Brentwood City Council
December 9, 2025

BPOA Side Letter – Holidays 2
holiday time will be deducted from an employee’s final check from the City to be calculated at the rate of 8.62 hours of straight time for each recognized holiday that falls between the separation date and December 31, 2024.

Effective January 1, 2025, in lieu of paid time off for holidays, employees shall receive eight point six two (8.62) hours of pay at the straight time rate for each City recognized holiday, totaling 112 hours of holiday pay per year. Holiday pay shall be paid semi-monthly in conjunction with the City’s regular pay periods in an amount equal to 4.67 hours of straight-time pay.

FOR THE BRENTWOOD POLICE OFFICERS’ FOR THE CITY OF BRENTWOOD

ASSOCIATION
_____________________________ _____________________________ Aaron Peachman, BPOA President G. Harold Duffey, City Manager _____________________________
Michael Gibson, BPOA Vice President

EXHIBIT A
BPOA Side Letter – Holidays 1

SIDE LETTER

BETWEEN THE CITY OF BRENTWOOD
AND
THE BRENTWOOD POLICE OFFICERS’ ASSOCIATION
The City of Brentwood (“City”) and the Brentwood Police Officers’ Association (“BPOA”), having met and conferred over the terms described herein, have mutually agreed to the following modifications to the 2021-2024 and 2024-2027 Memorandum of Understandings (“MOU”) between the City and Brentwood Police Officers’ Association.

SECTION IX LEAVE OF ABSENCE
Holidays

9.1 Employees shall receive credit for fourteen thirteen (1413) holidays per year. Holiday pay is compensation for employees who are normally required to work on an approved holiday because they work in positions that require scheduled staffing without regard to the holiday.

Holidays will be recognized by the City as follows:
1) January 1 (New Year’s Day)
2) Martin Luther King Jr.’s Birthday
3) Presidents’ Day
4) Memorial Day
5) June 19 (Juneteenth)
6) July 4 (Independence Day)
7) Labor Day
8) Veteran’s Day
9) Thanksgiving Day
10) The Friday following Thanksgiving Day
11) December 24
12) December 25
13) December 31
For holidays on or before December 31, 2024, tThe fourteen thirteen (134) holidays per year shall be computed on an eight point six two (8.62) (8) hours day of pay at the straight time rate consisting of a maximum of one hundred twelve (112) hours per year. Holiday compensation shall be based on the calendar year with the first fifty-six (56) hours of holiday time to be paid in one lump sum in a regular payroll check to employees during the second pay period in May, covering the time period of January 1, 2024 through June 30, 2024. The second fifty-six (56) hours of holiday time is to be paid in one lump sum in a regular payroll check to eligible employees during the second pay period in November, covering the period of July 1, 2024 through December 31, 2024.

New employees hired after the November 2024 lump sum payment and prior to the commencement of the semi-monthly payments beginning January 2025 will receive a prorated lump sum share(s) of paid holiday time payable in the second payroll of December 2024 to be calculated at the rate of 8.62 hours of straight time for each recognized holiday

BPOA Side Letter – Holidays 2
that falls between the hire date and December 31, 2024. A pro-rated lump sum share of holiday time will be deducted from an employee’s final check from the City to be calculated at the rate of 8.6215 hours of straight time for each recognized holiday that falls between the separation date and December 31, 2024. This paragraph will no longer be effective as of midnight on December 31, 2024.

Effective January 1, 2025, in lieu of paid time off for holidays, employees shall receive eight point six two (8.62) hours of pay at the straight time rate for each City observed recognized holiday, totaling 112 hours of holiday pay per year. Holiday pay shall be paid semi-monthly in conjunction with the City’s regular pay periods in an amount equal to 4.67 hours of straight-time pay per pay period.

In transitioning to the new process, the City shall provide a lump-sum payment of 56 hours of holiday pay during the second pay period in November 2024, covering the period of July 1, 2024 through December 31, 2024. New employees hired subsequent to the November 2024 lump sum payment and prior to the commencement of the semi-monthly payments beginning January 2025 shall receive a pro-rata lump sum payable in the second pay period in December.

FOR THE BRENTWOOD POLICE OFFICERS’ FOR THE CITY OF BRENTWOOD

ASSOCIATION
_____________________________ _____________________________ Aaron Peachman, BPOA President G. Harold Duffey, City Manager _____________________________
Michael Gibson, BPOA Vice President

CITY COUNCIL AGENDA ITEM NO. H.3
12/09/2025
SUBJECT: Adopt a Resolution approving the First Amendment to the June 11, 2024 City Attorney Employment Agreement between the City of Brentwood and Katherine Wisinski
DEPARTMENT: Human Resources
STAFF: Susannah Meyer, Mayor
Pa’tanisha Pierson, Vice Mayor
Sukari Beshears, Director of Human Resources/Risk Manager

TITLE/RECOMMENDATION
Adopt a Resolution approving the First Amendment to the June 11, 2024 City Attorney Employment Agreement between the City of Brentwood and Katherine Wisinski.

The proposed action will ensure that the City has a current employment agreement between the City of Brentwood and Katherine Wisinski.

FISCAL IMPACT
The salary and benefit cost associated with the amended agreement for FY 2025/26 is $366,895, which is inclusive of the retroactive payment for the preceding fiscal year. Sufficient budget is available in the FY 2025/26 General Fund Operating Budget to accommodate this cost, due to vacancy savings in the City Attorney’s Office.

The ongoing annual cost of the amended employment agreement is $348,165. Of this amount, $250,000 is for ongoing salary. The incremental ongoing cost increase associated with the proposed contract amendment is $18,370. These amounts will be included in the draft 2026/27 – 2027/28 Operating Budget, which is scheduled for presentation to the City Council for consideration in June 2026.

BACKGROUND
The City’s interest is to be fair and equitable to employees and to maintain competitive salaries and benefits. The City will also continue to chart a fiscally sustainable path into the future for its employees, and the citizens it serves, by maintaining reserves and avoiding increases to unfunded obligations.

CITY COUNCIL AGENDA ITEM NO. H.3
12/09/2025
On October 28, 2025, the City Council met in closed session to consider the compensation of the City Attorney. City Council can make adjustments to the salary and benefits of the City Attorney. Based on the most recent review, the City Council directed staff to prepare the first amendment to the June 11, 2024 employment agreement. A copy of the amended employment agreement is attached for the Council’s consideration.

This first amendment to the employment agreement includes a pay change that provides management incentive pay retroactively to July 1, 2024. The additional pay is consistent with the management incentive pay that is provided to the Department Directors as outlined in the Compensation Summary for the City of Brentwood Unrepresented Executive and Senior Management Employees document. This staff report, resolution, and amended employment agreement have been reviewed and approved by outside legal counsel that specializes in employment law.

CITY COUNCIL STRATEGIC INITIATIVE
Not Applicable.

PREVIOUS ACTION
Previous Action by the City Council is included on Attachment 1.

DATE OF NOTICE
Not Applicable.

ENVIRONMENTAL DETERMINATION
Not Applicable.

ALTERNATIVE OPTION(S)
Continue item with direction for staff to return with additional information.

ATTACHMENT(S)

1. Previous Action

2. Resolution

3. Exhibit A – First Amendment to the June 11, 2024 City Attorney Employment Agreement

PREVIOUS ACTION
Previous actions related to this agenda item that were taken by the Council are listed below. To view prior actions and materials, and Brentwood Municipal Code references in the staff report, as applicable:
 Visit www.brentwoodca.gov/meetings, and select the meeting date(s) desired to see the reference materials and videos.
 Visit www.brentwoodca.gov/municipalcode to research references to the Brentwood Municipal Code and search by the code section(s) cited.

On June 11, 2024, the City Council adopted Resolution 2024-66 approving a City Attorney Employment Agreement between the City of Brentwood and Katherine Wisinski.

RESOLUTION NO. 2025-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

BRENTWOOD APPROVING THE FIRST AMENDMENT TO THE CITY

ATTORNEY EMPLOYMENT AGREEMENT BETWEEN THE CITY OF

BRENTWOOD AND KATHERINE WISINSKI
WHEREAS, effective June 11, 2024, the City Council adopted Resolution 2024- 66 appointing Katherine Wisinski as City Attorney; and
WHEREAS, the City Council met in closed session to consider the compensation of the City Attorney and directed staff to amend the June 11, 2024 employment agreement to include management incentive pay effective July 1, 2024; and
WHEREAS, the First Amendment to the June 11, 2024 City Attorney Employment Agreement is attached hereto as Exhibit A.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Brentwood does hereby resolve to approve the First Amendment to the July 11, 2024 City Attorney Employment Agreement to include management incentive pay as outlined in the Compensation Summary for City of Brentwood Unrepresented Executive and Senior Management Employees document, effective July 1, 2024.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on the 9th day of December 2025, by the following vote:

FIRST AMENDMENT TO THE JUNE 11, 2024

CITY ATTORNEY EMPLOYMENT AGREEMENT
Between

CITY OF BRENTWOOD AND KATHERINE WISINSKI

1. PARTIES AND EFFECTIVE DATE
The parties to this First Amendment to the June 11, 2024 City Attorney Employment Agreement are the City of Brentwood ("City") and Katherine Wisinski ("Employee") and the effective date of this First Amendment to the June 11, 2024 City Attorney Employment Agreement ("First Amendment") shall be November 12, 2025.

2. PURPOSE
The parties have previously entered into a City Attorney Employment Agreement between the City of Brentwood and Katherine Wisinski ("Employment Agreement") effective as of June 11, 2024. The City and Employee hereby desire to amend the Employment Agreement as set forth below.

3. AMENDMENT
Section 6(C) of the Employment Agreement is hereby amended to read in its entirety as follows:

Unless the benefit is specifically addressed in this Agreement, Employee will also be entitled to receive all benefits afforded to non-sworn employees as set forth in the Terms, Conditions and Understanding for Executive and Senior Management Employees, except Employee is not entitled to receive the Management Incentive Pay.

4. RETROACTIVE MANAGEMENT INCENTIVE PAY
The City hereby agrees to the payment of Management Incentive Pay to Employee on the same terms as set forth in the Compensation Summary for City of Brentwood Unrepresented Executive and Senior Management Employees retroactively to July 1, 2024.

5. FULL FORCE AND EFFECT
Except as specifically modified herein, all remaining terms and obligations set forth in the Employment Agreement between the City of Brentwood and Employee shall remain in full force and effect.

CITY OF BRENTWOOD:

Susannah Meyer, Mayor
EMPLOYEE:

Katherine Wisinski, City Attorney
Pa’tanisha Pierson, Vice Mayor

FIRST AMENDMENT TO CITY ATTORNEY

EMPLOYMENT AGREEMENT

Faye Maloney, Councilmember
Jovita Mendoza, Councilmember
Tony Oerlemans, Councilmember
ATTEST:

Amanda McVey, City Clerk
APPROVED AS TO FORM:

Tim Davis, Special Counsel for the
City of Brentwood

CITY OF BRENTWOOD

CITY ATTORNEY EMPLOYMENT AGREEMENT
Introduction
This City Attorney Employment Agreement (“Agreement”), is made and entered into on this day of June 11, 2024, by and between the City of Brentwood, a municipal corporation of the State of California (“City” or “Employer”) and Katherine L. Wisinski (“Employee”)(each a “Party” and collectively, the “Parties”), both of whom agree as follows:

Section 1: Term
This Agreement will become effective on June 11, 2024, and will continue until terminated by either Party as provided in this Agreement.

Section 2: Duties and Authority
Employer agrees to employ Employee as City Attorney for City and Counsel for all related independent entities to which the City Council serves as the governing board to perform the functions and duties as may be specified in the Brentwood Municipal Code and to perform other legally permissible and proper duties and functions.

Section 3: Compensation
A. Employer agrees to compensate Employee for services rendered under this Agreement at an annual salary of Two Hundred Fifty Thousand Dollars ($250,000), as may be adjusted, from time to time, in accordance with Section 3.B. of this Agreement, or as this Agreement may be amended. Such salary will be paid in installments on the Employer’s normal paydays and in accordance with the Employer’s normal pay practices and will be subject to customary withholding for taxes and other required or authorized deductions.

B. Employer and Employee agree to conduct an annual salary review concurrently with the annual performance evaluation set forth in Section 12 of this Agreement. Such annual salary review will include consideration of those benefits to Employee under this Agreement. The City Council may, but is not required to, consider or approve cost of living increases, merit increases, or other compensation enhancement in conjunction with the annual salary review.

C. Employee can distribute Employee’s salary between salary and deferred compensation as Employee chooses, so long as such distribution conforms to all applicable State and Federal laws and regulations.

Section 4: Health, Disability and Life Insurance Benefits Employer agrees to provide and to pay the premiums for health, vision, dental, life and disability insurance for Employee and Employee’s dependents equal to that which is provided to all other exempt non-sworn management employees of Employer.

DocuSign Envelope ID: E0E89C39-3EA1-4EC3-A31E-F855F6D40526

Section 5: Vacation and Sick Leave, and Personal Time Off A. Employee will accrue twenty-one (21) days (168 hours) of annual vacation leave each fiscal year. Vacation leave will cap at 252 hours, at which point Employee will cease to accrue vacation until Employee’s vacation accrual is less than 252 hours. Employee will be entitled to any vacation buyback program to the same extent as other exempt management employees. Employee will retain the current vacation leave balance accrued during her tenure with the City as Interim City Attorney and Assistant City Attorney.

B. Employee will be provided sick leave and personal time off to the same extent as other exempt non-sworn management employees. Employee will maintain the current sick leave balance accrued during her tenure with the City as Interim City Attorney and Assistant City Attorney.

C. Employee will be entitled to Holidays to the same extent as other exempt nonsworn management employees.

Section 6: Retirement, Deferred Compensation, and Other Benefits not Specified in this Agreement
A. Employee will be eligible to participate in the California Public Employees’ Retirement System (“CalPERS”) for the 2% at age 62 formula. The terms of the contract between the City and CalPERS will govern the eligibility for and level of benefits to which Employee is entitled.

B. Employee will be allowed to participate in Employer’s deferred compensation plan.

C. Unless the benefit is specifically addressed in this Agreement, Employee will also be entitled to receive all benefits afforded to non-sworn employees as set forth in the Terms, Conditions and Understanding for Executive and Senior Management Employees, except Employee is not entitled to receive the Management Incentive Pay.

Section 7: Disability
If determined that Employee is unable to return to work, Employer will have the option to terminate this Agreement without further payment of compensation and benefits if Employee is permanently disabled or is otherwise unable to perform Employee’s duties because of sickness, accident, injury, mental incapacity, or death for a period of four (4) successive weeks beyond any accrued sick leave, or for twenty (20) working days over a thirty (30) working day period.

Section 8: General Business Expenses
A. Employer agrees to budget for and to pay for professional dues and subscriptions of the Employee necessary for continuation and full participation in national, regional, state, and local associations and organizations necessary and desirable for Employee’s continued professional participation, growth, and advancement, and for the good of the Employer.

B. Employer agrees to budget for and to pay for registration, travel, and subsistence expenses of Employee for professional and official travel, meetings, and occasions to adequately continue the professional development of Employee and to pursue necessary official functions for Employer, including but not limited to the League of California Cities, International Municipal Lawyers Association, and such other regional, state, and local governmental groups and committees in which Employee serves as a member.

DocuSign Envelope ID: E0E89C39-3EA1-4EC3-A31E-F855F6D40526

C. Employer also agrees to budget for and to pay for registration, travel, and subsistence expenses of Employee for short courses, institutes, and seminars that are necessary for Employee’s professional development and for the good of the Employer.

Section 9: Termination
For the purpose of this agreement, termination will occur when:

A. The required majority of the City Council votes, pursuant to the Brentwood Municipal Code, to terminate Employee at a duly authorized public meeting.

B. If Employer, citizens, or State Legislature acts to amend, either directly or indirectly, any provisions of the Brentwood Municipal Code pertaining to the role, powers, duties, authority, rights, or responsibilities of Employee’s position, Employee will have the right to declare that such amendments constitute termination.

C. If Employer reduces the base salary, compensation, or any other financial benefit of Employee, unless it is applied in no greater percentage than the average reduction of all City department directors, such action will constitute a breach of this agreement and will be regarded as a termination.

D. If Employee resigns following an offer to accept resignation, whether formal or informal, by Employer as representative of the required majority of the governing body pursuant to the Brentwood Municipal Code, then Employee may declare a termination as of the date of the offer to accept resignation.

E. Breach of contract may be declared by either Party with a 30-day cure period for either Employee or Employer. Written notice of a breach of contract will be provided in accordance with the provisions of Section 17.

F. Employer’s decision to terminate will be made in closed session and confirmed in a public meeting.

G. Employee may choose to resign Employee’s office instead of being terminated if a decision by the City Council to terminate has been made in closed session; provided, however, that the severance provisions of this Agreement remain applicable.

Section 10: Severance
Severance will be paid to Employee when employment is terminated as defined in Section 9.

For the first year of employment in the position of City Attorney, Employer will provide a minimum severance payment equal to six month’s base salary at the current rate of pay and six months Employer paid COBRA benefits for Employee and her dependents, consistent with Government Code Section 53260(a). For every full year of employment after June 10, 2025, Employer will pay employee an additional one month of base salary and one month of COBRA benefits for Employee and her dependents, up to a maximum of 12 months. This severance will be paid in a lump sum unless otherwise agreed to by Employer and Employee.

DocuSign Envelope ID: E0E89C39-3EA1-4EC3-A31E-F855F6D40526

Employee will also be compensated for all accrued vacation time and personal time off. The Employer agrees to continue medical, dental, and vision benefits for the number of month’s severance accrued by Employee or until Employee finds other employment, whichever occurs first. Such severance pay and benefits will not be due or payable if the City Attorney is terminated for willful misconduct, dishonesty, or fraud in office; willful destruction, theft, misappropriation, or misuse of City property; conduct resulting in the revocation of Employee’s license to practice law; or after being convicted of a felony or misdemeanor involving moral turpitude. Any severance payment received by Employee must be fully returned to the City if the Employee is convicted of a crime involving an abuse of Employee’s office or position.

Section 11: Resignation
In the event that Employee voluntarily resigns Employee’s position with Employer, Employee will provide a minimum of sixty (60) days written notice unless the Parties agree otherwise. If Employee voluntarily resigns Employee’s employment, Employee will not be entitled to any severance pay nor continued compensation and benefits except as otherwise required under this Agreement or State or Federal law.

Section 12: Performance Evaluation
The Parties acknowledge that periodic performance evaluations are an important means by which Employer and Employee may ensure effective communications regarding expectations and performance. Toward this end, the City Council will review and discuss Employee’s performance and set performance goals for Employee on an annual basis in or around July of each year. In addition, during Employee’s first year of employment in the position of City Attorney, the Director of Human Resources/Risk Manager shall schedule City Attorney performance evaluations to establish and review Employee’s goals in or around September 2024, December 2024, and March 2025. Employee acknowledges and accepts the fact that the City Council has the right to schedule an evaluation session more frequently than once a year.

Employee will request and schedule the annual performance evaluation as appropriate under City Council agenda procedures or as otherwise directed by the City Council. Upon the request of either Employer or Employee, City shall procure and cover the costs of a professional facilitator of the performance evaluation process.

Section 13: Outside Activities
The employment provided for by this Agreement will be Employee’s sole employment. Employee agrees not to undertake any other employment or consulting during the term of this Agreement without City Council approval, unless otherwise allowed under State or Federal law, such as military service.

Section 14: Indemnification
Beyond that required under Federal, State or local law, Employer will defend, save harmless, and indemnify Employee against any tort, professional liability claim, demand, or other legal action, whether groundless or otherwise, arising out of an alleged act or omission occurring in the performance of Employee’s duties as City Attorney or resulting from the exercise of judgment or discretion in connection with the performance of Employee’s duties or responsibilities, unless the act or omission involved willful or wanton conduct. Employee may request, and Employer will not unreasonably refuse to provide, independent legal representation at Employer’s expense and Employer may not unreasonably withhold approval.

DocuSign Envelope ID: E0E89C39-3EA1-4EC3-A31E-F855F6D40526

Legal representation, provided by Employer for Employee, will extend until a final determination of the legal action including any appeals brought by the parties to the legal action. Employer will indemnify Employee against any and all losses, damages, judgments, interest, settlements, fines, court costs, and other reasonable costs and expenses of legal proceedings including attorneys’ fees, and any other liabilities incurred by, imposed upon, or suffered by such Employee in connection with or resulting from any claim, action, suit, or proceeding, actual or threatened, arising out of or in connection with the performance of Employee’s duties. Any settlement of any claim must be made with prior approval of Employer in order for indemnification, as provided in this Section, to be available.

Employee recognizes that Employer will have the right to compromise, and settle any claim or suit. Further, Employer agrees to pay all reasonable litigation expenses of Employee throughout the pendency of any litigation to which Employee is a party, witness, or advisor to Employer. Such expense payments will continue beyond Employee’s service to Employer as long as litigation is pending. Further, Employer agrees to pay Employee reasonable consulting fees and travel expenses when Employee serves as a witness, advisor, or consultant to Employer regarding pending litigation.

Notwithstanding the above, Employee must reimburse Employer for any funds Employer provides for the legal criminal defense of Employee if Employee is convicted of a crime involving an abuse of Employee’s office or position. Additionally, Employee must repay Employer for any paid administrative leave provided to Employee pending an investigation if Employee is convicted of a crime involving an abuse of Employee’s office or position.

Section 15: Bonding
Employer will bear the full cost of any fidelity or other bonds required of Employee under any law or ordinance.

Section 16: Other Terms and Conditions of Employment
Employer, only upon the written agreement of Employee, will fix any such other terms and conditions of employment, as it may determine from time to time, relating to the performance of Employee, provided such terms and conditions are not inconsistent with or in conflict with the provisions of this Agreement, the Brentwood Municipal Code, or any other law.

Section 17: Notices
Notice pursuant to this Agreement will be given by depositing in the custody of the United States Postal Service, postage prepaid, addressed as follows:

City: City Clerk
City of Brentwood
150 City Park Way
Brentwood, CA 94513
Employee: Address on File with City Clerk
Alternatively, notice required pursuant to this Agreement may be personally served in the same manner as is applicable to civil judicial practice. Notice will be deemed given as of the date of personal service or as the date of deposit of such written notice in the course of transmission in the United States Postal Service. Each Party will notify the other of any changes of address that would require any notice or delivery to be directed to another address.

DocuSign Envelope ID: E0E89C39-3EA1-4EC3-A31E-F855F6D40526

Section 18: General Provisions
A. Integration. This Agreement sets forth and establishes the entire understanding between Employer and Employee relating to the employment of Employee by Employer. Any prior discussions or representations by or between the Parties are merged into and rendered null and void by this Agreement. The Parties by mutual written agreement may amend any provision of this Agreement during the life of the Agreement. Such amendments will be incorporated and made a part of this Agreement.

B. Binding Effect. This Agreement will be binding on Employer and Employee as well as their heirs, assigns, executors, personal representatives and successors in interest.

C. Severability. The invalidity or partial invalidity of any portion of this Agreement will not affect the validity of any other provision. In the event that any provision of this Agreement is held to be invalid, the remaining provisions will be deemed to be in full force and effect as if they have been executed by both Parties subsequent to the expungement or judicial modification of the invalid provision.

EMPLOYER: EMPLOYEE:

CITY OF BRENTWOOD
Joel R. Bryant, Mayor Katherine L. Wisinski
ATTEST:

Margaret Wimberly, City Clerk
Approved as to Form:
_______________
Timothy L. Davis, Special Counsel for City of Brentwood DocuSign Envelope ID: E0E89C39-3EA1-4EC3-A31E-F855F6D40526

CITY COUNCIL AGENDA ITEM NO. H.4
12/09/2025
SUBJECT: Independent Auditors’ Reports and Annual Comprehensive Financial Report for Fiscal Year 2024/25; and Report on the Financial Awards received by the City
DEPARTMENT: Finance and Information Systems
STAFF: Kerry Breen, Director of Finance and Information Systems Sonia Agostini, Accounting Manager

TITLE/RECOMMENDATION
Staff recommends the City Council receive the Independent Auditors’ Reports and Annual Comprehensive Financial Report (ACFR) for Fiscal Year 2024/25, along with the report on Financial Awards received by the City.

FISCAL IMPACT
There is no fiscal impact associated with the receipt of the Independent Auditor’s Reports or the ACFR.

Recognition of the City’s adherence to the highest standards of governmental reporting continues to reinforce public trust, strengthen transparency, and support the City’s ability to secure favorable financing in the credit markets. These efforts have historically produced measurable benefits; for example, refundings of certain bonds have enabled the City to obtain lower interest rates and achieve substantial savings, which have then been used to fund new facilities. This would not have been possible without the City’s established reputation for strong, reliable, and transparent financial management and reporting.

BACKGROUND
The ACFR provides a comprehensive presentation of the City’s financial position for the fiscal year ending June 30, 2025. Key financial information is summarized in the Management’s Discussion and Analysis (MD&A), beginning on page 20 of the report.

At year-end, the General Fund reported a fund balance of $29.4 million, consistent with the prior fiscal year. Of this amount, $5.0 million is designated for specific purposes, such as future capital projects, costs associated with the Police Department

CITY COUNCIL AGENDA ITEM NO. H.4
12/09/2025
fifth geographical beat, and the Successor Agency repayment plan. The remaining $24.4 million represents the 30% General Fund reserve required under the City’s Council/Administrative Policy, No. 10-5, Budget and Fiscal Policies (“Policy”).

General Fund revenues exceeded expenditures and reserve requirements by $1.3 million for the year. Included in this amount is $1.1 million in one-time investment fair value gains. In accordance with Policy, 50% of the annual surplus is used to reduce unfunded pension or retiree medical obligations and 50% is transferred to the Pension/Other-Post Employment Benefit Obligation Fund (“Budget Stabilization Fund”). Accordingly, $656,515 will be used for a pension payment, with an equal amount transferred to the Budget Stabilization Fund to be used to offset future increases in pension and retiree medical costs in the intermediate-term.

Recognizing that the ACFR is a complex financial document and to provide timely, concise and accessible year-end information, the Finance Department published the Fiscal Year 2024/25 Financial Snapshot (“Snapshot”) in October 2025. The Snapshot summarizes the City’s year-end results in an easy to understand format, highlighting major trends, key metrics, and an overview of the economic environment.

The Finance Department also publishes several recurring financial reports and updates, including the quarterly Financial Dashboard, Sales Tax and Investment reports, along with the annual Budget-in-Brief, Development Impact Fee Report and Combined Community Facilities District Annual Report. All reports and updates are available on the City’s website under Financial Documents.

Additionally, the City Council receives comprehensive budget updates every six months through the Mid-Year and Mid-Term Budget review processes. The next update will be presented on January 27, 2026, as part of the Mid-Year 2025/26 Budget review.

Audit and ACFR
The City’s independent audit firm, Maze & Associates, has completed its review and examination of the City’s financial statements for the year ended June 30, 2025 and will present the results of their audit during this agenda item. The audit was conducted in accordance with generally accepted auditing standards. The auditors issued an unmodified opinion, concluding that the financial statements fairly represent the financial position of the City and conform with generally accepted accounting principles. The Independent Auditor’s Report begins on page 17 of the ACFR.

CITY COUNCIL AGENDA ITEM NO. H.4
12/09/2025
For any year the City receives funding from the Transportation Development Act (TDA) program, a separate audit is required by the State Controller’s Office. Maze & Associates also prepared this audit report, which is included as an attachment.

Each fiscal year, the City is required to undergo an audit and the Finance Department consolidates all financial activity into the ACFR to provide citizens, grantor agencies, and other stakeholders with reliable financial information. The Finance Department coordinated the audit process, completed the year-end close, and the prepared the ACFR.

The ACFR consists of three primary components:
 Introductory Section - Includes the Letter of Transmittal, which provides an analysis of the City’s economic condition, financial outlook, and information on long-term financial planning.
 Financial Section – Contains the City’s primary financial statements.  Statistical Section - Provides current and historical trend information.

System of Internal Controls
Internal controls are the policies, procedures and practices designed by management to safeguard assets, manage resources and ensure reliable financial reporting. These controls reflect management’s "tone from the top", establish organizational discipline and structure, and facilitate effective communication throughout the City organization.

In the context of the annual audit, internal controls serve as the system of checks and balances designed to reduce the risk of errors in the accounting records and deter fraud, embezzlement, and misuse of resources. These goals are generally accomplished by incorporating control activities into the organization's operations.

Common control activities include approvals, verifications, reconciliations, supervisory reviews, and segregation of duties.

Responsibility for establishing and maintaining the system of internal controls rests with the City - not with the external auditors, Maze & Associates.

CITY COUNCIL AGENDA ITEM NO. H.4
12/09/2025
When designing a system of internal controls, it is important to balance the reduction in risk from a control activity with its cost and operational impact. A larger number of control activities may not always be better; both the law of diminishing returns and resource limitations significantly affect the decision of which activities to employ in each situation. Excessive controls can create inefficiencies, while insufficient controls can expose the organization to unnecessary risk.

In addition to expressing an opinion on the financial statements, each year the auditors evaluate the City's internal control environment. The independent auditors may note certain matters involving internal control and other operational concerns.

These items represent recommendations for improvement, rather than audit “findings”. In addition, the auditors are required to communicate specific information to the legislative body. This information is included in the Memorandum on Internal Control and the Required Communications, both attached to this report. The Auditors will also verbally present this information to the City Coucnil as a part of this agenda item.

Financial Awards
The Finance Department is committed to producing financial documents that meet the highest standards of governmental budgeting and accounting excellence.

External recognition affirms these efforts and is indicative of the high standards expected by the City Council. These awards reinforce the validity and integrity of the City’s financial reporting and strengthen confidence among residents, elected officials, staff, and outside agencies.

Since Fiscal Year 2000/01, the City has received the Certificate of Achievement for Excellence in Financial Reporting for the ACFR from the Government Finance Officers Association (GFOA). The GFOA award is a prestigious national award recognizing the use of high standards in preparing state and local government financial reports.

Participation in the award program has several benefits. An award-winning ACFR shows dedication to fiscal responsibility and outstanding financial management and reporting. In addition, producing an ACFR confirms that the City operates at the highest level of financial reporting standards, which contributes to strong bond ratings and competitive interest rates in the credit markets. The ACFR is prepared in-house by the Finance Department, demonstrating staff’s high level of technical skill and professional dedication.

CITY COUNCIL AGENDA ITEM NO. H.4
12/09/2025
Following are the awards that were received during the past year:
 Excellence in Capital Budgeting from the California Society of Municipal Finance Officers (CSMFO) for the FY 2024/25 Capital Improvement Program.

This state award was established by CSMFO to recognize those agencies whose capital improvement program documents meet certain state-wide standards and requirements considered to be of the highest quality.  Excellence in Financial Reporting from the GFOA for the Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2024. This national award was established by GFOA to recognize individual governments that prepare annual financial reports exemplifying the spirit of transparency and full disclosure. The City’s ACFR was reviewed by selected members of the GFOA professional staff and the GFOA Special Review Committee, which includes individuals with expertise in public-sector financial reporting and financial statement preparers, independent auditors, academics, and other financial professionals.
 Excellence in Operating Budgeting from CSMFO for the 2024/25 – 2025/26 Operating Budget. This state award was established by CSMFO to recognize those agencies whose operating budget documents meet certain state-wide standards and requirements considered to be of the highest quality.

CITY COUNCIL STRATEGIC INITIATIVE
Not Applicable

PREVIOUS ACTION
Previous Action by the City Council is included on Attachment 1.

DATE OF NOTICE
Not Applicable

ENVIRONMENTAL DETERMINATION
Not Applicable

CITY COUNCIL AGENDA ITEM NO. H.4
12/09/2025

ALTERNATIVE OPTION(S)
Not Applicable

ATTACHMENT(S)

1. Previous Action

2. 2024/25 ACFR

3. Memorandum on Internal Control

4. Required Communications

5. Independent Auditor’s Report - TDA

6. CSMFO Capital Budget Award

7. GFOA ACFR Award Certificate

8. CSMFO 2024/25 – 2025/26 Operating Budget Award

PREVIOUS ACTION
Previous actions related to this agenda item that were taken by the Council are listed below. To view prior actions and materials, and Brentwood Municipal Code references in the staff report, as applicable:
 Visit www.brentwoodca.gov/meetings, and select the meeting date(s) desired to see the reference materials and videos.
 Visit www.brentwoodca.gov/municipalcode to research references to the Brentwood Municipal Code and search by the code section(s) cited.

On January 28, 2025, the City Council approved Resolution 2025-08, approving and authorizing the City Manager or designee to execute a professional services agreement with Maze & Associates as the City’s independent external audit firm for audit services for the fiscal years ending June 30, 2025 through June 30, 2026 in an amount not to exceed $177,245, which includes funding authorization up to $20,000 for additional professional services as needed for the term of the agreement and amendments, if executed, with an option to execute amendments for audit services for up to three additional fiscal years in an amount not to exceed $269,431 upon satisfactory completion of the services, for a not to exceed total of $446,676 over five fiscal years.

ANNUAL

COMPREHENSIVE

FINANCIAL REPORT
Fiscal Year Ended
June 30, 2025
150 City Park Way
Brentwood, CA 94513

Table of Contents
For Fiscal Year Ended June 30, 2025

INTRODUCTORY SECTION
Table of Contents ............................................................................................................................................................................... 2 Letter of Transmittal ......................................................................................................................................................................... 5 Certificate of Achievement – Government Finance Officers Association ................................................................. 10 City Council and Executive Team ............................................................................................................................................. 11 City Organizational Chart ............................................................................................................................................................ 12 Community Services Location Map ........................................................................................................................................ 13 Mission Statement/Core Values/Vision and Culture ........................................................................................................ 14 Awards ................................................................................................................................................................................................ 15

FINANCIAL SECTION
INDEPENDENT AUDITORS REPORT ................................................................................................................................... 16 MANAGEMENT’S DISCUSSION AND ANALYSIS .......................................................................................................... 20

BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Statement of Net Position ............................................................................................................................................. 34 Statement of Activities and Changes in Net Position ......................................................................................... 35 Fund Financial Statements
Governmental Fund Financial Statements
Balance Sheet – Governmental Funds ....................................................................................................................... 36 Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position ............................................................................................................................................. 37 Statement of Revenues, Expenditures and Changes in
Fund Balances – Governmental Funds ...................................................................................................................... 38 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities and Changes in Net Position ................................................................................................................................................. 39 Proprietary Fund Financial Statements
Statement of Net Position ............................................................................................................................................. 40 Statement of Revenues, Expenses and Changes in Fund Net Position ........................................................ 41 Statement of Cash Flows ................................................................................................................................................ 42 Fiduciary Fund Financial Statements
Statement of Fiduciary Net Position .......................................................................................................................... 43 Statement of Changes in Fiduciary Net Position ................................................................................................... 44 Notes to the Basic Financial Statements
Index of Notes to the Basic Financial Statements ................................................................................................ 45 Notes to the Basic Financial Statements .................................................................................................................. 48

REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule, General Fund ........................................................................................................ 114 2 2024/25 Annual Comprehensive Financial Report

Table of Contents
Budgetary Comparison Schedule, Landscape and Lighting Assessment Districts ......................................... 115 Note to the Required Supplementary Information .................................................................................................... 116 Schedule of Changes in Net OPEB Liability/(Assets) and Related Ratios .......................................................... 117 Schedule of Employer OPEB Contributions ................................................................................................................... 119 Miscellaneous Plan Schedule of Changes in the Net Pension Liability and Related Ratios ....................... 121 Miscellaneous Plan Schedule of Contributions ............................................................................................................ 123 Safety Plan Schedule of Proportionate Share of the Net Pension Liability ...................................................... 125 Safety Plan Schedule of Contributions ........................................................................................................................... 126

SUPPLEMENTAL INFORMATION

COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Non-Major Governmental Funds
Combining Balance Sheet ............................................................................................................................................ 127 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .............................. 132 Budgeted Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual ......................................................................................................................... 137 Internal Service Funds
Combining Statement of Net Position .................................................................................................................... 146 Combining Statement of Revenues, Expenses and Changes in Fund Net Position .............................. 148 Combining Statement of Cash Flows ...................................................................................................................... 150 Fiduciary Funds
Combining Statement of Fiduciary Net Position ................................................................................................ 152 Combining Statement of Changes in Fiduciary Net Position ........................................................................ 153 STATISTICAL SECTION (Unaudited)
Statistical Section Contents ...................................................................................................................................................... 154 Net Position by Component - Schedule 1 ......................................................................................................................... 155 Changes in Net Position – Governmental Activities - Schedule 2a .......................................................................... 156 Changes in Net Position – Business-Type Activities - Schedule 2b ......................................................................... 157 Fund Balances – Governmental Funds - Schedule 3 ...................................................................................................... 158 Changes in Fund Balances – Governmental Funds - Schedule 4 .............................................................................. 159 Assessed Value and Estimated Actual Value of Taxable Property - Schedule 5 ................................................. 160 Direct and Overlapping Property Taxes - Schedule 6 ................................................................................................... 161 Principal Property Taxpayers - Schedule 7 ......................................................................................................................... 162 Property Tax Levies and Collections - Schedule 8 .......................................................................................................... 163 Taxable Sales by Category - Schedule 9 ............................................................................................................................. 164 Direct and Overlapping Sales Tax Rates - Schedule 10 ................................................................................................ 165 Top 25 Sales Tax Producers - Schedule 11 ........................................................................................................................ 166 Water Use Revenue by Customer Type - Schedule 12 .................................................................................................. 167 Water Rates - Schedule 13 ....................................................................................................................................................... 168 Ratios of Outstanding Debt by Type - Schedule 14 ....................................................................................................... 169 Ratios of General Bonded Debt Outstanding - Schedule 15 ...................................................................................... 170 Direct and Overlapping Governmental Activities Debt - Schedule 16 ................................................................... 171 Legal Debt Margin Information - Schedule 17 ................................................................................................................. 172 Pledged Revenue Coverage - Schedule 18 ........................................................................................................................ 173 3 2024/25 Annual Comprehensive Financial Report

Table of Contents
Demographic and Economic Statistics - Schedule 19 ................................................................................................... 174 Principal Employers - Schedule 20 ........................................................................................................................................ 175 Authorized Full-Time Equivalent City Government Employees by Function/Program - Schedule 21 ....... 176 Operating Indicators by Function/Program - Schedule 22 ......................................................................................... 177 Capital Asset Statistics by Function/Program - Schedule 23 ...................................................................................... 178 General Information - Schedule 24 ....................................................................................................................................... 179

OTHER AUDIT REPORT
Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements performed in Accordance with Government Auditing Standards ......................................................................................................................................................................................... 180 4 2024/25 Annual Comprehensive Financial Report

Letter of Transmittal
December 9, 2025
The Honorable Mayor, Members of the City Council and Citizens of Brentwood Brentwood, California 94513
Dear Mayor, Members of the City Council and Citizens of Brentwood:

We are pleased to submit the Annual Comprehensive Financial Report for the City of Brentwood, California (“the City”), for the fiscal year (FY) ended June 30, 2025. Each year, the City publishes a complete set of financial statements that are presented in conformity with Generally Accepted Accounting Principles (GAAP) and audited by an independent, certified public accounting firm.

The City’s Finance and Information Systems Department prepared this report. Responsibility for both the accuracy of the data and the completeness and fairness of the information, including all disclosures, rests with the City. To the best of the City staff’s knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner to fairly present the financial position and results of the operations of the various entities of the City. All disclosures necessary for the reader to understand the City’s financial activities have been included. GAAP requires that management provide a narrative introduction overview and analysis to accompany the basic financial statements in the form of a Management’s Discussion and Analysis (MD&A). This letter of transmittal complements the MD&A, which can be found immediately following the report of the independent auditors.

INTERNAL CONTROLS
The Finance and Information Systems Department accounts for the City’s programs and activities. In conjunction with the City’s management, the Finance and Information Systems Department is responsible for maintaining the integrity of the City’s recorded financial data and establishing and maintaining an internal control structure to ensure that the City’s assets are protected from loss, theft or misuse. The internal control structure is designed to provide reasonable assurance these objectives are met, while recognizing that this assurance is not absolute. The concept of reasonable assurance recognizes: 1) the cost of a control should not exceed the benefits likely to be derived and 2) the valuation of costs and benefits requires estimates and judgments by management. City management believes the existing internal control systems are adequate to provide reasonable assurance the City’s assets are safeguarded against loss and that the financial records are reliable for preparing financial statements and maintaining accountability for assets. This belief is supported by the “unmodified” audit opinion issued by the City’s independent external auditors for the fiscal year ended June 30, 2025.

INDEPENDENT AUDIT
The City Council is responsible for: 1) assuring the City’s management fulfills its responsibilities in the preparation of the financial statements and 2) engaging certified public accountants with whom the City Council reviews the scope of the audit and the accounting principles to be applied in financial reporting.

The Government Code of the State of California requires general law cities, such as the City, to have its financial statements audited by an independent certified public accountant. Accordingly, this year’s audit 5 2024/25 Annual Comprehensive Financial Report

Letter of Transmittal
was completed by the accounting firm of Maze & Associates. The firm was engaged by the City Council to render an opinion on the City’s financial statements in accordance with auditing standards generally accepted in the United States of America. To ensure complete independence, Maze & Associates presents the results of their assessment of the adequacy of internal accounting controls and the quality of financial reporting directly to the City Council. The auditor’s report on the basic financial statements is the first item in the accompanying Financial Section.

In addition to meeting the requirements set forth in state statutes, the audit meets the requirements of the Federal Single Audit Act, Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). The standards governing Single Audit engagements require the independent auditor to report both on the fair presentation of the financial statements and on the audited government’s internal controls and compliance with legal requirements.

PROFILE OF BRENTWOOD
The City was founded in 1878 and
incorporated in 1948 as a general law city
under the laws of the State of California.

Brentwood encompasses approximately 14.83
square miles and is located in eastern Contra
Costa County, 55 miles east of San Francisco
and 62 miles south of Sacramento. The City is
governed by a five-member City Council,
under the Council-Manager form of
government. As of January 1, 2025, the City
had an estimated population of 65,747.

The City provides a full range of services including: Police, Public Works, Economic Development, Planning, Building, Community Enrichment, Engineering and Inspection, Parks and Recreation, Housing and General Administrative services. The City also operates public water and wastewater utilities, as well as solid waste collection and disposal services and a recycling program. All of these services are accounted for in the City’s financial statements.

The City was financially accountable for the Brentwood Redevelopment Agency prior to its dissolution, effective February 1, 2012 as a matter of State law. At that time, the City opted to become the Successor Agency to the Brentwood Redevelopment Agency (“Successor Agency”). Financial data of the Successor Agency has been segregated in a private-purpose trust fund. In addition, the City is financially accountable for the Brentwood Infrastructure Financing Authority (the “Authority”), a component unit of the City. Although a legally separate entity, this blended component unit is also substantively part of the government’s operations. Financial data for the Authority is combined with the data of the primary government. For accounting purposes, the Authority, the Successor Agency and the City all have a June 30 year-end date. See Note #1A for a more detailed discussion of the reporting entity.

The City’s annual budget serves as the foundation for planning and controlling the City’s finances. As such, the City maintains extensive budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the 6 2024/25 Annual Comprehensive Financial Report

Letter of Transmittal
City Council. For additional budgetary information, see Note #2A. The City operates on a two-year budget cycle with the budget process beginning in November and culminating with final Council approval in June. The adopted two-year budget is then formally reviewed by the City Council at a public meeting every six months for adjustments. The City’s adopted budget includes legally required budgets for the activities of the General Fund, Special Revenue Funds, Fiduciary Funds, Internal Service Funds and certain Capital Project Funds. Additionally, although not legally required, Debt Service budget information is also included.

ECONOMIC CONDITION AND FINANCIAL OUTLOOK
The U.S. economy remains resilient but has entered a moderated phase of expansion. Real GDP growth is expected to slow into 2026 following stronger gains in prior years. Inflationary pressures have receded from their pandemic peaks but remain elevated above the Federal Reserve’s long-term target, continuing to place cost pressures on service delivery and infrastructure investment. Higher borrowing costs, ongoing policy uncertainty, and trade tensions further complicate the outlook.

Although a full recession is not the baseline projection, the probability of one occurring within the next 12–18 months remains elevated. This risk underscores the importance of maintaining fiscal discipline, protecting reserves, and planning with conservative assumptions. Adding to this uncertainty, the State continues to enact regulatory requirements without accompanying funding. Compliance costs in areas such as solid waste organics processing have already affected the City’s budget, while new mandates for electric vehicle fleet conversion could add significant infrastructure and ongoing operational costs.

The General Fund provides funding for the majority of City services, including street maintenance, parks, and police. General Fund operations for FY 2024/25 resulted in a surplus, with revenues exceeding expenses and amounts set aside for reserves by $1.3 million. Included in these results are $1.1 million in one-time investment fair market value gains. Pursuant to City Council policy and as part of the City’s long-term fiscal sustainability strategy, half of this surplus will be used to reduce unfunded pension obligations.

Property taxes, the General Fund’s top revenue source, have risen by an average of approximately 6% per year over the past five years, helping to offset some inflationary cost pressures. However, property tax revenue growth has recently slowed and is expected to average just 3%-4% over the next few fiscal years due to higher mortgage rates and declining housing affordability. A sign of potential stress in the real estate market is evident in declining property turnover rates, which are now at historically low levels.

Sales tax, the General Fund’s second-largest revenue source, has stagnated in recent years, although revenues are expected to grow modestly in future fiscal years as a result of a major new retailer that opened in March 2025.

On the expenditure side, City operational and infrastructure costs have increased significantly over the past several years, and while inflation appears to have largely abated, the higher cost structure is likely to persist. The City anticipates intermediate-term pension cost increases as CalPERS requires higher annual payments toward the City’s unfunded pension obligation. These increases would have a greater impact on the City’s fiscal health were it not for the proactive approach of paying down unfunded pension and 7 2024/25 Annual Comprehensive Financial Report

Letter of Transmittal
retiree medical liabilities. During FY 2018/19, the City Council approved a policy providing for annual pay downs of pension or retiree medical unfunded liabilities when excess reserves are available. In the past seven fiscal years, the City has made pension prepayments totaling $3.9 million under this policy, helping to mitigate future rate impacts. The City has also made significant annual pre-funding contributions toward pension obligations, totaling $23.1 million over this time period.

The City’s Water, Wastewater, and Solid Waste Enterprise Funds are also managing higher costs stemming from inflationary pressures and increasingly stringent, unfunded regulatory mandates from the State of California. To address these impacts, a five-year rate study was approved by City Council in FY 2022/23, setting rates for all three utilities through FY 2027/28. The rate studies incorporated updated assumptions for new organics regulations affecting both the Solid Waste and Wastewater enterprises, as well as higher operating and capital cost expectations. The rate structure took effect July 1, 2023, with the most recent adjustment implemented July 1, 2025. Each year, the City evaluates whether the approved rate increases must be fully implemented. In June 2025 the City Council reduced, from 6.5% to 4.0%, the previously approved July 1, 2025 Water rate increase. As of FY 2024/25, each of the City’s utility enterprises met the 30 percent cash reserve policy goal.

The City’s Strategic Plan continues to focus on economic development strategies to attract future sources of sales tax revenue and employment opportunities for the community. The Innovation Center @ Brentwood Infrastructure project will construct various infrastructure improvements within the project area including roadways, wet utilities and land acquisition, in order to ready this area for development.

The City envisions this location emerging as one of the primary future employment centers, offering individuals and businesses access and opportunities to create high-quality jobs across a diverse array of industries. A new Strategic Plan is anticipated to be approved during FY 2025/26.

Although forecasts indicate that the City can maintain its strong financial position, caution is warranted as fiscal conditions continue to evolve. The City will remain vigilant in preserving its long-term fiscal health through conservative budgeting, active management of unfunded obligations, and disciplined reserve policies. Through prudent financial management and adherence to the City Council’s adopted fiscal policies, Brentwood is well positioned to sustain essential services and strategic investments amid changing economic conditions.

Strategic Planning
The City of Brentwood Strategic Plan FY 2022/23 - FY 2023/24 (“Strategic Plan”), adopted in February 2022, is the most recent Strategic Plan and includes numerous initiatives and capital projects in support of the Council’s vision for the future of the City. The 2024/25 – 2025/26 Operating Budget includes the funding and appropriations necessary to complete several carryover initiatives from the Strategic Plan, including the Sand Creek Sports Complex and the Innovation Center @ Brentwood Infrastructure project with the goal of bringing a significant number of jobs to the City.

The Strategic Plan focuses on the City’s economic development, land use, infrastructure and parks and recreation programs and facilities. Through strong business growth and thoughtful land use and planning, the City will ensure that the quality of life enjoyed by Brentwood residents today will be enjoyed by future generations.
8 2024/25 Annual Comprehensive Financial Report

Letter of Transmittal

CERTIFICATE OF ACHIEVEMENT
The Government Finance Officers Association (GFOA) of the United States and Canada awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2024. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized Annual Comprehensive Financial Report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe that our current Annual Comprehensive Financial Report 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.

ACKNOWLEDGEMENTS
A great deal of effort and attention to detail, representing many hours of work by staff members throughout the organization, is required to produce a report of this quality. We would like to express our appreciation to all of the City Departments who participated in the development of this year’s Annual Comprehensive Financial Report. Special recognition is given to the Finance and Information Systems Department and specifically the Business Services and Financial Services staff. We wish to thank and express our appreciation to the Mayor and the City Council for providing the clear policy direction and goals used to prepare this Annual Comprehensive Financial Report and for their interest and support in planning and conducting the financial activities of the City in a responsible manner.

Respectfully submitted,
G. Harold Duffey Kerry Breen
City Manager City Treasurer
Director of Finance & Information Systems
9 2024/25 Annual Comprehensive Financial Report

10 2024/25 Annual Comprehensive Financial Report

City Council as of June 30, 2025
Susannah Meyer .................................................................................................................................................. Mayor Pa’tanisha Pierson ..................................................................................................................................... Vice Mayor Faye Maloney ................................................................................................................................... Council Member Jovita Mendoza ............................................................................................................................... Council Member Tony Oerlemans .............................................................................................................................. Council Member Executive Team as of June 30, 2025
Darin Gale ................................................................................................................................ Interim City Manager Katherine Wisinski ................................................................................................................................. City Attorney Sukari Beshears ................................................................................................... Interim Assistant City Manager Allen Baquilar ......................................................................................... Director of Engineering/City Engineer Kerry Breen ................................................. City Treasurer/Director of Finance and Information Systems Teresa Fairbanks ........................................................ Acting Director of Human Resources/Risk Manager Tim Herbert ................................................................................................................................................ Police Chief Alexis Morris ............................................................................................ Director of Community Development Vatsal Patel. ........................................................................................ Acting Director of Parks and Recreation Casey Wichert ...................................................................................................................Director of Public Works Executive Team as of December 9, 2025
G. Harold Duffey .................................................................................................................................... City Manager Katherine Wisinski ................................................................................................................................. City Attorney Darin Gale ............................................................................................................................ Assistant City Manager E. Harith Aleem Jr. .......................................................................................... Director of Parks and Recreation Allen Baquilar ......................................................................................... Director of Engineering/City Engineer Sukari Beshears ........................................................................ Director of Human Resources/Risk Manager Kerry Breen ................................................. City Treasurer/Director of Finance and Information Systems Alexis Morris ............................................................................................ Director of Community Development Walter O’Grodnick ................................................................................................................... Interim Police Chief Casey Wichert ...................................................................................................................Director of Public Works 11 2024/25 Annual Comprehensive Financial Report

City Organizational Chart
12 2024/25 Annual Comprehensive Financial Report

13 2024/25 Annual Comprehensive Financial Report

Mission Statement
Bringing Brentwood’s Vision to Reality
Vision and Culture
We are an organization of dedicated professionals working together to make Brentwood the very best, preserving its rich heritage and keeping Brentwood in the hearts of the people.

CORE VALUES
Integrity
Passion
Accountability
Respect
Quality
14 2024/25 Annual Comprehensive Financial Report

Awards
The City prides itself on providing quality services to the community. Following is a list of awards acknowledging these achievements in quality.

The City was recognized by the Arbor Day Foundation as a “Tree City USA Community” for 2024.

The City received the following 2024 Best of Brentwood Awards from ThePress.net:
 Family Community Event – Concerts in the Park (Gold)
 Favorite Park – Veterans Park (Gold), and City Park (Silver)  Event Center – Brentwood Community Center (Bronze)
 Place for Swim Lessons – Brentwood Family Aquatic Complex (Silver)  Place for Family Recreation – Brentwood Family Aquatic Complex (Silver)  Place for Live Music – Concerts in the Park (Bronze)
The City received the following 2024 California Park and Recreation Society District 3 Awards:
 Outstanding Non-Profit Organization – Be Exceptional
 Justice, Equity, Diversity and Inclusion Impact Award (JEDI) – Juneteenth Celebration 2024
 Installation as CPRS District 3 President – Stacey Dempsey (Recreation Supervisor, City of Brentwood)
The City received the GFOA award for the following:
 “Certificate of Achievement for Excellence in Financial Reporting Fiscal Year 2023/24”
 “Distinguished Budget Presentation Award” for the two-year Operating Budget beginning July 1, 2024
The City received the CSMFO award for the following:
 “Capital Budget Excellence Award Fiscal Year 2024/25”  “Operating Budget Excellence Award, Fiscal Years 2024/25 – 2025/26” 15 2024/25 Annual Comprehensive Financial Report

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

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

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the 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 requirement relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these 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 the 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. 16

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 generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists.

The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

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

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

Change in Accounting Principle
Management adopted the provisions of Governmental Accounting Standards Board Statement No. 101, Compensated Absences, which became effective during the year ended June 30, 2025 and required the restatement of net position as discussed in Note 15 to the financial statements.

The change in accounting principle does not constitute a modification to our opinions.

17

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

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying Supplementary Information, as listed in the Table of Contents, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.

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

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the Introductory Section and Statistical Section listed in the Table of Contents, 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.
18

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 21, 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 the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Pleasant Hill, California
November 21, 2025
19

Management’s Discussion and Analysis
This discussion and analysis provides an overview of the City of Brentwood’s financial performance for the fiscal year ended June 30, 2025. It should be read in conjunction with the Letter of Transmittal, the Basic Financial Statements and the accompanying Notes to the Basic Financial Statements.

FINANCIAL HIGHLIGHTS
 The City’s assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by $1,031.5 million at year-end. Of this amount, $156.4 million is available to meet ongoing obligations to citizens and creditors.
 The City’s total net position increased by $27.6 million during FY 2024/25, including $15.0 million from governmental activities and $12.6 million from business-type activities.  Governmental activities:
o Capital Investment: Net investment in capital assets rose $9.4 million, reflecting $22.0 million in asset additions and payments on related long-term debt; and a decrease of capital-related accounts payable of $0.9 million; offset by depreciation, amortization and disposals of $13.2 million and an increase in subscription liabilities of $0.3 million. Total asset additions of $17.5 million included $2.9 million in developer contributions. o Restricted Funds: Restricted net position for capital projects increased $3.0 million, primarily due to a $3.9 million increase in the Parks and Trails Improvements Capital Project Fund reflecting funding transfers that exceeded construction expenditures for the Sand Creek Sports Complex.
 Business-type activities:
o Operating Performance: Unrestricted net position grew $13.7 million in preparation for increased capital and operating costs associated with new facilities and compliance with State solid waste mandates.
o Capital Investment: Net investment in capital assets decreased $2.3 million largely due to $8.1 million in depreciation, amortization and disposals, $5.6 million in new Wastewater Fund capital projects loans; $3.6 million in increased capital-related accounts payable; and a $3.3 million reduction in deferred amount on refunding related to the 2024 Water Revenue Refunding Bonds (“Water Bond Refunding”). These declines were partially offset by $12.6 million in new capital additions; $5.2 million in reduced long-term liabilities from the Water Bond Refunding; and $0.4 million in other principal payments.  The City’s governmental funds reported a combined ending fund balance of $137.0 million, an increase of $1.7 million (1.2%), from the prior year.
 Enterprise Funds reported a combined net position of $396.6 million, an increase of $11.9 million (3.0%), primarily in the Wastewater ($4.4 million), Solid Waste ($1.7 million) and Water ($6.1 million) Enterprise Funds, from higher operational income following rate adjustments.  The City’s long-term obligations decreased by $9.2 million driven by annual debt principal payments ($6.0 million); reduced bond debt from the Water Bond Refunding ($5.2 million); and declines in pension ($2.3 million) and OPEB liabilities ($1.6 million). These reductions were partially offset by a $5.2 million increase in State Water Resources (SWR) loans for Wastewater capital projects.
 Internal Service Funds ended the year with a net position of $84.8 million at year-end, up $6.4 million. The increase reflects continued funding for future equipment and facility replacements of $2.9 million in the Vehicle and Equipment Replacement Fund; $1.4 million in the Facilities 20 2024/25 Annual Comprehensive Financial Report

Management’s Discussion and Analysis
Replacement Fund; and $1.1 million in the Parks and Landscape and Lighting Assessment District (LLAD) Replacement Fund. The Pension/OPEB Obligation Fund net position decreased $0.2 million.

This decrease was due to a $3.2 million additional discretionary payment toward long-term pension liabilities; offset by $1.0 million of fair share transfers from the Enterprise and Internal Service Funds; a $1.3 million transfer from the General Fund for fund balance in excess of the 30% of operating appropriations reserve required by budget policy; and $0.7 million investment income.

OVERVIEW OF THE FINANCIAL STATEMENTS
The City’s financial statements include all of the activities of the City and its component units, presented using the blended approach required by government accounting standards. The basic financial statements consist of three main components: 1) Government-Wide Financial Statements, 2) Fund Financial Statements and 3) Notes to the Basic Financial Statements.

Government-Wide Financial Statements provide a comprehensive view of the City’s financial position using the economic resources measurement focus and accrual basis of accounting. They present governmental activities and business-type activities separately; and include all assets, including infrastructure, and all liabilities, including long-term debt. In addition, certain interfund balances and transactions are eliminated.

Governmental Activities encompass most of the City’s core services - General Government, Public Safety, Community Development, Engineering, Streets, Community Services and Parks and Recreation, funded primarily through property and sales taxes, user fees, interest earnings, franchise fees and intergovernmental revenue.

Business-Type Activities, such as Wastewater, Solid Waste, Water, and Housing are financed primarily through user charges designed to recover the cost of providing services.

The Statement of Net Position and the Statement of Activities and Changes in Net Position report the City’s overall financial health and include the current year’s net position and change from the prior year.

These statements include all revenues and expenses, regardless of when cash is received or paid and provide an indication of whether the City’s financial position is improving or deteriorating over time. Other indications to consider are changes in the City’s property tax and sales tax base and the condition of the City’s roads. The Government-Wide Financial Statements are presented on pages 34 – 35.

Fund Financial Statements provide more detailed information on the City’s most significant funds. Some are required to be established by State law or by bond covenants, while others are established by management for regulatory or legal accountability or budgetary control.

The City’s Fund Financial Statements fall into three categories – Governmental Funds, Proprietary Funds and Fiduciary Funds. Governmental Fund financials are prepared using the current financial resources measurement focus and modified accrual basis of accounting. The Proprietary Fund financials are prepared using the economic resources measurement focus and the accrual basis of accounting. The City’s Fiduciary Funds include Custodial Funds, which have a measurement focus of operational results; Private-Purpose Trust Funds which, in addition to being custodial in nature, also include operational activities under which the principal and income benefit several specific local taxing entities; and an Other Employee Benefit Trust Fund - Corebridge Financial (“Corebridge”), formerly Variable Annuity Life Insurance Company – (VALIC), 21 2024/25 Annual Comprehensive Financial Report

Management’s Discussion and Analysis
which includes assets and activities of the City’s single-employer deferred compensation plan held by a third-party administrator. The Fund Financial Statements can be found on pages 36 – 44.

Most of the City’s core services are reported in Governmental Funds, which focus on short-term inflows and outflows and available financial resources. The Governmental Fund statements provide a detailed, short-term view of the City’s general government operations and the core services provided. Governmental Fund information helps determine whether financial resources to finance the City’s programs have increased or decreased. Reconciliations explain the differences between results in the Governmental Fund Financial Statements and the Government-Wide Financial Statements. The Governmental Fund Financial Statements can be found on pages 36 – 39.

When the City charges customers for ongoing services it provides, whether to outside customers or other units of the City, these revenues are generally reported in Proprietary Funds. The City maintains two different types of Proprietary Funds – Enterprise Funds and Internal Service Funds. Enterprise Funds are used to report the same functions presented as business-type activities in the Government-Wide Financial Statements. Examples of Enterprise Funds include the Water and Solid Waste Funds. Internal Service Funds are used to report activities which provide supplies and services for the City’s other programs and activities.

Two examples are the Information Systems Replacement Fund and the Fleet Maintenance Services Fund.

Internal Service Funds are reported with governmental activities in the Government-Wide Financial Statements, found on pages 34 - 35.

Proprietary Fund Financial Statements provide a more detailed version of the information provided in the Government-Wide Financial Statements. Cash flows for the Enterprise Funds and the Internal Service Funds are provided, as well as combining statements for the individual Internal Service Funds. The Proprietary Fund Financial Statements can be found on pages 40 - 42.

The City has monies held by trustees for certain amounts held on behalf of developers, property owners, governmental agencies, City employees and others. The City’s fiduciary activities are reported in a separate Statement of Fiduciary Net Position and Statement of Changes in Fiduciary Net Position. These activities are excluded from the Government-Wide Financial Statements because the City cannot use these assets to finance its operations. The City is responsible for ensuring that the assets reported in the Fiduciary Funds are used for their intended purposes. The Fiduciary Fund Financial Statements can be found on pages 43 –

44. The Notes to the Basic Financial Statements provide additional information essential to understanding the Government-Wide and Fund Financial Statements. The Notes to the Basic Financial Statements can be found on pages 45 – 113.

In addition to the basic financial statements, and accompanying notes, Required Supplementary Information includes budgetary comparison schedules for the General Fund and other Major Funds and data related to the City’s pension and OPEB liabilities. Required Supplementary Information can be found on pages 114 – 126.

Combining and Individual Fund Statements and Schedules for the Non-Major Governmental Funds and Internal Service Funds are presented on pages 127 – 153. 22 2024/25 Annual Comprehensive Financial Report

Management’s Discussion and Analysis

GOVERNMENT-WIDE FINANCIAL ANALYSIS
The City’s overall net position increased by $24.0 million (2.4%), from $1,007.5 million at June 30, 2024 to $1,031.5 million at June 30, 2025. This growth reflects activity summarized in the Statement of Activities and reported in the Statement of Net Position. Net investment in capital assets and capacity rights rose $7.1 million, reaching $724.5 million at year-end. While investment in capital assets and capacity rights is reported net of related debt, repayment of the debt must come from other resources, as the assets themselves are not available for liquidation.

Restricted net position totaled $150.6 million and increased by $2.3 million from the prior year. The growth was primarily due to an increase in balances restricted for capital projects ($3.0 million); an increase in amounts for LLAD’s ($1.6 million); and an increase in amounts for the Citywide Park Assessment District ($1.0 million). These gains were partially offset by lower development-related balances ($1.9 million) used to fund development-related capital projects and a $1.3 million reduction in amounts restricted for debt service.

Unrestricted net position totaled $156.4 million and remains available to meet the City’s ongoing obligations to residents and creditors.

2025 2024 (1) 2025 2024 (1) 2025 2024 (1)
Current Assets $ 208,576,363 $ 203,480,874 $ 162,018,663 $ 147,882,575 $ 370,595,026 $ 351,363,449 Capital Assets 519,207,963 514,982,781 354,226,085 349,721,215 873,434,048 864,703,996 Other Non-Current Assets 16,801,315 18,126,052 719,661 747,338 17,520,976 18,873,390 Total Assets 744,585,641 736,589,707 516,964,409 498,351,128 1,261,550,050 1,234,940,835 Deferred Outflows of Resources 27,267,983 32,844,416 8,755,682 13,932,130 36,023,665 46,776,546 Total Deferred Outflows of Resources 27,267,983 32,844,416 8,755,682 13,932,130 36,023,665 46,776,546 Current Liabilities 20,467,196 18,790,169 14,177,582 11,938,729 34,644,778 30,728,898 Long-Term Liabilities Outstanding 109,828,016 118,903,670 113,307,813 113,401,285 223,135,829 232,304,955 Total Liabilities 130,295,212 137,693,839 127,485,395 125,340,014 257,780,607 263,033,853 Deferred Inflows of Resources 6,618,516 8,963,108 1,626,283 2,214,025 8,244,799 11,177,133 Total Deferred Inflows of Resources 6,618,516 8,963,108 1,626,283 2,214,025 8,244,799 11,177,133 Net Investment in Capital Assets
and Capacity Rights 467,649,257 458,294,923 256,856,263 259,130,097 724,505,520 717,425,020 Restricted 110,278,418 108,401,964 40,306,407 39,844,327 150,584,825 148,246,291 Unrestricted 57,012,221 56,080,289 99,445,743 85,754,795 156,457,964 141,835,084 Total Net Position $ 634,939,896 $ 622,777,176 $ 396,608,413 $ 384,729,219 $ 1,031,548,309 $ 1,007,506,395 (1) Not adjusted for the effects of the implementation of GASB Statement No. 101 discussed in Note 1.D.xvi.

Governmental Activities Business-Type Activities Totals 23 2024/25 Annual Comprehensive Financial Report

Management’s Discussion and Analysis
Governmental Activities
Governmental activities increased the City’s net position by $15.0 million (2.0%), from $619.9 million (adjusted for the implementation of GASB 101 discussed in Notes 1.D.xvi and 15) to $634.9 million. As discussed above, the increase in net investment in capital assets reflected major capital investments, construction activity and payments on related long-term liabilities. Restricted balances also rose modestly, mainly in the Parks and Trails Improvements Capital Project Fund for the Sand Creek Sports Complex and in the LLAD Special Revenue Fund to support future operating costs.

The City issued 51 single-family building permits during the fiscal year. Property tax revenue grew $0.7 million (3.5%), reflecting higher assessed values despite slow property sales activity. Sales taxes increased $0.2 million (2.2%), largely from higher allocations of online sales from the County pool, while other sources remained consistent with the prior year.

Charges for services rose by $3.0 million, driven by increased citation revenue; higher administrative reimbursements from other funds; and an increase in development-related permit fees following the adoption of an updated fee study. Operating grants and contributions increased by $1.6 million, primarily from increases in LLAD assessments and community development program grants. Capital grants and contributions grew $1.7 million, reflecting higher development-related fees and contributions of $3.1 million, offset by lower funding of $1.3 million from the East Contra Costa Regional Fee and Financing Authority for the Sand Creek Road Extension. Investment income increased $1.2 million due to favorable year-end fair value adjustments.

Expenses rose by $2.6 million (2.7%) over the prior year reflecting higher personnel costs from recent labor agreements, which resulted in cost of living and other benefit cost increases. In addition, there were inflation-related increases in materials, supplies and services.

Business-Type Activities
Business-Type activities increased the City’s net position by $11.9 million (3.1%) driven mainly by growth in unrestricted net position. As discussed in detail above, net investment in capital assets declined slightly from the prior year.

Charges for Services rose $4.8 million (7.4%), reflecting scheduled utility rate adjustments across the Enterprise Funds. Capital Grants and Contributions increased $2.3 million, mainly from development fees and infrastructure contributions. Investment income was $1.5 million higher than the prior year, benefitting from favorable year-end fair value adjustments.

Expenses increased by $9.3 million (16.2%), largely due to higher materials, supplies and services ($4.4) million, including increased water supply and solid waste disposal expenses. Personnel costs grew $2.7 million following recently concluded labor negotiations and one-time capital asset disposal losses added $1.4 million. At year-end, unrestricted net position for business-type activities was $99.4 million.

24 2024/25 Annual Comprehensive Financial Report

Management’s Discussion and Analysis
2025 2024 (1) 2025 2024 (1) 2025 2024 (1)
Revenues:

Program Revenues:

Charges for Services 20,099,353 $ 17,061,340 $ 69,601,220 $ 64,812,445 $ 89,700,573 $ 81,873,785 $ Operating Grants and Contributions 30,481,262 28,903,481 - 431,354 30,481,262 29,334,835 Capital Grants and Contributions 10,211,508 8,474,201 4,214,927 1,944,270 14,426,435 10,418,471 General Revenues:

Taxes:

Property Taxes 20,875,449 20,169,793 - - 20,875,449 20,169,793 Sales Tax 11,410,844 11,162,609 - - 11,410,844 11,162,609 Franchise Fees 1,711,396 1,645,223 - - 1,711,396 1,645,223 Real Property Transfer Tax 415,668 460,558 - - 415,668 460,558 Transient Occupancy Tax 577,462 604,525 - - 577,462 604,525 Motor Vehicle Taxes 6,582,011 6,310,048 - - 6,582,011 6,310,048 Investment Earnings 10,055,319 8,806,561 7,908,367 6,367,600 17,963,686 15,174,161 Gain on Disposal of Real Property 127,842 196,343 4,136 - 131,978 196,343 Miscellaneous 559,201 397,503 - - 559,201 397,503
Total Revenues 104,192,185 113,107,315 81,728,650 73,555,669 194,835,965 177,747,854 Expenses:

General Government 17,259,090 15,501,108 - - 17,259,090 15,501,108 Public Safety 33,185,827 32,577,720 - 33,185,827 - 32,577,720 Community Development 6,392,709 6,715,451 - - 6,392,709 6,715,451 Engineering 3,526,184 3,762,120 - - 3,526,184 3,762,120 Public Works 9,043,702 9,410,141 - - 9,043,702 9,410,141 Parks and Recreation 19,438,356 18,967,380 - 19,438,356 - 18,967,380 Community Services 9,785,221 8,967,495 - - 9,785,221 8,967,495 Interest on Long-Term Debt 1,629,729 1,717,740 - - 1,629,729 1,717,740 Wastewater - 16,966,631 - 14,340,756 16,966,631 14,340,756 Solid Waste - 18,507,916 - 16,125,176 18,507,916 16,125,176 Water - 30,460,860 - 26,311,556 30,460,860 26,311,556
Housing - - 1,044,794 886,236 1,044,794 886,236
Total Expenses 100,260,818 97,619,155 66,980,201 57,663,724 167,241,019 155,282,879 Change in Net Position Before Transfers 12,846,497 6,573,030 14,748,449 15,891,945 27,594,946 22,464,975 Transfers 2,184,286 1,039,521 (2,184,286) (1,039,521) - - Change in Net Position 15,030,783 7,612,551 12,564,163 14,852,424 27,594,946 22,464,975 Net Position 7/1 (2) 615,164,625 619,909,113 384,044,250 369,876,795 1,003,953,363 985,041,420 Net Position 6/30 634,939,896 $ 622,777,176 $ 396,608,413 $ 384,729,219 $ 1,031,548,309 $ 1,007,506,395 $ (1) Not adjusted for the effects of the implementation of GASB Statement No. 101 discussed in Note 1.D.xvi. (2) July 1, 2024 adjusted for the effects of the implementation of GASB Statement No. 101 discussed in Notes 1.D.xvi and 15.

Governmental Activities Business-Type Activities Total Primary Government 25 2024/25 Annual Comprehensive Financial Report

Management’s Discussion and Analysis
Governmental Activities
Governmental activities cost $100.3 million in FY 2024/25. Net expenses, as shown in the Statement of Activities and Changes in Net Position found on page 35, were $39.5 million. The cost for these activities were partially funded by those who directly benefited from the programs ($20.1 million), by other governments and organizations through operating grants and contributions ($30.5 million), and capital grants and contributions ($10.2 million), for total program revenues of $60.8 million.

Total resources available to finance governmental operations were $735.2 million consisting of beginning net position ($619.9 million), program revenues ($60.8 million) and general revenues and transfers ($54.5 million). After total expenses of $100.3 million, net position increased by $15.0 million. The change in net position includes a reduction of $2.9 million to beginning net position to reflect implementation of GASB Statement No. 101, Compensated Absences, and year-end net position was $634.9 million.

26 2024/25 Annual Comprehensive Financial Report

Management’s Discussion and Analysis
Business-Type Activities
Business-Type activities cost $67.0 million in FY 2024/25. As shown in the Statement of Activities and Changes in Net Position, found on page 35, charges for services generated $69.6 million, while capital grants and contributions totaled $4.2 million and investment earnings added $7.9 million.

Total resources available to finance Business-Type activities were $465.7 million, including beginning net position of $384.0 million, charges for services ($69.6 million), capital grants and contributions ($4.2 million) and investment earnings ($7.9 million). After total costs and net transfers of $69.1 million, net position increased by $12.6 million. The change in net position includes a $0.7 million reduction in beginning net position for implementation of GASB Statement No. 101, Compensated Absences, and year-end net position was $396.6 million.
(1) Revenues include contributions from development impact fees and developer dedicated infrastructure. (2) Loan principal payments are excluded from Wastewater and Water. (2) (2)
27 2024/25 Annual Comprehensive Financial Report

Management’s Discussion and Analysis
FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
The General Fund ended the year with a balance of $29.4 million, unchanged from the prior year This balance reflects a $1.3 million year-end transfer to the Pension/OPEB Obligation fund, representing unassigned reserves above the 30% minimum reserve of annual operating appropriations and transfers established by budget policy. The City’s two largest revenue sources, property tax and sales tax, increased

3.5% and 2.2%, respectively. Property tax revenues benefited from a 2% CPI adjustment applied to all classes of property, combined with valuation gains from new development and property transfers. General Fund expenditures rose 4.7% from the prior year, largely due to higher personnel costs from recent labor agreements and inflationary increases in supplies and services.

The LLAD Fund, a Special Revenue Fund, increased its fund balance by $1.6 million, a combination of increases in operating reserves of $0.3 million and expenditure savings from budget of $1.3 million. The majority of the savings occurred in the arterial roads and Grant Street Trail district funds and any savings realized in a given fiscal year will be used to reduce future LLAD assessments.

The Citywide Park Assessment District Fund, a Special Revenue Fund, increased its fund balance by $1.0 million, as assessment revenue and transfers from LLADs exceeded expenditures, allowing for continued growth in reserves and replacement set-asides.

The Roadway Development Impact Fee Fund, a Special Revenue Fund, decreased its fund balance by $3.3 million, reflecting transfers to support the Lone Tree Way Roadway Improvements and Sand Creek Road Extension.

The Parks and Trails Development Impact Fee Fund, a Special Revenue Fund, decreased its fund balance by $1.7 million, primarily due to transfers for funding construction of the Sand Creek Sports Complex.

The Roadway Improvements Fund, a Capital Project Fund, increased its fund balance by $0.9 million, as project funding transfers exceeded expenditures for Brentwood Boulevard Widening North - Phase I and Lone Tree Way Roadway Improvements.

The Parks and Trails Improvements Fund, a Capital Project Fund, increased its fund balance by $3.9 million, reflecting transfers for funding the Sand Creek Sports Complex.

The Capital Infrastructure Fund, a Capital Project Fund, decreased its fund balance by $1.7 million due to transfers supporting the Sand Creek Sports Complex.

The City’s three largest Enterprise Funds—Wastewater, Solid Waste, and Water—each reported increases in net position for the fiscal year.
 The Wastewater Fund, increased $4.6 million, reflecting higher operational income from rate adjustments designed to address future operational and debt related cost increases associated with the treatment plant expansion. Investment income also contributed $3.6 million, driven by higher interest rates and favorable year-end fair value adjustments.  The Solid Waste Fund increased $1.9 million, primarily due to rate adjustments implemented to prepare for higher costs under new State organic waste disposal regulations. The Fund also earned 28 2024/25 Annual Comprehensive Financial Report

Management’s Discussion and Analysis
$1.2 million in investment income, supported by higher interest rates and positive year-end fair value adjustments.
 The Water Fund increased $6.3 million, largely as a result of operational income from rate adjustments to offset rising water treatment and conveyance costs. Investment income added $2.8 million, reflecting higher interest rates and favorable year-end fair value adjustments.

GENERAL FUND BUDGETARY HIGHLIGHTS
The final FY 2024/25 budget totaled $82,727,828 in expenditures and transfers out, an increase of $2,459,365 from the original budget of $80,268,463, adopted in June 2024. The reasons for the $2.5 million increase in the budget are summarized below.

Total revenues, other financing sources and transfers in were $75,047,648, or $2,665,405 below budget.

Expenditures and transfers out totaled $75,047,283, or $7,680,545 under budget. Total expenditures and transfers out include a $1,313,029 transfer to the Pension/OPEB Obligation Fund, representing the portion of General Fund balance that exceeded the 30% minimum reserve required by budget policy. From an operational standpoint, General Fund expenses and certain transfers out totaled $72,438,813, or $7,614,782 less than budget.

Revenues and transfers in were below budget by $2.7 million, reflecting a $2.0 million positive variance in total revenues, offset by a $4.7 million shortfall in other financing sources. Total revenues exceeded expectations primarily due to higher investment income, including a $0.9 million favorable year-end fair value adjustment and $0.8 million more in citation and fine revenue than budgeted.

The $4.7 million shortfall in other financing sources was largely due to budgeted transfers from the from the Pension/OPEB Obligation Fund ($4.3 million), that were ultimately unnecessary, as the General Fund generated a $1.3 million surplus.

Operational costs were $7.6 million below budget, primarily due to personnel savings from position vacancies. Despite inflationary pressures on supplies and services, the City continued to operate efficiently, achieving moderate savings across departments.

Supplemental budget adjustments during FY 2024/25 included:
 $2,002,763 increase in personnel costs from negotiated labor cost increases, increases in benefit costs and the authorization of additional staff; partially offset by a $246,103 reduction in the cost for annual unfunded pension obligation payments.
 $376,020 increase in the Police Department and Dispatch budget for contractual services and vehicle maintenance.
 $301,485 increase in the Parks and Recreation budget for expanded programs and citywide events, higher utility and trail maintenance costs, and storm damage related repairs.  $25,200 increase in the Engineering Department budget for participation in the Contra Costa Clean Water program.

29 2024/25 Annual Comprehensive Financial Report

Management’s Discussion and Analysis

CAPITAL ASSETS AND LONG-TERM OBLIGATIONS
Capital Assets
At June 30, 2025, the City’s capital assets, net of accumulated amortization and depreciation, totaled $519.2 million for Governmental Activities and $354.2 million for Business-Type Activities. Depreciation and amortization on capital assets are recorded in the Government-Wide financial statements. Additional details are provided in Note #5 of this report. The City has elected to use the depreciation and amortization method for infrastructure reporting.

Long-Term Obligations
Long-term obligations for Governmental Activities decreased $9.9 million during the year. The reduction included a $5.9 million decline in bonds and notes payable from scheduled debt service; a $2.5 million decrease in net pension liability due to employer contributions; a $1.2 million decline in net OPEB liability due to employer contributions; and a $0.3 million decrease in accumulated compensated absences.

Obligations of Business-Type Activities decreased by $0.2 million. Reductions included $2.7 million in annual debt service payments and a $2.9 million decrease from the Water Bond Refunding, offset by an increase of $5.6 million from increases in the SWR loans for the Wastewater Treatment Plant Expansion – Phase II project. The net OPEB liability declined $0.4 million, while the net pension liability increased $0.2 million. Per capita debt outstanding, excluding pension, OPEB and accumulated compensated absences, decreased from $2,367 to $2,226 compared with the prior year.

Additional information on the City’s long-term obligations can be found in Note #6 in this report.

Accumulated
Original Depreciation Book
Cost and Amortization Value
Capital Assets – Governmental:

Intangible Assets $ 6,258,156 $ 1,940,323 $ 4,317,833
Land 38,801,779 - 38,801,779
Buildings 72,197,665 18,483,422 53,714,243
Infrastructure 521,436,168 158,063,625 363,372,543
Machinery and Equipment 14,733,308 9,139,122 5,594,186
Vehicles 26,440,225 13,031,867 13,408,358
Land Improvements 37,340,021 10,789,225 26,550,796
Subscription Assets 1,429,008 355,076 1,073,932
Work in Progress – CIP and Infrastructure 12,374,293 - 12,374,293 Total Capital Assets – Governmental $ 731,010,623 $ 211,802,660 $ 519,207,963 Capital Assets – Business-Type:

Intangible Assets $ 18,950,632 $ 6,637,167 $ 12,313,465 Land 2,661,597 - 2,661,597
Buildings 30,831,987 11,311,991 19,519,996
Infrastructure 305,958,352 82,863,976 223,094,376
Machinery and Equipment 9,931,176 4,118,931 5,812,245
Land Improvements 11,046,659 4,359,021 6,687,638
Work in Progress – CIP and Infrastructure 84,136,768 - 84,136,768 Total Capital Assets – Business-Type $ 463,517,171 $ 109,291,086 $ 354,226,085 30 2024/25 Annual Comprehensive Financial Report

Management’s Discussion and Analysis
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
The FY 2025/26 budget reflects continued economic moderation following several years of strong revenue growth. The key assumptions used in the forecast of General Fund revenues are as follows:
 Development Activity: Residential development is expected to remain slow, with 100 single-family and 100 multi-family building permits budgeted. Commercial development is projected at a slow pace, with approximately 50,000 square feet anticipated.  Property Tax: Assessed valuations were projected to increase by 3.9% consistent with the County Assessor’s recently announced valuation, resulting in no material variance from budget.  Sales Tax: Sales tax revenues were projected to increase 16.2%, reflecting the opening of a major new retailer in March 2025, offset by softer other consumer spending due to inflation and economic uncertainty. These assumption are supported by the City’s sales tax consultant projections.  Interest Income: Interest rates are expected to decline modestly in the coming year, consistent with forecasts that the Federal Reserve may implement one to two rate cuts later this year.

Over the past decade, the City experienced strong property tax growth as development regularly exceeded expectations. However, high interest rates and persistently high inflation rates in the past few years have slowed the housing market, resulting in more moderate growth assumptions for FY 2025/26. Sales tax Balance
July 1, 2024 Incurred or Satisfied or Balance
(as adjusted) (4) Issued Matured June 30, 2025
Governmental Activities:

Bonds Payable $ 53,398,588 $ 257,055 (1) $ 49,138,427 4,517,216 $ Notes Payable 2,504,276 - 1,679,948 824,328
Net OPEB Liability 24,360,634 1,436,635 2,646,508 23,150,761 (2) Net Pension Liability 43,023,325 5,780,085 8,296,803 40,506,607 Accumulated Compensated Absences 5,080,661 - 265,862 (3) 4,814,799 Subscription Liabilities 885,208 294,507 266,831 912,884 Total Governmental Activities $ 129,252,692 $ 7,768,282 $ 17,673,168 $ 119,347,806 Business-Type Activities:

Bonds Payable $ 33,854,294 $ 31,121,691 $ 36,344,324 $ 28,631,661 Notes Payable and Other 61,643,838 5,634,906 434,480 66,844,264 Net OPEB Liability 9,480,434 531,897 895,393 9,116,938
Net Pension Liability 10,752,869 2,447,377 2,260,611 10,939,635 Accumulated Compensated Absences 1,345,794 1,927 (3) - 1,347,721 Total Business-Type Activities $ 117,077,229 $ 39,737,798 $ 39,934,808 $ 116,880,219 (4) Adjusted for the implementation of GASB 101 discussed in Note 1.D.xvi (3) Net change
(1) Includes accreted interest
(2) OPEB Liability and Pension Liability are typically liquidated by the General Fund, Citywide Park Assessment District Fund, Fleet Maintenance Fund and Information Services Fund
31 2024/25 Annual Comprehensive Financial Report

Management’s Discussion and Analysis
revenues are expected to increase in FY 2025/26 from the effect of a major new retailer, but then produce relatively flat growth in future years as inflation continues to temper consumer demand.

Population growth is projected at less than 1% annually over the next several years, reflecting the City’s approach of buildout and higher housing costs and mortgage rates that limit new home demand.

The FY 2025/26 expenditure budget incorporated several key factors:
 Labor Agreements: Three-year contracts for all City labor bargaining units were approved in June 2025. The budget includes all costs associated with these agreements, including annual 3% cost of living adjustments for the next two fiscal years and classification and compensation study results.  On-Going City Council-approved Programs: Funding continues for previously approved initiatives such as Adaptive Recreation and part-time salaries for special community events.  Inflationary Cost Adjustments: Budgeted expenditures account for general inflation, as well as higher than average cost increases for services such as County provided animal services and credit card processing fees.
 Retiree Benefits and Pension: The budget continues the City’s pre-funding strategy for OPEB, in contributing 85% of the Actuarial Determined Contribution (ADC) annually, before converting to a level percentage of payroll funding to achieve 100% funding. An additional discretionary payment to CalPERS is included to reduce unfunded pension liabilities.  Reserves: The budget maintains the required 30% General Fund reserve for operating expenditures and transfers.

Over the intermediate-term, personnel-related costs are expected to continue rising. The City has implemented several strategies to mitigate these increases, including multi-tier benefit structures for pension and retiree medical benefits, a pension pay down policy and the policy to pre-fund OPEB obligations. However, additional pension and OPEB contributions will be required in the intermediate-term to maintain funding progress.

The City’s Ten-Year General Fund Fiscal Model (“Fiscal Model”) incorporates increases in labor, pension, and OPEB costs expected in the intermediate-term. Other cost increases included in the City’s long-term forecast are short-term inflation impacts on supplies, services and capital outlay; and increased capital replacement needs as the City’s facilities and infrastructure age. The model also reflects projected operating costs for future amenities such as the Sand Creek Sports Complex, which is currently under construction.

Although population growth has slowed compared with the previous decade, sustained inflation and prior rapid expansion continue to place upward pressure on service costs. To meet increased service demand, the City has added twenty-seven new General Fund positions over the past seven years. These new positions by department include:
 City Attorney
o 1 Assistant City Attorney
o 1 Deputy City Attorney
 City Manager
o 1 Assistant City Clerk

32 2024/25 Annual Comprehensive Financial Report

Management’s Discussion and Analysis
 Community Development
o 1 Administrative Assistant II
o 2 Building Inspectors II,
o 1 Code Enforcement Officer
o 1 Senior Planner
 Finance and Information Systems
o 1 Accounting Specialist
 Human Resources
o 1 Equity Analyst
o 1 Management Analyst
 Parks and Recreation
o 1 Project Services Specialist
o 2 Recreation Coordinators
o 1 Recreation Supervisor
 Police Department
o 3 Community Service Officers
o 2 Police Dispatchers
o 5 Police Officers
o 1 Police Public Information Officer
 Public Works
o 1 Administrative Assistant II
While a widely anticipated economic slowdown has not yet materialized, current indicators suggest a governmental recessionary period is increasingly possible. Rising costs for goods, construction, and labor continue to challenge local governments. However, the City’s strong fiscal policies—including the 30% General Fund reserve and significant balances in the Pension/OPEB Obligation Fund—place Brentwood in a solid position to meet future financial challenges. Ongoing fiscal discipline, guided by the City Council’s leadership and commitment to long-term sustainability, will help ensure the City remains financially resilient.

The City will continue to update its Fiscal Model as new information becomes available and report the results to the City Council on a regular basis.

REQUESTS FOR INFORMATION
This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it manages. If you have questions about this report, or need any additional financial information, contact the Finance and Information Systems Department, located at 150 City Park Way, Brentwood, California 94513, either by phone, (925) 516-5460, or e-mail [email protected]. 33 2024/25 Annual Comprehensive Financial Report

Governmental Business-Type
Activities Activities Total
ASSETS
Current Assets:

Cash and Investments 196,586,955 $ 146,021,725 $ 342,608,680 $ Restricted Cash and Investments 3,398,852 2,369,053 5,767,905 Receivables, Net of Allowance for Doubtful Accounts 5,223,649 12,342,380 17,566,029 Leases Receivable 1,870,092 - 1,870,092
Inventories 79,139 - 79,139
Prepaids 997,676 1,285,505 2,283,181
Land Held for Resale 420,000 - 420,000
Total Current Assets 208,576,363 162,018,663 370,595,026 Non-Current Assets:

Long-Term Notes and Loans Receivable 16,801,315 719,661 17,520,976 Capital Assets:

Land and Work In Progress 51,176,072 86,798,365 137,974,437 Depreciable, Net of Accumulated
Depreciation and Amortization 468,031,891 267,427,720 735,459,611 Total Non-Current Assets 536,009,278 354,945,746 890,955,024 Total Assets 744,585,641 516,964,409 1,261,550,050

DEFERRED OUTFLOWS OF RESOURCES
Deferred Amount on Refunding 1,693,814 - 1,693,814
Related to OPEB 7,176,036 2,448,758 9,624,794
Related to Pensions 20,091,947 4,613,110 24,705,057
Total Deferred Outflows of Resources 8,755,682 27,267,983 36,023,665

LIABILITIES
Current Liabilities:

Accounts Payable and Accrued Liabilities 6,744,202 10,500,860 17,245,062 Unearned Revenue 696,770 - 696,770
Deposits Held 3,506,434 104,316 3,610,750
Long-Term Liabilities Due Within One Year 9,519,790 3,572,406 13,092,196 Total Current Liabilities 20,467,196 14,177,582 34,644,778 Non-Current Liabilities Due in More Than One Year:

Bonds Payable 44,721,756 26,651,661 71,373,417
Notes Payable - 66,405,439 66,405,439
Net OPEB Liability 9,116,938 23,150,761 32,267,699
Net Pension Liability 10,939,635 40,506,607 51,446,242
Subscription Liability - 645,888 645,888
Compensated Absences Payable 803,004 194,140 997,144
Total Non-Current Liabilities 113,307,813 109,828,016 223,135,829 Total Liabilities 127,485,395 130,295,212 257,780,607

DEFERRED INFLOWS OF RESOURCES
Related to OPEB 4,156,113 1,448,796 5,604,909
Related to Pensions 791,292 177,487 968,779
Related to Leases 1,671,111 - 1,671,111
Total Deferred Inflows of Resources 1,626,283 6,618,516 8,244,799

NET POSITION
Net Investment in Capital Assets and Capacity Rights 467,649,257 256,856,263 724,505,520 Restricted for:

Nonexpendable - Riparian Site Mitigation Endowment 80,000 - 80,000 Expendable:

Capital Projects 55,979,599 30,076,276 86,055,875
Debt Service 18,532,146 14,145 18,546,291
Housing 436,917 5,617,394 6,054,311
Streets and Roadways 6,958,700 - 6,958,700
Landscape and Lighting Assessment Districts 11,906,780 - 11,906,780 Citywide Parks Assessment District 4,941,002 - 4,941,002 Agricultural/Farmland Mitigation 4,813,123 - 4,813,123
Public Art 4,077,224 - 4,077,224
Development Impact Fee Program 50,632 4,590,081 4,640,713 Other Restricted Purposes 2,502,295 8,511 2,510,806
Unrestricted 57,012,221 99,445,743 156,457,964
Total Net Position $ 634,939,896 $ 396,608,413 $ 1,031,548,309

PRIMARY GOVERNMENT
June 30, 2025
Statement of Net Position
City of Brentwood
See Accompanying Notes to the Basic Financial Statements 34 2024/25 Annual Comprehensive Financial Report

Functions/Programs Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital
Grants and
Contributions Total
Governmental
Activities
Business-Type
Activities Total
Primary Government:

Governmental Activities
General Government $ 17,259,090 $ 12,148,365 $ 4,493,385 $ 2,080,582 $ 18,722,332 $ 1,463,242 $ - $ 1,463,242 Public Safety 33,185,827 525,278 4,576,241 317,599 5,419,118 (27,766,709) (27,766,709) - Community Development 6,392,709 2,849,412 421,195 355,136 3,625,743 (2,766,966) (2,766,966) - Engineering 3,526,184 2,554,270 - - 2,554,270 (971,914) - (971,914) Public Works 9,043,702 - 5,952,817 5,773,876 11,726,693 2,682,991 - 2,682,991 Parks and Recreation 19,438,356 2,022,028 3,991,261 1,684,315 7,697,604 (11,740,752) (11,740,752) - Community Services 9,785,221 11,046,363 - 11,046,363 - 1,261,142 - 1,261,142 Interest on Long-Term Debt 1,629,729 - - - - (1,629,729) (1,629,729) - Total Governmental Activities 100,260,818 20,099,353 30,481,262 10,211,508 60,792,123 (39,468,695) (39,468,695) - Business-Type Activities
Wastewater 16,966,631 17,120,796 - 1,183,256 18,304,052 - 1,337,421 1,337,421 Solid Waste 18,507,916 19,877,033 - 19,877,033 - - 1,369,117 1,369,117 Water 30,460,860 32,209,343 - 3,031,671 35,241,014 - 4,780,154 4,780,154 Housing 1,044,79 4 394,048 - - 394,048 - (650,746) (650,746) Total Business-Type Activities 66,980,201 69,601,220 - 4,214,927 73,816,147 - 6,835,946 6,835,946 Total Primary Government $ 167,241,019 $ 89,700,573 $ 30,481,262 $ 14,426,435 $ 134,608,270 $ (39,468,695) $ 6,835,946 $ (32,632,749) General Revenues:

Taxes:

Property Taxes $ 20,875,449 $ - $ 20,875,449
Sales Tax 11,410,84 4 11,410,84 - 4
Franchise Fees 1,711,39 6 - 1,711,396
Real Property Transfer Tax 415,668 - 415,668
Transient Occupancy Tax 577,462 - 577,462
Motor Vehicle Taxes, In-Lieu, Unrestricted 6,582,011 - 6,582,011 Gain on Sale of Real Property 4,136 127,842 131,97 8
Investment Earnings 10,055,319 17,963,68 7,908,367 6
Miscellaneous 559,201 - 559,201
Transfers 2,184,28 6 (2,184,286) -
Total General Revenues and Transfers 54,499,478 60,227,695 5,728,217 Change in Net Position 12,564,163 15,030,783 27,594,94 6 Net Position - Beginning of Year, as previously reported 622,777,176 384,729,219 1,007,506,395 Adjustments
Change in Accounting Principle (2,868,063) (684,969) (3,553,032) Net Position - Beginning of Year, as adjusted 619,909,113 384,044,250 1,003,953,363 Net Position - End of Year $ 634,939,896 $ 396,608,413 $ 1,031,548,309 For Year Ended June 30, 2025
Statement of Activities and Changes in Net Position
City of Brentwood
Primary Government
Program Revenues Net Revenues (Expenses) and Changes in Net Position See Accompanying Notes to the Basic Financial Statements 35 2024/25 Annual Comprehensive Financial Report

Special Revenue Fund
Landscape Other Total
General and Lighting Governmental Governmental
Fund Assessment Districts Funds Funds
ASSETS
Current Assets:

Cash and Investments $ 32,965,853 $ 13,434,345 $ 76,703,319 $ 123,103,517 Restricted Cash and Investments - - 3,398,852 3,398,852 Receivables 3,868,288 2,940 18,648,414 22,519,642
Prepaids 120,443 - 2,862 123,305
Leases Receivable 1,870,092 - - 1,870,092
Due from Other Funds - - 3,246,039 3,246,039
Land Held for Resale - - 420,000 420,000
Total Assets $ 38,824,676 $ 13,437,285 $ 102,419,486 $ 154,681,447

LIABILITIES
Current Liabilities:

Accounts Payable and Accrued Liabilities $ 3,018,095 $ 1,024,772 $ 2,000,531 $ 6,043,398 Due to Other Funds - - 3,246,039 3,246,039
Unearned Revenue 696,770 - - 696,770
Deposits Held 3,506,434 - - 3,506,434
Interfund Advance Payable - 72,248 289,681 361,929
Total Current Liabilities 7,221,299 1,097,020 5,536,251 13,854,570 Non-Current Liabilities Due in More Than One Year:

Interfund Advance Payable - 433,485 1,157,685 1,591,170 Total Non-Current Liabilities - 433,485 1,157,685 1,591,170 Total Liabilities 7,221,299 1,530,505 6,693,936 15,445,740

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Accounts Receivable 520,322 - - 520,322 Related to Leases 1,671,111 - - 1,671,111
Total Deferred Inflows of Resources 2,191,433 - - 2,191,433

FUND BALANCES
Nonspendable 319,424 - 82,862 402,286
Restricted - 11,906,780 97,604,594 109,511,374
Committed 4,963,138 - 2,227,470 7,190,608
Unassigned 24,129,382 - (4,189,376) 19,940,006
Total Fund Balances 29,411,944 11,906,780 95,725,550 137,044,274 Total Liabilities, Deferred Inflows
of Resources and Fund Balances $ 38,824,676 $ 13,437,285 $ 102,419,486 $ 154,681,447 City of Brentwood
Balance Sheet
June 30, 2025
Governmental Funds
See Accompanying Notes to the Basic Financial Statements 36 2024/25 Annual Comprehensive Financial Report

Total Fund Balances - Total Governmental Funds $ 137,044,274 Amounts reported for Governmental Activities in the Statement of Net Position are different because:

Capital assets used in Governmental Activities are not current financial resources; therefore, they are not reported in the Governmental Funds Balance Sheet. 505,154,746
Internal Service Funds are used by management to charge costs of certain activities, such as data processing and fleet management, to individual funds. The assets and liabilities of the Internal Service Funds are included in Governmental Activities in the Government-Wide Statement of Net Position. 84,781,492 Governmental Funds report the effect of premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities and Changes in Net Position. (3,739,872) Long-term liabilities and deferred outflows/inflows of resources are not due and payable in the current period; therefore, they are not reported in the Governmental Funds Balance Sheet.

Bonds (45,398,555)
Notes Payable (824,328)
Net OPEB Liabilities (20,308,484)
Deferred Outflows of Resources Related to OPEB 6,504,119 Deferred Inflows of Resources Related to OPEB (3,729,392) Net Pension Liabilities (37,483,156)
Deferred Outflows of Resources Related to Pensions 18,819,842 Deferred Inflows of Resources Related to Pensions (742,239) Subscription Liabilities (679,647)
Compensated Absences (4,390,406)
Accrued Liabilities (68,498)
Total Net Position of Governmental Activities $ 634,939,896 City of Brentwood
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2025
See Accompanying Notes to the Basic Financial Statements 37 2024/25 Annual Comprehensive Financial Report

Special Revenue Fund Capital Project Fund
Landscape (formerly major fund) Other Total
General and Lighting Roadway Governmental Governmental
Fund Assessment Districts Improvements Funds Funds

REVENUES
Taxes 32,505,326 $ - $ $ - $ 9,396,086 $ 41,901,412
Licenses 851,011 - - 212,753 1,063,764
Permits and Fines 6,568,238 - - - 6,568,238
Uses of Money and Property 2,366,544 531,461 - 3,420,814 6,318,819 Intergovernmental 6,728,825 - - 8,299,672 15,028,497
Franchises 1,711,396 - - - 1,711,396
Charges for Other Services 264,101 - - - 264,101
Charges to Other Funds 9,834,459 - - - 9,834,459
Fees and Other Revenues 2,628,509 11,046,363 - 9,474,798 23,149,670 Total Revenues 63,458,409 11,577,824 - 30,804,123 105,840,356

EXPENDITURES
Current:

General Government 9,639,451 - - 5,030,223 14,669,674
Public Safety 32,272,789 - - 197,744 32,470,533
Community Development 6,763,813 - - 290,113 7,053,926
Engineering 3,978,922 - - - 3,978,922
Public Works 4,431,701 - - - 4,431,701
Parks and Recreation 9,041,080 - - 7,643,652 16,684,732 Community Services 1,273,540 8,541,306 - 32,140 9,846,986 Capital Outlay 27 - - 8,248,768 8,248,795
Debt Service:

Principal 1,885,509 - - 4,267,891 6,153,400
Interest and Fiscal Charges 43,733 - - 1,580,507 1,624,240 Total Expenditures 69,330,565 8,541,306 - 27,291,038 105,162,909 REVENUES OVER (UNDER) EXPENDITURES (5,872,156) 3,036,518 - 3,513,085 677,447

OTHER FINANCING SOURCES (USES)
Transfers In 11,589,239 2,377,220 - 25,399,560 39,366,019 Transfers Out (5,716,718) (3,800,631) - (28,863,500) (38,380,849) Total Other Financing Sources (Uses) 5,872,521 (1,423,411) - (3,463,940) 985,170 Net Change in Fund Balances 365 1,613,107 - 49,145 1,662,617 Fund Balance, Beginning of Year, as previously reported 29,411,579 10,293,673 16,479,342 79,197,063 135,381,657 Adjustment - change from major fund to nonmajor fund - - (16,479,342) 16,479,342 - Fund Balance, Beginning of Year, as adjusted 29,411,579 10,293,673 - 95,676,405 135,381,657 Fund Balance, End of Year $ 29,411,944 $ 11,906,780 $ - $ 95,725,550 $ 137,044,274 City of Brentwood
For Year Ended June 30, 2025
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
See Accompanying Notes to the Basic Financial Statements 38 2024/25 Annual Comprehensive Financial Report

Net Change in Fund Balances - Total Governmental Funds $ 1,662,617 Amounts reported for governmental activities in the Statement of Activities and Changes in Net Position are different because:

Governmental Funds report capital outlay as expenditures. However, in the Government-Wide Statement of Activities and Changes in Net Position, the cost of those assets is allocated over their estimated useful lives as depreciation expense. The amount shown represents the capital assets recorded in the current period. 8,248,795 Depreciation expense on capital assets is reported in the Government-Wide Statement of Activities and Changes in Net Position, but they do not require the use of current financial resources. Therefore, depreciation expense is not reported as expenditures in Governmental Funds. (11,157,134)
The net effect of various miscellaneous transactions involving Capital Assets (e.g. sales, trade-ins and contributions) is to increase net position. 3,066,609
To record the net change in compensated absences in the Statement of Activities and Changes in Net Position. 157,588 Bond proceeds provide current financial resources to Governmental Funds, but issuing debt increases long-term liabilities in the Government-Wide Statement of Net Position. Repayment of bond principal and other long-term liabilities is an expenditure in Governmental Funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position.

This amount represents long-term debt principal repayments 6,153,400 This amount represents the increase in accrued liabilities (7,174) This amount represents the decrease in Net OPEB Liability 1,093,478 This amount represents the decrease in Deferred Outflows related to OPEB (1,803,580) This amount represents the decrease in Deferred Inflows related to OPEB 1,113,043 This amount represents the decrease in Net Pension Liability 2,398,455 This amount represents the decrease in Deferred Outflows related to Pensions (3,135,835) This amount represents the decrease in Deferred Inflows related to Pensions 555,297 This amount represents accreted interest (257,055)
This amount represents amortized bond premiums 249,325
Internal Service Funds are used by management to charge the costs of certain activities, such as data processing and fleet management, to individual funds. The net revenue of the Internal Service Funds is reported with Governmental Activities. 6,692,954 Change in Net Position of Governmental Activities $ 15,030,783 City of Brentwood
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities Changes in Net Position For Year Ended June 30, 2025
See Accompanying Notes to the Basic Financial Statements 39 2024/25 Annual Comprehensive Financial Report

Governmental
Activities - Internal
Wastewater Solid Waste Water Housing Totals Service Funds ASSETS
Current Assets:

Cash and Investments $ 64,688,868 $ 22,650,461 $ 51,465,276 $ 7,217,120 $ 146,021,725 $ 73,483,438 Restricted Cash and Investments 2,354,908 - 14,145 - 2,369,053 - Receivables, Net of Allowance for Doubtful Accounts 5,676,875 2,525,413 4,103,941 36,151 12,342,380 25,644 Inventories - - - - - 79,139
Prepaids 29,312 32,411 1,221,314 2,468 1,285,505 874,371 Interfund Advance Receivable - - - - - 361,929
Total Current Assets 72,749,963 25,208,285 56,804,676 7,255,739 162,018,663 74,824,521 Non-Current Assets:

Long-Term Notes Receivable - - - 719,661 719,661 -
Interfund Advance Receivable - - - - - 1,591,170
Capital Assets:

Land and Work In Progress 75,138,715 254,571 9,536,083 1,868,996 86,798,365 - Depreciable 133,354,946 15,860,677 225,151,512 2,351,671 376,718,806 29,784,186 Less: Accumulated Depreciation and Amortization (37,336,419) (3,580,280) (67,630,853) (743,534) (109,291,086) (15,730,969) Total Capital Assets, Net of Accumulated
Depreciation and Amortization 171,157,242 12,534,968 167,056,742 3,477,133 354,226,085 14,053,217 Total Non-Current Assets 171,157,242 12,534,968 167,056,742 4,196,794 354,945,746 15,644,387 Total Assets 243,907,205 37,743,253 223,861,418 11,452,533 516,964,409 90,468,908

DEFERRED OUTFLOWS OF RESOURCES
Deferred Amount on Refunding - - 1,693,814 - 1,693,814 - Related to OPEB 722,845 837,055 833,099 55,759 2,448,758 671,917 Related to Pensions 1,455,679 1,455,354 1,535,614 166,463 4,613,110 1,272,105 Total Deferred Outflows of Resources 2,178,524 2,292,409 4,062,527 222,222 8,755,682 1,944,022

LIABILITIES
Current Liabilities:

Accounts Payable and Accrued Liabilities 7,187,874 602,119 2,698,849 12,018 10,500,860 630,375 Interest Payable - - - - - 1,931
Deposits Held - 8,511 60,000 35,805 104,316 -
Long-Term Debt Due Within One Year 438,825 - 1,980,000 - 2,418,825 51,280 Compensated Absences Payable 412,478 318,557 392,782 29,764 1,153,581 366,372 Total Current Liabilities 8,039,177 929,187 5,131,631 77,587 14,177,582 1,049,958 Non-Current Liabilities Due in More Than One Year:

Bonds Payable - - 26,651,661 - 26,651,661 -
Notes Payable 66,405,439 - - - 66,405,439 -
Net OPEB Liability 2,384,247 3,204,482 3,285,208 243,001 9,116,938 2,842,277 Net Pension Liability 3,429,238 3,445,869 3,665,393 399,135 10,939,635 3,023,451 Subscription Liability - - - - - 181,957
Compensated Absences Payable 68,575 52,396 68,739 4,430 194,140 58,021 Total Non-Current Liabilities 72,287,499 6,702,747 33,671,001 646,566 113,307,813 6,105,706 Total Liabilities 80,326,676 7,631,934 38,802,632 724,153 127,485,395 7,155,664

DEFERRED INFLOWS OF RESOURCES
Related to OPEB 405,530 501,775 512,841 28,650 1,448,796 426,721 Related to Pensions 55,637 55,906 59,468 6,476 177,487 49,053 Total Deferred Inflows of Resources 461,167 557,681 572,309 35,126 1,626,283 475,774

NET POSITION
Net Investment in Capital Assets and Capacity Rights 101,033,468 12,534,968 139,810,694 3,477,133 256,856,263 13,819,980 Restricted for:

Capital Projects 18,824,198 - 11,252,078 - 30,076,276 - Debt Service - - 14,145 - 14,145 -
Special Projects and Programs 4,590,081 8,511 - 5,617,394 10,215,986 - Unrestricted 40,850,139 19,302,568 37,472,087 1,820,949 99,445,743 70,961,512 Total Net Position $ 165,297,886 $ 31,846,047 $ 188,549,004 $ 10,915,476 $ 396,608,413 $ 84,781,492 Business-Type Activities - Enterprise Funds
City of Brentwood
Statement of Net Position
Proprietary Funds
June 30, 2025
See Accompanying Notes to the Basic Financial Statements 40 2024/25 Annual Comprehensive Financial Report

Governmental
Activities - Internal
Wastewater Solid Waste Water Housing Totals Service Funds Operating Revenues:

Charges for Services $ 19,756,303 17,046,748 $ 32,144,925 $ 394,048 $ 69,342,024 $ 23,041,309 $ Other Income 120,730 74,048 64,418 - 259,196 264,559
Total Operating Revenues 19,877,033 17,120,796 32,209,343 394,048 69,601,220 23,305,868 Operating Expenses:

Personnel Services 5,711,933 5,595,799 5,769,818 596,100 17,673,650 10,623,260 Repairs and Maintenance 325,598 1,788,877 1,147,949 105,719 3,368,143 666,122 Materials, Supplies and Services 7,663,420 10,158,439 17,724,800 295,942 35,842,601 8,405,405 Depreciation and Amortization 2,228,254 299,497 3,950,599 47,033 6,525,383 2,051,103 Total Operating Expenses 17,842,612 15,929,205 28,593,166 1,044,794 63,409,777 21,745,890 Operating Income (Loss) 1,191,591 2,034,421 3,616,177 (650,746) 6,191,443 1,559,978 Non-Operating Revenues (Expenses):

Interest Income 3,556,575 1,180,227 2,759,709 411,856 7,908,367 3,974,184 Interest Expense (745,626) - (951,115) - (1,696,741) (1,931) Bond Issuance Costs - - (424,502) - (424,502) -
Gain or (Loss) on Disposal of Capital Assets (291,800) (665,304) (487,941) - (1,445,045) 188,775 Total Non-Operating Revenues (Expenses) 2,519,149 514,923 896,151 411,856 4,342,079 4,161,028 Income (Loss) Before Contributions and Transfers 3,710,740 2,549,344 4,512,328 (238,890) 10,533,522 5,721,006 Contributions - Impact Fees and Credits 894,856 - 1,917,391 - 2,812,247 - Capital Asset Contributions 288,400 - 1,114,280 - 1,402,680 - Capital Assets Contributed from (to) Governmental Activities 108 151 133 - 392 (227,560) Transfers In 1,150,245 51,800 1,009,673 - 2,211,718 3,569,335 Transfers Out (1,486,711) (682,382) (2,227,303) - (4,396,396) (2,369,827) Change in Net Position 4,557,638 1,918,913 6,326,502 (238,890) 12,564,163 6,692,954 Net Position, Beginning of Year, as previously reported 160,926,920 30,140,401 182,493,186 11,168,712 384,729,219 78,380,157 Adjustments - change in accounting principle (186,672) (213,267) (270,684) (14,346) (684,969) (291,619) Net Position, Beginning of Year, as adjusted 160,740,248 29,927,134 182,222,502 11,154,366 384,044,250 78,088,538 Net Position, End of Year $ 165,297,886 $ 31,846,047 $ 188,549,004 $ 10,915,476 $ 396,608,413 $ 84,781,492 Business-Type Activities - Enterprise Funds
City of Brentwood
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For Year Ended June 30, 2025
See Accompanying Notes to the Basic Financial Statements 41 2024/25 Annual Comprehensive Financial Report

Governmental
Activities - Internal
Wastewater Solid Waste Water Housing Totals Service Funds Cash Flows from Operating Activities
Cash Received from Customers/Other Funds 17,008,288 $ 19,733,794 $ 31,209,413 $ 422,732 $ 68,374,227 $ 23,189,701 $ Cash Received from Interfund Services - -
Cash Payments to Suppliers of Goods and Services (6,453,746) (9,971,971) (19,543,007) (309,739) (36,278,463) (9,199,455) Cash Payments to Employees for Services (5,112,035) (5,454,215) (5,396,062) (553,961) (16,516,273) (10,500,571) Cash Payments for Interfund Services (1,421,439) (2,547,715) (1,448,014) (87,833) (5,505,001) (549,432) Other Receipts 74,048 120,730 64,418 259,196 - 264,559
Net Cash Provided By (Used for) Operating Activities 4,095,116 1,880,623 4,886,748 (528,801) 10,333,686 3,204,802 Cash Flows from Non-Capital Financing Activities
Transfers Received 859,999 51,800 1,009,673 1,921,472 - 3,569,335 Transfers Paid (1,486,711) (582,003) (2,037,569) (4,106,283) (2,369,827) - Interfund Advance Receivable - - - - - 354,086
Net Cash Provided By (Used for) Non-Capital
Financing Activities (626,712) (530,203) (1,027,896) (2,184,811) - 1,553,594 Cash Flows from Capital and Related Financing Activities Proceeds from Notes and Bonds Payable 5,017,773 26,855,000 - 31,872,773 - - Contributions - Impact Fees and Credits 894,856 1,917,391 - 2,812,247 - - Interest Paid on Debt (139,595) (951,115) - (1,090,710) - - Principal Paid on Debt (434,480) (2,270,000) - (2,704,480) - - Bond Premium - 4,266,691 - 4,266,691 - -
Bond Issuance Costs - (424,502) - (424,502) - -
Payments to Refunded Bond Escrow - (30,687,085) - (30,687,085) - - Principal Paid on Subscription Liability - - - - - (61,269) Capital Assets Purchased and Contributed to Governmental Funds - - - - - (227,560)
Proceeds from Sale of Capital Assets - - 4,136 - 4,136 188,775 Acquisition and Construction of Capital Assets (6,278,527) (66,950) (1,119,503) (7,464,980) (5,716,296) - Net Cash Provided By (Used for) Capital and
Related Financing Activities (939,973) (66,950) (2,408,987) (3,415,910) (5,816,350) - Cash Flows from Investing Activities
Interest on Investments 3,556,259 1,180,094 2,759,457 411,859 7,907,669 3,973,975 Net Cash Provided By Investing Activities 3,556,259 1,180,094 2,759,457 411,859 7,907,669 3,973,975 Net Increase (Decrease) in Cash and Cash Equivalents 6,084,690 2,463,564 4,209,322 (116,942) 12,640,634 2,916,021 Cash and Cash Equivalents - Beginning of Year 60,959,086 20,186,897 47,270,099 7,334,062 135,750,144 70,567,417 Cash and Cash Equivalents - End of Year $ 67,043,776 $ 22,650,461 $ 51,479,421 $ 7,217,120 $ 148,390,778 $ 73,483,438 Reconciliation of Operating Income to Net Cash
Provided By (Used for) Operating Activities:

Operating Income (Loss) $ 1,191,591 $ 2,034,421 $ 3,616,177 $ (650,746) $ 6,191,443 $ 1,559,978 Adjustments to Reconcile Operating Income to Net Cash
Provided By (Used for) Operating Activities:

Depreciation and Amortization 2,228,254 299,497 3,950,599 47,033 6,525,383 2,051,103 Change in Assets, Liabilities and Deferred
Outflows/Inflows of Resources:

Receivables (41,601) (24,677) (249,423) 27,677 (288,024) (22,125) Prepaid Items 3,760 3,413 (684,763) 4,565 (673,025) 153,588 Accounts Payable and Other Payables 113,831 (571,323) (2,100,771) 4,089 (2,554,174) (677,360) Net OPEB Liability and Deferred
Outflows/Inflows of Resources related to OPEB (52,767) (56,236) (51,189) (4,074) (164,266) (40,732) Net Pension Liability and Deferred
Outflows/Inflows of Resources related to Pensions 553,597 253,082 462,224 48,032 1,316,935 288,624 Compensated Absences Payable 99,774 (55,187) (37,283) (5,377) 1,927 (108,274) Deposits (1,323) (2,367) (18,823) (22,513) - -
Net Cash Provided By (Used for) Operating Activities $ 4,095,116 $ 1,880,623 $ 4,886,748 $ (528,801) $ 10,333,686 $ 3,204,802 Noncash Capital Activities:

Capital Asset Contributions $ 288,400 $ 1,114,280 - $ $ 1,402,680 - $ $ - Capital Asset Contributions from (to) Governmental Activities 108 151 133 - 392 (227,560) Assets Received (Contributed) from (to) Other Funds 290,246 (100,379) (189,867) - - - Retirement of Capital Assets (291,800) (665,304) (492,077) (1,449,181) - - Issuance of Subscription Liability - - - - - (294,507)
Subscription Assets - - - - - 294,507
Business-Type Activities - Enterprise Funds
City of Brentwood
Statement of Cash Flows
Proprietary Funds
For Year Ended June 30, 2025
See Accompanying Notes to the Basic Financial Statements 42 2024/25 Annual Comprehensive Financial Report

Other Employee
Benefit Trust Fund -
Corebridge Financial
Private-Purpose
Trust Fund -
Successor Agency Custodial Funds
ASSETS
Current Assets:

Cash and Investments - $ 2,350,697 $ 11,848,967 $
Restricted Cash and Investments - - 3,473,500
Restricted Investments - Mutual Funds - 10,407,347 -
Interest Receivable - 247 2,366
Accounts Receivable - 16,203 -
Total Current Assets 2,367,147 10,407,347 15,324,833
Non-Current Assets:

Nondepreciable Capital Assets 1,327,129 - -
Total Non-Current Assets 1,327,129 - -
Total Assets 3,694,276 10,407,347 15,324,833

LIABILITIES
Current Liabilities:

Accounts Payable and Accrued Liabilities - - 7,217
Due to Local Governments - - 187,927
Long-Term Liabilities Due Within One Year 1,391,842 - - Total Current Liabilities 1,391,842 - 195,144
Non-Current Liabilities Due in More Than One Year:

Long-Term Liabilities - 15,409,473 -
Total Non-Current Liabilities 15,409,473 - -
Total Liabilities 16,801,315 - 195,144

NET POSITION (DEFICIT)
Restricted for:

Employee Benefits 10,407,347 - -
Individuals and Organizations - - 15,108,598
Other Governments - (13,107,039) 21,091
Total Net Position (Deficit) $ (13,107,039) 10,407,347 $ 15,129,689 $ June 30, 2025
Fiduciary Funds
Statement of Fiduciary Net Position
City of Brentwood
See Accompanying Notes to the Basic Financial Statements 43 2024/25 Annual Comprehensive Financial Report

Other Employee
Benefit Trust Fund -
Corebridge Financial
Private-Purpose
Trust Fund -
Successor Agency Custodial Funds

ADDITIONS
Contributions:

Property Taxes - $ 2,560,926 $ - $
Assessments - - 12,962,904
Private Contributions - - 3,570,886
Employer Contributions 51,728 - -
Employee Contributions 330,380 - -
Other - 73,220 -
Total Contributions 382,108 2,634,146 16,533,790
Net Investment Earnings 1,526,613 58,587 474,230
Total Additions 2,692,733 1,908,721 17,008,020

DEDUCTIONS
Administrative Expenses 9,831 256,500 311,709
Payments to Bondholders - 1,106,300 12,560,952
Other Employee Benefit Payments 603,078 - -
Recipient Payments - - 4,261,125
Total Deductions 1,362,800 612,909 17,133,786
Net Increase (Decrease) in Fiduciary Net Position 1,295,812 1,329,933 (125,766) Net Position (Deficit) - Beginning of Year (14,436,972) 9,111,535 15,255,455 Net Position (Deficit) - End of Year $ (13,107,039) 10,407,347 $ 15,129,689 $ For Year Ended June 30, 2025
Fiduciary Funds
Statement of Changes in Fiduciary Net Position
City of Brentwood
See Accompanying Notes to the Basic Financial Statements 44 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements

INDEX OF NOTES TO THE BASIC FINANCIAL STATEMENTS
Note #1 – Summary of Significant Accounting Policies ........................................................................................................ 48 A. Description of the Reporting Entity .......................................................................................................................... 48 B. Government-Wide and Fund Financial Statements ............................................................................................ 49 C. Measurement Focus/Basis of Accounting .............................................................................................................. 49 D. Assets, Liabilities, Deferred Inflows/Outflows and Net Position or Fund Balance .................................. 55 i. Use of Restricted/Unrestricted Net Position ............................................................................................. 55 ii. Cash and Investments ........................................................................................................................................ 55 iii. Cash and Cash Equivalents .............................................................................................................................. 55 iv. Prepaid Items and Land Held for Resale .................................................................................................... 56 v. Capital Assets ........................................................................................................................................................ 56 vi. Compensated Absences Payable ................................................................................................................... 56 vii. Property Tax ........................................................................................................................................................... 57 viii. Motor Vehicle Taxes ........................................................................................................................................... 57 ix. New Funds, Closed Funds and Renamed Funds ..................................................................................... 57 x. Deferred Outflows/Inflows of Resources .................................................................................................... 57 xi. OPEB and Pensions ............................................................................................................................................. 58 xii. Fair Value Measurements ................................................................................................................................. 59 xiii. Use of Estimates ................................................................................................................................................... 59 xiv. Leases ......................................................................................................................................................................... 59 xv. Subscription-Based Information Technology Arrangements (SBITAs) ........................................... 61 xvi. New Governmental Accounting Standards Board (GASB) Pronouncements ............................... 61 Note #2 – Stewardship, Compliance and Accountability ...................................................................................................... 62 A. Budgetary Information ................................................................................................................................................... 62 B. Deficit Fund Balance or Net Position ........................................................................................................................ 63 C. Interfund Receivables, Payables and Transfers ..................................................................................................... 63 D. Minimum Fund Balance Policies ................................................................................................................................. 65 E. Fund Balances .................................................................................................................................................................... 65 Note #3 – Cash and Investments .................................................................................................................................................... 67 A. Cash and Deposits ........................................................................................................................................................... 67 B. Investments ......................................................................................................................................................................... 67 C. Investment in Pools ......................................................................................................................................................... 71 D. Cash and Investments with Fiscal Agent ................................................................................................................. 73 Note #4 – Accounts, Lease, Notes and Loans Receivable ..................................................................................................... 74 Note #5 – Capital Assets .................................................................................................................................................................... 80 Note #6 – Long-Term Obligations ................................................................................................................................................. 82 A. Governmental Activities ................................................................................................................................................. 82 i. Bonds ........................................................................................................................................................................ 83 ii. Private Placement and Direct Purchase ...................................................................................................... 84 iii. Notes Payable ....................................................................................................................................................... 85 iv. Net OPEB Liability and Net Pension Liability ............................................................................................ 86 v. Accumulated Compensated Absences ........................................................................................................ 86 vi. Subscription Liability ............................................................................................................................................ 87 45 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
B. Business-Type Activities ................................................................................................................................................. 87 i. Bonds ........................................................................................................................................................................ 88 ii. Notes Payable (Direct Placement) and Other ........................................................................................... 89 Note #7 – Special Assessment Districts (No City Liability) ................................................................................................... 90 Note #8 – Classification of Net Position ...................................................................................................................................... 91 Note #9 – Post-Retirement Health Care Benefits ..................................................................................................................... 91 A. General Information About the City’s Retiree Healthcare Plan ...................................................................... 91 B. Net OPEB Liability ............................................................................................................................................................. 92 C. Changes in Net OPEB Liability ..................................................................................................................................... 94 D. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and Healthcare Cost Trend Rates ...................................................................................................................................................................................... 95 E. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB ...................................... 95 Note #10 – Defined Benefit Pension Plans ................................................................................................................................. 96 A. Plan Descriptions .............................................................................................................................................................. 96 B. Miscellaneous Plan .......................................................................................................................................................... 96 i. General Information About the Miscellaneous Plan .............................................................................. 96 a. Benefits Provided ..................................................................................................................................... 96 b. Employees Covered ................................................................................................................................ 97 c. Contributions ............................................................................................................................................ 97 ii. Net Pension Liability ........................................................................................................................................... 98 iii. Changes in Net Pension Liability ................................................................................................................... 98 a. Sensitivity of the Net Pension Liability to Changes in the Discount Rate ......................... 98 b. Pension Plan Fiduciary Net Position ................................................................................................ 99 iv. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions ............ 99 v. Payable to the Miscellaneous Plan ............................................................................................................... 99 C. Safety Plan ........................................................................................................................................................................... 99 i. General Information About the Safety Plan .............................................................................................. 99 a. Benefits Provided .................................................................................................................................. 100 b. Contributions ......................................................................................................................................... 100 ii. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions ......................................................................................................................................... 101 a. Sensitivity of the Net Pension Liability to Changes in the Discount Rate ...................... 102 b. Pension Plan Fiduciary Net Position ............................................................................................. 103 iii. Payable to the Safety Plan ............................................................................................................................. 103 D. Information Common to Both the Miscellaneous and Safety Plans ......................................................... 103 i. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions ......................................................................................................................................... 103 ii. Actuarial Assumptions .................................................................................................................................... 104 iii. Miscellaneous and Safety Plans Discount Rate ..................................................................................... 104 Note #11 – Defined Contribution Pension and Other Post-Employment Benefit Plans ......................................... 105 Note #12 – Risk Management ...................................................................................................................................................... 106 Note #13 – Brentwood Redevelopment Agency Dissolution and Successor Agency Activities ......................... 107 A. Redevelopment Agency Dissolution ...................................................................................................................... 107 B. Capital Assets .................................................................................................................................................................. 108 C. Long-Term Obligations ............................................................................................................................................... 108 i. Bonds ..................................................................................................................................................................... 109 D. Pledged Revenues ......................................................................................................................................................... 110 46 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
E. Commitments and Contingencies .......................................................................................................................... 110 i. State Approval of Enforceable Obligations ............................................................................................ 110 ii. State Asset Transfer Review .......................................................................................................................... 110 Note #14 – Contingent Liabilities ................................................................................................................................................ 111 A. Litigation ........................................................................................................................................................................... 111 B. State and Federal Grants ............................................................................................................................................ 111 C. Developer Impact Fee Credits .................................................................................................................................. 111 D. Construction Commitments ....................................................................................................................................... 112 E. Solar Power Purchase Agreements ........................................................................................................................ 112 Note #15 – Net Position and Fund Balance Restatements or Adjustments ................................................................ 113

47 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. DESCRIPTION OF THE REPORTING ENTITY
The City of Brentwood is governed by a five member City Council, under the Council-Manager form of government. The accompanying financial statements present the City of Brentwood, the primary government, and its component units, entities for which the primary government is considered financially accountable. The City is considered to be financially accountable for an organization if: 1) the City appoints a voting majority of said organization or 2) there is a potential for the organization to either provide specific financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable for an organization if the organization is fiscally dependent (i.e. unable to adopt a budget, levy taxes, set rates or charges or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City’s financial statements to be misleading or incomplete.

In addition to reporting directly for the City’s operations, the Brentwood Infrastructure Financing Authority, a component unit, has been included in the primary reporting entity and is treated as a blended component unit. The City also started the process to establish two additional Financing Authorities in FY 2021/22 that are included in the primary reporting entity, however, the process to form the Financing Authorities was halted in FY 2023/24 and no additional actions have been taken since.

Brentwood Infrastructure Financing Authority
The Brentwood Infrastructure Financing Authority (the “Authority”), formed on March 14, 1995, is a joint powers authority organized under Section 6500 et seq. of the California Government Code between the City and the Authority for the purpose of acting as a vehicle for various financing activities of the City and the Authority. The Board of Directors is the Brentwood City Council. The primary purpose of the Authority is to render financial assistance to the City and the Authority by issuing debt and financing the construction of public facilities. Separate financial statements are not required for the Authority and therefore are not issued.

Public Financing Authorities
In September 2021, the City established the Public Financing Authority (PFA) of the Brentwood Innovation Center Enhanced Infrastructure Financing District (EIFD) and the PFA of the Brentwood Boulevard-Downtown EIFD under section 53398 et seq. of the California Government Code. The City adopted Resolutions of Intent to establish the two EIFDs, however, the process to form the EIFD’s was suspended by the City Council in FY 2023/24 and there is no intent to complete formation of the EFID’s in the near-term. If formed in the future, each PFA would serve as the governing board of the respective EIFDs and the PFAs’ Board of Directors would be comprised initially of three members of the City Council appointed by the City Council, and up to four members of the public selected by the City Council. If formed, the PFAs will be responsible for implementing the Infrastructure Financing Plan (IFP) for each EIFD and separate financial statements are not required for the PFAs and therefore are not issued.
48 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The Government-Wide Financial Statements include a Statement of Net Position and a Statement of Activities and Changes in Net Position. The Statement of Activities and Changes in Net Position demonstrates the degree to which direct and indirect expenses, for a given function or segment, are offset by program revenues. Direct expenses are clearly identifiable with a specific function or segment. Indirect expenses are expenses which are allocated based on the City’s annual Cost Allocation Plan and Schedule of City Fees. Program revenues include: 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment, 2) operating grants and contributions, including special assessments and 3) capital grants and contributions. Taxes and other items not included among program revenue are reported as general revenues.

Summaries of governmental activities, which are supported by taxes and inter-governmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges. Fiduciary activities of the City are not included in these statements.

Separate financial statements are provided for Governmental Funds, Proprietary Funds and Fiduciary Funds even though the latter are excluded from the Government-Wide Financial Statements. Major individual Governmental Funds and major individual Enterprise Funds are reported as separate columns in the Fund Financial Statements section.

Certain eliminations have been made related 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. These are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, Internal Service Fund transactions have been eliminated, except for interfund services provided and used. However, the transactions between governmental and business-type activities, which are presented as transfers, have not been eliminated from the Statement of Activities.

C. MEASUREMENT FOCUS/BASIS OF ACCOUNTING
The Government-Wide Financial Statements, Proprietary Fund Financial Statements and Fiduciary Fund Financial Statements are reported using an economic resources focus and the accrual basis of accounting. 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, regardless of the timing of the related cash flows.

The Governmental Fund Financial Statements are reported using a current financial resources measurement focus called the modified accrual basis of accounting. Accordingly, only current assets, current liabilities and current deferred inflows/outflows are included on the Balance Sheets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become measurable and available to finance expenditures of the current period. Accordingly, revenues are recorded when received in cash, except for revenues subject to accrual (generally 60 days after year-end) which are recognized when due.
49 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Expenditures are recorded in the accounting period in which the related fund liability is incurred.

However, debt service expenditures, lease liabilities, as well as expenditures related to compensated absences and claims and judgments, are recorded only when the payment is due. General capital asset acquisitions, including entering into contracts giving the City the right to use leased assets and the right to use subscription assets, are reported as expenditures in governmental funds. Proceeds from long-term debt and financing through leases are reported as other financing sources. Taxes, including property and sales taxes, special assessments and inter-governmental revenue associated with the current fiscal period are all considered susceptible to accrual. Only the portion of the special assessments receivable due within the current fiscal period is considered susceptible to accrual as revenue of the current period. All other revenue items are considered measurable and available only when cash is received by the City.

For Proprietary Funds, all assets, liabilities and deferred inflows/outflows, whether current or noncurrent, are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Fund Net Position present increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. Operating revenues in the Proprietary Funds are those revenues generated from the primary operations of the fund. All other revenues are reported as non-operating revenues. Operating expenses are those that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses. Proprietary Fund types include Enterprise Funds and Internal Service Funds.

The City’s Fiduciary Funds include Other Employee Benefit Trust Funds, Private-Purpose Trust Funds and Custodial Funds. Custodial Funds are used to account for assets held by the City for special assessment districts and on behalf of other agencies. Other Employee Benefit Trust Funds and PrivatePurpose Trust Funds, in addition to being custodial in nature, also include operational activities under which the principal and income benefit employees or retirees and specific local taxing entities, respectively.

Fund Types
A Major Fund is a fund whose revenues, expenditures/expenses, assets combined with deferred outflows of resources, or liabilities combined with deferred inflows of resources (excluding extraordinary items), are at least 10% of corresponding totals for all Governmental or Enterprise funds and at least 5% of the aggregate amount for all Governmental and Enterprise funds for the same item.

The General Fund is always considered a major fund. Any other Governmental or Enterprise fund may be reported as a major fund if the government’s officials believe the fund is particularly important to financial statement users.

In FY 2024/25, the General Fund and Landscape and Lighting Assessment Districts (LLAD), a Special Revenue fund, are major governmental funds. Specific descriptions of the City’s funds are as follows:

The General Fund is the government’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

50 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Special Revenue Funds account for specific revenues legally restricted to expenditures for particular purposes. Specific descriptions of the Special Revenue Funds are as follows:
• Gas Tax – These funds account for monies received from the State of California under Street and Highways Code Sections 2103, 2105, 2106, 2107, 2107.5 and 2032. The allocations must be spent for street maintenance, construction and a limited amount for engineering. • Disability Access and Education – This fund accounts for the monies received due to Senate Bill 1186 (SB1186), which requires cities to collect a $4 fee for new and renewed business licenses for purposes of increasing compliance with state disability laws. • Police Grants – This fund accounts for all Police, Federal, State and County grants requiring segregated fund accounting.
• Grants – This fund accounts for miscellaneous Federal, State and County grants requiring segregated fund accounting.
• Economic Development Grant – This fund accounts for the set aside of 20% of business license tax collected. The monies are used to award grants to promote economic activity. • Citywide Park Assessment District – This fund accounts for special benefit assessments levied on property owners for citywide park maintenance.
• Community Facilities Districts – These funds account for special taxes levied for a variety of allowable uses, including but not limited to public safety services, joint use school facilities and library facilities. The allowable uses of the funds are governed by the formation documents of each individual District.
• Roadway Development Impact Fee – This fund accounts for development fees collected for the design and construction of roadways within the City.
• Parks and Trails Development Impact Fee – This fund accounts for development fees collected for the design and construction of parks within the City. • Community Facilities Development Impact Fee – This fund accounts for development fees collected for the design and construction of public facilities within the City. • Development Impact Fee Administration – This fund accounts for development fees collected for the administration of the Development Impact Fee Program. • Agriculture Land Administration – This fund accounts for 20% of the Agriculture Preservation fees collected from development. Monies are to be used for administrative purposes associated with agricultural land preservation and agricultural enterprise programs. • Agriculture Land Acquisition – This fund accounts for 80% of the Agriculture Preservation fees collected from development. The monies are used for agricultural land preservation and agricultural enterprise programs.
• Public Art Administration – This fund accounts for 20% of the Public Art fees collected from development for the administration of the Public Art Program. 51 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) • Public Art Acquisition – This fund accounts for 80% of the Public Art fees collected from development for the acquisition and construction of Public Art. • Parking In-Lieu – This fund accounts for development fees collected for off-street parking facilities located within the Downtown area.
• Asset Forfeiture – This fund accounts for property or funds seized by the Police Department.

After a case has been tried, and a guilty verdict is returned, the funds are considered forfeited.

Federal funds must be used for narcotic enforcement and crime suppression. State funds must be used for areas related to drug prevention.
• Abandoned Vehicle Abatement – This fund accounts for monies, which can only be used for the abatement, removal and disposal, as public nuisances, of any abandoned, wrecked, dismantled or inoperative vehicles, or parts thereof, from private or public property. • PEG Media – This fund accounts for public, educational and governmental access fees collected from cable operators established per the Municipal Code and franchise agreements. • Measure J – This fund accounts for the local jurisdiction portions of the Local Street Maintenance and Improvements Fund allocation. The monies can only be spent on local streets and roads, transit operations, growth management planning and compliance, bicycle and pedestrian trails and parking facilities.
• City Low Income Housing – This fund accounts for the activities related to the assets assumed by the City of Brentwood as Housing Successor for the housing activities of the former Brentwood Redevelopment Agency.
• Landscape and Lighting Assessment Districts – These funds account for special benefit assessments levied on property owners for landscape and street lighting maintenance. In FY 2024/25, the LLAD Fund is a major governmental fund.

Permanent Funds account for and report resources that are restricted to the extent that only earnings, and not principal, may be used for purposes that support City programs for the benefit of the City and its citizens. The City has one permanent fund, as follows:
• Riparian Mitigation Site Maintenance – This fund accounts for a stewardship endowment for maintenance of a riparian mitigation site.

Debt Service Funds account for the accumulation of resources for, and the payment of, long-term debt principal, interest and related costs. Specific descriptions of the Debt Service Funds are as follows:
• Capital Improvement Revenue Refunding Bonds Series 2021 A & B – This fund accounts for debt service transactions related to the refinance of the 2012 Capital Improvement Revenue Refunding Bonds, which were issued to: 1) finance the refunding of the 2001 Capital Improvement Bonds under a facilities lease and 2) refund a series of tax allocation bonds issued by the Brentwood Redevelopment Agency.
52 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) • General Obligation Bonds Series 2002 – This fund accounts for tax levies from which general obligation debt service transactions are made on the General Obligation Bonds Series 2002.

This bond was used to finance the Police Station.
• 2019 Civic Center Project Lease Revenue Refunding Bonds – This fund accounts for debt service transactions relating to the refinance of the 2009 Civic Center Project Lease Revenue Bonds. • 2015 Lease Financing – This fund accounts for debt service transactions relating to the 2015 Lease Financing. The bond proceeds were used mainly to finance construction of the new Library and Municipal Service Center.

Capital Project Funds account for the acquisition and construction of major capital facilities and infrastructure not financed by Proprietary Funds. Specific descriptions of the Capital Project Funds are as follows:
• Roadway Improvements – This fund accounts for transactions related to proceeds from assessment bonds and other resources along with their use to acquire and construct certain roadway improvements.
• Community Facilities Improvements – This fund accounts for various community facilities improvement projects associated with either the construction or improvement of the City’s community facilities.
• Parks and Trails Improvements – This fund accounts for various park and trail improvement projects associated with either the construction or improvement of the City’s parks. • Capital Improvement Financing Program 2006-1 – This fund accounts for transactions related to proceeds from assessment bonds and other resources along with their use to acquire and construct certain capital facilities and infrastructure. • Capital Improvement Financing Program 2005-1 – This fund accounts for transactions related to proceeds from assessment bonds and other resources along with their use to acquire and construct certain capital facilities and infrastructure. This fund was closed in FY 2024/25. • Civic Center Capital Improvement Financing Program – This fund accounts for savings from refinanced City Capital Improvement Financing Program (CIFP) bonds and their use to finance a portion of the Civic Center project.
• City Capital Improvement Financing Program – This fund accounts for savings from refinanced bonds and their use to acquire and construct certain capital facilities and infrastructure. • Capital Infrastructure – This fund accounts for funds to be used for non-residential development related infrastructure projects with a focus on projects that may promote economic development.
• Vineyards Projects – This fund accounts for transactions related to proceeds from assessment bonds and other resources along with their use to finance infrastructure improvements within the Vineyards development area.

53 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Enterprise Funds account for operations financed and operated in a manner similar to private business enterprises. The intent of the City Council is for the costs of providing certain goods or services to the public be financed or recovered primarily through user charges. The City reports the following Business-Type Activities - Enterprise Funds, all of which are reported as major funds:
• Wastewater – Accounts for the operation, maintenance and capital improvement projects of the wastewater system. These activities are funded by user charges and impact fees. • Solid Waste – Accounts for the operation, maintenance and capital improvement projects of the solid waste system. These activities are funded by user charges. • Water – Accounts for the operation, maintenance and capital improvement projects of the water system. These activities are funded by user charges and impact fees. • Housing – Accounts for the administrative and operational expenses for the Housing programs which include the Housing rental units and the Affordable Housing and First-Time Homebuyer programs.

Additionally, the City reports for the following fund types:

Internal Service Funds account for the financing of either goods or services provided by one department to other departments of the City on a cost reimbursement basis. Specific descriptions of these funds are as follows:
• Information Systems – To provide a source of funding for the development and coordination of the City’s information systems’ needs.
• Vehicle and Equipment Replacement – To provide a source of funding for vehicle and equipment replacement.
• Information Systems Replacement – To provide a source of funding for the replacement of information systems such as computers and the phone system. • Facilities Replacement – To provide a source of funding for repairs or the replacement of City facilities.
• Tuition – To provide a source of funding for expenditures related to continuing education. • Fleet Maintenance Services – To provide a source of funding for the maintenance of all City vehicles, except for Police Department vehicles.
• Facilities Maintenance Services – To provide a source of funding for maintenance and repairs of City facilities.
• Parks and LLAD Replacement – To provide a source of funding for the replacement of landscaping, equipment and facilities in the citywide parks and LLAD. • Insurance – To provide a source of funding for future insurance costs and unforeseen expenses due to legal matters or lawsuits.
• Pension/Other Post-Employment Benefits (OPEB) Obligation – To provide an intermediateterm funding source for OPEB and pension expenses. 54 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Fiduciary Funds account for Other Employee Benefit Trust Funds, Private-Purpose Trust Funds and Custodial Funds. The financial activities of these funds are excluded from the Government-Wide Financial Statements, but are presented in separate Fiduciary Fund Financial Statements. The Other Employee Benefit Trust Funds, Private-Purpose Trust Funds and Custodial Funds consist of:
• Other Employee Benefit Trust Fund – Corebridge Financial (“Corebridge”, formerly Variable Annuity Life Insurance Company – VALIC) – Fund used to report the activities of the City’s single-employer deferred compensation plan held by a third-party administrator. • Private-Purpose Trust Fund - Successor Agency – Special funds used to report the activities and financial position of the Successor Agency to the Brentwood Redevelopment Agency. These funds are held in a trust arrangement for the benefit of local taxing entities, including the City of Brentwood.
• Custodial Funds - Funds used to report other fiduciary activities. o Special Assessment Districts – Special obligations payable from and secured by specific revenue sources. The City acts as custodian of these funds which are not for the benefit of the City.
o Asset Seizure – Special funds to be used exclusively to support law enforcement and prosecutorial efforts. The City acts as custodian of these funds which are not for the benefit of the City.
o Pass-Through Funds – Special funds used for the collection and distribution of development fees collected on behalf of other agencies.

D. ASSETS, LIABILITIES, DEFERRED INFLOWS/OUTFLOWS AND NET POSITION OR FUND BALANCE i. Use of Restricted/Unrestricted Net Position
When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the City’s policy is to apply restricted net position first. ii. Cash and Investments
The City pools idle cash from all funds with the purpose of increasing income through investment activities and the City’s investments are stated at fair value. Fair value is defined as the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. For additional information, refer to Note #1D xii. The City generally holds all investments until either maturity or fair value equals or exceeds cost. Therefore, the reported value of securities in the investment pool does not reflect unrealized gains or losses but rather the fair value of those investments as of June 30, 2025.
iii. Cash and Cash Equivalents
For purposes of the Statement of Cash Flows, the City considers all highly liquid investments with a maturity of three months or less, when purchased, to be cash equivalents. All cash and investments of the Proprietary Fund types are pooled with the City’s pooled cash and investments. 55 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) iv. Prepaid Items and Land Held for Resale
Certain payments to vendors that reflect costs applicable to future accounting periods are recorded as prepaid items. In governmental funds, prepaid items are accounted for using the consumption method. A portion of fund balance equal to the prepaid items is reported as nonspendable to indicate that the funds are not available for appropriation. Land held for resale is valued at the lower of cost or estimated net realizable value.
v. Capital Assets
The City’s assets are capitalized using either historical cost or estimated historical cost, except for intangible right to use lease assets, the measurement of which is discussed in Note #1D xiv, and intangible right to use subscription assets, the measurement of which is discussed in Note #1D xv.

City policy has set the capitalization threshold for capital assets at $10,000 or more. Gifts or contributions of capital assets are valued at their estimated acquisition value and/or at the contracted developer rate on the date contributed. Depreciation is recorded on a straight-line basis over the useful lives of the assets, as follows:

The City defines infrastructure as long-lived capital assets that are normally stationary in nature and normally can be preserved for a significantly greater number of years than most capital assets.

These assets include the street system, water purification and distribution system, sewer collection and treatment system, park and recreation lands and improvement system, storm water conveyance system and buildings, combined with the site amenities such as parking and landscaped areas, which are used by the City in the conduct of its business. 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, traffic control devices (signs, signals and pavement markings), landscaping and land. These subsystems are not delineated in the Basic Financial Statements. The appropriate operating department maintains information regarding the subsystems.
vi. Compensated Absences Payable
The following totals may be accumulated by employees each year:
• A total of 9 to 28 vacation days
• Up to 120 hours of compensatory time off, depending on employee’s classification • Up to 96 hours of personal holiday time off, depending on employee’s classification • 12 days of sick leave
Land Improvements 20 - 65 years
Buildings and Structures 50 years
Machinery and Equipment 3 - 20 years
Vehicles 4 - 12 years
Infrastructure 65 years
Intangible Assets 40 - 65 years
Subscription Assets 3 – 5 years
56 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Sick leave is not paid at termination, but can be used for additional service credits towards retirement. Half of an employee’s accrued sick leave, up to $8,000, may be cashed in when the employee retires from the City of Brentwood. Under certain restrictive circumstances, limited amounts of sick leave can be converted to vacation time. Vacation time is only allowed to accumulate up to one and one-half years’ worth of vacation earnings.

All employees may elect to receive a lump sum payment of up to 40 hours of accumulated vacation each March with Mid-Managers, Department Directors, the City Attorney and the City Manager eligible to elect payment of up to 80 hours. Additionally, each October, employees with three years of service may elect to receive a lump sum payment of up to 40 hours of accumulated vacation with Mid-Managers, Department Directors, the City Attorney and the City Manager eligible to elect payment of up to 80 hours.
vii. Property Tax
Property tax valuations, liens and levies for secured and unsecured property are valued on March 1 of each year. Fifty percent of secured taxes are due on November 1 and February 1 of each fiscal year and are delinquent on December 10 and April 10, respectively. Unsecured property taxes are due on July 1 and delinquent on August 31. Contra Costa County bills and collects the City's property taxes and remits them to the City. The City accounts for the remittance in the General Fund. City property tax revenues are recognized when levied, to the extent that they result in current receivables. The City receives its full assessment of property tax and the County retains all delinquent charges.
viii. Motor Vehicle Taxes
Motor vehicle taxes are collected by the State and remitted to the City. They are not restricted. ix. New Funds, Closed Funds and Renamed Funds
In FY 2024/25, the Capital Improvement Financing Program 2005-1 Fund was closed.

The VALIC Other Post Employee Benefit Trust Fund was renamed to the Corebridge Financial Other Employee Benefit Trust Fund.

For internal consistency, minor changes may be made to the names of certain funds; however, the purpose of these funds remains unchanged.
x. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position and balance sheet reports a separate section for Deferred Outflows of Resources. This separate financial statement element represents a consumption of net assets that applies to a future period(s). The outflow of resources (expense/expenditure) is recognized, therefore, in the applicable future period(s). The City has three 57 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) items that qualify for reporting in this category, Deferred Outflows of Resources Related to OPEB, Deferred Outflows of Resources Related to Pensions and Deferred Amount on Refunding. The elements of Deferred Outflows of Resources Related to OPEB are deferred and amortized and will be recognized as a component of OPEB expense in subsequent fiscal years. The elements of Deferred Outflows of Resources Related to Pensions are deferred and amortized and will be recognized as a component of pension expense in subsequent fiscal years. The deferred amount on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.

In addition to liabilities, the statement of net position and balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net assets that applies to future period(s) and the inflow of resources (revenue) will be recognized in the applicable future period(s). The City has three types of items which qualify for reporting in this category: Deferred Inflows of Resources Related to OPEB, Deferred Inflows of Resources Related to Pensions and Deferred Inflows of Resources Related to Leases. The elements of Deferred Inflows of Resources Related to Leases are deferred and amortized and will be recognized as a component of lease revenue in subsequent fiscal years. The elements of Deferred Inflows of Resources Related to OPEB are deferred and amortized and will be recognized as a component of OPEB expense in subsequent fiscal years. The elements of Deferred Inflows of Resources Related to Pensions are deferred and amortized and will be recognized as a component of pension expense in subsequent fiscal years.

The City has one item, Unavailable Revenue - Accounts Receivable, that is reported only in the Governmental Funds balance sheet. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. xi. OPEB and Pensions
For purposes of measuring Net OPEB Liability, deferred outflows/inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s OPEB Plan and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis as they are reported by California Employers' Retiree Benefit Trust (CERBT) Fund. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

For purposes of measuring the net pension liability, deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s CalPERS plans (Pension Plans) and additions to/deductions from the Pension Plans’ fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. The Net Pension Liability and related costs are allocated to each fund based on the proportionate share of the fund’s total current year pension contributions. 58 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) xii. Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The City categorizes its fair value measurements within the fair value hierarchy established by GAAP. The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are inputs – other than quoted prices included within level 1 – that are observable for an asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for an asset or liability.

If the fair value of an asset or liability is measured using inputs from more than one level of the fair value hierarchy, the measurement is based on the lowest priority level input that is significant to the entire measurement.
xiii. Use of Estimates
The preparation of financial statements, in conformity with accounting principles generally accepted in the United States, requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. xiv. Leases
A lease is defined as a contract that conveys control of the right to use another entity’s nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an exchange or exchange-like transaction. Examples of nonfinancial assets include buildings, land, vehicles, and equipment.

Lessee – The City would recognize a lease liability and an intangible right-to-use lease asset (lease asset) in the government-wide financial statements. The City recognizes lease liabilities when an individual liability’s net present value exceeds 1% of fund assets.

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

Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term and (3) lease payments as follows:

59 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) • The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.
• The lease term includes the noncancellable period of the lease. • Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

The City will monitor changes in circumstances that require remeasurement of a lease adjust the lease asset and liability if changes occur that are expected to significantly affect the amount of the lease liability.

Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the statement of net position.

Lessor – The City recognizes leases receivable and a deferred inflow of resources in the government-wide and governmental fund financial statements. The City recognizes a lease receivable when an individual receivable’s net present value exceeds 1% of fund assets.

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

Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term and (3) lease receipts as follows:
• The City uses its estimated incremental borrowing rate as the discount rate for leases. The estimated incremental borrowing rate is the US Treasury yield rate in effect at lease commencement, for the term that most closely matches the term of the lease, plus a 1% spread.
• The lease term includes the noncancellable period of the lease. • Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

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

60 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) xv. Subscription-Based Information Technology Arrangements (SBITAs) A SBITA is a contract that conveys control of the right to use another party’s (a SBITA vendor’s) information technology (IT) software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period of time in an exchange or exchangelike transaction.

The City would recognize a subscription liability and a right-to-use subscription asset in the government-wide financial statements. The City recognizes subscription liabilities when an individual liability’s net present value exceeds $250,000.

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

Key estimates and judgments related to SBITAs include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments as follows:
• The City uses the interest rate charged by the IT vendor as the discount rate. When the interest rate charged by the IT vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for subscription liabilities. • The subscription term includes the noncancellable period of the subscription. • Subscription payments included in the measurement of the subscription liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

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

Subscription assets are reported with other capital assets and subscription liabilities are reported with long-term debt on the statement of net position.
xvi. New Governmental Accounting Standards Board (GASB) Pronouncements In June 2022, GASB issued GASB Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending

61 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) certain previously required disclosures. The requirements of this Statement are effective for fiscal years beginning after December 15, 2023, and all reporting periods thereafter. The City implemented GASB Statement No. 101 for the presentation of the FY 2024/25 financial statements.

In December 2023, GASB issued GASB Statement No. 102, Certain Risk Disclosures. The objective of this Statement is to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints.

The requirements of this Statement are effective for fiscal years beginning after June 15, 2024, and all reporting periods thereafter. The City implemented GASB Statement No. 102, but it did not have an effect on the FY 2024/25 financial statements.

In April 2024, GASB issued GASB Statement No. 103, Financial Reporting Model Improvements. The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. The requirements of this Statement are effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter. The City is in the process of determining the impact GASB Statement No. 103 will have on its financial statements.

In September 2024, GASB issued GASB Statement No. 104, Disclosure of Certain Capital Assets. The objective of this Statement is to provide users of government financial statements with essential information about certain types of capital assets. The requirements of this Statement are effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter. The City is in the process of determining the impact GASB Statement No. 104 will have on its financial statements.

NOTE #2 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. BUDGETARY INFORMATION
General Budget Policies
The City operates on a two-year budget cycle. Budgets are legally enacted through adoption of a resolution prior to July 1. The City Council periodically reviews the budgets and adopts supplemental appropriations (amendments) at the fund level when required. The level of budgetary control is established at the fund level and expenditures may not exceed budgeted appropriations at the fund level without City Council approval. In the financial statements, the final budget amounts include amendments to the original budget. Individual amendments were not material in relation to original appropriations.

Budget Basis of Accounting
Budgetary comparisons are presented for the General, Special Revenue and certain Capital Project funds. The following funds are not legally required to adopt budgets as their appropriations are either established by: 1) the related bond documentation, 2) other legal agreements or 3) are multi-year projects whose budget cycle exceeds one FY.

62 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #2 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued) Capital Project Funds
Roadway Improvements
Community Facilities Improvements
Parks and Trails Improvements
Capital Improvement Financing Program 2006-1
Capital Improvement Financing Program 2005-1
Debt Service Funds
Capital Improvement Revenue Refunding Bonds Series 2021 A & B General Obligation Bonds Series 2002
2019 Civic Center Project Lease Revenue Refunding Bonds 2015 Lease Financing
B. DEFICIT FUND BALANCE OR NET POSITION
Following is a list of funds that have either a deficit fund balance or net position balance as of June 30, 2025.

The deficit in the Parks and Trails Development Impact Fee Fund and Community Facilities Development Impact Fee Fund are due to pre-funding of capital projects in advance of receiving funding from development. Development impact fees generated from future development will be deposited into these funds. The deficit in the City Capital Improvement Financing Program Fund is due to an interfund advance provided to fund a specific capital project. The deficit is expected to be cured as existing bond refinance savings are realized over several future fiscal years. The fund will continue to maintain a positive cash balance. The deficit in the Internal Service Fund is related to OPEB and Pension liability accruals. In response to increasing Net OPEB Liabilities, the City has implemented a long-term OPEB pre-funding strategy that requires 85% of the Actuarial Determined Contribution (ADC) to be funded annually. Once the 85% funded ratio is reached, contributions, as a percentage of payroll will be maintained until 100% funded ratio is attained. The Internal Service Fund will continue to maintain a positive cash balance.

C. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
The composition of the Due To/From Other Funds balance on the Governmental Funds Balance Sheet, as of June 30, 2025, is shown on the following page. The Due To Other Funds balance in the Community Facilities Development Impact Fee Fund and Parks and Trails Development Impact Fee Fund are due to pre- funding of capital projects in advance of receiving funding from development.

Special Revenue Funds:

Parks and Trails Development Impact Fee 2,989,165 $
Community Facilities Development Impact Fee 256,555
Capital Project Fund:

City Capital Improvement Financing Program 943,656 $
Internal Service Funds:

Information Systems 482,253 $
63 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #2 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued) Development impact fees generated from future development will be deposited into these funds:

The interfund advance payable from the Landscape and Lighting Assessment Districts Fund is due to a ten-year interfund loan established by City Council in January 2022 between LLAD 21-1 Deer Ridge Landscape Improvements and the Parks and LLAD Replacement Fund for the construction of landscape improvements within the district. LLAD 21-1 was established for this purpose and future assessments will be used to repay the loan and maintain the improvements.

The interfund advance between the City Capital Improvement Financing Fund and Pension/Other PostEmployment Benefits Obligation Fund was authorized by City Council in June 2022. The seven-year interfund loan, initiated in FY 2023/24, was used to fund a portion of the Sand Creek Sports Complex CIP project and will be repaid over the seven-year term from annual existing bond refinance savings.

Receivable Fund Payable Fund Amount
Community Facilities Improvements
Capital Project Fund
Community Facilities Development Impact Fee
Special Revenue Fund
$ 256,555
Parks and Trails Improvements
Capital Project Fund
Parks and Trails Development Impact Fee
Special Revenue Fund 2,989,484
Total $ 3,246,039
Receivable Fund Payable Fund Amount
Parks and LLAD Replacement
Internal Service Fund
Landscape and Lighting Assessment Districts
Special Revenue Fund
$ 505,733
Pension/Other Post-Employment Benefits Obligation
Internal Service Fund
City Capital Improvement Financing Program
Capital Projects Fund 1,447,366
Total $ 1,953,099
Interfund Advance

Fund Description General Fund
Landscape and
Lighting
Assessment
Districts
Non-Major
Governmental
Funds
Internal
Service Funds
Wastewater
Enterprise
Solid Waste
Enterprise
Water
Enterprise
Total
Transfers In
General Fund - $ - $ 11,589,239 $ - $ - $ - $ - $ 11,589,239 $ Landscape and Lighting
Assessment Districts
Non-Major Governmental Funds 2,134,349 3,800,631 17,241,007 1,895,775 70,243 70,242 187,313 25,399,560 Internal Service Funds 1,684,717 - 27,738 - 354,995 511,761 990,124 3,569,335 Wastewater Enterprise - - - - - 100,379 1,049,866 1,150,245 Solid Waste Enterprise - - - - 51,800 - - 51,800
Water Enterprise - - - - 1,009,673 - - 1,009,673
Total Transfers Out $ 3,800,631 5,716,718 $ 28,863,500 $ 2,369,827 $ 1,486,711 $ 682,382 $ 2,227,303 $ 45,147,072 $ Interfund Transfers
- 1,897,652 5,516 474,052 - - - 2,377,220
64 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #2 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued) Transfers are indicative of funding for: 1) capital projects or debt service, 2) subsidies of various City operations or 3) reallocations of special revenues. The schedule below briefly summarizes the City’s significant, unusual or inconsistent fund-type transfer activity:

In addition, governmental activities transferred capital assets of $108, $151 and $133 to the Wastewater, Solid Waste and Water Enterprise Funds, respectively.

D. MINIMUM FUND BALANCE POLICIES
Staff presents a General Fund budget for City Council consideration that maintains an unassigned fund balance of 30% of the annual operating appropriations and certain transfers. The City will strive to maintain cash reserves in the Enterprise Funds of 30% of annual operating appropriations and certain transfers. This is considered the minimum level necessary to maintain the City’s credit worthiness and adequately provide for contingencies for unseen operating or capital needs or cash flow requirements.

E. FUND BALANCES
The City’s fund balances are classified based on spending constraints imposed on the use of resources.

Nonspendable fund balances are not expected to convert to cash and are comprised of prepaid items.

Restricted fund balances have external restrictions imposed by creditors, grantors, contributors, laws, regulations or enabling legislation that requires these resources be used only for a specific purpose.

Committed fund balances have constraints imposed by a City Council resolution that may be modified or rescinded only through a subsequent City Council resolution. Assigned fund balances are amounts constrained by the City’s intent to be used for a specific purpose, but are neither restricted nor committed. Intent is expressed by the City and may be changed at the discretion of the City Council.

Unassigned fund balance represents amounts that have not been restricted, committed or assigned.

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 to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.

Transfer To Amount Purpose
General Fund $ 8,268,140 Provide a subsidy to cover a portion of the costs for Public Safety Services Capital Project $ 4,853,454 Provide funding to cover a portion of the costs for the Sand Creek Sports Complex project Capital Project $ 4,149,164 Provide funding to cover a portion of the costs for the Lone Tree Way Roadway Improvements project General Fund $ 3,262,861 Gas Tax and Measure J revenue to subsidize the Street Maintenance Division Internal Service $ 1,313,029 Transfer of unassigned General Fund balance in excess of reserve requirement Capital Project $ 678,000 Provide funding to cover a portion of the costs for the Brentwood Boulevard Widening North - Phase I project Capital Project $ 507,358 Provide funding to cover a portion of the costs for the City Facility Audiovisual System Upgrade project Capital Project $ 433,931 Provide funding to cover a portion of the costs for the Aquatic Complex Mechanical Room Improvements project Capital Project $ 424,700 Provide funding to cover a portion of the costs for the Sand Creek Road Extension project Capital Project $ 395,600 Provide funding to cover a portion of the costs for the Basketball Court Lighting - Homecoming and Windsor Parks projects Capital Project $ 362,535 Provide funding to cover a portion of the costs for the Egret Park Playgroud Replacement project 65 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #2 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued) The City considers restricted amounts to have been spent, prior to unrestricted amounts, when expenditure is incurred for purposes for which both are available. Committed, assigned and unassigned amounts, in this order, are considered spent when expenditure is incurred for purposes for which either is available. Detailed classifications of the City’s Governmental Fund Balances, as of June 30, 2025, are shown below:

Special Revenue Fund
Landscape Other
General and Lighting Governmental
Fund Assessment Districts Funds Total
Fund Balances:

Nonspendable:

Prepaids $ 120,443 $ - $ 2,862 $ 123,305
Leases 198,981 - - 198,981
Riparian Site Mitigation Endowment - - 80,000 80,000
Total Nonspendable Fund Balances 319,424 - 82,862 402,286 Restricted for:

Debt Service - - 18,532,146 18,532,146
Community Facilities Projects - - 12,526,758 12,526,758 Parks and Trails Projects - - 22,564,349 22,564,349
Low Income Housing - - 436,917 436,917
Vineyards Development Projects - - 584,868 584,868
Infrastructure Projects - - 537,114 537,114
Streets and Roadways - - 22,732,991 22,732,991
CIFP Projects - - 1,867,909 1,867,909
Landscape and Lighting Assessment Districts 11,906,780 - - 11,906,780 Off Street Parking Facilities in Downtown - - 469 469
Agricultural/Farmland Mitigation - - 4,813,123 4,813,123 Public Art - - 4,077,224 4,077,224
Development Impact Fee Program - - 1,611,203 1,611,203
Drug Prevention Programs - - 23,453 23,453
Public Safety - - 456,562 456,562
Disability Access and Education - - 181,549 181,549
Abandoned Vehicle Abatement - - 191,947 191,947
Grants - - 868,874 868,874
PEG Media - - 654,388 654,388
Parks Maintenance - - 4,941,002 4,941,002
Riparian Mitigation Site Maintenance - - 1,748 1,748
Total Restricted Fund Balances 11,906,780 - 97,604,594 109,511,374 Committed to:

Public Safety - - 2,227,470 2,227,470
Successor Agency Payment Plan - 687,303 - 687,303
Future Strategic Initiatives - 2,728,235 - 2,728,235
General Plan Update - 622,600 - 622,600
Future Capital Projects - 800,000 - 800,000
City Council Redistricting - 125,000 - 125,000
Total Committed Fund Balances - 4,963,138 2,227,470 7,190,608 Unassigned:

General Fund 24,129,382 - - 24,129,382
Other Fund Deficit - - (4,189,376) (4,189,376)
Total Unassigned Fund Balances 24,129,382 - (4,189,376) 19,940,006 Total Fund Balances $ 29,411,944 $ 11,906,780 $ 95,725,550 $ 137,044,274 66 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #3 – CASH AND INVESTMENTS
A. CASH AND DEPOSITS
The City of Brentwood maintains a cash investment pool that is available for all funds. The City follows the practice of pooling cash and investments of all funds, except for funds required held by outside fiscal agents under the provisions of bond indentures or other trust agreements. Each fund type balance in the pool is reflected on the balance sheet as Cash and Investments.

The carrying amounts of the City’s cash deposits were $1,557,115 at June 30, 2025. The bank balance, before reconciling items, was $3,958,010. The bank balance is insured for up to $250,000 and the remaining balance is collateralized for up to 105%, with the collateral being held by a pledging financial institution in the City’s name. The fair value of the pledged securities must equal from 105% to 110% of the bank balance less the insured amount as required by California Government Code Section 53651, but the City may waive collateral requirements for cash deposits that are insured by the Federal Deposit Insurance Corporation. The City’s cash and investment balances are as follows:

B. INVESTMENTS
The City apportions interest earnings to all funds based on their monthly cash balance. The table on the following page identifies the investment types authorized for the City by the City’s investment policy, which is more restrictive than California Government Code 53601. The table also identifies certain provisions of the City’s investment policy that address interest rate risk, credit risk and concentration of risk.

Pooled Deposits:

Demand Deposits $ 1,557,115
Petty Cash 12,550
Investments 357,593,588
359,163,253
Held by Trustee:

Investments 6,886,496
Trust Deposits:

Investments 10,407,347
Total Cash and Investments $ 376,457,096
67 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #3 – CASH AND INVESTMENTS (Continued)
This table includes permitted investments for the management of the City’s cash. In addition, these guidelines are used for the investments of debt proceeds held by bond trustees, which are governed by the provision of the City’s debt agreements.

Credit Risk
The City’s portfolio is comprised of the highest quality government and corporate securities.

Consistent with City policy, 78.65% of the rated portfolio consists of investments with Standard and Poor’s two highest ratings. This percentage does not include U.S. Treasury Bonds/Bills/Notes, Local Agency Investment Fund (LAIF), Asset Backed Securities, or Money Market Funds, which are all exempt or unrated. Investments at June 30, 2025, held on behalf of the City, are presented on the following page and categorized separately to give an indication of the level of risk associated with each investment. Investments are reported at fair value.

Minimum Maximum Maximum
Authorized Credit Maximum Percentage of Investment in
Investment Type Quality Maturity Portfolio (1) One Issuer Asset-Backed Securities AA 5 years 20% 5%
Bankers' Acceptances Top Rating Category 180 days 40% 5% California State, Local Agency and Other State Obligations A 5 years 30% None Commercial Paper Top Rating Category 270 days 40% 5% (2) Insured Savings Account None N/A N/A N/A
Local Government Investment Pools None N/A N/A N/A
Medium-Term Notes A 5 years 30% 5% (2)
Money Market Funds Top Rating Category N/A 15% 5%
Mutual Funds (3)
None None None None
Negotiable Certificates of Deposit A 5 years 30% 5%
Repurchase Agreements None 90 days None 5%
Reverse Repurchase Agreements None 92 days 20% 5%
State of California's Local Agency Investment Fund None N/A $75M/Account $75M/Account Supranationals (4)
AA 5 years 30% 5%
Time Deposits None 5 years 25% 5%
U.S. Agency Mortgage Pass-Through Securities AA 5 years 20% None U.S. Agency Obligations None 5 years None None
U.S. Government Guaranteed Obligations (5)
None None None None
U.S. Treasuries None 5 years None None
(1) Excluding amounts held by bond trustee not subject to California Government code restrictions. (2) Limited to 10% of the outstanding commercial paper and medium-term notes of a single issuer. (3) Allowed under the Corebridge Financial Deferred Compensation Plan (5) Allowed under the Capital Improvement Revenue Refunding Bonds, Series 2012, Indenture of Trust (4) Only those obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC) and Inter-American Development Bank (IADB).
68 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #3 – CASH AND INVESTMENTS (Continued)
Concentration of Credit Risk
The City’s investment policy limits the amount the City may invest in any one non-government issuer, except investment pools, to no more than 5%. The City does not have an investment in any one issuer, other than U.S. Treasury securities, mutual funds or external investment pools, which represent 5% or more of the City’s total investments.

Fair Credit % of Rated
Value Rating Portfolio
Medium-Term Notes $ 17,005,489 A 7.90
Medium-Term Notes 5,090,993 A- 2.36
Medium-Term Notes 21,304,349 A+ 9.89
Medium-Term Notes 9,181,369 AA- 4.26
Medium-Term Notes 2,389,954 AA 1.11
Medium-Term Notes 501,168 AAA 0.23
U.S. Agency Notes 8,561,892 AA+ 3.98
California State, Local Agency and Other State Obligations 1,610,064 AA 0.75 Negotiable Certificates of Deposit 2,586,911 A1 1.20
U.S. Agency Collateralized Mortgage Obligations 7,700,915 AA+ 3.58 Asset-Backed Securities 20,442,742 AAA 9.49
California Asset Management Program 56,310,451 AAAm 26.15 California Cooperative Liquid Assets Securities System 56,954,464 AAAm 26.44 Money Market Funds 5,729,968 AAAm 2.66
Total Rated Investments 215,370,729 100.00
U.S. Treasury Notes 140,824,398 Exempt
U.S. Treasury Bill 1,381,631 Exempt
Local Agency Investment Fund 2,268,738 Not Rated
Money Market Funds 2,354,908 Not Rated
Asset-Backed Securities 2,279,680 Not Rated (1)
Mutual Funds (Corebridge Financial) 10,407,347 Not Rated Total Unrated Investments 159,516,702
Total Investments $ 374,887,431
(1) Credit ratings listed above are based on ratings provided by S&P Global. Asset-Backed Securities listed as "Not Rated" above have no rating per S&P Global, but are rated as "Aaa" per Moody's. 69 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #3 – CASH AND INVESTMENTS (Continued)
Interest Rate Risk
The City’s investment policy limits the investment portfolio to maturities of less than five years as a means of limiting exposure to fair value losses arising from interest rates. Currently, 67.85% of the investment portfolio is concentrated in the zero to two-year maturity range.

Custodial Credit Risk for Investments
The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g. broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in possession of another party. The California Government Code does not contain legal or policy requirements limiting the exposure to custodial credit risk. The City’s investment policy requires the assets of the City be secured through the third party custody and safekeeping procedures. Bearer instruments shall be held only through third party institutions.

Collateralized securities, such as repurchase agreements, shall be purchased using the delivery vs. payment procedure.

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

Fair Value(1) 0-6 months 6-12 months 1-2 years 2-3 years 3-5 years % of
Portfolio
U.S. Treasury Notes $ 140,824,398 $ 19,284,633 $ 25,678,935 $ 28,301,667 $ 51,310,183 $ 16,248,980 37.56 Medium-Term Notes 55,473,322 4,460,064 4,974,045 23,078,425 21,818,012 1,142,776 14.80 U.S. Agency Notes (2) 8,561,892 8,561,892 - - - 2.28 -
U.S. Treasury Bill 1,381,631 1,381,631 - - - 0.37 -
Government Obligations - - - - - -
California State, Local Agency and Other 1,610,064 1,610,064 - - - 0.43 - State Obligations
Negotiable Certificates of Deposit 2,586,911 - 2,586,911 - - 0.69 - Local Agency Investment Fund 2,268,738 2,268,738 - - - 0.61 - Asset-Backed Securities 22,722,422 - - 4,632,535 - 18,089,887 6.06 U. S. Agency Collateralized Mortgage Obligations 7,700,915 - - - 7,700,915 - 2.05 California Asset Management Program 56,310,451 56,310,451 - - - 15.02 - California Cooperative Liquid Assets 56,954,464 56,954,464 15.19 Securities System
Money Market Funds 8,084,876 8,084,876 - - - 2.16 -
Mutual Funds (Corebridge Financial) 10,407,347 10,407,347 - - - 2.78 - Totals 374 $ ,887,431 $ 169,324,160 $ 30,652,980 $ 53,967,003 $ 77,760,730 $ 43,182,558 % of Portfolio 45.17 8.18 14.40 20.74 11.51 100.00
(1) Fair Value includes accrued interest.
(2) Any callable securities are reported at either 0-6 months or the earliest call date.

Investment Maturities
70 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #3 – CASH AND INVESTMENTS (Continued)
The following is a summary of the fair value hierarchy of the fair value of investments of the City as of June 30, 2025:

Investments classified in Level 1 of the fair value hierarchy of $142,206,029 are valued using unadjusted quoted prices in an active market for identical assets at the measurement date. Level 2 investments totaling $109,062,873 are valued using inputs other than quoted prices that are observable for the asset either directly or indirectly on the measurement date. Examples of Level 2 inputs include matrix pricing, market corroborated pricing and inputs such as yield curves and indices. These prices are obtained from various pricing sources by our custodian bank or fiscal agent. There are no securities classified in Level 3. Fair value is defined as the quoted fair value on the last trading day of the period.

C. INVESTMENT IN POOLS
State Treasurer’s Pool
The California Local Agency Investment Fund (LAIF) is an external investment program sponsored by the State and authorized under Sections 16429.1, 2 and 3 of the California Government code. It is part of the State’s Pooled Money Investment Account (PMIA) managed by the Investment Division of the State Treasurer’s Office. LAIF is a voluntary program, created by statute, as an investment alternative for California local governments and special districts. The City is a voluntary participant in this investment pool. The management of PMIA has indicated to the City that, as of June 30, 2025, the

Level 1 Level 2 Total
Investments Measured by Fair Value Level:

U.S. Treasury Notes $ 140,824,398 $ 140,824,398 - $
Medium-Term Notes 55,473,322 - 55,473,322
U.S. Agency Notes 8,561,892 - 8,561,892
U.S. Treasury Bill 1,381,631 1,381,631 -
California State, Local Agency and Other State Obligations 1,610,064 - 1,610,064 Negotiable Certificates of Deposit 2,586,911 - 2,586,911 Asset-Backed Securities 22,722,422 - 22,722,422
U. S. Agency Collateralized Mortgage Obligations 7,700,915 - 7,700,915 Mutual Funds (Corebridge Financial) 10,407,347 - 10,407,347 Subtotal $ 142,206,029 $ 109,062,873 251,268,902
Investments Measured at Net Asset Value per Share:

Held by Trustee:

California Asset Management Program 56,310,451
California Cooperative Liquid Assets Securities System 56,954,464 Investments Measured at Amortized Cost:

Held by Trustee:

Money Market Funds 8,084,876
Investments Not Subject to Fair Value Hierarchy
Local Agency Investment Fund 2,268,738
Total Investments $ 374,887,431
71 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #3 – CASH AND INVESTMENTS (Continued)
amortized cost of the pool was $178,938,897,012 and the fair value was $179,153,321,241. The City deposits excess cash in LAIF and is not required to be categorized. The fair value for these deposits was provided by the pool sponsor.

Each regular LAIF account is permitted to have up to 15 transactions per month, with a minimum transaction amount of $5,000, a maximum transaction amount of $75 million and at least 24 hours advance notice for withdrawals of $10 million or more. Bond proceeds accounts are subject to a onetime deposit with no cap and are set up with a monthly draw down schedule. Included in LAIF’s investment portfolio are collateralized mortgage obligations, mortgage-backed securities, other assetbacked securities, loans to certain state funds, and floating rate securities issued by federal agencies, government-sponsored enterprises, United States Treasury Notes and Bills, and corporations. On June 30, 2025, these investments matured in an average of 248 days.

California Cooperative Liquid Assets Securities System
The City is a participant in the Prime Fund of the California Cooperative Liquid Assets Securities System (California CLASS), a joint powers authority and public agency established by its members under the provisions of Section 6509.7 of the California Government Code. Members and participants are limited to California public agencies and certain nonprofit corporations whose membership is limited to public agencies or public officials. California CLASS is governed by a Board of Trustees of eligible participants of the program. The City reports investment in California CLASS at fair value amount provided by California CLASS, which is the same as the value of the pool shares. The balance in the Prime Fund is available for withdrawal on demand, and is based on the accounting records maintained by California CLASS. Included in the California CLASS investment portfolio are investments such as: United States Treasury Notes, Bills, Bonds or Certificates of Indebtedness; registered state warrants or treasury notes or bonds; California local agency bonds, notes, warrants or other indebtedness; federal agency or United States government sponsored enterprise obligations; bankers acceptances; commercial paper; negotiable certificates of deposit; repurchase agreements; medium-term notes; money market mutual funds; notes, bonds or other obligation secured by a first priority security interest in securities authorized under Government Code Section 53651; and mortgage pass through securities, collateralized mortgage obligations, and other asset–backed securities.

The California CLASS Prime Fund has a target portfolio duration of less than 60 days. On June 30, 2025, these investments matured in an average of 40 days. The investment in California CLASS is valued based on the fair value factor provided by the California CLASS, which is calculated as the average cost to net asset value per share of the Prime Fund. At June 30, 2025, the fair value approximated the City’s cost.

California Asset Management Program
The City is a participant in the California Asset Management Program (CAMP). CAMP is an investment pool offered by the California Asset Management Trust (the Trust). The Trust is a joint powers authority and public agency created by the Declaration of Trust and established under the provisions of the California Joint Exercise of Powers Act for the purpose of exercising the common power of its Participants to invest certain proceeds of debt issues and surplus funds. CAMP’s investments are limited to investments permitted by subdivisions (a) to (n), inclusive, of Section 53601 of the California Government Code. The City reports its investments in CAMP at the fair value amounts provided by 72 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #3 – CASH AND INVESTMENTS (Continued)
CAMP, which is the same as the value of the pool share in accordance with GASB 79 requirements. At June 30, 2025, the fair value approximated the City’s cost. At June 30, 2025, these investments have an average maturity of 41 days or less.

The City, as a CAMP shareholder, may withdraw all or any portion of the funds in each CAMP account at any time by redeeming shares. The CAMP Declaration of Trust permits the CAMP trustee to suspend the right of withdrawal from CAMP or to postpone the date of payment of redemption proceeds if the New York Stock Exchange is closed other than for customary weekend and holiday closings, if trading on the New York Stock Exchange is restricted, or if, in the opinion of the CAMP trustees, an emergency exists such that disposal of the CAMP pool securities or determination of its net asset value is not reasonably practicable. If the right of withdrawal is suspended, the City may either withdraw its request for that withdrawal or receive payment based on the net asset value of the CAMP pool next determined after termination of the suspension of the right of withdrawal.

D. CASH AND INVESTMENTS WITH FISCAL AGENT
The City has monies held by trustees, or fiscal agents, pledged to the payment or security of certain bonds and lease obligations, plus monies held by a third party administrator of the City’s Housing Rental Program. The City has also set up escrow bank accounts to hold retention payments due to certain contractors. These monies appear on the financial statements as Restricted Cash and Investments. The California Government Code provides that these monies, in the absence of specific statutory provisions governing the issuance of bonds, certificates or leases, may be invested by trustees or fiscal agents in accordance with the ordinances, resolutions or indentures specifying the types of investments allowed.

Cash and investments of the City’s single-employer deferred compensation plan, Corebridge Financial, are not the City’s property and are not subject to claims by general creditors of the City. These monies are reported in the Fiduciary Fund financial statements as Restricted Cash and Investments.

73 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #4 – ACCOUNTS, LEASES, NOTES AND LOANS RECEIVABLE
Receivables at June 30, 2025 were comprised of the following:

Inter- Notes Total
Taxes Accounts Governmental Interest Utilities Leases and Loans Receivables Governmental Activities:

General Fund $ 2,043,122 $ 1,678,589 $ 144,398 $ 2,179 $ 1,870,092 - $ $ 5,738,380 - $ Landscape and Lighting
Assessment Districts
Non-Major Funds:

Internal Service - 22,125 - 3,519 - - - 25,644
Special Revenue - 468,617 - 2,764 - - 471,381 -
Permanent Fund - - - 20 - - - 20
Debt Service - - - 119 - 16,801,315 - (1) 16,801,434
Capital Projects - - 1,372,011 3,568 - - - 1,375,579
Subtotal Governmental Activities 2,043,122 1,700,714 1,985,026 15,109 - 1,870,092 16,801,315 24,415,378 Less: Allowance - (520,322) (2) - - - - - (520,322)
Total Governmental Activities $ 2,043,122 $ 1,180,392 $ 1,985,026 $ 15,109 $ 1,870,092 - $ $ 16,801,315 $ 23,895,056 Business-Type Activities:

Wastewater - $ 11,951 $ $ 3,287,665 $ 3,220 $ 2,374,039 $ - $ 5,676,875 - $ Solid Waste - 75 - 1,098 2,524,240 - 2,525,413 -
Water - 40,948 - 2,469 4,060,524 - 4,103,941 -
Housing - 35,804 - 347 - 719,661 - (3) 755,812
Total Business-Type Activities $ 88,778 - $ $ 3,287,665 $ 7,134 $ 8,958,803 $ 719,661 - $ $ 13,062,041 (1) The City has recorded receivables for the Successor Agency's portion of long-term debt. Note #13 discusses the dissolution of the Redevelopment Agency and the Successor Agency activities.
(2) Accounts receivable for citation revenues are unavailable and the revenue is not recognized until received. (3) Net of reservation for loans expected to be forgiven. These loans are discussed on the following pages. - - - 2,940 - - - 2,940
74 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #4 – ACCOUNTS, LEASES, NOTES AND LOANS RECEIVABLE (Continued) Leases Receivable
The City leases a portion of the Police Department building and parking lot to a third party. The twentyyear noncancellable lease term commenced in September 2019 and includes the option to renew the lease for two additional 5-year terms. The City receives monthly payments of $2,000 for the first ten years with subsequent rent increases occurring every five years thereafter.

The City has also entered into four site license agreements with telecommunication companies for portions of City property or ground space as follows:
• A 5-year noncancellable agreement that commenced in November 2017 and includes the option to renew the lease for four additional 5 year terms; monthly payments of $2,773 as of June 2025 with annual increases of 4.0%.
• A 5-year noncancellable agreement that commenced in January 2015 and includes the option to renew the lease for three additional 5 year terms; monthly payments of $3,526 as of June 2025 with annual increases of 3.5%.
• A 5-year noncancellable agreement that commenced in April 2021 and includes the option to renew the lease for two additional 5 year terms; monthly payments of $2,827 as of June 2025 with annual increases of 3.5%.
• A 5-year noncancellable agreement that commenced in November 2011 and includes the option to renew the lease for three additional 5 year terms. During FY 2024/25, this agreement was terminated and the outstanding lease receivable balance of $442,478 was removed from the financial statements, along with the associated deferred inflow of resources.

The City recognized $119,294 in lease revenue and $53,514 in interest revenue during FY 2024/25 related to leases. As of June 30, 2025, the leases receivable balance was $1,870,092 and the deferred inflows of resources to be recognized over future lease terms was $1,671,111.

At June 30, 2025, the City does not have any lease liabilities that met the threshold recognition of 1% of fund assets.

75 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #4 – ACCOUNTS, LEASES, NOTES AND LOANS RECEIVABLE (Continued) Notes and Loans Receivable
Notes and Loans Receivable at June 30, 2025 were comprised of the following:

Down Payment Assistance and Gap Assistance Program Loans In FY 2005/06, the City established a first-time homebuyer Down Payment Assistance Program (DAP) for the benefit of first-time homebuyers in the City of Brentwood who earn up to 120% of the area median income. The loans are either due in 30 years or upon a change in ownership of the property.

The loans may be prepaid at any time without penalty. The interest rate is dependent upon the length of time the loan exists. Loans held less than three years accrue interest at 7%, loans held between three and ten years accrue interest at 5% and loans held longer than 10 years accrue interest at 3%.

The City also established a first-time homebuyer Gap Assistance Program (GAP) to facilitate the purchase of below market rate units from the City’s Affordable Housing Program for first-time homebuyers. The maximum GAP loan amount is $35,000. The GAP loans are either due in 30 years or upon a change in ownership of the property. The interest rate is set at 3%, simple interest. As of June 30, 2025 the City is owed $719,661, including interest, under the DAP and GAP loan programs.

Amounts Due from Successor Agency
The Successor Agency to the former Brentwood Redevelopment Agency (see discussion of the Brentwood Redevelopment Agency Dissolution in Note #13) has long-term obligations for the funding of its portion of the Capital Improvement Revenue Refunding Bonds Series 2012 and the 2019 Civic Center Project Lease Revenue Bonds. The Successor Agency has pledged future tax revenues for the repayment of its portion of the bonds and the California State Department of Finance (“DOF”) has deemed the pledge an enforceable obligation of the Successor Agency. The City has recorded a receivable for the debt obligations due from the Successor Agency. The balance of the receivables at June 30, 2025 was $16,801,315. The long-term debt obligations are discussed in further detail in both Note #6 and Note #13.

76 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #4 – ACCOUNTS, LEASES, NOTES AND LOANS RECEIVABLE (Continued) Loans Under the Former Brentwood Redevelopment Agency and the City’s Affordable Housing Programs
The City and the former Brentwood Redevelopment Agency entered into loan programs to improve the quality and availability of affordable housing. Loans under the programs provide for the eventual forgiveness of the loan balances if the borrower complies with all the terms of the loan over its full term. The loans, accounted for as conditional grants in the Government-Wide financial statements, include a reserve for their eventual forgiveness. However, with the dissolution of the Brentwood Redevelopment Agency, the City agreed to become the successor to the Brentwood Redevelopment Agency’s housing activities. Therefore, as of February 1, 2012, the City Low Income Housing Fund assumed the loans receivable of the former Brentwood Redevelopment Agency’s Low and Moderate Income Housing Fund as discussed in Note #13. At June 30, 2025, the City’s Low Income Housing and Affordable Housing loans were comprised of the amounts shown below:

Brentwood/202 Senior Housing
In April 1996, the Brentwood Redevelopment Agency loaned Brentwood/202 Senior Housing, Inc., a California non-profit public benefit corporation, $314,550 to assist in the financing of the construction of a 40-unit senior housing project. The principal sum of the note does not bear interest. The outstanding principal due under this note is due and payable in full, either forty years from the date of recording the Deed of Trust or upon an event of default. In the event there has been no event of default that has not been cured, the Housing Successor shall forgive the outstanding principal balance due on the maturity date. The balance at June 30, 2025 was $314,550.

Christian Church Homes/Sycamore II
In June 2003, the Brentwood Redevelopment Agency entered into a note with Christian Church Homes of Northern California for $530,722, to construct 40 units of very low-income senior rental housing.

The note is a 3% per annum simple interest, 55-year loan. In July 2004, a note was executed with

77 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #4 – ACCOUNTS, LEASES, NOTES AND LOANS RECEIVABLE (Continued) Sycamore Place II Senior Housing Corporation that amended, superseded and replaced in its entirety the original note of $530,722. This note for $755,722 is secured by a Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing. The principal sum of this note bears 3% per annum, simple interest. All principal, and all accrued and unpaid interest, shall be due and payable in full no later than either June 27, 2058 or upon default. As of June 30, 2025, principal and accrued interest total $1,247,749. There is a reasonable expectation this note will be forgiven upon successful completion of the terms and conditions of the note and, as such, a reservation for forgiveness of the note has been included in these financial statements.

Eden Housing
In January 2005, the City and the Brentwood Redevelopment Agency entered into two notes with Eden Housing, Inc., in the amounts of $900,000 and $100,000 for the development of Brentwood City Commons, an 80-unit very low-income and extremely low-income senior apartment project. The notes are secured by Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing. The notes are 3% simple interest per annum, 55-year loans unless event of default occurs. As of June 30, 2025, principal and accrued interest for both notes total $1,595,125. There is a reasonable expectation these notes will be forgiven upon successful completion of the terms and conditions of the notes and, as such, a reservation for forgiveness of the notes has been included in these financial statements.

Mercy Housing
In May 2006, the City and the Brentwood Redevelopment Agency entered into two notes with Mercy Housing, Inc., in the amounts of $600,000 and $1,400,000, in order to develop 94 affordable apartments for extremely low-income or very low-income households at an affordable rent as set forth in the Affordable Housing Covenant. So long as Mercy Housing, Inc. owns and operates the project in compliance with the Affordable Housing Covenant, and the agreement is not in default under these notes, no payments shall be due. The entire outstanding unpaid principal and interest of the notes shall be due and payable in full upon either the earlier of the 55-years after the closing of the notes or December 31, 2063. The notes bear interest at 3% per annum from the date of disbursement. As of June 30, 2025, the principal and accrued interest due for both notes total $3,110,000. There is a reasonable expectation these notes will be forgiven upon successful completion of the terms and conditions of the notes and, as such, a reservation for forgiveness of the notes has been included in these financial statements.

Brentwood Senior Commons
In November 2010, the Brentwood Redevelopment Agency entered into a Loan Agreement with Brentwood Senior Commons, L.P. for $400,000 to provide funding for a portion of elevator improvements within the Brentwood Senior Commons project. This note shall bear 0% interest unless there is a default in the conditions of the note. So long as Brentwood Senior Commons owns and operates the project in compliance with the Affordable Housing Covenant, no payments shall be due and the entire outstanding principal and interest, if any due to default, shall be due and payable in full on January 25, 2060. On the maturity date, at its discretion, the City, as Housing Successor may forgive the repayment of all or part of the Loan. As of June 30, 2025, the principal due totaled $400,000. There is a reasonable expectation this note will be forgiven upon successful completion of the terms and conditions of the note and, as such, a reservation for forgiveness of the note has been included in these financial statements.
78 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #4 – ACCOUNTS, LEASES, NOTES AND LOANS RECEIVABLE (Continued) Brentwood Green Valley
In January 2011, the Brentwood Redevelopment Agency entered into a Loan Agreement with Brentwood Green Valley Associates for $1,258,886, to provide funds to repair and rehabilitate Green Valley Apartments, a 28-unit, extremely low-income and very low-income, multi-family project. The loan was disbursed in two payments in accordance with the loan agreement. This note bears simple interest at a rate of 3% per annum from the date of disbursement. So long as Brentwood Green Valley owns and operates the project in compliance with the Affordable Housing Covenant, and the agreement is not in default under the note, the City as Housing Successor shall forgive the annual interest and the outstanding principal balance in an amount equal to 1.82% of the original principal amount over a 55-year period.

In addition, all accrued but unpaid interest is forgiven so long as the note is not in default. As of June 30, 2025, the principal due for the note, before the forgiveness, totaled $959,066. Per the terms of the note, $22,912 of the principal balance was forgiven at June 30, 2025. The remaining principal balance at June 30, 2025 totaled $936,154. There is a reasonable expectation this note will be forgiven upon successful completion of the terms and conditions of the note and, as such, a reservation for forgiveness of the note has been included in these financial statements.

Meta Housing
In January 2012, the Brentwood Redevelopment Agency entered into a Loan Agreement with Meta Housing Corporation for $3,950,000, to provide funding for the development of The Grove at Sunset Court, a 54-unit family apartment project. Due to State legislation, redevelopment agencies dissolved as of February 1, 2012. At that time, cities were given the option of becoming a successor agency and the City of Brentwood adopted a resolution to serve as the Successor Agency to the Brentwood Redevelopment Agency. The loan agreement with Meta Housing provided it would be automatically assigned to the Successor Agency upon the dissolution date.

In June 2012, the promissory note between the City of Brentwood and Meta Housing Corporation was signed and the loan was funded. As the loan had not been funded at the time of the redevelopment dissolution, and subsequently not approved as an enforceable obligation by the DOF, the City assumed the rights and obligations under the loan agreement and funded the loan from the Affordable Housing component of the Housing Enterprise Fund. The note is a 3% per annum simple interest, 55-year loan.

So long as Meta Housing owns and operates the project in compliance with the Affordable Housing Covenant, no payments shall be due and the entire outstanding unpaid principal and interest shall be due and payable on June 20, 2067. As of June 30, 2025, principal and accrued interest total $5,495,370.

There is a reasonable expectation this note will be forgiven upon successful completion of the terms and conditions of the note and, as such, a reservation for forgiveness of the note has been included in these financial statements.

79 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #5 – CAPITAL ASSETS
The City reports all capital assets, including infrastructure, in the Government-Wide Statement of Net Position. Capital assets of the primary government, as of June 30, 2025, are as follows:

Balance Balance
July 1, 2024 Increases Decreases Transfers June 30, 2025 Governmental Activities:

Capital Assets, Not Being Depreciated or Amortized:

Land $ 38,801,779 $ - - $ - $ 38,801,779 $
Work in Progress - CIP 18,376,789 - 8,093,292 (14,095,788) 12,374,293 Total Capital Assets, Not Being Depreciated or Amortized 57,178,568 8,093,292 - (14,095,788) 51,176,072 Capital Assets, Being Depreciated and Amortized:

Intangible Assets 6,258,156 - - - 6,258,156
Buildings 72,197,665 - - 72,197,665 -
Infrastructure 506,055,296 2,260,184 (100,000) 13,220,688 521,436,168 Machinery and Equipment 14,401,169 454,600 (122,461) 14,733,308 - Vehicles 22,269,260 5,727,972 (1,557,007) 26,440,225 -
Land Improvements 35,801,124 664,189 - 874,708 37,340,021 Subscription Assets 1,134,501 294,507 - - 1,429,008
Total Capital Assets Being Depreciated and Amortized 658,117,171 9,401,452 (1,779,468) 14,095,396 679,834,551 Less Accumulated Depreciation and Amortization for:

Intangible Assets 1,844,044 96,279 - - 1,940,323
Buildings 17,097,820 1,385,602 - 18,483,422 -
Infrastructure 150,303,167 7,799,525 (39,067) 158,063,625 - Machinery and Equipment 8,273,203 988,380 (122,461) - 9,139,122 Vehicles 12,699,422 1,889,452 (1,557,007) 13,031,867 -
Land Improvements 9,981,852 807,373 - 10,789,225 -
Subscription Assets 113,450 241,626 - - 355,076
Total Accumulated Depreciation and Amortization 200,312,958 13,208,237 (1,718,535) 211,802,660 - Total Capital Assets, Being Depreciated and Amortized, Net 457,804,213 (3,806,785) (60,933) 14,095,396 468,031,891 Governmental Activities Capital Assets, Net $ 514,982,781 $ 4,286,507 $ (60,933) $ (392) $ 519,207,963 Balance Balance
July 1, 2024 Increases Decreases Transfers June 30, 2025 Business-Type Activities:

Capital Assets, Not Being Depreciated or Amortized:

Land 2,661,597 $ - $ - $ - $ 2,661,597 $
Work in Progress - CIP 74,908,145 10,733,340 (1,449,181) (55,536) 84,136,768 Total Capital Assets, Not Being Depreciated or Amortized 77,569,742 10,733,340 (1,449,181) (55,536) 86,798,365 Capital Assets, Being Depreciated and Amortized:

Intangible Assets 18,950,632 - - 18,950,632 -
Buildings 30,763,464 12,595 - 55,928 30,831,987
Infrastructure 304,555,672 1,402,680 - 305,958,352 -
Machinery and Equipment 9,490,576 458,359 (17,759) - 9,931,176 Land Improvements 11,046,659 - - 11,046,659 -
Total Capital Assets Being Depreciated and Amortized 374,807,003 1,873,634 (17,759) 55,928 376,718,806 Less: Accumulated Depreciation and Amortization for:

Intangible Assets 6,249,465 387,702 - - 6,637,167
Buildings 10,693,861 618,130 - 11,311,991 -
Infrastructure 78,080,114 4,783,862 - 82,863,976 -
Machinery and Equipment 3,473,630 663,060 (17,759) - 4,118,931 Land Improvements 4,158,460 200,561 - - 4,359,021
Total Accumulated Depreciation and Amortization 102,655,530 6,653,315 (17,759) 109,291,086 - Total Capital Assets, Being Depreciated and Amortized, Net 272,151,473 (4,779,681) - 55,928 267,427,720 Business-Type Activities Capital Assets, Net 349,721,215 $ 5,953,659 $ (1,449,181) $ 392 $ 354,226,085 $ 80 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #5 – CAPITAL ASSETS (Continued)
For the year ending June 30, 2025, depreciation and amortization expense on capital assets was charged as follows:

Intangible Assets
• Water Rights
In an agreement between the City of Brentwood and the Contra Costa Water District (CCWD), dated February 29, 2000, the City is obligated to reimburse CCWD $597,532 as a buy-down cost per acre-foot of water. The City capitalized this expense as of June 30, 2001 and is amortizing the expense over 65 years. In an amendatory agreement between Brentwood and CCWD, dated September 24, 2003, the City purchased the treatment capacity right of up to 3,200 acre-feet of water per year, from the Randall-Bold Water Treatment Plant, for $10,000,000. The City capitalized this expense as of June 30, 2004 and is amortizing the expense over 40 years. The capacity right does not confer title or ownership of the facility, but merely reserves capacity in the facility. The City entered into a Third Amendatory Agreement with CCWD, dated February 4, 2015, to purchase capacity rights in the Rock Slough conveyance facilities. The City capitalized the total buy-in amount of $8,353,100 as of June 30, 2016 and is amortizing the expense over 65 years.

Governmental Activities:

General Government $ 3,597,620
Public Safety 641,521
Community Development 181
Public Works 5,138,773
Parks and Recreation 1,779,039
Internal Service 2,051,103
Total Depreciation and Amortization Expense $ 13,208,237 Business-Type Activities:

Wastewater $ 2,228,254
Solid Waste 299,497
Water 4,078,531
Housing 47,033
Total Depreciation and Amortization Expense $ 6,653,315

81 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #5 – CAPITAL ASSETS (Continued)
• Joint Use Facilities
The governing bodies of the City, Liberty Union High School District (LUHSD) and Brentwood Union School District (BUSD) have recognized the public need for additional facilities. As a result of these cooperative efforts, the City has made contributions to these school districts relating to the joint use of these facilities. The City has capitalized these expenditures and is amortizing the expense over 65 years.
• As of June 30, 1993, $513,156 for the BUSD Gym located at Bristow Middle School • As of June 30, 2002, $1,000,000 for the BUSD Gym located at Edna Hill Middle School • As of June 30, 2003, $650,000 for the LUHSD Gym located at Liberty High School • As of June 30, 2005, $95,000 for the LUHSD Ball Fields located at Heritage High School • As of June 30, 2005, $2,500,000 for the LUHSD Community Pool and Gym located at Heritage High School
• As of June 30, 2009, $1,500,000 for the BUSD Gym located at Adams Middle School NOTE #6 – LONG-TERM OBLIGATIONS
The following summarizes changes in long-term obligations during the year:

A. GOVERNMENTAL ACTIVITIES

Balance
July 1, 2024 Payments/ Balance Amounts Due
(as adjusted) Additions Adjustments June 30, 2025 Within One Year Bonds
General Obligation Bonds Series 2002 $ 257,055 4,472,464 $ (1) $ 4,039,519 (690,000) $ 725,000 $ 2019 Civic Center Project Lease Revenue Refunding Bonds 25,750,000 (1,475,000) - 24,275,000 1,550,000 Bond Premium 3,989,197 - (249,325) 3,739,872 -
Private Placement Bonds
2015 Lease Financing 7,820,000 - (545,000) 7,275,000 560,000 Direct Purchase Bonds
Capital Improvement Revenue Refunding Bonds Series 2021 A & B 11,366,927 (1,557,891) - 9,809,036 1,581,671 Total Bonds 53,398,588 257,055 (4,517,216) 49,138,427 4,416,671 Notes Payable
Successor Agency Payment Plan 2,504,276 (1,679,948) - 824,328 824,328 Total Notes Payable 2,504,276 (1,679,948) - 824,328 824,328 Other
Net OPEB Liability 24,360,634 1,436,635 (2,646,508) (2) - 23,150,761 Net Pension Liability 43,023,325 5,780,085 (8,296,803) (2) - 40,506,607 Accumulated Compensated Absences 5,080,661 - (265,862) (3) 4,011,795 4,814,799 Subscription Liabilities
Public Safety - 885,208 (205,561) 679,647 215,716
Computerized Maintenance Management System 294,507 - (61,270) 233,237 51,280 Total Other 7,511,227 73,349,828 (11,476,004) 69,385,051 4,278,791 Total Governmental Activities Long-Term Obligations $ 7,768,282 129,252,692 $ (17,673,168) $ 119,347,806 $ 9,519,790 $ (1) Accreted Interest
(3) Net Change
(2) OPEB Liability and Pension Liability are typically liquidated by the General Fund, Citywide Park Assessment District Fund, Fleet Maintenance Fund, Facilities Maintenance Fund and Information Systems Fund
82 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #6 – LONG-TERM OBLIGATIONS (Continued)
i. Bonds
General Obligation Bonds Series 2002
On February 28, 2002, the City issued $5,999,976 in General Obligation Bonds Series 2002 to finance the construction, acquisition and improvement of a new police station. Total annual debt service payments, including interest at 3.625% to 5.68%, range from $208,666 to $925,000. The General Obligation Bonds Series 2002 shall accrete in value by the accumulation of earned interest from its initial denominational (principal) amount with such interest compounded semiannually on January 1 and July 1.

2019 Civic Center Project Lease Revenue Refunding Bonds On April 2, 2019, the Authority issued $32,210,000 in Civic Center Project Lease Revenue Refunding Bonds, Series 2019, to refinance the 2009 Civic Center Project Lease Revenue Bonds. The City’s Civic Center is pledged as collateral for this debt issuance. Annual debt service payments, including interest at 4.00% to 5.00%, range from $852,800 to $2,715,650. The refunding resulted in overall debt service savings of $17,856,031. The net present value of the debt service savings is called an economic gain and amounted to $8,988,082. If an event of default occurs, as defined in the indenture of trust, the bond trustee, or not less than a majority of owners of the bonds outstanding at that time, are entitled to declare the principal and accrued interest for all bonds outstanding to be due and payable immediately.

The 2009 Civic Center Project Lease Revenue Bonds were issued to finance the construction of a new city hall, community center and senior center, plus library improvements and other public capital improvements.

The Civic Center Project Lease Revenue Refunding Bonds, Series 2019, are secured by a lien on, and pledge of, revenues under a Trust Agreement. “Revenues” means all amounts received by the Trustee, U.S. Bank, as payment on principal and interest. The City’s revenue sources, as described in the Official Statement, are pledged payments from the Brentwood Redevelopment Agency (now Successor Agency) pursuant to the reimbursement agreement, pledged payments from the Community Facilities Districts (CFD) local obligations and pledged payments from the CIFP revenues.

Year Ending
June 30 Principal Total
2026 725,000 $ 725,000 $
2027 760,000 760,000
2028 800,000 800,000
2029 840,000 840,000
2030 880,000 880,000
2031 925,000 925,000
Subtotal 4,930,000 4,930,000 $
Future Accretion (890,481)
Total $ 4,039,519
83 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #6 – LONG-TERM OBLIGATIONS (Continued)
As mentioned previously, the Successor Agency to the Brentwood Redevelopment Agency has pledged future tax revenues for the repayment of a portion of the bonds. Following the dissolution of the Brentwood Redevelopment Agency, the Successor Agency is allocated funds for payment of obligations listed on the Successor Agency’s ROPS and approved by the DOF. As of June 30, 2025, the Successor Agency listed this debt obligation on its ROPS and the DOF has approved its inclusion for each applicable ROPS period through June 30, 2026.

The City has recorded a receivable for the debt obligations of the Successor Agency, as detailed in Note #4, and the Successor Agency has recorded a liability for these obligations, as discussed in Note #13. However, should these revenue sources not be sufficient to cover the principal and interest payments due in any year, the City is obligated, under the facilities lease, to pay the shortfall from the General Fund.

ii. Private Placement and Direct Purchase
2015 Lease Financing
On December 17, 2015, the Authority issued $11,515,000 in a private placement with Capital One Public Funding, LLC to finance the acquisition and construction of a new Library and a Municipal Service Center, along with other public capital improvements. The City’s Police Department building is pledged as collateral for this debt issuance. Annual debt service payments, including interest at 3.25%, range from $108,113 to $792,031.

Year Ending
June 30 Principal Interest Total
2026 1,550,000 $ 1,116,650 $ 2,666,650 $
2027 1,630,000 1,037,150 2,667,150
2028 1,715,000 953,525 2,668,525
2029 1,805,000 865,525 2,670,525
2030 1,890,000 773,150 2,663,150
2031-2035 8,315,000 2,567,125 10,882,125
2036-2040 7,370,000 692,875 8,062,875
Total $ 8,006,000 24,275,000 $ 32,281,000 $
Year Ending
June 30 Principal Interest Total
2026 $ 227,338 560,000 $ 787,338 $
2027 208,813 580,000 788,813
2028 189,638 600,000 789,638
2029 169,894 615,000 784,894
2030 149,581 635,000 784,581
2031-2035 418,031 3,515,000 3,933,031
2036 12,512 770,000 782,512
Total $ 1,375,807 7,275,000 $ 8,650,807 $
84 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #6 – LONG-TERM OBLIGATIONS (Continued)
Capital Improvement Revenue Refunding Bonds Series 2021 A & B On November 2, 2021, the Authority issued $14,450,491 in Capital Improvement Revenue Refunding Bonds Series 2021A (tax exempt) and 2021B (taxable) in a direct purchase with City National Bank to finance the refunding of the 2012 Capital Improvement Revenue Refunding Bonds. The refunded 2012 bonds were issued to: 1) finance the refund of the 2001 CIP Bonds under a facilities lease and 2) refund a series of tax allocation bonds issued by the Brentwood Redevelopment Agency. The Brentwood Family Aquatic Complex is pledged as collateral for the 2021 bonds and the interest rates on these bonds range from 0.63% to 1.35%. The refunding resulted in overall debt service savings of $2,661,492 and an economic gain of $2,470,903, the difference between the present value of the old and new debt service payments.

The Successor Agency to the Brentwood Redevelopment Agency has pledged future tax revenues for the repayment of a portion of the bonds. The Successor Agency pledge of future tax revenues was not affected by the refunding of the 2012 Capital Improvement Revenue Refunding Bonds. Following the dissolution of the Brentwood Redevelopment Agency, the Successor Agency is allocated funds for payment of obligations listed on the Successor Agency’s ROPS and approved by the DOF. This pledge ends upon repayment of the Successor Agency’s $9,447,625 remaining share of debt service on the bonds, as of June 30, 2025, which is scheduled to occur in 2032. For FY 2024/25, gross tax revenue available to be distributed to the Successor Agency totaled $10,923,183, which represented coverage of 8.08 times $1,352,000 of the Successor Agency’s debt service. The remaining portion of the bonds is repayable from any source of the City’s available funds and will primarily be funded from the Roadway Development Impact Fee Fund and prior bond refinance savings.

iii. Notes Payable
Successor Agency Payment Plan
In an effort to balance its budget, the State of California adopted ABx1 26 on June 28, 2011, amended by Assembly Bill 1484 (AB 1484) on June 27, 2012. This legislation suspended all new redevelopment activities and dissolved redevelopment agencies as of February 1, 2012. The City of Brentwood elected to become the Successor Agency to the former Brentwood Redevelopment Agency on January 10, 2012.

Year Ending
June 30 Principal Interest Total
2026 $ 121,746 1,581,671 $ 1,703,417 $
2027 100,207 1,609,209 1,709,416
2028 80,645 1,288,904 1,369,549
2029 63,121 1,307,305 1,370,426
2030 45,365 1,323,203 1,368,568
2031-2032 36,538 2,698,744 2,735,282
Total $ 447,622 9,809,036 $ 10,256,658 $
85 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #6 – LONG-TERM OBLIGATIONS (Continued)
Section 34179.5 of AB 1484 required all successor agencies to hire a licensed accountant, approved by the County Auditor-Controller, to conduct two Due Diligence Reviews (DDRs) to determine the balances available to be redistributed to other taxing entities. The two DDRs were focused on 1) the Low and Moderate Income Housing Fund, and 2) Other Funds and Accounts.

The Low and Moderate Income Housing Fund DDR determined that an unobligated balance of $4,072,553 was available for redistribution and the Successor Agency remitted this amount to the Contra Costa County Auditor Controller in February 2013. The Other Funds and Accounts DDR determined that the unobligated balance was $0, and the Successor Agency filed the DDR report with the DOF. The DOF, during their review of the DDR, determined that transfers made pursuant to pre-existing contracts and construction commitments were invalid and adjusted the DDR accordingly, issuing a DDR demand of $14,955,931.

In response to the $14,955,931 DDR demand, the City and Successor Agency filed suit against the DOF claiming, among other things, that 1) the DOF’s DDR determination violated Proposition 22, which added Article XIII, Sections 24(b) and 25(a)(7) to the California Constitution and prohibits the Legislature from reallocating tax increment; 2) at the time the transfers were made by the former Redevelopment Agency the transfers were legally valid and made pursuant to enforceable obligations and third party contracts; 3) the transfers were for the payment of goods and services which were broadly exempted from reversal as defined in California Health and Safety Code Section 34179.5(b)(3); and 4) the DOF’s enforcement of its final determination was unconstitutional. The City and Successor Agency’s legal challenge was ultimately unsuccessful and legal remedies were exhausted when the California Supreme Court declined to hear the case on September 16, 2015.

On December 9, 2015, the City, as Successor Agency, entered into a ten-year interest free payment plan with the DOF for the City to pay the DDR demand of $14,955,931. The annual payments range from $357,796 to $1,826,938.

iv. Net OPEB Liability and Net Pension Liability
Individual governmental funds that provide for employee personnel costs, primarily the General Fund, will be responsible for liquidating their respective shares of the Net OPEB Liability and Net Pension Liability. Details regarding the City’s Net OPEB Liability and Net Pension Liability can be found in Note #9 and Note #10, respectively.
v. Accumulated Compensated Absences
The long-term compensated absences balances as of June 30, 2025 were:

Governmental $803,004
Business-Type $194,140
Year Ending
June 30 Principal Interest Total
2026 824,328 $ - $ 824,328 $
Total $ - 824,328 $ 824,328 $
86 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #6 – LONG-TERM OBLIGATIONS (Continued)
vi. Subscription Liability
In December 2023, the City entered into a five-year SBITA for the use of cloud services related to body-worn cameras, tasers, fleet video systems, interview room video, unmanned aircraft systems (drones), and digital evidence storage. An initial subscription liability was recorded in the amount of $1,134,501 during FY 2023/24. As of June 30, 2025, the balance of the subscription liability was $679,647 and interest payable was $13,794. The City is required to make annual principal and interest payments of $249,294. The software has a five-year estimated useful life. The value of the right-to-use asset as of the end of the current fiscal year was $1,134,501 and had accumulated amortization of $340,350.

In April 2025, the City entered into a five-year SBITA for the use of cloud services related to computerized maintenance management systems. An initial subscription liability was recorded in the amount of $294,507 during the current fiscal year. As of June 30, 2025, the balance of the subscription liability was $233,237 and interest payable was $1,931. The City is required to make annual principal and interest payments ranging from $61,270 to $68,959. The software has a fiveyear estimated useful life. The value of the right-to-use asset as of the end of the current fiscal year was $294,507 and had accumulated amortization of $14,725.

The future principal and interest subscription liability payments as of June 30, 2025, are as follows:

B. BUSINESS-TYPE ACTIVITIES
Year Ending
June 30 Principal Interest Total
2026 266,996 $ 45,406 $ 312,402 $
2027 282,148 32,147 314,295
2028 298,109 18,135 316,244
2029 65,631 3,328 68,959
Total $ 99,016 912,884 $ 1,011,900 $
Balance
July 1, 2024 Payments Balance Amounts Due
(as adjusted) Additions Adjustments June 30, 2025 Within One Year Bonds
Water Revenue Refunding Bonds Series 2014 $ 30,325,000 $ (30,325,000) - $ $ - $ - Water Revenue Refunding Bonds Series 2024 26,855,000 - (2,270,000) 24,585,000 1,980,000 Net Bond Premium 3,529,294 4,266,691 (3,749,324) 4,046,661 - Total Bonds 33,854,294 31,121,691 (36,344,324) 28,631,661 1,980,000 Notes Payable (Direct Placement)
State Water Resources Loan (Recycled Water Projects) 13,959,450 - (434,480) 13,524,970 438,825 State Water Resources Loan (WWTP Expansion Ph. II) 47,684,388 5,634,906 - 53,319,294 - Total Notes Payable 61,643,838 5,634,906 (434,480) 66,844,264 438,825 Other
Net OPEB Liability 9,480,434 531,897 (895,393) 9,116,938 - Net Pension Liability 10,752,869 2,447,377 (2,260,611) 10,939,635 - Accumulated Compensated Absences 1,345,794 1,927 (1) 1,347,721 - 1,153,581 Total Other 2,981,201 21,579,097 (3,156,004) 21,404,294 1,153,581 Total Business-Type Activities Long-Term Obligations $ 39,737,798 117,077,229 $ (39,934,808) $ 116,880,219 $ 3,572,406 $ (1) Net change
87 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #6 – LONG-TERM OBLIGATIONS (Continued)
i. Bonds
Water Revenue Refunding Bonds Series 2014
On December 4, 2014, the Authority issued $42,810,000 in Water Revenue Refunding Bonds Series 2014 (“2014 Water Bonds”) to 1) refund a portion of the Authority’s Water Revenue Bonds Series 2008 and 2) pay costs of issuance incurred in connection with the issuance, sale and delivery of the 2014 Water Bonds. On October 2, 2024, the Authority issued Water Revenue Refunding Bonds Series 2024 (see below) which refunded and defeased the outstanding 2014 Water Bonds maturing after July 1, 2024 in the aggregate principal amount of $30,325,000. The 2014 Water Bonds were called on January 13, 2025.

Water Revenue Refunding Bonds Series 2024
On October 2, 2024, the Authority issued $26,855,000 in Water Revenue Refunding Bonds Series 2024 (“2024 Water Bonds”) to 1) refund all of the Authority’s outstanding Water Revenue Refunding Bonds Series 2014 and 2) pay costs of issuance incurred in connection with the issuance, sale and delivery of the 2024 Water Bonds. The refunding reduced the total debt service payments over 14 years by $4,185,085 and resulted in an economic gain (difference between the present values of the debt service payments on the old and new debt) of $3,546,868. Total annual debt service payments, including interest at a rate of 5%, range from $2,546,250 to $3,221,115. If an event of default occurs, as defined in the indenture of trust, the bond trustee, or not less than a majority of owners of the bonds outstanding at that time, are entitled to declare the principal and accrued interest for all bonds outstanding to be due and payable immediately. Future payments for these bonds are as follows:

The Authority has pledged future, water customer revenues, net of specified operating expenses, through 2038 to repay the 2024 Water Bonds. The bond coverage requirement is 1) the Adjusted Annual Net Water Revenues equal to at least 125% of the annual principal and interest payments on the bonds and 2) the Net Operating Revenues equal at least 100% of all parity obligations secured by Net Water Revenues. Adjusted Annual Net Water Revenues is defined as Water income and revenue less maintenance and operation costs adjusted by certain non-cash adjustments and any transfers to or from the Rate Stabilization Fund. Net Operating Revenues is defined as the Adjusted Annual Net Water Revenues less net impact fees and credits received. In FY 2024/25, the Water Fund’s principal and interest paid was $3,221,115, Net Operating Revenues were $9,232,518 and Adjusted Annual Net Water Revenues were $11,149,909 meeting bond covenant debt-coverage requirements.

Year Ending
June 30 Principal Interest Total
2026 1,980,000 $ 1,229,250 $ 3,209,250 $
2027 1,420,000 1,130,250 2,550,250
2028 1,495,000 1,059,250 2,554,250
2029 1,570,000 984,500 2,554,500
2030 1,645,000 906,000 2,551,000
2031-2035 9,535,000 3,211,750 12,746,750
2036-2038 6,940,000 705,250 7,645,250
Total $ 24,585,000 $ 9,226,250 $ 33,811,250
88 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #6 – LONG-TERM OBLIGATIONS (Continued)
ii. Notes Payable (Direct Placement) and Other
State Water Resources Loan (Recycled Water Projects)
In July 2017, the City entered into a loan and grant agreement with the State of California’s State Water Resources Control Board for a not-to-exceed amount of $20,802,000 to fund the City’s Water Recycling Projects, which consists of two City projects: the Non-Potable Storage Facility, and Citywide Non-Potable Water Distribution System. Project financing consists of a State Revolving Fund loan and grant funding in the amounts of $14,596,500 and $6,205,500, respectively.

Certain terms of the agreement were amended in September 2018, under which the City was to start construction no later than June 25, 2018, and amended again in March 2021, under which the construction was to be completed by June 30, 2022 and final disbursement request completed by December 30, 2022. Construction on the project began December, 2017 and final disbursements were received during FY 2022/23. The loan bears annual interest of 1.0%, which begins accruing with each financing disbursement. During FY 2022/23 accrued construction period interest, in the amount of $235,434, was recorded as principal, resulting in total principal due to the State of $14,831,934. Upon violation of any material provision of the loan agreement, the State Water Resources Control Board has the option to demand immediate repayment of the current loan balance plus accrued interest and penalties. As of June 30, 2025, the City’s gross repayment obligation was $13,524,970. During FY 2024/25, the Wastewater Fund’s principal and interest paid on this loan was $574,075.

State Water Resources Loan (Wastewater Treatment Plant Expansion – Phase II Project) In December 2019, the City entered into a loan agreement with the State of California’s State Water Resources Control Board for a not-to-exceed amount of $65,102,000 to fund the City’s Wastewater Treatment Plant Expansion – Phase II Project. Project financing will consist of a State Revolving Fund loan of a not-to-exceed amount of $61,246,000 and a principal forgiveness component of $3,856,000. Construction on the project began in September 2020. Certain terms of the agreement were amended in April 2021 and in November 2024, under which the City is to have construction completed by December 31, 2025. The loan bears annual interest of 1.3%, which begins accruing with each financing disbursement. Beginning one year after completion of construction, repayment

Year Ending
June 30 Principal Interest Total
2026 $ 438,825 $ 135,250 $ 574,075
2027 443,213 130,862 574,075
2028 447,645 126,430 574,075
2029 452,122 121,953 574,075
2030 456,643 117,432 574,075
2031-2035 2,352,631 517,741 2,870,372
2036-2040 2,472,639 397,734 2,870,373
2041-2045 2,598,768 271,604 2,870,372
2046-2050 2,731,331 139,040 2,870,371
2051-2052 1,131,153 16,996 1,148,149
Total $ 13,524,970 $ 1,975,042 $ 15,500,012
89 2024/25 Annual Comprehensive Financial Report

Notes to the Basic Financial Statements
NOTE #6 – LONG-TERM OBLIGATIONS (Continued)
of the loan principal plus interest will be made annually according to the final payment schedule provided by the state. Upon violation of any material provision of the loan agreement, the State Water Resources Control Board has the option to demand immediate repayment of the current loan balance plus accrued interest and penalties. However, the City may not prepay any portion of the principal or interest due under the loan agreement without written consent of the Deputy Director of the State Water Resources Control Board.

As of June 30, 2025, the City has incurred $55,654,611 of eligible project costs and financing disbursement requests have been submitted to the State. Through June 30, 2025 accrued construction period interest, in the amount of $1,520,683, was recorded as principal, resulting in total principal due to the State of $57,175,294. Of this amount, $3,856,000 was allocated by the State as loan forgiveness in FY 2020/21, and the net amount of the note payable is $53,319,294.

NOTE #7 – SPECIAL ASSESSMENT DISTRICTS (No City Liability) The following issues of Special Assessment District Bonds, issued pursuant to the Municipal Improvement Act of 1915, are not reported in long-term debt. These are special obligations payable from, and secured by, specific revenue sources described in the bond resolutions and official statements of the respective issues. The City is the collecting and paying agent for the debt issued by these districts, but neither the faith and credit nor the taxing power of the City, the State of California or any political subdivision thereof is pledged for the payment of these bonds. Debt service for the special assessment district bonds is reported in the Custodial funds of the Fiduciary funds section.

Special Assessment District Bonds
Assessment
District Debt
$ 520,000
$ 4,915,000
$ 36,860,000
$ 24,185,000
Total Assessment District Debt $ 66,480,000
City of Brentwood - Limited Obligation Improvement Bonds, Randy Way Sewer Line • Dated August 7, 2007
• Annual debt service payments, including interest at 3.95 % to 5.20 %, range from $53,123 to $58,060 • Final payment due September 2037
Brentwood Infrastructure Financing Authority - Infrastructure Revenue Refunding Bonds, Series 2012 A (Refinancing of CIFP's 96-1, 98-1 and 99-1)
• Dated June 7, 2012
• Annual debt service payments, including interest at 2.00 % to 4.23 %, range from $572,000 to $2,530,569. • Final payment due September 2029
Brentwood Infrastructure Financing Authority - Infrastructure Revenue Refunding Bonds, Series 2014 A&B (Refinancing of CIFP's 94-1, 2000-1, 2005-1 and 2006-1) • Dated September 24, 2014
• Annual debt service payments, including interest at 2.00 % to 5.00 %, range from $1,081,500 to $6,417,040 • Final payment due September 2036
Brentwood Infrastructure Financing Authority - Infrastructure Revenue Refunding Bonds, Series 2018A (Refinancing of CIFP's 2002-1, 2003-1 and 2004-1)
• Dated February 6, 2018
• Annual debt service payments, including interest at 2.19 % to 4.15 %, range from $1,228,923 to $3,271,266 • Final payment due September 2034
90 2024/25 Annual Comprehensive Financial Report