72,873) $ (8,392,607)
(2,583,548) 5,811,186
(2,583,548) 5,811,186
(7,346,499) $ 1,046,108
12,616, 801
$ 5,270,302
95

CITY OF BEAUMONT
Major Governmental Fund Budgetary Comparison Schedule
General Capital Projects - Capital Projects Fund
For the Year Ended June 30, 2025

REVENUES
Intergovernmental
Use of money and property
Other revenues
Total revenues

EXPENDITURES
Capital outlay
Total expenditures

REVENUES OVER (UNDER)

EXPENDITURES

OTHER FINANCING SOURCES (USES)
Transfers in
Total other financing (uses)
Net change in fund balance

FUND BALANCE
Beginning of year
End of year
Budgeted Amounts
Original Final
$ 7,000,000
7,000,000
Actual
Amounts
$ 68,295,367 $
68,295,367
19, 744,560 182,180,230
19,744,560 182,180,230
732,866
2,275,394
5,000,000
8,008,260
Variance with
Final Budget
$ (67,562,501)
2,275,394
5,000,000
(60,287,107)
24,425,124 157,755,106
24,425,124 157,755,106
(12,744,560) (113,884,863) (16,416,864)
12,744,560 75,408,468
12,744,560 75,408,468
$ - $ (38,476,395)
32,287,675
32,287,675
97,467,999
(43,120,793)
(43,120,793)
15,870,811 $ 54,347,206
51,057,567
$ 66,928,378
96

CITY OF BEAUMONT
Major Governmental Fund Budgetary Comparison Schedule
Beaumont Financing Authority — Debt Service Fund
For the Year Ended June 30, 2025
Budgeted Amounts Actual Variance with
Oricinal Final Amounts Final Budget

REVENUES
Use of money and property
Other revenues
Total revenues

EXPENDITURES
Debt service:

Principal
Interest, fiscal, and other charges
Total expenditures
$ 6,233,585 $ 6,233,585 $ 2,286,319 $ (3,947,266)
- 300,000 300,000
6,233,585 6,233,585 2,586,319 (3,647,266)
4,035,000 4,035,000 4,035,000
2,198,585 2,215,474 2,215,474
6,233,585 6,250,474 6,250,474
Net change in fund balance $

FUND BALANCE
Beginning of year
End of year
$ (16,889) (3,664,155) $ (3,647,266)
71,038,997
$ 67,374,842
97

Non -Major Governmental Funds
Combining Schedules

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CITY OF BEAUMONT
Combining Balance Sheet
Non -Major Governmental Funds
June 30, 2025
Special Revenue Funds
ASSETS
Cash and investments
Receivables:

Accounts, net
Due from other governments
Total assets
State Gas
Tax Fund
Road Maintenance
and Rehabilitation
Act Fund
Measure A
Fund
AB 2766
Fund
$ 414,693 $ 3,344,658 $ 2,564,012 $ 241,099
137,880 131,317 163,634
$ 552,573 $ 3,475,975 $ 2,727,646 $ 241,099

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities $
Deposits payable
Unearned revenue
Total liabilities
$ $
Fund Balances:

Restricted 552,573 3,475,975 2,727,646 241,099
Total fund balances 552,573 3,475,975 2,727,646 241,099 Total liabilities and fund balances $ 552,573 $ 3,475,975 $ 2,727,646 $ 241,099 98

CITY OF BEAUMONT
Combining Balance Sheet (Continued)
Non -Major Governmental Funds
June 30, 2025
Special Revenue Funds
Other Federal COPS State
PEG Fees Grants Grant Asset Seizure
Fund Fund Fund Fund
ASSETS
Cash and investments
Receivables:

Accounts, net
Due from other governments
Total assets
$ 43,541 $ 2,194,258 $ 447,100 $ 144,749
2,207
82,577 16,667
$ 45,748 $ 2,276,835 $ 463,767 $ 144,749

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities $
Deposits payable
Unearned revenue
Total liabilities
$ $
1,765,257
1,765,257
1,581 $
16,667 34,123
18,248 34,123
Fund Balances:

Restricted 45,748 511,578 445,519 110,626
Total fund balances 45,748 511,578 445,519 110,626
Total liabilities and fund balances $ 45,748 $ 2,276,835 $ 463,767 $ 144,749 99

CITY OF BEAUMONT
Combining Balance Sheet (Concluded)
Non -Major Governmental Funds
June 30, 2025
Special Revenue Funds
Federal Other Total Other
Asset Seizure Special Revenue Community Facilities Governmental Fund Fund District (CFD) Funds
ASSETS
Cash and investments
Receivables:

Accounts, net
Due from other governments
Total assets
$ 122,581 $ 656,968 $ 3,418,454 $ 13,592,113
3,244
2,207
78,336 613,655
$ 125,825 $ 656,968 $ 3,496,790 $ 14,207,975

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities $ - $
Deposits payable -
Unearned revenue
Total liabilities
$ 34,388 $ 35,969
127,825 127,825
56,494 - 1,872,541
56,494 162,213 2,036,335
Fund Balances:

Restricted 125,825 600,474 3,334,577 12,171,640
Total fund balances 125,825 600,474 3,334,577 12,171,640 Total liabilities and fund balances $ 125,825 $ 656,968 $ 3,496,790 $ 14,207,975 100

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CITY OF BEAUMONT
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non -Major Governmental Funds
For the Year Ended June 30, 2025
Special Revenue Funds

REVENUES
Taxes
Intergovernmental
License and permits
Use of money and property
Other revenues
State Gas
Tax Fund
Road Maintenance
and Rehabilitation
Act Fund
Measure A AB 2766
Fund Fund
$ - $ $ 944,484 $ -
1,619,226 1,558,752 - 76,509
38,498 106,080 99,301 9,494
Total revenues 1,657,724 1,664,832 1,043,785 86,003

EXPENDITURES
Current:

General government
Public safety
Community development
Community services
Capital outlay
26 463
Total expenditures 489

REVENUES OVER
(UNDER) EXPENDITURES 1,657,235

OTHER FINANCING SOURCES (USES)
Transfers (out) (1,244,693)
Total other financing sources (uses)
Net changes in fund balances

FUND BALANCES
Beginning of year
End of year
50 93,275
50 - 93,275
1,664,782 1,043,785 (7,272)
900,840)
(1,244,693) (900,840)
412,542 763,942
140,031 2,712,033
$ 552,573 $ 3,475,975
626,781)
(626,781)
417,004 (7,272)
2,310,642 248,371
$ 2,727,646 $ 241,099
101

CITY OF BEAUMONT
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)
Non -Major Governmental Funds
For the Year Ended June 30, 2025
Special Revenue Funds
Other Federal COPS State
PEG Fees Grants Grant Asset Seizure
Fund Fund Fund Fund

REVENUES
Taxes
Intergovernmental
License and permits
Use of money and property
Other revenues
Total revenues

EXPENDITURES
Current:

General government
Public safety
Community development
Community services
Capital outlay
Total expenditures

REVENUES OVER
(UNDER) EXPENDITURES

OTHER FINANCING SOURCES (USES)
Transfers (out)
Total other financing sources (uses)
Net changes in fund balances

FUND BALANCES
Beginning of year
$ $ - $ $ -
- 2,549,025 211,330 18,358
9,908 - -
1,800 129,288 22,616 7,714
- 138,566 -
11,708 2,816,879 233,946 26,072
8,635 - -
- - 301,697 2,420
108,273 101 -
- 79 -
- - 216,380
8,635 108,273 301,877 218,800
3,073 2,708,606 (67,931) (192,728)
- (2,288,577) (16,654) -
- (2,288,577) (16,654) -
3,073 420,029 (84,585) (192,728)
42,675 91,549 530,104 303,354
End of year $ 45,748 $ 511,578 $ 445,519 $ 110,626
102

CITY OF BEAUMONT
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Concluded)
Non -Major Governmental Funds
For the Year Ended June 30, 2025
Special Revenue Funds
Federal Other Total Other
Asset Seizure Special Revenue Community Facilities Governmental Fund Fund District (CFD) Funds

REVENUES
Taxes
Intergovernmental
License and permits
Use of money and property
Other revenues
Total revenues

EXPENDITURES
Current:

General government
Public safety
Community development
Community services
Capital outlay
Total expenditures

REVENUES OVER
(UNDER) EXPENDITURES

OTHER FINANCING SOURCES (USES)
Transfers (out)
Total other financing sources (uses)
Net changes in fund balances

FUND BALANCES
Beginning of year
End of year
$ $
19,977
5,142
$ 8,281,064 $ 9,225,548
38,309 6,091,486
3,901 13,809
26,941 133,690 580,564
143,821 282,387
25,119 212,972
103,796
14,038
117,834
25,119 95,138
8,414,754 16,193,794
8,711
501,188
953,561 1,075,973
79 216,843
953,561 1,802,794
7,461,193 14,391,000
(17,463) (6,304,813) 11,399,821)
(17,463) (6,304,813) (11,399,821)
25,119 77,675 1,156,380 2,991,179
100,706 522,799 2,178,197 9,180,461
$ 125,825 $ 600,474 $ 3,334,577 $ 12,171,640
103

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Non -Major Governmental
Budgetary Comparison Schedules

CITY OF BEAUMONT
Budgetary Comparison Schedule
State Gas Tax Fund
For the Year Ended June 30, 2025
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental
Use of money and property
Total revenues

EXPENDITURES
Current:

General government
Capital outlay
Total expenditures

REVENUES OVER (UNDER)

EXPENDITURES
$ 1,565,135 $ 1,565,135 $ 1,619,226 $ 54,091
- 38,498 38,498
1,565,135 1,565,135 1,657,724 92,589
1,565,135 1,565,135

OTHER FINANCING SOURCES (USES)
Transfers (out)
Total other financing (uses)
Net change in fund balance $

FUND BALANCE
Beginning of year
End of year
26 (26)
463 (463)
489 (489)
1,657,235 92,100
(1,565,135) (1,565,135) (1,244,693) 320,442
(1,565,135) (1,565,135) (1,244,693) 320,442
$ - 412,542 $ 412,542
140,031
$ 552,573
104

CITY OF BEAUMONT
Budgetary Comparison Schedule
Road Maintenance and Rehabilitation Act Fund
For the Year Ended June 30, 2025

REVENUES
Intergovernmental
Use of money and property
Total revenues

EXPENDITURES
Current:

General government
Total expenditures
Budgeted Amounts
Original
Final
$ 1,448,271 $ 1,448,271
1,148 1,148
1,449,419

REVENUES OVER (UNDER)
EXPENDITURES 1,449,419
OTHER FINANCING SOURCES (USES):

Transfers (out) (1,448,271)
Total other financing (uses) (1,448,271)
Net change in fund balance $

FUND BALANCE
Beginning of year
End of year
1,449,419
1,449,419
2,349,111)
(2,349,111)
1,148 $ (899,692)
Actual
Amounts
Variance with
Final Budget
$ 1,558,752 $ 110,481
106,080 104,932
1,664,832 215,413
50 50
1,664,782
(50)
(50)
215,363
(900,840) 1,448,271
(900,840) 1,448,271
763,942 $ 1,663,634
2,712,033
$ 3,475,975
105

CITY OF BEAUMONT
Budgetary Comparison Schedule
Measure A Fund
For the Year Ended June 30, 2025
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Taxes
Use of money and property
Total revenues
$ 918,000 $ 918,000 $ 944,484 $ 26,484
5,257 5,257 99,301 94,044
923,257 923,257 1,043,785 120,528

REVENUES OVER (UNDER)
EXPENDITURES 923,257 923,257 1,043,785 120,528

OTHER FINANCING SOURCES (USES)
Transfers (out)
Total other financing (uses)
Net change in fund balance

FUND BALANCE
Beginning of year
End of year
(918,000) (1,534,800) (626,781) 908,019
(918,000) (1,534,800) (626,781) 908,019
$ 5,257 $ (611,543) 417,004 $ 1,028,547
2,310,642
$ 2,727,646
106

CITY OF BEAUMONT
Budgetary Comparison Schedule
AB 2766 Fund
For the Year Ended June 30, 2025
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental
Use of money and property
Total revenues

EXPENDITURES
Current:

Public safety
Total expenditures

REVENUES OVER (UNDER)

EXPENDITURES

OTHER FINANCING SOURCES (USES)
Transfers (out)
Total other financing (uses)
$ 68,511 $ 68,511 $ 76,509 $ 7,998
2,920 2,920 9,494 6,574
71,431 71,431 86,003 14,572
215,500 215,500 93,275 122,225
215,500 215,500 93,275 122,225
(144,069) (144,069) (7,272) 136,797
(50,000) 50,000
(50,000) 50,000
Net change in fund balance $ (144,069) $ (194,069)

FUND BALANCE
Beginning of year
End of year
(7,272) $ 186,797
248,371
$ 241,099
107

CITY OF BEAUMONT
Budgetary Comparison Schedule
PEG Fees Fund
For the Year Ended June 30, 2025

REVENUES
License and permits
Use of money and property
Total revenues

EXPENDITURES
Current:

General government
Total expenditures
Net change in fund balance

FUND BALANCE
Beginning of year
End of year
Budgeted Amounts
Original
Actual
Final Amounts
$ 12,010 $ 12,010 $
357 357
Variance with
Final Budget
9,908 $ (2,102)
1,800 1,443
12,367 12,367 11,708
$ 12,367
23,934
23,934
$ (11,567)
(659)
8,635 15,299
8,635 15,299
3,073 $ 14,640
42,675
$ 45,748
108

CITY OF BEAUMONT
Budgetary Comparison Schedule
Other Federal Grants Fund
For the Year Ended June 30, 2025

REVENUES
Intergovernmental
Use of money and property
Other revenues
Total revenues

EXPENDITURES
Current:

Community development
Total expenditures

REVENUES OVER (UNDER)

EXPENDITURES

OTHER FINANCING SOURCES (USES)
Transfers (out)
Total other financing (uses)
Net change in fund balance

FUND BALANCE
Beginning of year
End of year
Budceted Amounts
Oricinal Final
$
51,590
16,700
68,290
Actual Variance with
Amounts Final Budget
$ 6,122,275 $ 2,549,025 $ (3,573,250)
51,590 129,288 77,698
183,700 138,566 (45,134)
6,357,565 2,816,879 (3,540,686)
99,975
99,975
108,273 (8,298)
108,273 (8,298)
68,290 6,257,590 2,708,606 (3,548,984)
(146,700) (10,488,116) (2,288,577) 8,199,539
(146,700) (10,488,116) (2,288,577) 8,199,539
$ (78,410) $ (4,230,526) 420,029 $ 4,650,555
91,549
$ 511,578
109

CITY OF BEAUMONT
Budgetary Comparison Schedule
COPS Grant Fund
For the Year Ended June 30, 2025
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental
Use of money and property
Total revenues

EXPENDITURES
Current:

Public safety
Community development
Community services
Total expenditures

REVENUES OVER (UNDER)

EXPENDITURES
$ 100,000 $ 100,000 $ 211,330 $ 111,330
5,237 5,237 22,616 17,379
105,237 105,237 233,946 128,709
243,467
28,652
243,467
28,652
272,119 272,119
301,697 (58,230)
101 28,551
79 (79)
301,877 (29,758)
(166,882) (166,882) (67,931) 98,951

OTHER FINANCING SOURCES (USES)
Transfers (out) (71,348) (71,348) (16,654) 54,694
Total other financing (uses) (71,348) (71,348) (16,654) 54,694 Net change in fund balance $ (238,230) $ (238,230) (84,585) $ 153,645

FUND BALANCE
Beginning of year
End of year
530,104
$ 445,519
110

CITY OF BEAUMONT
Budgetary Comparison Schedule
State Asset Seizure Fund
For the Year Ended June 30, 2025
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental
Use of money and property
Total revenues

EXPENDITURES
Current:

Public safety
Capital outlay
Total expenditures
Net change in fund balance

FUND BALANCE
Beginning of year
End of year
$
$ - $ 18,358 $ 18,358
2,944 2,944 7,714 4,770
2,944 2,944 26,072 23,128
10,000 10,000 2,420 7,580
276,462 276,462 216,380 60,082
286,462 286,462 218,800 67,662
$ (283,518) $ (283,518) (192,728) $ 90,790
303,354
$ 110,626
111

CITY OF BEAUMONT
Budgetary Comparison Schedule
Federal Asset Seizure Fund
For the Year Ended June 30, 2025

REVENUES
Intergovernmental
Use of money and property
Total revenues
Net change in fund balance

FUND BALANCE
Beginning of year
End of year
Budgeted Amounts
Oricinal Final
$
Actual Variance with
Amounts Final Budget
$ $ 19,977 $ 19,977
597 597 5,142 4,545
597 597 25,119 24,522
$ 597 $ 597 25,119 $ 24,522
100,706
$ 125,825
112

CITY OF BEAUMONT
Budgetary Comparison Schedule
Other Special Revenue Fund
For the Year Ended June 30, 2025

REVENUES
Intergovernmental
License and permits
Use of money and property
Other revenues
Total revenues

EXPENDITURES
Current:

Public safety
Community development
Total expenditures

REVENUES OVER (UNDER)

EXPENDITURES
Budgeted Amounts
Original Final
Actual Variance with
Amounts Final Budget
$ 24,497 $ 24,497 $ 38,309 $ 13,812
3,901 3,901
4,092 4,092 26,941 22,849
47,167 47,167 143,821 96,654
75,756 75,756 212,972 137,216
16,500 188,574 103,796 84,778
51,108 51,108
67,608 239,682 117,834 121,848
14,038 37,070
8,148 (163,926)
95,138 259,064

OTHER FINANCING SOURCES (USES)
Transfers (out) (17,463) (17,463) 17,463)
Total other financing (uses) (17,463) (17,463) (17,463) Net change in fund balance $ (9,315) $ (181,389) 77,675 $ 259,064

FUND BALANCE
Beginning of year
End of year
522,799
$ 600,474
113

CITY OF BEAUMONT
Budgetary Comparison Schedule
Community Facilities Districts (CFD)
For the Year Ended June 30, 2025

REVENUES
Taxes
Assessments levied
Use of money and property
Total revenues

EXPENDITURES
Current:

Community development
Total expenditures

REVENUES OVER (UNDER)

EXPENDITURES
Budgeted Amounts
$
Original Final
7,752,345
15,661
7,768,006
280,006
280,006
7,488,000

OTHER FINANCING SOURCES (USES)
Transfers (out)
Total other financing (uses)
Net change in fund balance $

FUND BALANCE
Beginning of year
End of year
7,486,025)
(7,486,025)
$
7,752,345
15,661
7,768,006
332,481
332,481
7,435,525
Actual
Amounts
$ 8,281,064
133,690
8,414,754
953,561
953,561
7,461,193
(8,315,884, (6,304,813)
(8,315,884) (6,304,813)
1,975 $ (880,359)
Variance with
Final Budget
$ 8,281,064
(7,752,345)
118,029
646,748
(621,080)
(621,080)
25,668
2,011,071
2,011,071
1,156,380 $ 2,036,739
2,178,197
$ 3,334,577
114

Fiduciary Funds

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CITY OF BEAUMONT
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2025
ASSETS
Cash and investments
Restricted cash and investments with fiscal agent
Due from other governments
Total assets

LIABILITIES
Interest payable
Deposits payable
Due to other governments
Due to bondholders
Total liabilities

NET POSITION (DEFICIT)
Restricted for:

Individuals, organizations and other governments
Total net position
Community
Facilities Evidence
District Collection Fund
Total
$ 7,773,961 $ 146,575 $ 7,920,536
36,979,612 36,979,612
265,608 265,608
45,019,181 146,575 45,165,756
4,004,622
63,034,565
189,293,459
256,332,646
(211,313,465)
142,987
4,004,622
142,987
63,034,565
189,293,459
142,987 256,475,633
3,588 211,309,877)
$ (211,313,465) $ 3,588 $ (211,309,877)
115

CITY OF BEAUMONT
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the Year Ended June 30, 2025

ADDITIONS
Investment Income
Assessments
Bond proceeds
Payments from the City
Total additions

DEDUCTIONS
Administration
Payments to trustee
Interest expense
Payments to the City
Bond proceeds to developer
Total deductions
Change in net position

NET POSITION (DEFICIT)
Beginning of year
End of year
Community
Facilities Evidence
District Collection Fund
Total
$ 1,331,754 $ 1,340 $ 1,333,094
21,886,445 - 21,886,445
11,294,424 11,294,424
6,329,280 - 6,329,280
40,841,903
1,340 40,843,243
1,010,000 19,600 1,029,600
11,071,101 - 11,071,101
11,431,064 11,431,064
300,000 - 300,000
23,002,289 23,002,289
46,814,454 19,600 46,834,054
(5,972,551) (18,260) (5,990,811)
(205,340,914) 21,848 (205,319,066)
$ (211,313,465) $ 3,588 $
211, 309,877)
116

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Statistical Section

STATISTICAL SECTION
This part of the City of Beaumont's comprehensive annual 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 government's overall financial health.

Contents
Financial Trends
These schedules contain trend information to help the reader understand how the city's financial performance and well-being have changed over time.

Page
118
Revenue Capacity 128
These schedules contain information to help the reader assess the city's most significant local revenue source, the sales tax and supplemented by property tax.

Debt Capacity 137
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 to issue additional debt in the future.

Demographic and Economic Information 143
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 146
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.
117

CITY OF BEAUMONT
Net Position by Component
Last Ten (10) Fiscal Years
(accrual basis of accounting)
Fiscal Year
2016 2017 2018 2019
Governmental activities
Net investment in capital assets
Restricted
Unrestricted
Total governmental activities net position
Business -type activities
Net investment in capital assets
Restricted
Unrestricted
$ $ 41,036,317 $ 161,035,919 $ 180,996,750
48,232,914 253,984,801 133,927,879 125,918,630
(22,231,046) (13,630,302) (7,563,390) 457,794
$ 26,001,868 $ 281,390,816 $ 287,400,408 $ 307,373,174
$ 50,742,754 $ 127,028,681 $ 124,163,481 $ 134,524,431
897,094 2,246,526 9,681,229 (475, 808)
Total business -type activities net position $ 51,639,848 $ 129,275,207 $ 133,844,710 $ 134,048,623 Primary government
Net investment in capital assets
Restricted
Unrestricted
Total primary government net position
$ 50, 742, 754 $ 168, 064, 998 $ 285,199,400 $ 315, 521,181 48, 232, 914 253, 984, 801 133, 927, 879 125, 918, 630
(21,333,952) (11,383,776) 2,117,839 (18,014)
$ 77,641,716 $ 410,666,023 $ 421,245,118 $ 441,421,797
Source: City of Beaumont Finance Department Audited Financial Statements 118

2020 2021 2022 2023 2024 2025
$ 191,989,902 $ 199,529,502 $ 210,229,919 $ 212,055,056 $ 250,260,894 $ 271,684,799 118,674,754 121,676,799 121,976,580 165,793,250 171,745,497 179,145,639 7,180, 682 12, 223, 595 39,194, 558 29, 690, 983 32, 690, 032 36, 757, 302 $ 317,845,338 $ 333,429,896 $ 371,401,057 $ 407,539,289 $ 454,696,423 $ 487,587,740 $ 137,744,251 $ 134,777,249 $ 134,350,805 $ 110,914,301 $ 111,188,117 $ 112,572,835 595,399 757,246 12, 860, 020 12, 860, 020 17, 206, 609
4,609,395 3,069,283 11,180, 846 6,878,345 8,510,490 7,275,494 $ 142,353,646 $ 138,441,931 $ 146,288,897 $ 130,652,666 $ 132,558,627 $ 137,054,938 $ 329,734,153 $ 334,306,751 $ 344,580,724 $ 322,969,357 $ 361,449,011 $ 384,257,634 118,674,754 122,272,198 122,733,826 178,653,270 184,605,517 196,352,248 11,790,077 15,292,878 50,375,404 36,569,328 41,200,522 44,032,796 $ 460,198,984 $ 471,871,827 $ 517,689,954 $ 538,191,955 $ 587,255,050 $ 624,642,678 119

CITY OF BEAUMONT
Changes in Net Position
Last Ten (10) Fiscal Years
(accrual basis of accounting)
Fiscal Year
2016 2017 2018 2019
Expenses
Governmental activities:

General government
Public safety
Public works
Community development
Community services
Refuse
Interest on long-term debt
Total governmental activities expenses
Business -type activities:

Sewer
Transit
Total business -type activities expenses
Total primary government expenses
Program Revenues
Governmental activities:

Charges for services
Operating grants
Capital grants
Total governmental activities program revenues
Business -type activities:

Charges for services
Operating grants
Capital Grants
Total business -type activities program revenues
$ 3,397,331 $ 7,593,312 $ 5,356,762 $ 6,010,855
11,236,896 13,526,022 18,969,972 15,641,308
1,976,427 5,030,993 5,563,653 8,536,946
1,367,789 4,441,655 2,431,640 2,396,300
3,050,603 2,528,668 3,478,806 3,840,603
4,138,062 4,239,048 4,899,889 5,504,512
- 10,369,211 7,181,818 4,415,612
25,167,108 47, 728, 909
47,882,540 46,346,136
6,043,880 11,192,584 10,430,002 14,993,895
2,478,621 2,990,218 3,119,254 3,353,923
8,522,501 14,182, 802 13, 549,256 18,347,818
$ 33,689,609 $ 61,911,711 $ 61,431,796 $ 64,693,954
$ 9,561,023 $ 15,939,510 $ 15,749,036 $ 13,488,153
9,449,166 286,368 77,514 884,195
5,304,634 12,450,382 20,409,806 17,527,025
$ 24,314,823 28,676,260 36,236,356 31,899,373
7,362,793
2,063,600
1,479,942
7,644,407
2,262,277
473,715
8,282,833
2,347,256
6,171,672
8,993,637
2,557,412
1,575,041
$ 10,906,335 10,380,399 16,801,761 13,126,090
Total primary government revenues $ 35,221,158 $ 39,056,659 $ 53,038,117 $ 45,025,463 Net (expense)/revenue
Governmental activities
Business -type activities
Total primary government net (expense)/revenue
$ (852,285) $ (19,052,649) $ (11,646,184) $ (14,446,763) 2,383,834 (3,802,403) 3,252,505 (5,221,728)
$ 1,531,549 $ (22,855,052) $ (8,393,679) $ (19,668,491) Source: City of Beaumont Finance Department Audited Financial Statements 120

2020 2021 2022 2023 2024 2025
$ 6,387,414 $ 10,322,019 $ 4,089,581 $ 10,642,725 $ 9,732,268 $ 14,274,770 17,326,496 17,896,367 18,852,535 23,317,103 23,792,153 29,062,548 4,051,200 8,738,889 4,337,784 9,863,014 10,238,467 10,790,631 2,203,993 2,109,290 2,431,610 3,201,954 2,773,721 10,029,825 4,805,108 4,567,596 2,513,365 4,987,703 7,612,112 8,156,073 4,980,043 4,742,632 4,965,899 2,563,737 3,263,298 1,834,423 39,754,254 48,376,793 37,190,774 54,576,236 57,412,019 74,148,270 15,084,760 16,480,072 17,596,817 16,398,348 18,723,090 20,031,796 3,260,924 3,103,538 3,047,754 2,864,795 3,392,642 4,135,850 18,345,684 19,583,610 20,644,571 19,263,143 22,115,732 24,167,646 $ 58,099,938 $ 67,960,403 $ 57,835,345 $ 73,839,379 $ 79,527,751 $ 98,315,916 $ 6,004,874 $ 6,223,772 $ 8,436,192 $ 9,460,209 $ 9,192,525 $ 8,745,515 1,626,798 4,116,354 1,613,280 4,911,820 3,941,319 4,782,655 8,773,350 16,582,075 16,403,235 15,864,191 27,372,234 21,896,629 16,405,022 26,922,201 26,452,707 30,236,220 40,506,078 35,424,799 10,697,882
3,228,349
7,334,406
21,260,637 15,059,173 28,161,792 25,354,798 22,544,928 25,284,502 10,955,015 23,592,883
2,251,555 2,687,154
1,852,603 1,881,755
20,773,380
2,500,157
2,081,261
17,009,304 15,850,211
3,866,942 2,199,300
1,668,682 7,234,991
$ 37,665,659 $ 41,981,374 $ 54,614,499 $ 55,591,018 $ 63,051,006 $ 60,709,301 $ (23,349,232) $ (21,454,592) $ (10,738,067) $ (24,340,016) $ (16,905,941) $ (38,723,471) 2,914,953 (4,524,437) 7,517,221 6,091,655 429,196 1,116,856 $ (20,434,279) $ (25,979,029) $ (3,220,846) $ (18,248,361) $ (16,476,745) $ (37,606,615) 121