Agenda — Chowchilla City Council, April 28, 2026

AGENDA
City Council Meeting Council Chamber, Chowchilla City Hall 130 S. 2nd Street, Chowchilla, CA 93610
Tuesday, April 28, 2026
Open Session: 4:00 p.m.

Agendas for all City Council meetings are posted at least 72 hours prior to the meeting in the kiosk just outside of City Hall, 130 S. Second St., Chowchilla, CA 93610.

The City of Chowchilla complies with the Americans with Disabilities Act (ADA of 1990). The Council Chambers is accessible to the physically disabled. If you need special assistance, please call (559) 665- 8615, ext. 102, at least four days prior to a regular meeting and one day for a special meeting.

California Levine Act Statement:

California Government Code Section 84308, commonly referred to as the "Levine Act," prohibits any Chowchilla City Council Member from participating in any action related to a license, permit, contract, or entitlement for use application if he or she receives any political contributions totaling more than $500 within the previous twelve months, and for twelve months following the date of a final decision, from the business/board or applicant.

The Levine Act also requires a member of the Chowchilla City Council who has received such a contribution to disclose the contribution on the record of the proceeding.

CALL TO ORDER/ROLL CALL
Mayor: Kelly Smith
Mayor Pro Tem: Ray Barragan
Council Members: Waseem Ahmed, John Chavez, Jeff Troost City staff and contract employees present will be recorded in the minutes.

CONSIDERATION OF APPROVAL OF AGENDA Additions and/or Deletions:

OPEN SESSION – 4:00 PM

PLEDGE OF ALLEGIANCE
INVOCATION:

PRESENTATIONS/WORKSHOP - Section 1
• Proclamation: National Public Works Week

PUBLIC ADDRESS
This time is reserved for members of the audience to address the City Council on items of interest that are not on the agenda and that are within the subject matter jurisdiction of the Council.

It is recommended that speakers limit their comments to no more than 3 minutes each, and it is requested that no comments be made during this period on items on the Agenda. Speakers are not allowed to cede their public comment time.

Members of the public who are joining the meeting via Zoom and would like to address the Council on items on the agenda should follow the policy on page 4 of this agenda packet.

City Council Meeting AGENDA April 28, 2026
The Council is prohibited by law from taking any action on matters discussed that are not on the agenda.

No adverse conclusions should be drawn if the Council does not respond to public comment at this time.

COUNCIL AND STAFF VERBAL REPORTS – Section 2

2.1 COUNCIL VERBAL REPORTS
Legislative, Collaborative Agency, Ad Hoc

2.2 STAFF VERBAL REPORTS
CONSENT CALENDAR – Section 3
All items listed under Consent Calendar are considered to be routine and will be enacted by one motion.

For discussion of any Consent Item, it will be made a part of the Regular Agenda at the request of any member of the City Council or any person in the audience.

3.1 Approval of the April 14, 2026 Regular City Council Meeting Minutes (McClendon)

3.2 Consideration and Acceptance of the March 2026 Financial Report (McClendon)

3.3 Second Reading and Adoption of an Ordinance Amending Section 4.04.360 of the Chowchilla Municipal Code Related to Bid Protest Procedures (Pruett)

3.4 Consideration and Adoption of a City Council Resolution Approving Amendments to the City of Chowchilla Procurement Policy Related to Bid Protest Procedures (Pruett)

3.5 Consideration and Adoption of a City Council Resolution Designating Eligible Projects for Fiscal Year 2026-27 Funded by SB 1: The Road Repair and Accountability Act of 2017 (Roman)

3.6 Consideration and Adoption of a City Council Resolution Renewing Ordinance #509- 22, Chowchilla Police Department Policy No. 705, and the 2025 Annual Military Equipment Report (Palmer)

3.7 Informational Item – Quarterly Project Management Update (McClendon)

3.8 Consideration and Acceptance of the Quarterly Fee Waiver Report (Seeto)

3.9 Consideration and Acceptance of the Quarterly Contracts Executed Report (Pruett)

3.10 Consideration and Acceptance of the Quarterly Financial Investment Report (Seeto) PUBLIC HEARINGS – Section 4

4.1 Consideration and Adoption of a City Council Resolution Approving the Measure T Annual Expenditure Plan (AEP) for Fiscal Year 2026/27 and Authorizing the Public Works Director or Designee to Submit the Plan to the Madera County Transportation Authority (MCTA) for Adoption (Roman)
DEFERRED BUSINESS – Section 5
NEW BUSINESS – Section 6

6.1 Presentation of the City’s Fiscal Year 2024-2025 Financial Statement Audit (Seeto) City Council Meeting AGENDA April 28, 2026

6.2 Consideration and Adoption of a City Council Resolution Awarding Contract for the Road 15 ½ Rehabilitation Project to Hensley’s Paving and General Engineering and Authorizing the City Administrator or Designee to Execute Related Documents (Roman)
ANNOUNCEMENTS – Section 7
MAY 12 CITY COUNCIL MEETING, COUNCIL CHAMBERS, 4PM
MAY 7-10 CHOWCHILLA FAIR, MADERA-CHOWCHILLA FAIRGROUNDS MAY 9 SPRING FESTIVAL PARADE

ADJOURNMENT
I, Joann McClendon, CMC, City Clerk, do hereby declare under penalty of perjury that the foregoing agenda was posted at Chowchilla City Hall, 130 S 2nd Street, Chowchilla, CA, and made available for public review on this 24th day of April, 2026 at or before 4:00 pm.

April 28, 2026 City Council Meeting | 4:00pm Open Session

ZOOM LOGIN INSTRUCTIONS
Use the following URL to start Zoom:
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Passcode: 365 585
To participate by phone:

Dial 1-669-444-9171
Webinar ID: 873 4494 8065
Passcode: 365 585
Staff highly recommends that participants log into Zoom 15 minutes before the meeting begins to perform an audio check and ensure they have an optimal internet connection.

Options to participate / view / listen to the meeting:
• If you wish to speak on an item using the Zoom platform on your computer/laptop or smartphone, please use the “raise hand” icon, and you will be unmuted when it is your turn to speak. Please provide your name when unmuted. You can address the Council for up to 3 minutes. • If you are calling into the meeting only (no camera/video) and wish to comment, press *9 to “raise your hand” and *6 to unmute yourself.

Item 3.1

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TO RETURN TO

THE AGENDA

MINUTES
City Council Meeting Council Chamber, Chowchilla City Hall 130 S. 2nd Street, Chowchilla, CA 93610
Tuesday, April 14, 2026
Open Session: 4:00 p.m.

CALL TO ORDER/ROLL CALL
Mayor: Kelly Smith
Mayor Pro Tem: Ray Barragan
Council Members: Waseem Ahmed (ABSENT), John Chavez, Jeff Troost City staff and contract employees present: City Administrator Rod Pruett, City Attorney Michael Prentice, Police Chief Jeff Palmer, Fire Chief Fred Gaumnitz, Public Works Director Dustin Ensminger, Community & Economic Development Director Denise Munoz, Finance Director Daniel Seeto, Director of Recreation & Community Engagement Stacy Wisener, IT System Administrator Carlos Berrocal, Kurt Wlodarczyk, Deputy City Clerk Vanessa GalvezEscobar CONSIDERATION OF APPROVAL OF AGENDA Additions and/or Deletions: None.

OPEN SESSION – 4:00 PM

PLEDGE OF ALLEGIANCE
INVOCATION: Pastor Pruitt
PRESENTATIONS/WORKSHOP - Section 1
• Proclamation: Child Abuse Prevention Month
Jennifer Coronado, Program Manager for Victim Services, thanked the Council for recognizing Child Abuse Prevention Month and highlighted the importance of prevention education. She announced a Child Abuse Prevention Conference on April 30 in Madera and shared local data from the Child Advocacy Center, emphasizing that most perpetrators are known to the child. She encouraged community awareness and participation.

PUBLIC ADDRESS
Vanessa Saldaña Lopez, a UC Merced student, presented a proposed community project focused on park cleanup in Chowchilla. As part of her environmental science studies and honors program, she plans to organize biweekly cleanups beginning around July, engaging student volunteers and local youth. The project will include providing supplies and potentially recycling collected cans to support the local soccer league. Staff recommended coordination with Public Works for supplies and trash collection.

COUNCIL AND STAFF VERBAL REPORTS – Section 2

2.1 COUNCIL VERBAL REPORTS
Legislative, Collaborative Agency, Ad Hoc
Council Member Chavez reported since the last meeting he attended the ICSC in Monterey and the CAPMC meeting.

City Council Meeting MINUTES April 14, 2026
Council Member Troost reported that on April 7, he attended the regular monthly meeting at the Citizens Advisory Committee at the Valley Air Board and the Fair and K-9 Dinner.

Mayor Pro Temp Barragan reported that he also attended the Fair dinner and the K-9 dinner.

Mayor Smith reported that he also attended both dinners, Fair and K-9, and the Task Force meeting.

2.2 STAFF VERBAL REPORTS
Police Chief Palmer reported that since the last meeting, Chowchilla PD responded to 1,217 calls for service, conducting 502 proactive stops, resulting in 25 misdemeanor and 10 felony arrests.

A total of 24 citations were issued, along with 45 additional calls for service and 7 other enforcement actions. Staff also reported on the success of the K9 Dinner, noting it was the highest event attended to date. Appreciation was expressed to Sergeant Burnett for his work in organizing the event. Thanks were given to all donors, including Golden Memorial Insurance and Mr. Ray Barragan for a $50,000 contribution to the K9 program. Funds will support the replacement of retiring K9s, related equipment, and training for both dogs and handlers.

Fire Chief Gaumnitz reported that for the month of March, there were 125 calls for service and 561 individual volunteer responses. Incidents included 7 fires, 2 hazard situations, 91 medical calls (27 trauma-related), 12 public service requests, 1 rescue, and 1 law enforcement support response. Staff also met with American Ambulance to discuss coordination and strengthening working relationships moving forward. Positive feedback was noted regarding their service and its impact on the community. Additionally, one new volunteer is in the background process, and the department’s last full-time position is also currently in background.

Public Works Director Ensminger reported that Well 15 was recently brought online with potable drinking water now being supplied to the community. This represents a significant milestone following a long-term project involving multiple regulatory and construction challenges.

Community & Economic Development Director Munoz reported attending the Madera County Fair kickoff dinner. The Community Development Department continues to process permits and planning applications and is actively working with developers, property owners, real estate agents, and business owners to support project acceleration, business retention, and new investment.

Notable updates include Tyler Palmer Construction opening at 107 N. Front St., Suite C on April 6, and Counce Center Fuels anticipated to open at 240 E. Robertson Blvd. around May 1.

Director of Recreation & Community Engagement Wisener reported the City launched its community budget survey and continues outreach efforts for the upcoming fiscal year. A new community event, Community Paint Night, is scheduled for April 24. Staff also implemented new software to support ADA Title II website and form accessibility compliance and is in the planning stages of a new project tracking system to improve interdepartmental coordination. IT staff continue addressing infrastructure and system reliability issues, including network troubleshooting, system updates, and support for wastewater treatment plant operations.

Additional improvements were made with the installation of a new wide-angle camera at City Hall to enhance security coverage.

City Administrator Pruett reported attending the Fair dinner and K9 dinner. Updates were provided on ongoing regional coordination efforts, including meetings with Caltrans regarding the roundabout project, right-of-way acquisition, and environmental clearance related to parcel contamination. Continued work on grant applications for the project, including federal funding opportunities, as well as participation in regional coordination meetings with county and economic development partners. Additional updates included CFD bond planning discussions, fair City Council Meeting MINUTES April 14, 2026
consolidation project coordination, and ongoing permitting efforts with Caltrans, Union Pacific, and the Army Corps of Engineers in preparation for future bid advertisements.

CONSENT CALENDAR – Section 3

3.1 Approval of the March 26, 2026 Goal Setting Meeting Minutes (McClendon)

3.2 Approval of the March 26, 2026 Special City Council Meeting Minutes (McClendon)

3.3 Consideration and Acceptance of the March 2026 Check Register Report (Seeto)

3.4 Consideration and Adoption of a City Council Resolution Approving the Mid-Year Budget Amendments for the Fiscal Year Ending June 30, 2026 (Seeto) Motion by Mayor Pro Tem Barragan, Seconded by Council Member Troost to Approve the Consent Calendar as Presented. Motion passed by roll call vote with Council Member Ahmed absent.

PUBLIC HEARINGS – Section 4

4.1 Introduction and First Reading of an Ordinance Amending Section 4.04.360 of the Chowchilla Municipal Code Related to Bid Protest Procedures (Pruett) The Mayor opened the public hearing at 4:29 p.m. No one spoke for or against the item. The Mayor closed the public hearing at 4:29 p.m.

Motion by Council Member Troost, Seconded by Mayor Pro Tem Barragan to Waive the First Reading of an Ordinance Amending Section 4.04.360 of the Chowchilla Municipal Code Related to Bid Protest Procedures. Motion passed with Council Member Ahmed absent.

DEFERRED BUSINESS – Section 5
NEW BUSINESS – Section 6

6.1 Second Reading and Adoption of an Ordinance Levying and Apportioning Special Taxes Within the City of Chowchilla Community Facilities District No. 2025-2 (Pruett) Motion by Mayor Smith, Seconded by Mayor Pro Tem Barragan to Approve Ordinance #537-26, Levying and Apportioning Special Taxes Within the City of Chowchilla Community Facilities District No. 2025-2. Motion passed with Council Member Ahmed absent.

6.2 Consideration and Adoption of a City Council Resolution Authorizing Allocation from the Council contingency Fund for the Coarsegold Rodeo Grounds Sponsorship Request (Wisener)
Motion by Mayor Pro Tem Barragan, Seconded by Council Member Troost to Approve City Council Resolution #14-26, Authorizing Allocation from the Council contingency Fund for the Coarsegold Rodeo Grounds Sponsorship Request. Motion passed with Council Member Ahmed absent.

6.3 Informational Item: Pavement Management Report Presentation (Ensminger) ANNOUNCEMENTS – Section 7
APR 15 PLANNING COMMISSION MEETING, COUNCIL CHAMBERS, 5PM City Council Meeting MINUTES April 14, 2026
APR 20 AIRPORT ADVISORY MEETING., COUNCIL CHAMBERS, 5PM APR 24 COMMUNITY PAINT NIGHT, SENIOR CENTER, 6PM
APR 28 CITY COUNCIL MEETING COUNCIL CHAMBERS, 4PM

ADJOURNMENT
Mayor Smith adjourned the meeting at 5:00p.m.

ATTEST: APPROVED:

Vanessa Galvez-Escobar, Deputy City Clerk Mayor Kelly Smith

REPORT TO THE CITY COUNCIL
Item 3.2

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TO RETURN TO

THE AGENDA
Meeting of: Tuesday, April 28, 2026
AGENDA SECTION: Consent
SUBJECT: Consideration of Monthly Financial Statements
PREPARED BY: Daniel Seeto, Finance Director
ATTACHMENTS: March 2026 Budget vs Actual and Balance Sheet

REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☒ RECOMMENDATION:

Approve the March 2026 Financial Statements shown in the attachment.

BACKGROUND:

Staff provides Council with monthly financial information as an ongoing financial status update.

REASON FOR RECOMMENDATION:

The monthly financial statements consist of a Budget vs Actual and a Balance Sheet for the General Fund.

The Budget vs Actual shows the current Month (Period Activity) and current Year (Fiscal Activity) Revenues and Expenses by Department in summary form compared to the current year Original and Current budgets. The Balance Sheet shows the Assets, Liabilities and Fund Balance at the time the report is generated. This provides an overview of cash, amounts owed to the City, amounts the City owes and the fund balance at a specific point in time.

The financial statements are being presented as an overview of the City’s finances and are not meant to be a comprehensive in-depth review. As a reference to compare to the percent remaining column in the report, the percentage of the year remaining 25.00%.

If the percent remaining column for Revenues is higher than the above-mentioned percentage, that is an unfavorable variance and should be explained if significant. If the percent remaining column for Expenses is lower than the above-mentioned percentage, that is an unfavorable variance and should be explained if significant.

If there are questions regarding the actual amounts or budget vs actual variances, please forward your questions to Finance with enough time before the meeting for staff to research them.

FISCAL IMPACT:

Revenues
General Administration- The City’s largest budgeted revenue sources are Property tax and VLF (50%), Sales Tax (25%), and overhead allocations (20%). Property tax and VLF are only received twice a year, typically in February and May. The first payment of $4,005,356 was received in January 2026. The City is teetered - which means we do not have to worry about delinquencies, because the County pays the City and then goes after the delinquencies themselves. Sales tax payments can lag a month or two behind. For the financial statements presented the sales tax payments reflect through January. The overhead allocations are amortized quarterly based on budget, then reconciled to actual at June 30.

Police Department- Budgeted revenue is from school reimbursements for SRO service, which we have received. Also, the budget has a $750k Transfer-in from Measure N for the RIMS Software, recruitment and retention of employees, communications upgrade, evidence storage and fleet/upfitting costs.

Fire Department- This revenue is for fines/penalties and fire inspection fees that are completed throughout the year.

Community & Economic Development- This will fluctuate as building permits are pulled. The City budgeted for the following projects like Rancho Calera, Solar Permits and various other projects within the City. The City still has other miscellaneous permits for other items that are happening as well.

Parks and Facilities- The revenues are for overhead allocations from the LLMD that happen at the end of the year.

Community Relations- Revenues are from sports program reimbursements, park pavilion rentals and donations.

Expenses
General Services- Actual expenses appear to be in-line with budgeted projections as a whole.

Police Department- Actual expenses appear to be in-line with budgeted projections as a whole.

Fire Department- Actual expenses appear to be in-line with budgeted projections as a whole.

Community Relations- Actual expenses appear to be in-line with budgeted projections as a whole.

ALTERNATIVES:

Pull the item for further discussion.

ACTIONS FOLLOWING APPROVAL:

None.
4/13/2026 3:23:34 PM Page 1 of 3
Budget Report
Chowchilla, CA Group Summary
For Fiscal: 2025-2026 Period Ending: 03/31/2026
Fiscal
Activity
Variance
Favorable
(Unfavorable)
Period
Activity Account Typ…
Current
Total Budget
Original
Total Budget
Percent
Remaining
Dept: 1600 - General Administration
Revenue 10,697,699.00 10,697,699.00 174,792.65 5,161,670.22 -5,536,028.78 51.75% Expense 427,896.00 427,896.00 4,730.10 47,081.67 380,814.33 89.00% Dept: 1600 - General Administration Surplus (Deficit): 10,269,803.00 10,269,803.00 170,062.55 5,114,588.55 -5,155,214.45 50.20% Dept: 1605 - City Council
Revenue 3,500.00 3,500.00 284.40 5,070.40 1,570.40 44.87% Expense 121,911.00 121,911.00 5,230.76 65,708.78 56,202.22 46.10% Dept: 1605 - City Council Surplus (Deficit): -118,411.00 -118,411.00 -4,946.36 -60,638.38 57,772.62 48.79% Dept: 1610 - City Clerk
Expense 291,900.00 291,900.00 23,240.03 252,420.58 39,479.42 13.52% Dept: 1610 - City Clerk Total: 291,900.00 291,900.00 23,240.03 252,420.58 39,479.42 13.52% Dept: 1615 - City Attorney
Expense 275,000.00 275,000.00 20,828.17 107,076.12 167,923.88 61.06% Dept: 1615 - City Attorney Total: 275,000.00 275,000.00 20,828.17 107,076.12 167,923.88 61.06% Dept: 1705 - General Services
Revenue 0.00 0.00 0.00 4,958.37 4,958.37 0.00%
Expense 2,247,814.00 2,343,984.00 57,280.66 1,639,313.41 704,670.59 30.06% Dept: 1705 - General Services Surplus (Deficit): -2,247,814.00 -2,343,984.00 -57,280.66 -1,634,355.04 709,628.96 30.27% Dept: 1710 - City Administration
Expense 456,703.00 456,703.00 29,656.09 290,508.52 166,194.48 36.39% Dept: 1710 - City Administration Total: 456,703.00 456,703.00 29,656.09 290,508.52 166,194.48 36.39% Dept: 1712 - City Property - Rents
Revenue 162,846.00 162,846.00 15,999.54 120,144.52 -42,701.48 26.22% Expense 53,445.00 53,445.00 10.52 25,976.80 27,468.20 51.40% Dept: 1712 - City Property - Rents Surplus (Deficit): 109,401.00 109,401.00 15,989.02 94,167.72 -15,233.28 13.92% Dept: 1720 - Finance Department
Revenue 8,200.00 8,200.00 839.00 4,229.00 -3,971.00 48.43% Expense 977,847.00 977,847.00 61,168.37 691,183.98 286,663.02 29.32% Dept: 1720 - Finance Department Surplus (Deficit): -969,647.00 -969,647.00 -60,329.37 -686,954.98 282,692.02 29.15% Dept: 2610 - Police Department
Revenue 1,049,432.00 1,208,326.00 11,576.58 469,918.97 -738,407.03 61.11% Expense 5,224,437.00 5,752,119.00 299,404.33 4,113,891.69 1,638,227.31 28.48% Dept: 2610 - Police Department Surplus (Deficit): -4,175,005.00 -4,543,793.00 -287,827.75 -3,643,972.72 899,820.28 19.80% Dept: 2615 - Police - Mad Net
Revenue 193,300.00 193,300.00 0.00 0.00 -193,300.00 100.00% Expense 303,692.00 303,692.00 7,983.97 33,670.99 270,021.01 88.91% Dept: 2615 - Police - Mad Net Surplus (Deficit): -110,392.00 -110,392.00 -7,983.97 -33,670.99 76,721.01 69.50% Dept: 2705 - Fire Department
Revenue 5,500.00 14,224.00 0.00 11,018.13 -3,205.87 22.54% Expense 517,716.00 528,798.00 18,930.15 344,238.00 184,560.00 34.90% Dept: 2705 - Fire Department Surplus (Deficit): -512,216.00 -514,574.00 -18,930.15 -333,219.87 181,354.13 35.24% Dept: 4705 - Community & Economic Development
Revenue 739,134.00 751,835.00 65,778.65 615,681.62 -136,153.38 18.11% Expense 1,180,198.00 1,182,899.00 46,902.16 699,963.57 482,935.43 40.83% Dept: 4705 - Community & Economic Development Surplus (Deficit): -441,064.00 -431,064.00 18,876.49 -84,281.95 346,782.05 80.45% Dept: 6610 - Community Pool (OLD)
Revenue 2,000.00 3,600.00 0.00 3,628.00 28.00 0.78%
Expense 24,956.00 24,956.00 0.00 16,291.14 8,664.86 34.72% Budget Report For Fiscal: 2025-2026 Period Ending: 03/31/2026 4/13/2026 3:23:34 PM Page 2 of 3
Fiscal
Activity
Variance
Favorable
(Unfavorable)
Period
Activity Account Typ…
Current
Total Budget
Original
Total Budget
Percent
Remaining
Dept: 6610 - Community Pool (OLD) Surplus (Deficit): -22,956.00 -21,356.00 0.00 -12,663.14 8,692.86 40.70% Dept: 6615 - Senior Services
Expense 47,902.00 50,902.00 752.75 28,836.02 22,065.98 43.35% Dept: 6615 - Senior Services Total: 47,902.00 50,902.00 752.75 28,836.02 22,065.98 43.35% Dept: 6620 - Parks & Facilities
Revenue 79,597.00 79,597.00 0.00 20,226.50 -59,370.50 74.59% Expense 1,337,779.00 1,423,863.00 56,576.01 630,390.42 793,472.58 55.73% Dept: 6620 - Parks & Facilities Surplus (Deficit): -1,258,182.00 -1,344,266.00 -56,576.01 -610,163.92 734,102.08 54.61% Dept: 6625 - Recreation & Community Engagement
Revenue 24,408.00 24,408.00 3,519.00 23,862.77 -545.23 2.23% Expense 276,435.00 296,275.00 15,215.36 229,056.50 67,218.50 22.69% Dept: 6625 - Recreation & Community Engagement Surplus (Deficit): -252,027.00 -271,867.00 -11,696.36 -205,193.73 66,673.27 24.52% Report Surplus (Deficit): -800,015.00 -1,364,655.00 -375,119.61 -2,775,199.69 -1,410,544.69 -103.36% Budget Report For Fiscal: 2025-2026 Period Ending: 03/31/2026 4/13/2026 3:23:34 PM Page 3 of 3
Fund Summary
Fiscal
Activity
Variance
Favorable
Fund (Unfavorable)
Period
Activity
Current
Total Budget
Original
Total Budget
100 - General Fund -800,015.00 -1,364,655.00 -375,119.61 -2,775,199.69 -1,410,544.69 Report Surplus (Deficit): -800,015.00 -1,364,655.00 -375,119.61 -2,775,199.69 -1,410,544.69 4/13/2026 3:25:55 PM Page 1 of 1
Balance Sheet
Chowchilla, CA Account Summary
As Of 03/31/2026
Account Name Balance
Fund: 100 - General Fund
Assets
100-0100-0201 Petty Cash 500.00
100-0100-0202 Pre-Paid Postage Account 1,586.78
100-0100-0206 Cash Drawer 1,700.00
100-0100-0219 Lease Receivable 48,839.58
100-0100-0224 A/R MODULE ONLY RECEIVALBLES 75,408.69
100-0100-0226 Advance to Other Funds 294,135.64
100-0100-0227 Liens Receivables General Fund 202,144.13 100-0100-0228 Pending Charges or Refunds 0.01
100-0100-0229 A/R Business License -28.00
100-0100-0230 Accounts Receivable-Utilities 30.00
100-0100-0244 Deposit for Sec. 125 1,278.90
100-0100-0291 Prepaid Expenses 18,316.89
100-0100-1900 Claim On Cash 9,735,770.56
Total Assets: 10,379,683.18 10,379,683.18
Liability
100-0200-0422 Bonds for Work-Refundable 1,000.00
100-0200-0426 Manual Payables 1,625.96
100-0200-0480 Deferred Revenue 157,935.77
100-0200-0482 Unavailable Lease Revenue 25,411.68
100-0200-2901 Accounts Payable Pending 106,201.47
Total Liability: 292,174.88
Equity
100-0300-0601 Fund Balance 11,651,134.66
100-0300-0604 Reserve for Contingencies 910,223.00
100-0300-0605 Designated for Prepaid Items 239.50
100-0300-0611 Reserve for L/T A/R 294,135.64
100-0300-0615 SB1186 6,975.19
Total Beginning Equity: 12,862,707.99
Total Revenue 6,440,408.50
Total Expense 9,215,608.19
Revenues Over/Under Expenses -2,775,199.69
Total Liabilities, Equity and Current Surplus (Deficit): 10,379,683.18 Total Equity and Current Surplus (Deficit): 10,087,508.30

REPORT TO THE CITY COUNCIL
Item 3.3

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TO RETURN TO

THE AGENDA
Meeting of: Tuesday, April 28, 2026
AGENDA SECTION: Consent
SUBJECT: Second Reading and Adoption of an Ordinance Amending Section 4.04.360 of the Chowchilla Municipal Code Related to Bid Protest Procedures.

PREPARED BY: Rod Pruett, City Administrator
ATTACHMENTS: Draft Ordinance

REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☒ RECOMMENDATION:

That the City Council waive the second reading and adopt an Ordinance amending Section 4.04.360 of the Chowchilla Municipal Code to establish updated rules and procedures for protests of publicly bid contracts.

BACKGROUND:

Section 4.04.360 of the Chowchilla Municipal Code allows a prospective bidder, offeror, or contractor, to submit a protest regarding the solicitation or award of a contract. However, as currently written, Section

4.04.360 does not provide procedures and rules related to the submission, routing, processing, resolution, or determination of such protests. The lack of detailed procedures can cause uncertainty for prospective bidders and City staff alike.

Additionally, Section 4.04.360 provides that a contract award is stayed upon the submission of a bid protest, “until all administrative and judicial remedies have been exhausted or until the city council makes a determination on the record that the award of a contract without delay is necessary to protect substantial interests of the city.” Staying a contract award upon receipt of a bid protest and until all potential administrative and judicial remedies are exhausted is not required by law and has the potential to cause significant delays in business conducted by the City.

The proposed ordinance would amend Section 4.04.360 to be consistent with other jurisdictions throughout the region and the state. The proposed ordinance would remove the stay provision and adopt a new procedure for the timely submission and processing of bid protests. These procedures include timelines by which an actual or prospective bidder may protest an invitation for bid or a contract award, payment of a non-refundable fee of $50.00 to cover administrative costs associated with processing the protest, and a requirement that protesting bidders attend the City Council meeting at which the contract award will be considered.

The proposed ordinance clarifies the City Administrator’s role in processing bid protests and making recommendations to the City Council. In accordance with existing law, the ordinance retains and clarifies that the City Council may, at its sole discretion, waive immaterial and inconsequential bid irregularities, accept or reject bids, or abandon a project.

REASON FOR RECOMMENDATION:

The current bid protest procedures in Section 4.04.360 include procedures that are not required by law and carry the potential to significantly disrupt the orderly conduct of the City’s business. Additionally, there are several ambiguities regarding the processing of bid protests. The proposed ordinance will remove unnecessary procedures and provide a clear and streamlined process for the submission and resolution of protests. This will provide clarity to actual or prospective bidders and improve the efficiency of the City’s contract award process. Finally, there are costs associated with the City’s internal processing of bid protests which will be alleviated in part by the requirement to pay a non-refundable fee when submitting a protest. This is also intended to deter frivolous protests.

FISCAL IMPACT:

Minimal. While it will provide a $50.00 non-refundable fee, that fee partially offsets the costs associated with processing a bid protest. Prior bid protest costs were absorbed by the City. This does not generate revenue or provide a source of funds. The number of bid protests is expected to remain small.

ALTERNATIVES:

1. Continue the item to a future meeting;

2. Direct staff to revise the ordinance and return to introduce the updated ordinance at a future meeting; or

3. Not approve the ordinance and leave the current bid protest procedures in place.

ACTIONS FOLLOWING APPROVAL:

Post the ordinance for 30-days; the ordinance will become effective thirty (30) days from the date of adoption.

ORDINANCE # 538-26

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA AMENDING SECTION 4.04.360 OF THE CHOWCHILLA MUNICIPAL CODE RELATED TO BID PROTEST

PROCEDURES

THE CITY COUNCIL OF THE CITY OF CHOWCHILLA DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. Section 4.04.360 (“Bid Protests”) of the City Municipal Code is hereby amended to read as follows:

4.04.360 Bid Protests.

A. Right to Protest.

Any actual or prospective bidder, offeror, or contractor (excluding subcontractors or others with a secondary interest) who is aggrieved in connection with the solicitation of a contract may protest to the City Council.

B. Procedure for Bid Protests.

1. A protest with respect to an invitation for bids shall be submitted to the City Administrator in writing no later than 5:00 p.m. on the closing date of bids.

2. A protest regarding the award of a contract must be submitted in writing, to the City Administrator, within five (5) calendar days after such aggrieved person, who submitted a timely bid, knows or should have known of the facts giving rise thereto.

3. The protestor is required to submit a non-refundable fee of $50 to cover the administrative cost of processing the protest.

4. The City Administrator or designee shall consider the grounds of a timely protest when making recommendations to the City Council regarding an invitation for bids or the award of a contract. Such recommendations are made at the sole and absolute discretion of the City Administrator or designee. The City Administrator or designee shall provide notice to a protestor regarding their recommendation to the City Council. Such notice shall be provided five (5) calendar days prior to the meeting of the City Council in which a contract subject to the protest is awarded. However, if a protestor does not receive notice of the City Administrator or designee’s recommendation prior to a meeting of the City Council in which a contract subject to their protest is awarded, it will not constitute a waiver of any requirements in this section.

5. If a protestor does not attend a meeting in which a contract subject to their protest is made, such protest shall be considered waived.

6. A copy of the protest and all supporting documents must be concurrently transmitted by fax or by email, by or before the Bid Protest Deadline, to the protested bidder and any other bidder who has a reasonable prospect of receiving an award depending on the outcome of the protest.

7. The City reserves the right, acting in its sole discretion, to waive immaterial bid irregularities, to accept or reject any and all bids, or to abandon a project entirely.

SECTION 2. This ordinance supersedes and replaces any prior language in Section 4.04.360 or elsewhere in the Municipal Code that deals with Bid Protests.

SECTION 3. EFFECTIVE DATE. This ordinance shall take effect thirty (30) days after adoption.

INTRODUCED at a regular City Council meeting on the 14th day of April, 2026.

PASSED AND ADOPTED by the City Council of the City of Chowchilla, this 28th day of April 2026, by the following vote to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

Mayor Kelly Smith
ATTEST:

Joann McClendon, CMC
City Clerk

REPORT TO THE CITY COUNCIL
Item 3.4

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THE AGENDA
Meeting of: Tuesday, April 28, 2026
AGENDA SECTION: Consent
SUBJECT: Consideration and Adoption of a Resolution of the City Council of the City of Chowchilla Approving Amendments to the City of Chowchilla Procurement Policy Related to Bid Protest Procedures.

PREPARED BY: Rod Pruett, City Administrator
ATTACHMENTS: Proposed Resolution, Procurement Policy

REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☒ RECOMMENDATION:

That the City Council approve the proposed resolution which will amend the City’s Procurement Policy related to bid protest procedures. This amendment will ensure the bid protest guidelines of the Procurement Policy are consistent with the procedures of the Chowchilla Municipal Code, as recently amended.

BACKGROUND:

On November 12, 2000, the City Council adopted an Ordinance adding Chapter 4.04 to the Chowchilla Municipal Code related to public purchasing and procurement. Section 4.04.360 of the Chowchilla Municipal Code was recently amended by Ordinance as it relates to the procedures for bid protests.

Pursuant to Chapter 4.04 of the Chowchilla Municipal Code, the City Council has adopted CPP-F2.2 (the “Procurement Policy”) which also includes guidelines related to bid protests. A copy of the current Procurement Policy is included with this Staff Report for reference.

Section 4.04.050 of the Chowchilla Municipal Code requires the Procurement Policy to be consistent with Chapter 4.04 of the Chowchilla Municipal Code.

REASON FOR RECOMMENDATION:

The proposed resolution would amend Section I of Chapter 9 of the Procurement Policy to ensure that the bid protest guidelines are consistent with the Chowchilla Municipal Code.

FISCAL IMPACT:

None.

ALTERNATIVES:

There are no reasonable alternatives. Without the amendment, the Procurement Policy would be inconsistent with the Chowchilla Municipal Code.

ACTIONS FOLLOWING APPROVAL:

City Staff will replace Section I of Chapter 9 of the Procurement Policy with the draft language in Exhibit “A” to the proposed resolution.

COUNCIL RESOLUTION # XX-26

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA, CALIFORNIA

APPROVING AMENDMENTS TO THE CITY OF CHOWCHILLA PROCUREMENT POLICY

RELATED TO BID PROTEST PROCEDURES
WHEREAS, on November 12, 2000, the City Council of the City of Chowchilla (“City”) adopted Ordinance #414-00 adding Chapter 4.04 of Title 4 to the Chowchilla Municipal Code relating to public purchasing and procurement; and
WHEREAS. Section 4.04.040 of the Chowchilla Municipal Code established the position of the purchasing agent; and
WHEREAS, Section 4.04.050 of the Chowchilla Municipal Code identifies the authority and duties of the purchasing agent; and
WHEREAS, Section 4.04.050, subdivision “C” authorizes the purchasing agent, with the approval of the City Council, to adopt operational procedures related to procurement, provided such operational procedures are consistent with the procedures set forth in Chapter 4.04 of the Chowchilla Municipal Code; and
WHEREAS, in accordance with Chapter 4.04 of the Chowchilla Municipal Code, the City has adopted CPP-F2.2 (the “Procurement Policy”) setting forth the City’s guidelines for public procurement in greater detail than the Chowchilla Municipal Code; and WHEREAS, Section I of Chapter 9 of the Procurement Policy provides guidelines related to bid protest procedures; and
WHEREAS, on April 28, 2026, the City Council adopted an Ordinance amending Section

4.04.360 of the Chowchilla Municipal Code, establishing new procedures for protests of publicly bid contracts; and
WHEREAS, the purchasing agent has prepared, and seeks the City Council’s approval of, an amendment to Section I of Chapter 9 of the Procurement Policy to be consistent with Section 4.04.360 of the Chowchilla Municipal Code as recently amended. A true and correct copy of the amendment to Section I of Chapter 9 of the Procurement Policy is attached hereto as Exhibit “A” and incorporated herein by reference.
/ / /
/ / /
/ / /
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chowchilla hereby finds, determines and declares the following:

1. The Bid Protest Procedures attached hereto as Exhibit A are hereby approved and shall supersede all prior directives, memoranda, and practices related to protests of publicly bid contracts.

2. The purchasing agent is directed to replace Section I of Chapter 9 of the Procurement Policy with the approved procedures in Exhibit “A” to this resolution.

PASSED AND ADOPTED by the City Council of the City of Chowchilla this 28th day of April, 2026 by the following vote to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

Mayor Kelly Smith
ATTEST:

Joann McClendon, CMC
City Clerk
EXHIBIT “A” – Amendment to Section I of Chapter 9 of Procurement Policy (“CPP-F2.2”)
SECTION I – RIGHTS

1. RIGHT OF NONDISCLOSURE. Bidders and offerors shall identify proprietary information in any bid or proposal submitted to the City. Information determined to be proprietary will be maintained as confidential by the City to the extent permitted by law. The City will notify any bidder or offeror when the City receives a request for information and the City determines information previously identified as proprietary must be disclosed as required by applicable law. Written material pertaining to any identified proprietary information and the City’s determination and disclosure of same shall be retained in the solicitation file that is maintained by the City Administrator.

2. RIGHT TO PROTEST. Any actual or prospective bidder, offeror, or contractor (excluding subcontractors or others with a secondary interest) who is aggrieved in connection with the solicitation of a contract may protest to the City Council.

3. PROCEDURE FOR BID PROTESTS. All protests with respect to an invitation for bids or an award of contract are subject to the procedures set forth in Subdivision “B” of Section 4.04.360 of the Chowchilla Municipal Code.

REPORT TO THE CITY COUNCIL
Item 3.5

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THE AGENDA
Meeting of: Tuesday, April 28, 2026
AGENDA SECTION: Consent
SUBJECT: Consideration of a City Council Resolution Designating Eligible Projects for SB 1 The Road Repair and Accountability Act of 2017
PREPARED BY: Christina Soares, Administrative Analyst
APPROVED BY: Dustin Ensminger, Public Works Director
ATTACHMENTS: Resolution

REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☒ RECOMMENDATION:

It is recommended that the Council approve the proposed resolution which will designate specific street segments for road improvements and be eligible for funding from SB 1 Road Maintenance and Rehabilitation Account (RMRA). This is an annual requirement that municipalities must complete in order to receive RMRA funds.

BACKGROUND:

Senate Bill 1 (Road Repair and Accountability Act of 2017) created funding known as the Road Maintenance and Rehabilitation Account (RMRA) that can be used to maintain local streets contingent on meeting certain guidelines and procedures The City may designate multiple years of funding for a single project, however, a resolution and project list must be adopted each fiscal year the RMRA funding is sought. (Streets & Highways Code Section 2304) The RMRA program contains a local agency maintenance of effort (MOE) requirement that applies to agencies receiving the funds. The authorizing legislation, SB1, states that the MOE requirement is to ensure that these new road funds do not supplant existing levels of city and county general fund revenue spending on streets and roads. The MOE requirement specifies that jurisdictions utilizing RMRA funds must maintain general fund spending for street, road, and highway purposes at no less than the average from 2009-10, 2010-11, and 2011-12. The City of Chowchilla’s published MOE is $14,502 and will be included in the FY 2026-2027 Budget. Failure to meet the MOE can result in forfeiture of RMRA funds.

REASON FOR RECOMMENDATION:

Local agencies must adopt a list of proposed projects as part of their annual Road Fund budget and provide this list to the California Transportation Commission (CTC) prior to the specified deadline date. For FY 2026-2027, the deadline is July 1, 2025. RMRA funds will be distributed by the State Controller’s Office by formula pursuant to SHC section 2032(h). The City of Chowchilla is projected to received approximately $540,688 for FY 2026-2027.

FISCAL IMPACT:

The proposed project expenditures and revenues will be included in the FY 2026-27 Budget. The total amount of RMRA funds of $540,688 in addition to the MOE of $14,502 from the General Fund for a total of $555,190 will be allocated to the Rd 15 ½ Rehabilitation project. Additional funding for the projects will come from a combination of Measure T and Gas Tax funds.

ALTERNATIVES:

None recommended.

ACTIONS FOLLOWING APPROVAL:

The Resolution will be uploaded to the California Transportation Commission’s CalSMART system and secure funding for the project.

COUNCIL RESOLUTION # XX-26

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA, CALIFORNIA DESIGNATING ELIGIBLE PROJECTS FOR FISCAL YEAR 2026-27 FUNDED BY SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017
WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of our City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and
WHEREAS, the City of Chowchilla must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, the estimated useful life of the improvement; and WHEREAS, the City will receive an estimated $540,688 in RMRA funding in Fiscal Year 2026-2027 from SB 1; and
WHEREAS, the City is receiving SB 1 funding, and will enable the City of Chowchilla to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and
WHEREAS, the City has undergone a robust public process to ensure public input into out community’s transportation priorities/the project list; and WHEREAS, the City of Chowchilla used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the community’s priorities for transportation investment; and WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate streets/roads, and add active transportation infrastructure throughout the City this year and other similar projects into the future; and
WHEREAS, the 2020 California Statewide Local Streets and Roads Needs Assessment found that the City’s streets and roads are in an at-risk condition and this revenue will help us increase the overall quality of our road system and over the next decade will bring our streets and roads into a good condition; and
WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials, and practices, will have significant positive co-benefits statewide.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chowchilla hereby finds, determines and declares the following:

1. The foregoing recitals are true and correct.

2. The following list of proposed projects will be funded in part or sorely with Fiscal Year 2026-27 Road Maintenance and Rehabilitation Account revenues:

Project Title: Rd 15 ½ Rehab. Project
Project Description: Pavement rehabilitation project per the City’s Pavement Management System; Road 15 ½ will be reconstructed from 15th Street to Ave 24 ½ to improve the pavement surface.

Project Location: Road 15 ½ from 15th St to Ave 24 ½
Estimated Project Schedule: Engineering Design – FY 25/26 Construction – FY 26/27
Project Completion – FY 26/27
Estimated Project Useful Life: 20 years
PASSED AND ADOPTED by the City Council of the City of Chowchilla this 28th day of April, 2026 by the following vote to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

Kelly Smith, Mayor
ATTEST:

Joann McClendon, CMC
City Clerk

REPORT TO THE CITY COUNCIL
Item 3.6

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THE AGENDA
Meeting of: Tuesday, April 28, 2026
AGENDA SECTION: Consent
SUBJECT: Consideration and Adoption of a City Council Resolution Renewing Ordinance 509-22, Chowchilla Police Department Policy No. 705, and the Annual Military Equipment Report
PREPARED BY: Daniel Denny, Lieutenant, Chowchilla Police Department ATTACHMENTS: Resolution, Policy No. 705, Annual Military Equipment Report

REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☒ RECOMMENDATION:

Staff recommends that the City Council adopt the resolution renewing Military Equipment Use Policy, Policy 705 of the Chowchilla PD Policy Manual, and the Annual Military Equipment Report.

BACKGROUND:

On January 1, 2022, Governor Newsom signed into law Assembly Bill 481, codified in Government Code sections 7070 through 7075. This new law requires law enforcement agencies to obtain approval from the applicable governing body of a military equipment use policy (adopted by ordinance) before obtaining funding, acquiring, or using military equipment.

The Department seeks City Council’s approval of Policy 705 (Attachment 2), by renewing Ordinance 509- 22 (Attachment 1), so that the Department is authorized to continue using the equipment as specified in the Policy. The purpose of Policy 705 is to safeguard the public’s welfare, safety, civil rights, and civil liberties. Policy 705 ensures that there are adequate safeguards in place for the use of such equipment, including transparency, oversight, and accountability.

Policy 705 includes an inventory of each piece of equipment identified in Government Code section 7070 that is currently owned by the City, and the current use and cost of each piece of equipment. Policy 705 also allows for other law enforcement agencies to use military equipment when assisting in Chowchilla as long as the assisting agency has a similar military equipment use policy adopted by its governing body.

As required by AB 481, Policy 705 has been posted on the Department’s website. If Policy 705 is reapproved, it will remain posted and publicly available on the Department’s website, along with the Annual Report, for as long as the military equipment is available for use.

As a result of the approval of Policy 705 in 2022, AB 481 requires the Department to annually submit a military equipment report for each approved type of military equipment to the City Council for as long as the military equipment is available for use. Additionally, the Department must make each annual report publicly available on its website for as long as the equipment is available for use. The annual report must be presented to and reviewed by the City Council at a regular meeting each year, and the City Council must determine at the annual meeting whether each type of military equipment identified in the report continues to comply with the standard of approval and determine whether to renew the ordinance approving Policy 705.

The Annual Report contains a comprehensive list of each type of equipment owned by the City and contains all required information in accordance with Government Code section 7072. Future acquisition of any equipment deemed to be “military equipment” will comply with applicable funding and procurement requirements.

REASON FOR RECOMMENDATION:

Per Assembly Bill 481, the Policy and ordinance (which adopted the Policy) must be renewed annually to allow the Department to continue using existing military equipment in the Department’s inventory and acquire new equipment for operational needs. Policy 705, Ordinance 509-22, and the Annual Military Equipment Report comply with the requirements of AB 481 (codified in Gov. Code section 7072) and each type of equipment identified in the Annual Report has complied with the applicable standards in Government Code section 7071(d).

Department Policy 705 was adopted by Ordinance 509-22 in compliance with AB 481. “Military equipment” is defined to include, without limitation, the following equipment: unmanned aerial or ground vehicles, armored vehicles, command and control vehicles, pepper balls, less lethal shotguns, less lethal 40mm projectile launchers, long range acoustic devices, flashbangs, and foundational equipment, such as rifles.

This equipment is used as a component of overall best practices for law enforcement agencies throughout the country. Authorization to continue using this equipment is necessary to protect the safety and welfare of the public and peace officers within the City.

There is a significant interest in ensuring that the Department continues to have access to equipment that provides the Department as many resources as possible to safeguard lives, ensure safety, and protect civil liberties. The use of military equipment is crucial to the Department’s mission and will continue to be strictly regulated through internal processes and oversight, transparency, and City Council and public review.

FISCAL IMPACT:

None
ALTERNATIVES:

Pros:
• Compliance with AB 481.

Cons:
• Failure to comply with AB 481 would result in the police department’s inability to continue using the equipment as specified in Policy 705.

COUNCIL RESOLUTION # XX-26

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA, CALIFORNIA RENEWING ORDINANCE 509-22, CHOWCHILLA POLICE DEPARTMENT POLICY NO. 705, AND THE 2025 ANNUAL MILITARY EQUIPMENT REPORT
WHEREAS, the City Council adopted Chowchilla Police Department Policy 705 (Military Equipment Use) with the adoption of Ordinance 509-22 on April 12, 2022; and WHEREAS, in accordance with Government Code section 7070, et seq., enacted by AB 481, the Police Department has prepared the 2025 Annual Military Equipment Report (“Annual Report”), which is incorporated herein by reference, for review by the City Council; and WHEREAS, at its regular meeting on May 9, 2023, the City Council duly reviewed the Annual Report, Ordinance 509-22, and Policy 705, and reviewed the associated staff report, and considered all public input and other information pertaining to the Annual Report and the authorization to use military equipment presented at the meeting.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chowchilla hereby finds, determines and declares the following:

1. Based on the Annual Report, the City Council determines that each type of military equipment identified in the Annual Report has complied with the applicable standards for approval as set forth in Government Code section 7071, subd. (d).

2. Policy 705 of the Police Department Manual and Ordinance 509-22, which adopted Policy 705 on April 12, 2022, are hereby renewed.

PASSED AND ADOPTED by the City Council of the City of Chowchilla this 28th day of April, 2026 by the following vote to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

Mayor Kelly Smith
ATTEST:

Joann McClendon, CMC
City Clerk
Policy
705
Chowchilla Police Department
Chowchilla PD Policy Manual
Copyright Lexipol, LLC 2026/02/18, All Rights Reserved.

Published with permission by Chowchilla Police Department Military Equipment - 1
Military Equipment
705.1 PURPOSE AND SCOPE
The purpose of this policy is to provide guidelines for the approval, acquisition, and reporting requirements of military equipment (Government Code § 7070; Government Code § 7071; Government Code § 7072).
705.1.1 DEFINITIONS
Definitions related to this policy include (Government Code § 7070):

Governing body – The elected or appointed body that oversees the Department.

Military equipment – Includes but is not limited to the following:
• Unmanned, remotely piloted, powered aerial or ground vehicles. • Mine-resistant ambush-protected (MRAP) vehicles or armored personnel carriers. • High mobility multipurpose wheeled vehicles (HMMWV), two-and-one-half-ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached. • Tracked armored vehicles that provide ballistic protection to their occupants. • Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units. • Weaponized aircraft, vessels, or vehicles of any kind. • Battering rams, slugs, and breaching apparatuses that are explosive in nature. This does not include a handheld, one-person ram.
• Firearms and ammunition of_.50 caliber or greater, excluding standard-issue shotguns and standard-issue shotgun ammunition.
• Specialized firearms and ammunition of less than_.50 caliber, including firearms and accessories identified as assault weapons in Penal Code § 30510 and Penal Code § 30515, with the exception of standard-issue firearms.
• Any firearm or firearm accessory that is designed to launch explosive projectiles. • Noise-flash diversionary devices and explosive breaching tools. • Munitions containing tear gas or OC, excluding standard, service-issued handheld pepper spray.
• Area denial electroshock devices, microwave weapons, water cannons, long-range acoustic devices (LRADs), acoustic hailing devices, and sound cannons. • Kinetic energy weapons and munitions.
• Any other equipment as determined by a governing body or a state agency to require additional oversight.

Chowchilla Police Department
Chowchilla PD Policy Manual
Military Equipment
Copyright Lexipol, LLC 2026/02/18, All Rights Reserved.

Published with permission by Chowchilla Police Department Military Equipment - 2
705.2 POLICY
It is the policy of the Chowchilla Police Department that members of this department comply with the provisions of Government Code § 7071 with respect to military equipment. 705.3 MILITARY EQUIPMENT COORDINATOR
The Chief of Police should designate a member of this department to act as the military equipment coordinator. The responsibilities of the military equipment coordinator include but are not limited to:
(a) Acting as liaison to the governing body for matters related to the requirements of this policy.
(b) Identifying department equipment that qualifies as military equipment in the current possession of the Department, or the equipment the Department intends to acquire that requires approval by the governing body.
(c) Conducting an inventory of all military equipment at least annually. (d) Collaborating with any allied agency that may use military equipment within the jurisdiction of Chowchilla Police Department (Government Code § 7071). (e) Preparing for, scheduling, and coordinating the annual community engagement meeting to include:

1. Publicizing the details of the meeting.

2. Preparing for public questions regarding the department’s funding, acquisition, and use of equipment.
(f) Preparing the annual military equipment report for submission to the Chief of Police and ensuring that the report is made available on the department website (Government Code § 7072).
(g) Establishing the procedure for a person to register a complaint or concern, or how that person may submit a question about the use of a type of military equipment, and how the Department will respond in a timely manner.
705.4 MILITARY EQUIPMENT INVENTORY
The following constitutes a list of qualifying equipment for the Department:

See attachment: Military Equipment - Drones and Weapons.pdf 705.5 APPROVAL
The Chief of Police or the authorized designee shall obtain approval from the governing body by way of an ordinance adopting the military equipment policy. As part of the approval process, the Chief of Police or the authorized designee shall ensure the proposed military equipment policy is submitted to the governing body and is available on the department website at least 30 days prior to any public hearing concerning the military equipment at issue (Government Code § 7071). The military equipment policy must be approved by the governing body prior to engaging in any of the following (Government Code § 7071):

Chowchilla Police Department
Chowchilla PD Policy Manual
Military Equipment
Copyright Lexipol, LLC 2026/02/18, All Rights Reserved.

Published with permission by Chowchilla Police Department Military Equipment - 3
(a) Requesting military equipment made available pursuant to 10 USC § 2576a. (b) Seeking funds for military equipment, including but not limited to applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers.
(c) Acquiring military equipment either permanently or temporarily, including by borrowing or leasing.
(d) Collaborating with another law enforcement agency in the deployment or other use of military equipment within the jurisdiction of this department. (e) Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body.
(f) Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of military equipment.
(g) Acquiring military equipment through any means not provided above. 705.6 COORDINATION WITH OTHER JURISDICTIONS
Military equipment should not be used by any other law enforcement agency or member in this jurisdiction unless the military equipment is approved for use in accordance with this policy. 705.7 ANNUAL REPORT
Upon approval of a military equipment policy, the Chief of Police or the authorized designee should submit a military equipment report to the governing body for each type of military equipment approved within one year of approval, and annually thereafter for as long as the military equipment is available for Department use (Government Code § 7072).

The Chief of Police or the authorized designee should also make each annual military equipment report publicly available on the department website for as long as the military equipment is available for use. The report shall include all information required by Government Code § 7072 for the preceding calendar year for each type of military equipment in department inventory. 705.8 COMMUNITY ENGAGEMENT
Within 30 days of submitting and publicly releasing the annual report, the Department shall hold at least one well-publicized and conveniently located community engagement meeting, at which the Department should discuss the report and respond to public questions regarding the funding, acquisition, or use of military equipment.

Chowchilla PD Policy Manual
Copyright Lexipol, LLC 2026/02/18, All Rights Reserved.

Published with permission by Chowchilla Police Department Attachments - 4
Attachments
Attachment
Chowchilla PD Policy Manual
Copyright Lexipol, LLC 2026/02/18, All Rights Reserved.

Published with permission by Chowchilla Police Department Military Equipment - Drones and Weapons.pdf
- 5
Military Equipment - Drones and Weapons.pdf
Military Equipment - Drones and Weapons.pdf

1. Unmanned Aircraft System (UAS): An unmanned aircraft along with the associated equipment necessary to control it remotely.
a. Description, quantity, capabilities, and purchase cost of current UAS:
i. DJI MAVIC ENTERPRISE DUALS, cost: $3,850 each, quantity: 2.

UAS that has a color and inferred camera as well as audible speaker and light. Capable of video recording and weighs 899 grams, approx. 30 minutes of flight time.
ii. AUTEL EVO II – 8K, cost $1,616 each, quantity:2. UAS has color camera. Capable of video recording and weighs approximately 1127 grams, with approximately 40 minutes of flight time.
iii. DJI MAVIC MINI, $499 each, quantity 2. UAS has color video recording capabilities. UAS weighs approximately 249 grams with approximately 30 minutes of flight time.
b. Purpose
To be deployed when its view would assist officers or incident commanders with the following situations, which include but are not limited to:
i. major collision investigations.
ii. search for missing persons.
iii. natural disaster management.
iv. crime scene photography.
v. SWAT, tactical or other public safety and life preservation missions. vi. In response to specific requests from local, state or federal fire authorities for fire response and/or prevention.
c. Authorized Use
Only assigned operators who have completed the required training shall be permitted to operate the DJI Mavic Mini during approved missions.
d. Expected Life Span
All UAS equipment, 3-5 years.
e. Fiscal Impact
Annual maintenance and battery replacement cost is approximately $1,500. f. Training
All Department UAS operators are licensed by the Federal Aviation Administration for UAS operation. In addition, each operator must attend a 40- hour department training and ongoing quarterly training. g. Legal and Procedural Rules
Use is established under General Order 525.09, FAA Regulation 14 CFR Part 107, and the Chowchilla Police Department UAS policy. It is the policy of the Chowchilla Police Department to utilize UAS only for official law enforcement purposes, and in a manner that respects the privacy of our community, pursuant to State and Federal law.

2. Less Lethal Shotgun: Less Lethal Shotgun is used to deploy the less lethal 12- gauge Super-Sock Beanbag Round.
a. Description, quantity, capabilities, and purchase cost i. REMINGTON 870 LESS LETHAL SHOTGUN, cost: $946,
quantity: 02. The Remington 870 Less Lethal Shotgun is used to deploy the less lethal 12-gauge Drag Stabilized Beanbag Round up to a distance of 75 feet. The range of the weapon system helps to maintain space between officers and a suspect reducing the immediacy of the threat which is a principle of De-escalation. ii. 12-GAUGE DRAG STABILIZED BEAN BAG ROUND, cost: $5,
quantity: 50 A less lethal 2.4-inch 12-gauge shotgun round firing a ballistic fiber bag filled with 40 grams of lead shot at a velocity of 270 feet per second (FPS). Drag Stabilized Bean Bag rounds are discharged from a dedicated 12-gauge shotgun that is
distinguishable by an orange butt stock and fore grip. This round provides accurate and effective performance when fired from the approved distance of not fewer than five (5) feet. The maximum effective range of this munition is up to 75 feet from the target. The Model 3027 Drag Stabilized Bean Bag is in its deployed state immediately upon exiting the barrel. It does not require a minimum range to “unfold” or “stabilize.” The Drag Stabilized Bean Bag round is a 40-Gram tear shaped bag projectile. However, accuracy is relative to the shotgun, barrel length, environmental conditions, and the operator. The Drag stabilized Bean Bag Round is a very accurate.

However, effectiveness depends on many variables, such as distance, clothing, stature, and the point where the projectile impacts. b. Purpose
To limit the escalation of conflict where employment of lethal force is prohibited or undesirable.
c. Authorized Use
Situations for use of the less lethal weapon systems may include, but are not limited to:
i. Self-destructive, dangerous and/or combative individuals. ii. Riot/crowd control and civil unrest incidents.
iii. Circumstances where a tactical advantage can be obtained. iv. Potentially vicious animals.
v. Training exercises or approved demonstrations.
d. Lifespan
Remington 870 Less Lethal
Shotgun- 25 years. Super
Drag Stabilized - No listed
expiration date.
e. Fiscal Impact
Annual maintenance is approximately $50 for each shotgun. f. Training
All officers are trained in the 12 gauge less lethal shotgun as a less lethal option by in-service training. SWAT personnel receive additional training internally when they transfer to the unit. SWAT operators who utilize these munitions have been through and successfully completed a POST approved gas school and/or trained in house by POST certified chemical agent instructors for muzzle blast training.
g. Legal and Procedural Rules
It is the policy of the Chowchilla Police Department, to utilize the less lethal shotgun only for official law enforcement purposes, and pursuant to State and Federal law, including those regarding the use of force.

3. Rifles: Guns that are fired from shoulder level, having a long spirally grooved barrel intended to make bullets spin and thereby have greater accuracy over a long distance.
a. Description, quantity, capabilities, and purchase cost i. Colt M4 RIFLE, cost: $1500, quantity: 21. The M4 rifle, officially designated Patrol Rifle, Caliber 5.56MM.
ii. Sig Sauer MCX, cost $1993.93, quantity: 2, Caliber 5.56 AR-15 style rifle w/ red dot sight, suppressor and night vision capabilities designed for use for Chowchilla Police department Officers assigned to the Madera County Regional SWAT Team.
iii. Colt AR10 RIFLE, cost $4500, quantity: 1, Caliber .308 The Colt AR10 with 16" Barrel, is an entry level AR-10 style rifle. This firearm is chambered in .308 Winchester/7.62 NATO Rifle and has a 16" barrel. The magazine holds up to 20 rounds of ammunition and the rifle has a collapsible stock. This rifle is primarily used in an overwatch capacity to protect the community during large events iv. Federal 5.56 CALIBER 55/62 GRAIN RIFLE ROUND, cost: $289 per case of 500, quantity: 20 cases. Direct impingement, gas piston, suppressed, unsuppressed, inertia, bolt, pump, supersonic, subsonic, rifle, mid-length, carbine Federal ammunition delivers superior performance for a variety of applications.
v. Federal 40 S&W 180 gr HST JHP, cost: $309.21 per case of 500, quantity: 20 cases.
vi. Federal Premium 308 Winchester 168g Sierra Match king BTHP, cost: $60 per box of 20, quantity: 10.
b. Purpose
To be used as precision weapons to address a threat with more precision and/or greater distances than a handgun, if present and feasible.
c. Authorized Use
Only members that are POST certified are authorized to use a rifle. d. Lifespan
Colt M4 Rifle – 15 years.

Sig Sauer MCX Rifle – 15 years
Colt AR 10 Rifle – 15 years
Federal Ammunition – no expiration
e. Fiscal Impact
Annual maintenance is approximately $50 for each rifle. f. Training
Prior to using a rifle, officers must be certified by POST instructors in the operation of the rifle. Additionally, all members that operate any rifle are required to pass a range qualification two times a year. g. Legal and Procedural Rules
Use is established under Chowchilla Police Department Policy. It is the policy of the Chowchilla Police Department to utilize rifles only for official law enforcement purposes, and pursuant to State and Federal law regarding the use

REPORT TO THE CITY COUNCIL
Item 3.7

CLICK HERE

TO RETURN TO

THE AGENDA
Meeting of: Tuesday, April 28, 2026
AGENDA SECTION: Consent
SUBJECT: Informational Item – Excel Project Management Program (PMP) Update PREPARED BY: Vanessa Galvez-Escobar, Deputy City Clerk
APPROVED BY: Joann McClendon, City Clerk
ATTACHMENTS: Excel Project Management Program City Council Departmental Spreadsheets

REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☒ RECOMMENDATION:

Informational item only.

BACKGROUND:

The City Council has requested that staff bring back the Project Management Program (PMP) reports on a quarterly basis for follow-up and review. Below you will find a quick review of ongoing items, in progress, or on hold. The last report was brought to the Council on January 27, 2026.

City Staff emailed each department their project list to update for the dates between January and March 2026.

Smart Sheets
Project / Description Date Update Motion/Approvals Info Source Status Notes Human Resource
HR Manager Trinette Martinez reports to City Administrator Rod Pruett and most updates will be from the City
Administrator. As the City Clerk, however, and per our
municipal code, I will still manage claims against the City, accept subpoenas, and have agreed to continuing to manage insurance for City fleet and property.

Consideration and Adoption of a City Council Resolution Adopting the Revised Transit Services Drug and Alcohol
Testing Policy (McClendon)
Consideration and Adoption of a City Council Resolution Adopting the Revised Transit Services Drug and Alcohol
Testing Policy (McClendon)
Motion by Mayor Pro Tem Ahmed, Seconded by Council
Member Barragan to Approve the Consent Calendar as
Presented. Motion passed by roll call vote.

On Going
Events
City Administrator Mr. Pruett
2/11-13/2026 LOCC City Manager Conference Completed
2/21/2026 CAF Dinner Completed
3/12/2026 LOCC Quarterly Division Dinner-Tracy City Hall Completed 3/23-3/25 ICSC Monterey Completed
3/26/2026 Goal Setting - 2pm Completed
3/26/2026 Special Council Meeting - 4PM Completed
3/28/2026 Fair Dinner (City has a table) Completed
4/11-12/2026 Portuguese Festa
4/24/2026 CAF Golf Tournament
4/22-24/2026 LOCC City Leaders Summit
4/29/2026 MCEDC Economic Summit- San Joaquin Winery
Department: Administration
Quarterly: January to March
2026
Smart Sheets
Project / Description Date Update Motion/Approvals Info Source Status Notes ADHOC: Wastewater
Treatment Plant On Hold
ADHOC: Park Fields In Progress
Fairmead WWTP Project
(2016) 4/2024
State Water Resources Control Board anticipates funding agreement by August 2024. High Speed Rail anticipates reimbursement agreement prior to State's.

In Progress
Well 15
11/2024
Consideration and Adoption of a City Council Resolution Awarding a Contract to VM Lyles Company for Civic Center and Well 15 Generator Improvements Project in the amount of $1,190,560.00 and Authorizing the City Administrator or Designee to Execute All Related Documents Thereto and Amending the Fiscal Year 2024/25 City Budget (Rogers) In Progress
Well 16 12/24
Consideration and Adoption of a City Council Resolution Awarding the Contract for Well No. 16 Improvements to Alliance Construction Solutions, Inc. in the Amount of $924,300, Authorizing the City Administrator or Designee to Execute Related Documents, and Amending the Fiscal Year 2024/25 City Budget (Rogers)
In Progress
1/2025 Drilling ongoing.

Bridge Preventative
Maintenance Project 11/2024
Consideration and Adoption of a City Council Resolution Awarding a Contract to Cornerstone Structural Engineering Group, Inc. for the Bridge Preventative Maintenance Project in the amount of $37,300.00 and Authorizing the City Administrator or Designee to Execute All Related Documents Thereto (Rogers)
Motion by Council Member Troost,
Seconded by Mayor Pro Tem Ahmed to
Approve City Council Resolution #61-
24, Awarding a Contract to
Cornerstone Structural Engineering
Group, Inc. for the Bridge Preventative
Maintenance Project in the amount of
$37,300.00 and Authorizing the City
Administrator or Designee to Execute
All Related Documents Thereto.

Motion passed with Council Member
Barragan absent.

In Progress
High Speed Rail 8/2025
The Executive Committee of the San Joaquin Valley Regional Policy Council has requested member agencies to compile a list of potential projects related to State Route 99 (SR 99), Interstate 5 (I-5), and Passenger Rail. This list may be used to advocate for the $4 billion in retracted Federal High-Speed Rail funding. Working with MCTC, we submitted the Roundabouts Project as a potential project for consideration.

Weekly Report
8/2/2025
Complete
Department: Public Works
Quarterly: January to March 2026
Scour Countermeasure
Project 11/2024
Consideration and Adoption of a City Council Resolution Awarding a Contract to Cornerstone Structural Engineering Group, Inc. for the Road 16 Over Berenda Slough Scour Countermeasure Project in the amount of $252,200.00 and Authorizing the City Administrator or Designee to Execute All Related Documents Thereto (Rogers)
Motion by Council Member Troost,
Seconded by Council Member Chavez
to Approve City Council Resolution
#62-24, Awarding a Contract to
Cornerstone Structural Engineering
Group, Inc. for the Road 16 Over
Berenda Slough Scour Countermeasure
Project in the amount of $252,200.00
and Authorizing the City Administrator
or Designee to Execute All Related
Documents Thereto. Motion passed
with Council Member Barragan absent.
8/2025 Design ongoing. In Progress
Madera County
Transportation
Commission
10/24
Consideration and Adoption of a City Council Resolution (55-24) Approving the Measure T Annual Expenditure Plan (AEP) for Fiscal Year (FY) 2024/25 and Authorizing the Public Works Director or Designee to Submit the Plan to the Madera County Transportation Authority (MCTA) for Adoption (Rogers)
Motion by Mayor Pro Tem Ahmed,
Seconded by Council Member Troost
to Approve City Council Resolution
#55-24, Approving the Measure T
Annual Expenditure Plan (AEP) for
Fiscal Year (FY) 2024/25 and
Authorizing the Public Works Director
or Designee to Submit the Plan to the
Madera County Transportation
Authority (MCTA) for Adoption.

Motion passed by roll call vote.

Complete
Fairmead Consolidation
Project 6/2025 Engineering surveying completed. Currently working on the basis of design/identifying the locations for mains/lift stations.

Wkly Activity Report
6/21/25
8/2025
Attended Madera County Board of Supervisors meeting to provide an update on the Fairmead Sewer Consolidation Project per the requirements of a prior Grand Jury Report.

Weekly Report
8/16/2025
10/2025 Still in design phase Weekly Report
10/11/2025
11/2025 Still in design phase Weekly Report
11/1/2025 In Progress
Robertson Blvd.

Rehabilitation and
Complete Streets/Caltrans
6/2025
Caltrans submitted a 4th Right-of-Way temporary construction permit acquisition agreement for review for more City identified properties.

Will be coming to Council for approval.

Wkly Activities
Report 6/14/2025
8/2025 Completed review of the Robertson Blvd CAPM Project 90% design plans and submitted comments back to Caltrans
Weekly Report
8/16/2025 On Going
10/2025
Met with Caltrans regarding the Robertson Blvd CAPM project. As part of the project, they will be replacing and upfitting the RRFB poles (that we still have not received as part of another project). Passed 95% design and nearing 100%.

Weekly Report
10/11/2025 On Going
Clean CA Grant/
Robertson Blvd.

Beautification Project
8/2025 Project on hold. Delivery of poles, push buttons, and signage still scheduled for mid-August.

Weekly Report
8/16/2025
10/2025
Arches for the median are being designed and constructed by a new vendor and will be paid for with liquidated damages from the current construction company and or a reduction in payment to them since they are not doing it
Weekly Report
10/112025
10/2025
Project on hold. Delivery of poles delayed. City is now assessing Liquidated Damages (LDs) at $1,000 per day. Reached out to Caltrans about modifying the scope to remove the poles as Caltrans recently stated that they would be removing them and upgrading them to fully electric in the CAPM project next year. Set up a meeting with Caltrans to discuss next week.

Weekly Report
10/11/2025
11/2025
Arches for the median are supposed to be done and ready to install this week. Project on hold for poles/pushbuttons scheduled for delivery in February. LDs to continue to be assessed.

Weekly Report
11/1/2025 ON HOLD
Kings Ave Storm Drain
Project & ADA Sidewalk
Improvement Project
7/2025
Received the final plans, specs, engineer's estimate, and notice to bidders for the King's Avenue storm drain project. Project is shovel ready now and we can apply for additional CDBG funding once they issue the Notice of Funding Opportunity (NOFO).

Weekly Report
7/19/2025 In Progress
Former Library Building 3/2025
Update on the Library
• The Historical Society has finished updating the application and we need to review and approve before submittal
Weekly Report -
Reported by Admin Complete
Green Hills 9/2024

6.1 Consideration and Approval of a Well Installation Permit Application Pursuant to Chowchilla Municipal Code Section 8.20 and

13.04 Requested by Pheasant Run, LLC (Rogers)
Motion by Mayor Pro Tem Ahmed,
Seconded by Council Member
Barragan to Approve a Well Installation
Permit Application Pursuant to
Chowchilla Municipal Code Section

8.20 and 13.04 Requested by Pheasant
Run, LLC. Motion passed by roll call
vote with Council Member Troost
abstaining.

Complete
Ed Ray Park Tower 7/2025
IT staff is gathering latest preferred PTP network & PTZ camera item product info for tower project. To be submitted to Jason, & IT will begin purchasing hardware soon.

Wkly Activity Report
7/19/25
Airport/FAA 5/2025 Worked with our Airport Engineer in putting the AIP funding application together to submit to the FAA
Wkly Activity Report
5/3/25 On Going
Chowchilla Boulevard
Rehab & Water Stub Outs 7/2024
Construction ongoing. Pavement completed. Striping completed and road re-opened. Waiting on pipe to be delivered for continuation of the water main stub outs. Construction ongoing. Paving to continue July 10th
Weekly Reports On Going
SR 99/233 Interchange
(2017) 8/2025
Attended debrief with MCTC and the CTC regarding the 2024 LPP Competitive Program application for the SR 99-233 Chowchilla Multimodal Interchange Project (Roundabouts). Specific comments were related to wanted more analysis of impact to low income housing, disadvantaged communities, more VMT mitigation, how it will reduce greenhouse gasses (GHG) further, how the project affects transportation Weekly Report
8/2/2025
8/2025
meeting with Caltrans and MCTC to discuss the roundabouts project and requesting Caltrans to increase their contribution from $300,000. At this time, that is the only amount the State has approved for the project. The project does not fit into the STIP or SHOPP funding categories. While Caltrans will continue to try and identify additional funding, the City and MCTC will look for additional grant opportunities.

Weekly Report
8/9/2025 On Going
Race Communciations 5/2025 PG&E on site at Lone Oak/Sessions for undergrounding work on Washington Rd
Wkly Activity Report
5/3/25
Edinburgh Well Rehab 4/2025
Madera County notified us that they were moving forward with approving the Edinburgh Well Rehab for PRGC. We provided a letter from PRGC that they had agreed to install a flow meter, not use the well to increase their overall annual water usage, and submit monthly reports to the City.

Wkly Activity Report
4/26/25 On Going
HSIP Project 6/2025
Corrected comments received from Caltrans regarding the RoW Certification for the CMAQ; Pedestrian Improvements Project; Riverside Avenue, 8th Street, & Kings Avenue Pedestrian Improvements. Resubmitted to Caltrans. Once approved, we can request construction funding and go out to bid.

Wkly Activity Report
6/7/25
8/2025 Submitted the E-76 Authorization Package to Caltrans for the CMAQ Pedestrian Project.

Weekly Report
8/2/2025
8/2025
Received the E-76 Authorization for Construction from Caltrans for the CMAQ Pedestrian Improvements Project. Bid notice to be released on 8/25 and close on 9/22.

Weekly Report
8/16/2025
PROP 218 5/2025 218 Rate Notices were sent out to property owners/tenants Wkly Activity Report 5/10/25 Completed
Civic Center Generator
Project 8/2025 Civic Center Generator Project – Project on hold until delivery of the backup generator in October/November.

Weekly Report
8/16/2025
10/2025 Project on hold until delivery of the backup generator in October/November.

Weekly Report
10/11/2025
11/2025
Contractor scheduled installation starting 11/12/25 with startup scheduled for 11/25/25. Met with Lighthouse electrician onsite to review site prior to install.

Weekly Report
11/1/2025 On Going
City Watering 5/2025
Staff is considering moving the Summer months schedule from MayNov to April-Oct. Bydefaultthisadjuststhewinterscheduletoo • Also considering a switch from 2 days a week to 3 days a week during summer schedule
Wkly Activity Report
5/3/25
Completed
Ave 24 1/2 8/2025
Received the final plans, specs, engineer's estimate, and notice to bidders for the Ave 24 ½ Reconstruction Project. Project is out to bid and scheduled to close end of August.

Weekly Report
8/2/2025
10/2025 Will be closed for construction 11/17-12/23 Weekly Report 10/11/2025
11/2025
Attended pre-construction meeting with Terra West Construction regarding the Ave 24 ½ Rehabilitation project. They are reviewing their schedule and potentially looking to start soon rather than wait for the Spring. They will provide a schedule. Meet with City Inspector and Terra West on-site. They will be staging equipment in filed by the WWTP.

Weekly Report
11/1/2025
Samsara Replacement
Project 8/2025
Received the final plans, specs and notice to bidders for the Samsara Replacement Project. Provided corrections to electrical engineer. Bid is expected to be advertised by 8/15.

Weekly Report
8/9/2025
Sonoma Storm Drain 7/2025
Working with the State on Prop 1 SWRCB grant (Sonoma Stormdrain) final closeout of the grant. After review, SWRCB had some comments and requested clarification on some items.

Weekly Report
7/19/2025
8/2025 Working with the State on Prop 1 SWRCB grant (Sonoma Stormdrain) final closeout of the grant
Weekly Report
8/2/2025
8/2025 Working with the State on Prop 1 SWRCB grant (Sonoma Stormdrain) final closeout of the grant.

Weekly Report
8/9/2025
8/2025 Working with the State on Prop 1 SWRCB grant (Sonoma Stormdrain) final closeout of the grant.

Weekly Report
8/16/2025
Mid Cal 11/2025 Mid Cal is currently verifying water lines per the scope of the Water Main Replacement Project.

Wkly Activity Report
11/1/25
Additional Updates 6/2025 Received the draft plans and specifications for the Samsara SCADA replacement. Began initial review to provide comments back.

Wkly Activity Report
6/14/25
6/2025
Currently working on a U.S. Department of Transportation’s Safe Streets for All (SS4A) grant application to construct sidewalks near schools where they are currently missing.

Wkly Activity Report
6/21/25
8/2025
Completed the Electronic Annual Report for Solid Waste and submitted to CalRecycle on July 31st.
10/2025
Reviewing bids for the CMAQ Riverside, 8th, & Kings Pedestrian Improvements Project for responsiveness and bring to Council for award.

Wkly Activity Report
10/11/25
Smart Sheets
Project / Description Date Update Motion/Approvals Info Source Status Notes Community Facilities District 1/2025
Scheduled a CFD meeting for Rancho Calera and the City’s 2006-1 CFD refunding. 1/16- will discuss next steps for both but the City’s can’t start until sometime in February and there will be items coming on the agenda for approval of the CFD team.

Consideration and Adoption of a City Council Resolution Approving a Reimbursement Agreement, Designating Consultants, and Authorizing and Directing Certain Actions Related to the Proposed Formation of a Community Facilities District (Pruett) Motion by Council Member Troost, Seconded by
Mayor Pro Tem Ahmed to Approve City Council
Resolution #65-24, Approving a Reimbursement
Agreement, Designating Consultants, and
Authorizing and Directing Certain Actions Related to
the Proposed Formation of a Community Facilities
District. Motion passed with Council Member
Barragan absent.

On Going
Maple Meadows Project 6/2025
Met with contractors several times throughout the week. They will be doing the Maple water tie in on Wednesday 6/18. The water main will be shut off for approximately 4 hours, 29 houses will be affected, fliers were delivered by contractor.

Weekly Activities Report
June 14, 2025
On Going
Phase 1
10/2025 Construction is ongoing. All phase 1 permits have been pulled Weekly Activities Report
10/11/2025
Auto Zone Distribution Facility 1/2025 PGE was out on 1/15 installing a new pole and starting the process to get them energized Reported by Admin
6/2025 Equipemt final; inspection
In Progress
ADHOC: Zoning Ordinance 12/1/2024
Consideration and Approval of a Planning Commission Resolution Recommending Approval of Zoning Ordinance Text Amendment # 24-0600 to the City Council With Findings and Conditions as Set Out in the Resolution (Perea)
Motion by Co-Chair Salter, Seconded by
Commissioner Hale to Approve Planning
Commission Resolution #24-06, Recommending
Approval of Zoning Ordinance Text Amendment #
24-0600 to the City Council With Findings and
Conditions as Set Out in the Resolution. Motion
passed by roll call vote.

Shipping Containers
Ordinance Update
Oleander Terrace 8/2024 Project is under construction, Builder has constructed approximately 20 units, has approximately 8 units to be constructed.

Ongoing
Pendnig
Final
Inspection
Department: Community Economic Development
Quarterly: January to March 2026
Mobile Food Vendor Trucks &
Sign Ordinance 1/2025
Adoption of Ordinance Update- Mobile Food Vending. 2nd readingupdated for ice cream trucks. Adoption of Ordinance Update- Signs and Outdoor Advertising. 2nd readingupdated for height and sq footage of face requirements along the highway 99 corridor
Consent
Downtown Guidelines 12/2024
Consideration and Adoption of a City Council Resolution Approving the Updates to the Downtown Design Guidelines Along with the Notice of Exemption as Set Forth in the Resolution (Perea) Motion by Commissioner Hale, Seconded by
Commissioner Vander Dussen to Approve Planning
Commission Resolution #24-07, Recommending the
City Council Approve the Updates to the Downtown
Design Guidelines Along With the Notice of
Exemption as Set Forth in the Resolution. Motion
passed by roll call vote.

Industrial Specific Plan
The Industrial Specific Plan was considered by Council in 2018 but the environmental review was never completed. Council budgeted in FY 23/24 to have staff draft an RFP for the solicitation of an environmental consultant to assist with completing the document which then allow the City to adopt the ISP.

Motion by Council Member Chavez, Seconded by
Council Member Troost to Approve City Council
Resolution #59-24, Initiating a Text Amendment to
Amend the Sign Ordinance and the Mobile Food
Vendor Ordinance. Motion passed with Council
Member Barragan absent.
7/2024
Industrial Specific Plan EIR: Staff has routed the document for signatures. Once all parties have signed the agreement, staff will have the agreement executed.

Weekly Report
CV2 & CV3 5/2024 Staff processed one additional EDLP and is now beginning the closeout process for this program with HCD.
8/2024 Staff is in the process of working with our vendor to begin the close out process.

In Progress
Century Communities: Lone
Oak Subdivision/Orchard View 5/2025
They are requesting an extension of the reduced DIF fees that are a result of the City-Wide 50% DIF reduction Incentive Program • Have an Ad Hoc scheduled to discuss
- PGE has undergrounded the powerlines
Weekly Activities Report
May 3, 2025
5/2025
They need to address the lack of permanent lighting
• There are delays in getting power and the light poles • We told them to have security in order to get their Certificate of occupancy. This was direction from the Economic Development Ad Hoc
Weekly Activities Report
May 17, 2025
5/2025
Continue to pull permits. Their Development Agreement for DIF fees expires 6/30 and a request was made to extend that to take advantage of the 50% reduction of DIF Incentive Program that expires 6/30/25. They are supposed to submit something for review but they also could pull a substantial amount of permits before 6/30 Weekly Activities Report
May 31, 2025
6/2025
Have not received a formal request from them on the extension of the DIF fees in the DA. My assumption is they will pull permits for the remainder of Phase I (100 total units) which would be roughly 50 permits
Weekly Activities Report
June 7, 2025
6/2025
More permits have been pulled with even more anticipated before the 6/30 expiration of the DIF Reduction Program.
meeting to come back with a 25% reduction program.

Weekly Activities Report
June 21, 2025
10/2025 Inspected 6 new homes this week Weekly Activities Report 10/11/2025
In Progress
Rancho Calera 5/2025
Caltrans and our staff regarding the commercial entrance off the roundabout
-Caltrans, as usual, dropped the ball on reviewing something they had for over 6 months and multiple follow up emails were sent so Wkly Report 5/3/2025
10/2025
Maps 3 and 4 completed. Meeting with Pembrook
Development • Introduction to GJ Gardner Homes. Interested in BLK 3,4,12, and 13, Discuss rezoning BLK 12 to mixed use, Discuss DA trigger road/intersection improvements
Wkly Report 10/11/2025
12/2025
Rancho Calera
landscape, and improvement plans to city council
• Pembrook civil engineers and QK engineers to coordinate meeting to discuss DA trigger road/intersection improvements Weekly Activities Report
12/13/2025
In Progress
Mid Valley Pipe & Steel 5/2024
The property transferred ownership to Mid-Valley Pipe and Steel in April. The applicant is in the process of completing the environmental review for the project.
12/2025
30,000 sqft Building - expansion on 8 acres Weekly Activities Report 12/13/2025
In Progress
Legacy Ranch 1/2024
Staff received a lot line adjustment application. Once the lot line adjustment is processed, the developer plans to sell the easterly parcel to a builder.

On Hold
Housing Element 5/2025 First reading of Municipal Code amendment for Section 18 Zoning and a General Plan amendment to implement changes required as a result of updating our Housing Element
Weekly Activities Report
May 17, 2025
5/2025
2nd reading and adoption of the Housing Element Updates • This item will have to be pulled from Consent and tabled to the next meeting
• Based off input at the last meeting there are changes that need tobe made and reviewed by HCD
• Needs to stay on this agenda because it was publicly noticed to be on this agenda
- Quarterly Investment Report
- FY 25-26 SB 1 eligible projects
• Streets and Roads projects
CONSENT Weekly Activities Report
May 31, 2025
CUHS Project 12/2024
Consideration and Adoption of a City Council Resolution Approving a Deferred Improvement Agreement with the Chowchilla Union High School District Regarding the Chowchilla High School Transportation Center and Authorizing the City Administrator to Execute all Related Documents (Pruett)
In Progress
Salters Distributing 3/2025
Exposure to significant litigation- update on information from FAA regarding the white buildings on Salter’s property -Labor negotiations
Weekly Activities Report -
Reported by Admin
MADERA Co-EDC 4/2025
Met with Kristina Gallagher of the Madera Co-EDC on April 3, 2025.

The meeting was a touch-base regarding the support provided by EDC and what the City of Chowchilla’s Community & Economic Development could do to further attract business to the City. The meeting collaborative approach was to further build bridges and support for the community’s growth.

Weekly Activities Report
April 8, 2025
Golden Valley Pistachio 5/2025
received its second Notice of Exemption for the facilities processed wastewater discharge project for recording at the Madera County Recorder’s Office. Final plans are still pending approval with permit insurances.

Weekly Activities Report
May 10, 2025
CED 4/2025
CED Director has reached out to other car dealerships out of the county to see about any interest in the purchase of the vacant Pacific Auto Sales location.

Weekly Activities Report
April 8, 2025
7/2025
CED Director has been in communications with other possible contacts or sources to assist in both either commercial development or residential growth;
o PAQ, Inc. – Food 4 Less or Rancho San Miguel
o The River Islands Development, a subsidiary of the Cambay Group.
o La Quinta and Sterling Properties (both representatives) Weekly Activities Report
7/19/2025
4/2025
The CED has contacted both Prologis the Phelan Development groups, regarding the City of Chowchilla’s-Industrial Specific Plan.

There have been no comments to date, and a follow up is planned. (NO CHANGE)
Weekly Activities Report
April 8, 2025
Brent Rose 5/2025
Followed up w/ Brent Rose, to discuss an update or status of multiuse planned project, which includes a pharmacy; the current partner Taj Singh is still in process with the California State Board of Pharmacy.

Weekly Activities Report
May 24, 2025
RITE AID 6/2025
The Mayor, City Administrator & CED Director have received official notice of the Rite Aid closure set to be 08/17/25, in a continued effort to bring services to the community; planning staff have been working with the following developers; Chowchilla Pharmacy, Alpha CAre of Kerman and Tower Pharmacy of Turlock
Weekly Activities Report
June 28, 2025

RITE AID

HAS CLOSED
Alpha Pharmacy 5/2025
CED Director contacted Alpha Pharmacy, to further assist in the stores permitting process. To date the planning department has not yet received an application.

Weekly Activities Report
May 17, 2025
7/2025
Submitted planning application and pending CSBP approval, Taj Singh-President of Madera Medical Pharmacy has now received information to submit to the CSBP for letter approval.

Weekly Activities Report
7/19/2025
10/2025 Sending follow-up email. Still waiting for final approval from the State. Moving forward with the location next to Las Alves Weekly Activities Report
10/11/2025
12/2025 Weekly Activities Report
12/13/2025
In Progress
Chowchilla Pharmacy AKA
Downtown
10/2025 Moving forward, pulled tenant improvement permit Weekly Activities Report 10/11/2025
12/2025 Weekly Activities Report
12/13/2025
In Progress
Tower Pharmacy of Turlock
A Z Travel Center 5/2025
On May 14, 2025, planning staff hosted the required scoping meeting for the following planning project; A-Z Travel Center - City of Chowchilla #23-003. The meeting is required to solicit input from the public, regarding the project scope and content of the Environmental Impact Report (EIR)
Weekly Activities Report
May 17, 2025
308 & 312 Alameda Ave 10/2025 Two warehouse buildings, 5 units Weekly Activities Report 10/11/2025
12/2025 site plan review process
Weekly Activities Report
12/13/2025
In Progress
Boba Establishment 10/2025
1165 E Robertson next to Little Caesars, Building Permit: Paid

10.02.25, Tenant improvement began 10.02.25, Projected soft opening week ending 10.31.25, Projected grand opening week ending 11.07.25, Business license: Has not applied
Weekly Activities Report
10/11/2025
In Progress
Rural Health Network (clinic) 10/2025
1020 Ventura. Business License: Awaiting CUP application, Possible Conditions, Re-zone. General Plan Amendment. Business License:

Denied
• Building Permits:
o Pulled HVAC
o Passed Electric
Weekly Activities Report
10/11/2025
12/2025
• Including in rezone & general plan amendment
• Business License: Denied
• Building Permits:
o Pulled HVAC
o Passed Electric
Weekly Activities Report
12/13/2025
In Progress
Carlyle Gas Station 10/2025 212 and 308 Carlyle. Includes: Fuel Canopy, Convenience store, and quick service restaurant. Will create 10-20 new jobs
Weekly Activities Report
10/11/2025
12/2025
plans.
restaurant
Weekly Activities Report
12/13/2025
In Progress
LaQuinta - Hawthorn Hotel by
Wyndham 10/2025 Montgomery Lake Way & S Genoa Lake Weekly Activities Report 10/11/2025
11/2025 Franchise Agreement. Weekly Activities Report
11/1/2025
12/2025
Application
Franchise Agreement.

Weekly Activities Report
12/13/2025
In Progress
Montgomery Farms SHE Houses 10/2025
Tagged multiple units for electrical services
used for a new sub panel
to be in a holding pattern until that gets done
Weekly Activities Report
10/11/2025
In Progress
Madera Auto Center 11/2025
Used cars and a service department
Inspection
Ceremony
Weekly Activities Report
11/1/2025
12/2025
Revised Grand Opening / Ribbon Cutting Friday, 01.09.25 cutting ceremony Weekly Activities Report
12/13/2025
In Progress
The Branch Deli 11/2025
The sandwich “branch” of the Orchard Bar & Grill
“bar” atmosphere Weekly Activities Report
11/1/2025
In Progress
Bottomline Housing Project
(Residential) 11/2025
Projected to submit development application/site plan Friday,

10.31.25 Weekly Activities Report
11/1/2025
In Progress
Madera Community Hospital (DBA
Chowchilla Medical Center) 12/2025
401 Trinity Ave
• Provide same day access to the following
o MRI
o CTI
o Mammography
o Schedule Surgery
Weekly Activities Report
12/13/2025
In Progress
Mark IV Metal Products 12/2025
4 Kings Ave
ductile iron products. Weekly Activities Report
12/13/2025
In Progress
Chowchilla Healthcare Inc. (DBA
Main Pharmacy) 12/2025
413 W. Robertson Blvd
9:00AM-2:00PM
Weekly Activities Report
12/13/2025
In Progress
Alameda Townhomes 12/2025 Weekly Activities Report
12/13/2025
In Progress
Woodcrest 12/2025 Weekly Activities Report
12/13/2025
In Progress
Eastman Ranch 12/2025 Weekly Activities Report
12/13/2025
In Progress
4th/Kings Sports Field 12/2025 Weekly Activities Report 12/13/2025
In Progress
JF Finish Carpentry – CUP 12/2025 Weekly Activities Report 12/13/2025
In Progress
Smart Sheets
Project / Description Date Update Motion/Approvals Info Source Status Notes Measure N 3/2025
Resolution approving an amendment to our current agreement with MuniServices LLC for transactions tax audit and information • Needs to be updated for the renewal of Measure N
Reported by City
Administrator
8/2025 Meeting held 8/20/2025 @ 5PM
New PD Computers 6/2025 Installed all necessary software on the first new computer. A system image will be created from this setup and used to deploy the same configuration to the rest of the new PD computers.

Wkly Report
6/14/2025 ONGOING
Computer for Review Phone dumps
for PD 6/2025 Set up a computer for PD to use when reviewing information from phone dumps. The computer is outside the domain and network, with all necessary software installed.

Wkly Report
6/14/2025 Complete
PD Dispatch PC Update 7/2025 IT staff is working on a sysprep config for cloning these 4 wkstations. Wkly Report 7/19/2025 ONGOING
Disposal of Surplus
1/2025

6.3 Consideration and Adoption of a City Council Resolution Authorizing the Disposal of Surplus City Property in the Form of Donating a 2020 Ford Explorer Police Interceptor to the Chowchilla Union High School Public Safety Department (Palmer)
Master Fee Schedule - CCW
3/2025
Adjusting the Master Fee Schedule
• Adding a fee for the Police Department now doing the Concealed Cary Permit (CCW)
Reported by City
Administrator
Department: Police Department
Quarterly: January to March 2026
Smart Sheets
Project / Description Date Update Motion/Approvals Info Source Status Notes Madera County Fire
Station 2020
Staff meet with County regarding prior agreement
to provide a fire station to the County. We were
supposed to provide a roughly 2,200 sq. ft
building for them. They are to leave the PD
building where they currently occupy 2 bays. PD
impact fess are to be used. Issue is the agreed
upon costs to build that add-on/building has
significantly increased since 2009. In agreement it
is $243,800 which is $102 sq. ft. Now the County
says the cost is roughly $700 sq. ft = $1.5M. We
are continuing to work with the County to find a
resolution.

Wkly Activities Report
November 8 - November
14, 2020 (Administration)
Ongoing
Fire Expansion 2/2025
Chief Gaumnitz and I met with CalFire and Jay at the
County to try and get a resolution to an agreement we had a long time ago with the County to provide a new
operating space and have them move out of the PD
building. There was square footage mentioned as well as dollar amounts
• Obviously the cost per square foot has gone up
significantly since the agreement
o We cant afford to build at today’s costs and they don’t really want to be located here
o Mentioned giving them the 4 acres we own next to
Autozone plus some money ear marked in PD DIF for this
very item
back to us
Wkly Report - Reported by
City Administrator
2/22-25/2025
Ongoing
Weed Abatement
Department: Fire Department
Quarterly: January to March 2026
Smart Sheets
Project / Description Date Update Motion/Approvals Info Source Status Notes Outreach Website Updates, E-News Bulletings, Social Media Postings On Going Parks Reservations, Website, Social Media Postings, Newsletter On Going Heritage Preservation
Commission 5/2025
2nd reading repealing Ordinance for Heritage Preservation Commission • It was pulled from the last meeting to look into claims that the commission was needed to keep our Certified Local Government (CLG) status which is needed for grants
• While there is a CLG certification that can assist with historical grants, staff verified with the State that we have never held that
certification
Wkly Report 5/31/2025
6/2025
Finalized updates to the staff report on the Heritage Preservation Commission.

After receiving community inquiry about CLG status, it was confirmed that Chowchilla has never been certified, and this update will be included in the second reading.

Wkly Report 6/7/2025
Events
10/11/2025 Candleight Vigil Completed
10/25/2025 City Halloween Treat Trail @ Veterans Park Completed 11/11/2025 Veteran’s Day- NO COUNIL MEETING Completed
11/13/2025 State of the County @ Madera Municipal Golf Course Completed 11/15/2025 Lioness Autumn Fest Dinner/Auction- City is getting a table Completed 12/6/2025 City Christmas Parade and Event Completed
12/18/2025 City Employee Service Awards/Christmas Luncheon Completed 1/9/2026 Madera Auto Center ribbon cutting Completed
1/13/2026 AutoZone ribbon cutting Completed
Chamber of Commerce
Sports Organizations 7/19/2025 Working with Soccer and Adult Rec on their field needs and issues. Ongoing 7/25/2025 Chowchilla Little Leauge is now over Completed Concession Stand Project 7/25/2025 Interior paneling installed and painting to begin Completed Department: Recreation & Community Outreach
Quarterly: January to March 2026
Veterans Boulevard 9/2024

6.1 Consideration and Adoption of a City Council Resolution Approving the Installation of Commemorative Veterans Boulevard Signs atop the Existing Wayfaring Signs Along the North and South Side of 5th Street (Wisener) Motion by Mayor Pro Tem Ahmed, Seconded
by Council Member Barragan, to Approve City
Council Resolution # 54-24 to Approve the
Installation of Commemorative Veterans
Boulevard Signs atop the Existing Wayfaring
Signs Along the North and South Side of 5th
Street. Motion passed by roll call vote.

Chamber of Commerce 12/24 Consideration and Adoption of a City Council Resolution to Approve a Budget Amendment and Distribute a Financial Contribution to the Chowchilla District Chamber of Commerce for the 2025 Calendar Year (Wisener) Consensus to bring back to council after a
meeting with the Chamber Director
Senior Center 12/24 Reached out to Director to request they submit a letter requesting the funds we are contracted to pay for auditing purposes.
12/24 Visited the Senior Center to check in, delivered city swag to senior citizens Smart Sheets
Project / Description Date Update Motion/Approvals Info Source Status Notes Commissions/Comm
ittees
Vacancies fillled for Airport Advisory Committee,
Measure N Citizens Oversight Committee, and the
Planning Commission. All boards have filled
vacancies.
weekly reports, council
meeting minutes Completed!
Recordings Successfully recorded Notice of Special Tax Lien re: CFD 2025-2 Rancho Calera City Clerk Completed!
Compliance FPPC filing deadline closed April 1; a few trickled in after the deadline but all are now submitted.

ADA Title II web accesibility achieved with
DocAccess ad-on to the City's website. In addition,
translation/translating closed captions is now
included for live Brown Act meetings through
Zoom.

Legal Ads
Master Fee Update; various municipal code
updates; various CDBG application notices; Road
15 1/2 NIB; GPA ZOA Amendments.

City Clerk Continuous
This FY is one in
which we had to
adjust the budget of
the account used to
pay for legal ads;
over $10k.

Claims
MOwnes claim is now in the hands of legal
assigned through our RMA since it is elevated to a
discrimination claim. Several other open claims are
ongoing including one related to Officer Roger's
pursuit crash with non-involved motorist, street
sweeper accident with a parked vehicle, unsafe
intersection crash involving 2 residents at 6th and
Monterey, IPhone lost during search of person, and
a few that are being rejected due to wrong
jurisdiction. City Clerk Ongoing
PRA public recods request portal is live. City Clerk Completed Elections
The 2026 Primary Election will be held in the
Council Chamber May 30-31, June1-2. City Clerk In Progress prop 50 Department: City Clerk
Quarterly: January to March 2026
Smart Sheets
Project / Description Date Update Motion/Approvals Info Source Status Notes Personnel On Going
5311 Operating Grant On Going
Unmet Tansit Needs On Going
Annual CHP Inspections On Going
Annual DBE Reporting for
5311 On Going
Need for an additional full-time Driver/Dispatcher to help with coverage.

Attended CalACT Spring Conference with Robin Roman. The department needs one full-time employee for operations coverage and one full-time employee for administration to support succession planning. There is a lot of $ to do projects with (other than bus purchases) but requires additional staff to manage the grants after award which includes reporting.

Transit Supervisor Roman uploaded the bi-annual Certifications and Assurances for this upcoming 5311 operating grant cycle. Staff report to apply for Section 5311 will be on May agenda RFR In September MCTC held unmet transit needs public hearings for Chowchilla, City and County of Madera transit agencies, to obtain public input on local transit needs.

MCTC will compile information and hold another hearing at the board offices to review unment needs and evaluate them based on many factors. SSTAC met over MAdera City/County and Chowchilla's unmet needs submitted by the public in respective areas and recommended that Chowchilla's unmet transit needs are not reasonable to meet. the governing board, MCTC, still needs to approve the recommendation by resolution at their Policy Board meeting on May 29.

CHP successfully completed the "terminal and fleet" portion of its annual inspections. They will soon return to complete the desk audit and driver record inspection. In July 26
There is a DBE report that Transit completes annually; Robin completed this on 4/26/25
Department: Transit
Quarterly: January to March 2026
Triennial Audit In progress
Annual TDA Application On Going
5339 Grant Completed
Electrification of Bus Fleet 7/2024 In Progress
FTA Grant In Progress
Title VI Plan In Progress
Drug & Alcohol Program
Audit On Going
LCTOP Grant 7/1/26 In Progress
SGR Grant 4/1/26 In Progress
This project consists of free bus rides for all for a few years if approved.

Purchase of 1 Hybrid mini van, will be delivered 4/28/26. City will pay for the vehicle, and Robin will submit for reimbursement.

Is an independent and objective evaluation of the City as a public transit operator, providing operator management with information on the economy, efficiency, and effectiveness of its program across the prior three fiscal years.

Robin Roman completes the application to receive TDA funds, Thr City can only request funds from the prior yr once application is submitted 5339 grant funds were used to purchase a Gas bus, which was delivered in the 24/25 fiscal year.

In its role of providing financial assistance to develop new transit systems and improve, maintain, and operate existing systems nationwide, FTA oversees thousands of grants provided to states, tribes, and local public agencies to support public transportation. Grantees have a responsibility to comply with statutory and regulatory requirements associated with the management of federally assisted grants.

The purpose of this Title VI Program is to establish guidelines to effectively monitor and ensure that the City of Chowchilla transit services are in compliance with FTA Title VI requirements.

Procurement of 2 New Gas Vehicles for FY 26/27 quotes have been submitted to FTA for approval and project have been add to FTIP
Received a letter from CalSTA that they approved three out of the four projects that were submitted in the allocation package; $810,725 of TIRCIP funds and $895,350 ZETCP funds for planning electrification of transit fleet (includes installing chargers/infrastructure) and purchase of one e-bus.

BlackCATs Grant
Management Program In Progress
FTA Grant applications and project management software, for submitting grant applications and requests for reimbursement.

Smart Sheets
Project / Description Date Update Motion/Approvals Info Source Status Notes Compensation Study 7/2024 Met with a few vendors to obtain quotes for a compensation study. In Progress CFD: Greenhill's 5/2024 Sent out new delinquencies for Pheasant Run On Going CFD: Infill 2024
CFD Refunding failed special election; City Administrator working through next steps.

Quarterly Financial Review On Going
Audit 1/2025 Auditors were out last week for an internal control walkthrough. They are out this week doing their fieldwork. On Going
Reporting 1/2025 Completed 2 out of the 3 State Controller Reports, finishing the 3rd one this week; Working on the CDIAC Reporting. On Going
Annual report on Development Impact Fees- AB 1600. It is a state requirement to report on the balance of DIF, new DIF received and what we spent DIF on
Public Hearing: Reported By
Admin
Budget
1/2025 Will be sending out Budget Worksheets to Department Heads this week to get ready for Mid-Year On Going
Salary Changes 6/2025 Completing PAFs for all city employees (July 1, 2025 salary changes) Weekly Report 6/28/2025 COMPLETED Projects 10/2025
Staff documented 22 ER Park project devices including model, serial, & MAC addresses.

Staff designed and created a PTZ camera mount for the ER Building. Weekly Report 10/11/2025 On Going Department: Finance Department
Quarterly: January to March 2026
Smart Sheets
Project / Description Date Update Motion/
Approvals Info Source Status Notes
DC Migration Major Project
Preparation and Health Check, Upgraded Domain Functionality, Transferred Key Roles, functions and responsibilities from the old primary domain controller (DC1) to the new server (SV-DC1).

DNS Settings Updated, Transferred essential software Duo and Passportal to the new servers, Addressed specific technical issues encountered during the migration process. Moved the DHCP service to new dedicated, servers (SV-IP1 and SV-IP2).

Migrated the NPS service from the old server (DC2) to the new server (SV-DC2).

Ensured smooth integration of LDAP services with the new primary server (SVDC1). Established a new certificate authority on the new server (SV-DC1) to ensure secure communications. Modified Firewall RADIUS and Active directory integration configurations.

Completed
Duo AD MFA Project 1/1/2025 Distributed Duo fobs to fire department staff for enhanced security. Wkly Report Completed Tyler 1/1/2025 Provided Tyler Technologies technician Nick Peyton with access to the Tyler Incode app server to resolve the issue concerning email bill reminders. On Going Sophos Exclusions for Tyler Technologies. Added 43 requested exclusions to Sophos as per Tyler Technologies’ requirements.

Uptime Tracking Project Project is progressing as expected. Wkly Report 4/8/2025 continued to add devices and refine status pages Wkly Report 4/26/2025 Continued adding devices and refining status pages, as well as standardizing DNS names.

Wkly Report 5/3/2025
Working on deployment, finalizing shortcuts and custom icons. Wkly Report 5/24/2025 On Going New Phone System Project Continuing to solve issues with phone system and working with Danny DeGrote Wkly Report 5/24/2025 Completed PROXMAX Project 7/2025 Continued prepping for the new system Wkly Report 7/19/2025 On Going Rims Migration
Now that Vmware has been finalized we can migrate the last 2 remaining servers which are the 2 Rims Servers. We plan to do this 1 at a time to minimize any potential issues that may arise.

Wkly Report 4/8/2025

ON HOLD -
Waiting to
schedule
New Backup System VEEAM
Deployment
The Veeam backup system deployment is progressing as expected. IT is currently backing up most of our systems to ensure full data protection. We're just waiting to finalize the contract with Veeam, and once that's done, we’ll complete the deployment and ensure everything is fully integrated. finally received licensing from vendor project will continue.

Wkly Report 4/8/2025
Department: Info Technology
Quarterly: January to March 2026
continued setting up backups plans and configurations. Wkly Report 5/3/2025 On Going Windows 11 Upgrade project Continued deployment of Windows 11 Wkly Report 6/21/2025 On Going

UPDATES
Continued demolition at PD for the duct work for the new AC unit for the IT room.

Purls onsite to begin duct work for the new AC unit.

Wkly Report 6/14/2025
ED Park Communications Tower
7/25
IT staff is gathering latest preferred PTP network & PTZ camera item product info for tower project. To be submitted to Jason, & IT will begin purchasing hardware soon.

Wkly Report 7/19/2025 On Going
ER Park ER Building concession 7/25 IT staff has begun purchasing hardware for this project. Wkly Report 7/19/2025 On Going ER Park new concessions stand blue
building 7/25 IT staff has begun purchasing hardware for this project. Wkly Report 7/19/2025 On Going PD Dispatch wk station PC upgrade 7/25 IT staff is working on a sysprep config for cloning these 4 wkstations. Wkly Report 7/19/2025 On Going

REPORT TO THE CITY COUNCIL
Item 3.8

CLICK HERE

TO RETURN TO

THE AGENDA
Meeting of: Tuesday, April 28, 2026
AGENDA SECTION: Consent
SUBJECT: Consideration of Quarterly Waiver Report
PREPARED BY: Rod Pruett, City Administrator
ATTACHMENTS: Detail of Waivers Issued

REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☒ RECOMMENDATION:

Approve the Quarterly Waivers Report for January 2026 through March 2026.

BACKGROUND:

Council approved the City Administrator to have the authority to waive penalties, interest, fees, liens, and other items up to $10,000. It was requested that a quarterly report be presented that summarized the transactions the City Administrator approved under this authority.

REASON FOR RECOMMENDATION:

This report is a summary of the waivers that were issued and is an element of transparency for the Council and the public. These waivers are issued on a case by case basis and will fluctuate from quarter to quarter.

This is a tool for the Council to evaluate the use and effectiveness of the program.

FISCAL IMPACT:

There were four waivers issued this quarter for a total of $7,021.53 Please see the attached spreadsheet for the detail.

ALTERNATIVES:

Pull the item for further discussion.

ACTIONS FOLLOWING APPROVAL:

None.

Date Entity/Person Address
Account or
Lien # Type Amount Justification
2/23/2026 Ian H Jackson 650 S. Seventh 01-13852-003 Utility Account $ 4,215.60 Customer thought acct was closed and there was no
usage for over a year. We should be closing accts after 6 months of no payment. this is a reduction to get to
that 6 month amount if we would have closed it. It is
mostly penalties and interest.
3/9/2026 Jancita Bento 2019 Taft Administrative Citation 6987 $ 50.00 Dog was accidentally let out by the gardner. No prior
history at this address. One time waiver.
3/12/2026 Santiago Delmaro 1404 Lake 02-11859-008 Utility Account $ 487.56 Customer thought acct was closed and there was no
usage for over a year. We should be closing accts after 6 months of no payment. this is a reduction to get to
that 6 month amount if we would have closed it. It is
mostly penalties and interest.
3/27/2026 Parminder Sandhu 901 Lake 02-14253-010 Utility Account $ 2,268.37 Customer thought acct was closed and there was no
usage for over a year. We should be closing accts after 6 months of no payment. this is a reduction to get to
that 6 month amount if we would have closed it. It is
mostly penalties and interest.
$ 7,021.53
CITY COUNCIL REPORT ON WAIVERS PER RESOLUTION 83-19
QUARTER 1/1/2026 - 3/31/2026

TOTAL FEES WAIVED

REPORT TO THE CITY COUNCIL
Item 3.9

CLICK HERE

TO RETURN TO

THE AGENDA
Meeting of: Tuesday, April 28, 2026
AGENDA SECTION: Consent
SUBJECT: Consideration of Quarterly Contracts Executed Report PREPARED BY: Rod Pruett, City Administrator
ATTACHMENTS: Detail of Waivers Issued

REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☒ RECOMMENDATION:

Approve the Quarterly Contracts Executed Report for January 2026 through March 2026.

BACKGROUND:

Council approved the City Administrator to have the authority to execute contracts without City Council prior approval up to $100,000 per Ordinance #536-26. Per the Resolution, a quarterly report is to be presented that summarizes the contracts executed by the City Administrator under this authority.

REASON FOR RECOMMENDATION:

This report is a summary of the contracts that were executed and is an element of transparency for the Council and the public. These contracts are executed prior to City Council approval in an effort to be more efficient and was required by the Department of Housing and Community Development (HCD) to process any documents related to grants and programs they oversee.

The authority was not limited to just HCD related programs for efficiency purposes and will fluctuate from quarter to quarter. While the Resolution grants authority for all related documents for HCD, including reimbursement requests or quarterly reports required by grants, this report is to summarize contracts specifically and their costs. For example, a software contract or a copier lease…et cetera.

FISCAL IMPACT:

There were three contracts executed this quarter for a total of $18,565.60 Please see the attached spreadsheet for the detail.

ALTERNATIVES:

Pull the item for further discussion.

ACTIONS FOLLOWING APPROVAL:

None.

Date Entity/Person Type Amount Description
3/23/2026 DocAccess Software $6,865.60
Document accessibility platform that scans, converts,
& monitors PDF documents on websites to support
ADA and Section 508 compliance efforts for users
with disabilities
2/26/2026 Monday.com Software $5,700.00
Annual Cost for project tracking software for all of the city.
3/17/2026 Axanexa Implementation of Software $6,000.00
Importing data, creating a project workflow,
dashboards, and training for Monday.com Project
Tracking Software.
$ 18,565.60
CITY COUNCIL REPORT ON CONTRACTS EXECUTED PER ORDINANCE 536-26 QUARTER 1/1/2026 - 3/31/2026

TOTAL CONTRACTS

REPORT TO THE CITY COUNCIL
Item 3.10

CLICK HERE

TO RETURN TO

THE AGENDA
Meeting of: Tuesday, April 28, 2026
AGENDA SECTION: Consent
SUBJECT: Presentation of Quarterly Financial Investment Report PREPARED BY: Daniel Seeto, Finance Director
ATTACHMENTS: LAIF Quarterly Remittance Advice, Wulff Hansen Quarterly Report

REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☒ RECOMMENDATION:

Review the Quarterly Financial Investment Report.

BACKGROUND:

In accordance with Section 53601 of the California Government Code and the City’s Investment policy, the City is authorized to invest in Certificates of Deposit, the California Local Agency Investment Fund (LAIF).

In addition to LAIF, the City began investing in Treasury Securities in December 2022 after City Council approval as they typically yield higher interest than LAIF and allows the City to have some diversity in its portfolio. The Treasury securities purchased by the City amounted to $15M. Each time a Treasury security in the portfolio matures, the City will be paid the ‘maturity value’ or ‘face value’ of that security. If such security was purchased at a discount and then held to maturity, then the difference between the discounted principal cost of the security and the face value of the security represents ‘income’ to the City, similar to interest earnings. The City is using Wulff, Hansen & Co. as our Municipal Advisor to oversee the portfolio.

The City also began investing in a Money Market account with Tri Counties Bank, as they are offering a rate competitive with LAIF. This allows the City to have more flexibility and limits transfers between institutions.

REASON FOR RECOMMENDATION:

N/A
FISCAL IMPACT:

The US Treasury Securities Custodial Account has a fair market value of $9,189,592 and for the last quarter recognized $83,832 in investment earnings, which includes accrued interest and amortized discount. Accrued interest is interest that has been earned but not yet paid. During the period from January 1, 2026 through March 31, 2026, the City earned accrued interest of $86,724. Amortized discount represents that portion of any discount that has been earned, but not yet paid. As of March 31, 2026, the portfolio’s amortized discount was ($2,892).

Interest is allocated to all funds that have a positive cash balance. As March 31, 2026, the City has $19,687,740 in LAIF and for the last quarter received $192,932 in interest.

As of March 31, 2026, the City has $16,415,799 in Tri Counties Money Market and for the last quarter received $128,484 in interest.

ALTERNATIVES:

N/A
ACTIONS FOLLOWING APPROVAL:

N/A

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To Rod Pruett and Daniel Seeto, City of Chowchilla
From Bud Levine and Rob Pankratz, Wulff, Hansen & Co.

Date April 13, 2026
Subject Quarterly Portfolio Earnings: January 1, 2026 through March 31, 2026 During the period from January 1, 2026 through March 31, 2026, the City held the following U.S. Treasury securities in its portfolio during all or a portion of the period:

All dollar amounts are rounded to the nearest dollar.
* Accrued interest paid by City to Winning Bidder.

Quarterly Book Earnings
During the period from January 1, 2026 through March 31, 2026, the City’s portfolio of U.S.

Treasury securities had book earnings of $83,832 which is equivalent to an annualized book yield of 3.69%. By comparison, during the same period the average daily yield paid on deposits in the Local Agency Investment Fund (LAIF) was 3.88%.

Quarterly book earnings of $83,832 included the following:
• $86,724of interest earnings, plus
• -$2,892 of accreted discount less any amortized premium.

CUSIP
Number
Purchase
Date
Face
Value
Coupon
Rate
Price
Discount (+)
Premium (-)
Principal
Cost
Accrued
Interest*
Total
Cost
Final
Maturity
Yield to
Maturity
91282CLP4 Sep. 30, 2025 3,076,000 3.500% 99.7891 8,488 3,067,512 0 3,067,512 Sep. 30, 2026 3.72% 91282CMV0 Sep. 30, 2025 3,061,000 3.875% 100.289 -8,846 3,069,846 0 3,069,846 Mar. 31, 2027 3.68% 91282CFM8 Sep. 30, 2025 3,041,000 4.125% 100.941 -28,628 3,069,628 0 3,069,628 Sep. 30, 2027 3.63% Fees
The book earnings shown above do not take into account any fees that were incurred by the City for services provided by the Municipal Advisor, Bidding Agent / Registered Investment Advisor or Custodian Bank. The total of such fees incurred by the City during the period equaled approximately $3,125.

Next Steps
The City does not need to take any further action at this time. This report is informational only.

The next scheduled maturity of Treasury securities in the City’s portfolio will occur on September 30, 2026. Prior to the maturity of each Treasury security in the City’s portfolio, the Wulff Hansen team will assist the City in evaluating its expected cash flow requirements and liquidity needs, and its potential reinvestment options.

Meanwhile, all of the Treasury securities in the City’s portfolio are held in trust for the City by its Custodian Bank. The scheduled payment of interest and principal on each security will be automatically credited to the City’s custody account upon receipt, and the City will continue to receive monthly account statements from the Custodian Bank.

Invest Additional Funds
Depending on the City’s cash balances and its expected future cash flow requirements and liquidity needs, the City may wish to consider investing additional funds in one or more U.S.

Treasury securities, in order to earn additional interest income. If so, the Wulff Hansen team can help arrange for any such additional investment. Please note however that such additional investment would incur additional compensation to Municipal Advisor, based on its current fee schedule, and therefore Municipal Advisor would have an incentive to recommend such an additional investment. For your reference, the current U.S. Treasury yield curve is as follows:
* LAIF rate as of April 8, 2026
Liquidate Securities
If the City ever needs immediate access to some or all of its invested funds due to a large unanticipated financial obligation or emergency situation, then the Wulff Hansen team can help arrange for the prompt liquidation of one or more Treasury securities in the City’s portfolio.

The market value of the City’s portfolio – as opposed to its face value – typically fluctuates over time as interest rates change. According to the most recent monthly custody account statement, the estimated market value of the Treasury securities in the City’s portfolio on March 31, 2026 was $9,189,592.47 excluding any funds held in the City’s designated cash sweep account.

3.81%

3.67% 3.69% 3.69% 3.67% 3.76% 3.79% 3.80% 3.78%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%
LAIF* 3-Month 6-Month 9-Month 12-Month 15-Month 18-Month 21-Month 24-Month Estimated U.S. Treasury Yield Curve as of April 10, 2026 (Data Sources: Tullett Prebon via Wall Street Journal, Treasury.gov, and California State Treasurer's Office)

REPORT TO THE CITY COUNCIL
Item 4.1

CLICK HERE

TO RETURN TO

THE AGENDA
Meeting of: Tuesday, April 28, 2026
AGENDA SECTION: Public Hearing
SUBJECT: Consideration of a Resolution and Measure T Annual Expenditure Plan (AEP) for Fiscal Year (FY) 2026-27 and Authorizing the Public Works Director or Designee to submit the Plan to the Madera County Transportation Authority (MCTA) for adoption
PREPARED BY: Christina Soares, Administrative Analyst
PRESENTED BY: Joe Roman, Deputy Director of Public Works ATTACHMENTS: Resolution, Measure T AEP Plan for FY 2026-27

REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☒ RECOMMENDATION:

Staff recommends that the City Council adopt a resolution approving the Measure T AEP for FY 2026/27 and authorizing submission of the AEP to the Madera County Transportation Authority (MCTA) for adoption.

BACKGROUND:

The Annual Expenditure Plan (AEP) is required by the MCTA to claim Measure T funds that will be allocated to the City as specified in the Transportation Sales Tax Measure Investment Plan (Plan) approved by the voters in the November 2006 election. The AEP is completed annually. The proposed funding for the projects and programs in the AEP is consistent with the requirements specified in the Measure T 2007 Strategic Plan (Strategic Plan) adopted by the MCTA and with the Capital Improvement Program (CIP) proposed in the City’s FY 2026/27 Budget.

Measure T is a ½ cent sales tax measure approved by Madera County voters in the November 2006 election. The measure took effect on April 1, 2007, with a sunset provision of 20 years. As part of the measure’s implementation, local agencies submit an AEP. The AEP is a multi-modal funding program that commits funding for the following program categories:
 Regional Rehabilitation  ADA Compliance
 Street Maintenance  Transit Enhancement
 Supplemental Street Maintenance  ADA/Seniors/Paratransit  Flexible (Miscellaneous Street programs)  Environmental Enhancement

The Regional Rehabilitation program consists of two elements:

1. One is the responsibility of MCTA to manage and deliver projects of regional significance. MCTA may elect to agree with the local agency to perform the engineering and construction activities of this element.

2. The second element is the responsibility of the local agencies to manage the construction, rehabilitation, and maintenance of the agency’s arterial and collector streets.

All other programs are the responsibility of the local agency to deliver. The MCTA and Citizens Advisory Committee monitor the local agencies' progress in the delivery of these programs.

REASON FOR RECOMMENDATION:

The implementation guidelines in the Strategic Plan adopted by the MCTA require the City to prepare and adopt an AEP that must be approved during a noticed public hearing. This agenda item will satisfy this requirement. The proposed expenditures in each program category must meet the objectives and guidelines specified in the Strategic Plan. The Strategic Plan is a 5-year plan that is updated every 2 years to adjust the project based on sales tax receipts, ensuring that the projects are consistent with future investments.

DISCUSSION:

MCTA has provided the City with the funding allocation for each of the program categories. The total allocation for FY 2026/27 is $892,581, of which $626,641 is available for programming due to $265,940 of Flex funds impounded by MCTC. There was no allocated disbursement of excess tax revenues received in FY 2025/26 above the final allocation. A summary of allocations and distributions of prior year excess funds to the City for the past five years is shown below in Table 1.

Table 1. Allocations & Excess Funds for Past 5 Years
Fiscal Year Allocation Prior Year Excess FY Total
2026/27 $892,581 $0 $892,581
2025/26 $978,008 $0 $978,008
2024/25 $1,009,450 $0 $1,009,450
2023/24 $1,003,835 $56,512 $1,060,347
2022/23 $955,551 $144,125 $1,099,676
AEP for FY 2026/27 includes carryover funds and new allocations. Table 2 provides the total of funds for FY 2026/27. Table 3 breaks down fund categories and a description of each.

Table 2. Total funds in the FY 2026/27 Annual Expenditure Plan (AEP) Carryover funds from prior years $1,748,067
Excess funds from the previous fiscal year $0
New fund allocation for FY 2026/27 $892,581
Total: $2,640,648
Table 3: FY 2026/27 Annual Expenditure Plan (AEP)
Program Carryover
from prior FY
New funds for FY
2026/27
Total for
Programming

1. Regional Transportation and
Highway Program
$1,016,082 $305,678 $1,321,760

2. Local Transportation Program
a. Street Maintenance $140,820 $158,953 $299,773
b. Supplemental Street Maintenance $200,394 $106,987 $307,381 c. Flexible $162,922 $265,940
Funds held by MCTC
$428,862
d. ADA Compliance $22,206 $6,114 $28,620

3. Transit Enhancement Program
a. Citywide $41,022 $22,376 $63,398
b. ADA/Seniors/Paratransit $12,896 $2,079 $14,975

1. Environmental Enhancement
Program
$151,725 $24,454 $176,179
Total Available Funds $1,748,067 $892,581 $2,640,648

1. Regional Rehabilitation Program
The FY 2026/27 allocation is $305,678. This Fiscal Year, Public Works is expecting to utilize $71,000 for the Humboldt Ave Rehabilitation Phase 2 Project.
• R-7 Humboldt Ave Rehab. Phase 2 Project - $71,000

2. Local Transportation Program
Street Maintenance:

The FY 2026/27 allocation is $158,953 for the application of Surface Seal treatment and General Street Maintenance work on various City streets.
• $185,000 to Public Works for Street Maintenance activities Supplemental Street Maintenance:

The FY 2026/27 allocation is $106,987 for General Street Maintenance on various City streets. • $125,000 reserved to Public Works for Street Maintenance activities Flexible:

The FY 2026/27 allocation is $265,940. These funds will be impounded by the MCTA to fund the delivery of projects in the Regional Streets and Highway Program. Funds will be impounded until each agency can adopt an Impact Fee program for the construction of Regional Facilities. 20 percent match for projects listed in the Regional Streets program is a requirement of the Transportation Sales Tax Measure Investment Plan approved by the voters. Flexible funds will be released back to each agency upon payment of the matching funds by each local agency. Public Works is expecting to utilize $162,922 of carryover funds that were available before flexible funding was impounded for completion of projects in the following years.
• Reserved for future projects - $162,922
ADA Compliance:

The FY 2026/27 allocation is $6,114 for sidewalk repairs and safety improvements to make walkways ADA-compliant. Public Works is expecting to utilize $28,320 of carryover funds that were available before flexible funding was impounded for completion of projects in the following years. • Reserved for future projects - $28,320

3. Transit Enhancement Program
Transit Enhancement-Citywide:

The FY 2026/27 allocation is $22,376 for security and passenger enhancements to make facilities ADAcompliant. No specific projects are scheduled for the current Fiscal Year for these funds. • Reserved for future projects - $63,398
Transit Enhancements-ADA/Seniors/Paratransit:

The FY 2026/27 allocation is $2,079 for security and passenger enhancements to make facilities ADAcompliant. No specific projects are scheduled for the current Fiscal Year for these funds. • Reserved for future projects - $14,975

4. Environmental Enhancement Program
The FY 2026/27 allocation is $24,454 for the construction of bicycle and pedestrian facilities and other transportation-related projects that have environmental benefits. No specific projects are scheduled for the current Fiscal Year for these funds.
• Reserved for future projects - $176,179
The MCTA Technical Advisory Committee (TAC) will also review and comment on this expenditure plan before it submits to the MCTA. The MCTA will consider adopting this expenditure plan into the Measure T FY 2026/27 Annual Work Plan at their June meeting.

FISCAL IMPACT:

An approved AEP by the City Council is required to receive the City’s allocation of Measure T funds.

Allocation of funds in the AEP is consistent with project funding in the proposed CIP for FY 2026/27. There is no adverse impact on the General Fund for the implementation of these projects and programs.

ALTERNATIVES:

The City Council does not adopt a resolution approving the Measure T AEP for FY 2026/27 and does not authorize submission of the AEP to the Madera County Transportation Authority (MCTA) for adoption and will have to use alternative funds for Street projects.

ACTIONS FOLLOWING APPROVAL:

The Public Works Director or Designee will be authorized and directed to submit a certified copy of this resolution to the MCTA for consideration to include the City of Chowchilla’s AEP in the FY 2026/27 Measure T Annual Work Program.

COUNCIL RESOLUTION # XX-26

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA, CALIFORNIA

APPROVING THE MEASURE T ANNUAL EXPENDITURE PLAN (AEP) FOR FISCAL YEAR (FY) 2026/27 AND AUTHORIZING THE PUBLIC WORKS DIRECTOR OR DESIGNEE TO SUBMIT THE

PLAN TO THE MADERA COUNTY TRANSPORTATION AUTHORITY (MCTA) FOR ADOPTION WHEREAS, the projects and programs proposed for approval in the FY 2026/27 Annual Expenditure Plan (AEP) are consistent with the Measure 'T' 2007 Strategic Plan; and WHEREAS, the City is a designated agency for selecting projects and programs for approval and adoption by the MCTA into the Measure T Annual Work Plan; and WHEREAS, under Public Utility Code 180108(a)(b) and section 6061 of the Government Code, a public notice with the time and place of the public hearing, April 28, 2026, at 130 S. 2nd Street, was published on the City website; and
WHEREAS, the public was invited to comment on the proposed projects and programs during a public hearing that was held on April 28, 2026.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chowchilla hereby finds, determines and declares the following:

1. The above recitals are true and correct.

2. The projects programs, and expenditures shown on Measure T Annual Expenditure Plan Fiscal Year (FY) 2026/27 are attached hereto and are approved.

3. The Public Works Director or Designee is hereby authorized and directed to submit a certified copy of this resolution to the MCTA for consideration to include the City of Chowchilla’s AEP in the FY 2026/27 Measure T Annual Work Program.

4. This resolution is effective immediately upon adoption.

PASSED AND ADOPTED by the City Council of the City of Chowchilla this 28th day of April 2026 by the following vote to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

Mayor Kelly Smith
ATTEST:

Joann McClendon, CMC
City Clerk
Measure T Annual Expenditure Plan
Fiscal Year 2026 / 2027
Commute Corridors/Farm to Market (Regional) Carryover Excess Allocation Available Rehab, Reconstruct, Maintenance Program $ 1,016,082 $ - $ 305,678 $ 1,321,760 Project Budget
Humboldt Ave Rehabilitation Phase 2 $ 71,000.00
Reserved for projects in following years $1,250,760
$ -
$ -
$ -
$ -
Total Projects $ 1,321,760
Unprogrammed Balance $ -
Safe Routes to School & Jobs (Local) Carryover Excess Allocation Available Street Maintenance Program $140,820.00 $ - $ 158,953 $ 299,773 Project Budget
Overlays $ -
Chip Seal $ -
Other Seals $ -
Patching $ 185,000
Reserve for Next Fiscal Year $ 114,773
Total Projects $ 299,773
Unprogrammed Balance $ (0)
Suppl. Street Maint./County Maint. Districts $ 200,394 $ - $ 106,987 $ 307,381 Project Budget
Overlays $ -
Chip Seal $ -
Dust Mitigation $ -
Patching $ 125,000
Reserve for Next Fiscal Year $ 182,381
Total Projects $ 307,381
Unprogrammed Balance $ 0
Flexible Program $ 162,922 $ - $ 265,940 $ 428,862
Project Budget
Impounded for Regional Projects $ 265,940
Reserve for projects in following years $ 162,922
Total Projects $ 428,862
Unprogrammed Balance $ 162,922
ADA Compliance $ 22,206 $ - $ 6,114 $ 28,320
Project Budget
$ -
Reserve for Next Fiscal Year $ 28,320
Total Projects $ 28,320
Unprogrammed Balance $ (0)

Page 1 of 2 ends

Measure T Annual Expenditure Plan
Fiscal Year 2026 / 2027
Transit Enhancement Program (Public) Carryover Excess Allocation Available $ 41,022 $ - $ 22,376 $ 63,398
Project Budget
$ -
Reserve for Next Fiscal Year $ 63,398
Total Projects $ 63,398
Unprogrammed Balance $ (0)
ADA / Seniors / Paratransit $ 12,896 $ - $ 2,079 $ 14,975 Project Budget
$ -
Reserve for Next Fiscal Year $ 14,975
Total Projects $ 14,975
Unprogrammed Balance $ (0)
Environmental Enhancement Program Carryover Excess Allocation Available Total for all Sub-programs $ 151,725 $ - $ 24,454 $ 176,179 Project Budget
$ -
$ -
Reserve for projects in following years $ 176,179
Total Projects $ 176,179
Unprogrammed Balance $ -

Page 2 of 2 ends

REPORT TO THE CITY COUNCIL
Item 6.1

CLICK HERE

TO RETURN TO

THE AGENDA
Meeting of: Tuesday, April 28, 2026
AGENDA SECTION: New Business
SUBJECT: Presentation of the City’s Fiscal Year 2024-2025 Financial Statement Audit PREPARED BY: Daniel Seeto, Finance Director
ATTACHMENTS: Audited Financial Statements
Communication to Those Charged with Governance Letter
Management Comment Letter
Government Auditing Standards Report

REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☒ RECOMMENDATION:

Accept the audit for the year ended June 30, 2025 as presented.

BACKGROUND:

Annually, the City has a financial statement audit performed by an independent audit firm which is presented to Council for acceptance.

The final version of the audit is attached with all signatures on reports. The Audit Communication and Management Communication letters are also attached which has communication from the audit firm to management and Council. The Government Auditing Standards Report describes the scope of testing performed on internal controls and compliance and the results of that testing.

The audit for the year ended June 30, 2025 was performed by Price Paige & Company, Inc. Anthony Gonzales, the Audit Manager, will be presenting the audit to Council.

REASON FOR RECOMMENDATION:

The audit for the year ended June 30, 2025 resulted in an unmodified (“clean”) opinion, which is the best opinion you can receive. There were no findings and minimal journal entries. Accepting the results means that Council understands the results of the audit.

FISCAL IMPACT:

None
ALTERNATIVES:

Don’t accept the audit.

ACTIONS FOLLOWING APPROVAL:

Any journal entries proposed by the auditors will be uploaded to our system. The books for Fiscal Year 2025 will be formally closed.

City of Chowchilla | CA
Financial Statements
For the Year Ended June 30, 2025
CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Financial Statements

TABLE OF CONTENTS
PAGE
Independent Auditor’s Report ............................................................................................................................................ 1 Management’s Discussion and Analysis ............................................................................................................................. 5 Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position .......................................................................................................................................... 15 Statement of Activities ............................................................................................................................................... 16 Fund Financial Statements:

Governmental Funds:

Balance Sheet ....................................................................................................................................................... 18 Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position ................................................................................................... 19 Statement of Revenues, Expenditures and Changes in Fund Balances ............................................................... 20 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities ............................................ 21 Proprietary Funds:

Statement of Net Position .................................................................................................................................... 22 Statement of Revenues, Expenses and Changes in Net Position ......................................................................... 23 Statement of Cash Flows ...................................................................................................................................... 24 Fiduciary Funds:

Statement of Fiduciary Net Position .................................................................................................................... 26 Statement of Changes in Fiduciary Net Position .................................................................................................. 27 Notes to the Basic Financial Statements ............................................................................................................................ 29 CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Financial Statements
TABLE OF CONTENTS (Continued)
PAGE
Required Supplementary Information:

Budgetary Comparison Schedules:

General Fund ............................................................................................................................................................... 66 CDBG Grants Special Revenue Fund ............................................................................................................................ 67 Impact Fees Special Revenue Fund ............................................................................................................................. 68 Measure N Special Revenue Fund ............................................................................................................................... 69 Streets and Roads (Local Transportation) Fund .......................................................................................................... 70 Notes to the Budgetary Comparison Schedules .......................................................................................................... 71 Cost-Sharing Multiple-Employer Defined Benefit Pension Plan:

Schedule of the City’s Proportionate Share of Net Pension Liability (Asset) .............................................................. 72 Schedule of Contributions ........................................................................................................................................... 73 Supplementary Information:

Nonmajor Special Revenue Funds:

Combining Balance Sheet ............................................................................................................................................ 75 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .................................................... 77 Nonmajor Enterprise Fund:

Statement of Net Position .......................................................................................................................................... 79 Statement of Revenues, Expenses and Changes in Net Position ................................................................................ 80 Statement of Cash Flows ............................................................................................................................................. 81 Internal Service Funds:

Combining Statement of Net Position......................................................................................................................... 83 Combining Statement of Revenues, Expenses and Changes in Net Position .............................................................. 84 Combining Statement of Cash Flows .......................................................................................................................... 85 Custodial Funds:

Combining Statement of Fiduciary Net Position ......................................................................................................... 86 Combining Statement of Changes in Fiduciary Net Position ....................................................................................... 87 1 INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and the City Council
City of Chowchilla, 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 Chowchilla, California (the City), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2025, and the respective changes in financial position, and, where applicable, cash flows thereof 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 requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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

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

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison schedules, schedule of the City’s proportionate share of the net pension liability, and schedule of contributions, as noted on the table of contents be presented to supplement the basic financial statements.

Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

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

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 26, 2026, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.

Clovis, California
March 26, 2026
4 MANAGEMENT’S DISCUSSION AND ANALYSIS
CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Management’s Discussion and Analysis
5 As management of the City of Chowchilla (the City), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2025. We encourage readers to consider the information presented here in conjunction with information that is included within the financial statements.

FINANCIAL HIGHLIGHTS
The assets of the City exceeded its liabilities as of June 30, 2025 by $87,379,489. Of this amount, unrestricted deficit net position of $(2,745,828) may be used to meet the City’s ongoing obligations to citizens and creditors. As of June 30, 2024, the assets and deferred outflows of the City exceeded its liabilities and deferred inflows by $78,232,608 with unrestricted deficit net position totaling $(2,904,235).

Total net position increased by $9,146,881 during the year ended June 30, 2025. Net position associated with governmental activities increased by $3,750,763 while net position associated with business-type activities increased by $5,396,118. For the year ended June 30, 2024, total net position increased by $9,099,222 with net position associated with governmental activities increasing by $4,739,302 and net position associated with business-type activities increasing by $4,359,920.

As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $33,484,169, an increase of $2,048,177 compared with the prior year. Of this amount, $10,848,107 is available for spending and $22,636,062 is restricted or otherwise designated for specific future uses. For the year ended June 30, 2024, the City’s governmental funds had combined ending fund balances of $31,435,992, with $11,666,447 being available for spending and $19,769,545 restricted for specific future uses. The combined ending fund balances as of June 30, 2024 represented an increase of $2,825,146 over the June 30, 2023 combined ending fund balances.

At the end of the current fiscal year, the fund balance for the general fund was $13,707,798 or 140 percent of general fund operating expenditures for the year ended June 30, 2025. The general fund’s fund balance decreased by $599,783 for the year ended June 30, 2025. At the end of the prior fiscal year, the fund balance of the general fund was $14,307,581 or 148 percent of that year’s general fund operating expenditures. The general fund’s fund balance increased by $380,996 during the prior year.

The City’s total debt obligations (excluding post-retirement benefits) decreased by $871,778. This was attributable to not issuing any new debt in the year ended June 30, 2025 and making our scheduled principal payments on pre-existing debt.

During the prior year, total debt obligations decreased by $565,253.

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

Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business.

The Statement of Net Position presents information on all of the City’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Management’s Discussion and Analysis
6 The Statement of Activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenue and expense are reported in this statement for some items that will result in cash flows in future fiscal periods.

Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenue (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, highways and streets, culture and recreation, community development and other charges. The business-type activities of the City include water, sewer, storm drain and solid waste disposal systems, as well as airport activities.

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

Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near term inflows and outflows of spendable resources, as well as spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the City’s near-term financing decisions. Both the Governmental Funds Balance Sheet and the Governmental Funds Statement of Revenue, Expenditures and Changes in Fund Balance provide reconciliations to facilitate this comparison between the two.

The City maintains 57 individual governmental funds. Many funds are grouped together by purpose or type for financial reporting purposes. There are 17 governmental funds presented for financial statement purposes. Information is presented separately in the Governmental Funds Balance Sheet and in the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance for the general fund, which is considered a major fund, three special revenue funds, one debt service fund and one capital projects fund which are presented separately for the purpose of consistency.

Data from the other eleven special revenue funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report.

The City adopts an annual budget for its general fund and all special revenue funds. Budgetary comparison statements have been provided for the general fund and the major special revenue funds to demonstrate compliance with the 2024/2025 budget.

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Management’s Discussion and Analysis
7 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 governmentwide financial statements. The City maintains five individual enterprise funds. Information is presented separately in the proprietary Statement of Net Position and the proprietary Statement of Revenues, Expenses and Changes in Net Position for all five enterprise funds.

An internal service fund is used to accumulate and allocate costs internally among the City’s various functions. The City uses three internal service funds to account for its fleet maintenance, information technology activities, and employee benefits. These funds costs are allocated amongst all funds that use those services, both governmental and business-type, so the funds themselves are excluded in the government-wide financial statements but are presented separately in the proprietary funds’ financial statements.

Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the City.

Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds.

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

Supplementary information. In addition to the basic financial statements and accompanying notes, this report also presents certain other supplementary information. The combining statements referred to earlier in connection with the nonmajor funds are presented after the basic financial statements.

GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. As of June 30, 2025, the City’s assets exceeded liabilities by $87,379,489. A significant portion of the City’s net position (51 percent) reflects its investment in capital assets, less any related debt used to acquire those assets that is still outstanding. Capital assets are used to provide services to citizens and they are not available for future spending. Although the investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

The following schedules represent a summary of the City’s net position and activities for the year ended June 30, 2025, with a comparison to the total net position and activities for the year ended June 30, 2024:

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Management’s Discussion and Analysis
8 Statements of Net Position
June 30, 2025 and 2024
06/30/2025 06/30/2024 06/30/2025 06/30/2024 06/30/2025 06/30/2024 Assets
Current and other assets 60,960,775 $ 59,434,463 $ 13,121,612 $ 13,856,206 $ 74,082,387 $ 73,290,669 $ Capital assets 30,095,763 28,375,252 32,183,974 27,846,826 62,279,737 56,222,078 Total assets 91,056,538 87,809,715 45,305,586 41,703,032 136,362,124 129,512,747 Deferred Outflows of Resources 4,112,196 2,721,305 380,234 606,374 3,101,539 4,718,570 Liabilities
Long-term liabilities 29,778,468 30,328,418 14,012,996 14,256,044 43,791,464 44,584,462 Other liabilities 5,106,340 6,258,027 1,505,477 3,256,083 6,611,817 9,514,110 Total liabilities 34,884,808 36,586,445 15,518,473 17,512,127 50,403,281 54,098,572 Deferred Inflows of Resources 1,684,864 1,491,670 189,223 215,273 1,680,893 1,900,137 Net Position
Net investment in capital assets 23,434,008 21,449,118 20,695,024 16,329,830 44,129,032 37,778,948 Restricted 45,566,632 42,956,342 429,653 401,553 45,996,285 43,357,895 Unrestricted (deficit) (11,599,275) (10,754,858) 8,853,447 7,850,623 (2,745,828) (2,904,235) Total net position 57,401,365 $ 53,650,602 $ 29,978,124 $ 24,582,006 $ 87,379,489 $ 78,232,608 $ Governmental Business-Type
Activities Totals Activities
CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Management’s Discussion and Analysis
9 Statements of Activities
For the Years Ended June 30, 2025 and 2024
06/30/2025 06/30/2024 06/30/2025 06/30/2024 06/30/2025 06/30/2024 Revenues:

Program revenues:

Charges for services 3,217,906 $ 1,730,098 $ 8,273,905 $ 7,747,101 $ 11,491,811 $ 9,477,199 $ Operating grants and contributions 2,983,662 4,359,869 10,000 15,075 2,993,662 4,374,944 Capital grants and contributions 1,154,611 811,429 2,505,012 1,515,816 3,659,623 2,327,245 General revenues:

Property taxes 1,412,635 1,434,297 15,168 14,237 1,427,803 1,448,534 Sales taxes 5,474,884 5,782,318 - - 5,474,884 5,782,318 Transient lodging taxes 346,903 354,175 - - 346,903 354,175 Franchises fees 356,052 332,692 - - 356,052 332,692
Documentary stamp 36,428 30,165 - - 36,428 30,165
Motor vehicle-in-lieu - unrestricted 3,595,953 3,316,652 - - 3,595,953 3,316,652 Investment earnings 1,716,427 1,644,794 617,336 480,858 2,333,763 2,125,652 Rental income 115,798 111,156 - - 115,798 111,156
Miscellaneous 270,942 248,290 96,227 255,728 367,169 504,018 Gain/loss on sale of capital assets - - 5,190 - 5,190 - Total revenues 20,682,201 20,155,935 11,522,838 10,028,815 32,205,039 30,184,750 Expenses:

General government 2,238,504 1,857,380 - - 2,238,504 1,857,380 Public safety 6,495,144 6,959,231 - - 6,495,144 6,959,231 Highways and streets 2,619,851 2,050,844 - - 2,619,851 2,050,844 Culture and recreation 1,085,884 976,355 - - 1,085,884 976,355 Community development 1,189,086 1,839,003 - - 1,189,086 1,839,003 Interest and fiscal charges 960,993 976,980 - - 960,993 976,980 Water - - 3,636,581 3,432,063 3,636,581 3,432,063
Solid waste - - 2,345,252 2,257,551 2,345,252 2,257,551 Sewer - - 1,933,079 1,834,549 1,933,079 1,834,549
Airport - - 63,373 65,570 63,373 65,570
Storm drain - - 206,097 216,635 206,097 216,635
Total expenses 14,589,462 14,659,793 8,184,382 7,806,368 22,773,844 22,466,161 Transfers (2,137,473) (2,057,662) 2,057,662 2,137,473 - - Changes in net position 4,035,077 3,358,669 5,396,118 4,359,920 9,431,195 7,718,589 Net position - beginning, as presented 53,650,602 48,911,300 24,582,006 20,222,086 78,232,608 69,133,386 Restatement (284,314) 1,380,633 - - (284,314) 1,380,633 Net position - ending 57,401,365 $ 53,650,602 $ 29,978,124 $ 24,582,006 $ 87,379,489 $ 78,232,608 $ Activities Totals
Governmental Business-Type
Activities
Governmental activities. Governmental activities increased the City’s net position by $4,035,077 (an increase of $676,408 compared to the prior year). This was due primarily to the increase in program revenues and investment earnings, and a small decrease in overall expenses.

Business-type activities. Business-type activities increased the City’s net position by $5,396,118 (an increase of $1,036,198 compared to the prior year). This is primarily due increased capital grants. Expenses increased overall due to ongoing Water fund projects.

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Management’s Discussion and Analysis
10 FINANCIAL ANALYSIS OF THE CITY'S FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance related legal requirements.

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

As of June 30, 2025, the City’s governmental funds reported combined ending fund balances of $33,484,169, an increase of $2,048,177 in comparison to the prior year. Of this amount, $10,848,107 (32 percent) was unassigned, which is available for spending at the City’s discretion. The remainder of the fund balance is assigned to indicate that it is not available for new spending because it has already been designated to liquidate contracts and purchase orders of the prior period or cover the next year budget deficit ($49,785), committed by the Council ($910,223), restricted by external entities ($20,559,807) or nonspendable because the assets that will not be converted to cash within the next twelve months ($366,017).

The general fund is the City’s chief operating fund. At the end of the current fiscal year, the spendable portion of the fund balance of the general fund was $11,643,695 while the total fund balance was $13,707,798. As a measure of the general fund’s liquidity, it may be useful to compare both the spendable portion of the fund balance and total fund balance to total fund expenditures. Spendable portion of the fund balance represents 119 percent of total general fund operating expenditures, while total fund balance represents 140 percent of the same amount.

The fund balance of the City’s general fund decreased by $599,783 during the year ended June 30, 2025. Expenditures increased by 1.2% and revenue increased by .18% resulting in an excess of revenue over expenditures of $900,897. There was $1,349,958 transferred from other funds to the general fund, $3,360,056 transferred from the general fund to other funds, $15,254 of proceeds from sale of capital assets, $98,470 of insurance recoveries, and $395,694 of proceeds from long-term debt.

Major special revenue funds have a combined fund balance of $11,515,538, all of which is restricted by external entities for various activities.

Proprietary funds. The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail.

Unrestricted net position of the proprietary funds was $8,913,157 as of June 30, 2025. The total increase in the net position of the proprietary funds was $5,423,353 for the year. Other factors concerning the finances of these funds have already been addressed in the discussion of the City’s business-type activities.

GENERAL FUND BUDGETARY HIGHLIGHTS
The general fund final budgeted expenditures were greater than the original budgeted expenditures by $476,276. Actual expenditures were $1,046,949 less than final budgeted expenditures. Final anticipated revenue was $779,287 more than original anticipated revenue. Actual total revenue was $110,790 less than the final anticipated revenue. These numbers represent original City budget information and are not necessarily reflective of the activity reported in the budgetary comparison schedules. Management believes this information is the most accurate and useful for the users of the financial statements.

The decrease in actual revenues versus final budgeted revenues is due to not receiving the anticipating funding that was included in the budget. The decrease in actual expenditures versus final budgeted expenditures is due to the timing of projects being completed.

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Management’s Discussion and Analysis
11 CAPITAL ASSET AND DEBT ADMINISTRATION
Capital assets. The City’s total capital assets for its governmental and business-type activities as of June 30, 2025 amounted to $62,279,737 (net of accumulated depreciation). This investment in capital assets includes land, buildings, improvements, service lines, automobiles, equipment and streetlights. In addition, all sidewalks, bridges and roads within the city limits belong to the City.

City of Chowchilla's Capital Assets
(net of depreciation)
2025 2024 2025 2024 2025 2024
Land 766,397 $ 766,397 $ 2,030,152 $ 2,030,152 $ 2,796,549 $ 2,796,549 $ Construction in progress 3,581,601 4,178,174 5,017,735 4,012,819 8,599,336 8,190,993 Land improvements 1,376,912 259,017 4,415,732 305,604 5,792,644 564,621 Building improvements 6,781,624 5,817,017 3,377,396 3,465,381 10,159,020 9,282,398 Right-to-use leased asset 561,537 313,166 63,499 40,999 625,036 354,165 SBITA Right to use asset 29,884 58,861 - - 29,884 58,861 Machinery, equipment and vehicles 4,053,893 3,371,421 677,460 788,555 4,731,353 4,159,976 Infrastructure 12,943,915 13,611,199 16,602,000 17,203,316 29,545,915 30,814,515 Total $ 28,375,252 30,095,763 $ 32,183,974 $ 27,846,826 $ 62,279,737 $ 56,222,078 $ Governmental Activities Business-Type Activities Total
Major capital asset events during the year ended June 30, 2025 included the following:
 The Sonoma Storm Drain and Alley Paving projects were completed.  The Fairmead Wastewater Consolidation project started.  The Generator projects for the Civic Center and Well 16 started.

Additional information on the City’s capital assets can be found in Note 6.

Long-term liabilities. As of June 30, 2025, the City had $39,656,805 in outstanding long-term debt consisting of four revenue bond issues ($17,655,000), two loans from the State of California ($11,997,109), one Pension Obligation Bond ($8,130,000), net unamortized bond premiums/discounts ($464,665), leases ($561,918) and compensated absences ($848,113). The revenue bonds are obligations of the water, sewer and general fund. Principal payments on the revenue bonds during the year reduced the amount owed by $315,000. There was a $160,300 principal decrease in the loans payable to the State of California for the completion of the City-wide water meter upgrade project which is an obligation of the water fund.

The City’s total debt obligations (excluding post-retirement benefits) decreased by $871,778. Compensated absences payable increased by $283,738 during the year.

City of Chowchilla's Outstanding Bonds, Leases and Loans 2025 2024 2025 2024 2025 2024
Bonds 14,790,000 $ 15,610,000 $ 10,995,000 $ 11,065,000 $ 25,785,000 $ 26,675,000 $ Leases 495,711 322,337 66,207 41,214 561,918 363,551
SBITA liability - 19,845 - - - 19,845
Loans 9,913,215 9,913,215 2,083,894 2,244,194 11,997,109 12,157,409 Total $ 25,865,397 25,198,926 $ 13,145,101 $ 13,350,408 $ 38,344,027 $ 39,215,805 $ Governmental Activities Business-Type Activities Total
Additional information on the City’s long-term liabilities can be found in Note 8.

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Management’s Discussion and Analysis
12 ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
The City continues to focus on maintaining a balanced budget and forecasting the needed resources to provide efficient and effective levels of service to the public. The City Council and staff continue to follow a conservative approach to the public’s finances. The increase in charges for services for the year ended June 30, 2025 was driven by increased collection of developer impact fees. Various economic outlook indicators in California require Chowchilla and most public agencies in California to look at multi-year budget projections and prepare for possible outcomes of the future. Due to the City Council approving a conservative budget and dedication to building reserve levels the past few years, Chowchilla positioned itself well for any negative economic fluctuations.

This conservative fiscal position does not mean that future goals and objectives are put aside, but rather, that each dollar spent is leveraged to its maximum so that we can continue to aggressively pursue the goals that our community so desperately needs. These needs can be captured in the City’s five Cornerstone Goals:
 Provide a safe and secure community.
 Strengthen infrastructure and proactively plan for services, finances and processes.  Achieve and maintain fiscal reinforcement and growth.  Enhance the quality of life and sense of place.
 Foster economic development and revenue production.

Specific goals, outcomes, and strategies to reach the outcomes under each of the Cornerstones can be found in the City’s Annual Adopted Budget document under individual department sections.

The City’s budget process, financial policies, and financial metrics are very transparent. This reflects the strategic priorities of the Council and demonstrates accountability to the tax and ratepayers. The City’s budget document meets Government Finance Officers’ Association standards and the City has been awarded the GFOA Distinguished Budget Presentation Award for the last 5 consecutive years.

The biggest economic factor in both the immediate and long-term range has been inflation. The City is currently working with Century Communities on a residential project that will have roughly 200 homes built. Construction began in the year ended June 30, 2025 and projects to be completed by the year ended June 30, 2027.

Chowchilla is seeing some renewed interest in all the community and economic development sectors. The City has seen an increase in business license and building permits as a result. Commercial, Industrial and Residential sectors are seeing increased activity. There are multiple residential projects in the works with already approved maps and development agreements in place. AutoZone’s distribution center was completed in the year ended June 30, 2025. The center currently employs close to 350 full-time workers and projects to hire more once they reach full capacity.

Increased costs continue to be a significant issue to address. Construction costs, raw materials, and contractors have risen in costs over the last few months and are causing budget and timing issues. The City will be monitoring these issues and forecasting accordingly.

Even though the City issued Pension Obligation Bonds in 2019 to address the significant issue of CalPERS Unfunded Liabilities, there have been new Unfunded Liabilities since then that the City has to keep an eye on. Even when the PERS Investment Portfolio performs at or above expectations, we still see an increase in Unfunded Liabilities because of changes in actuarial assumptions.

Measure N, a 1% district sales tax add-on approved in 2018, is a Public Safety Measure which the funds are used to upgrade and purchase equipment as well as help with recruitment and retention of public safety employees. It was voted on again in 2024 and passed, reaffirming the community's support for public safety funding. The budget for the year ended June 30, 2025 had Measure N monies to help pay for communication upgrades, and LPR cameras. 13 BASIC FINANCIAL STATEMENTS
14 GOVERNMENT-WIDE FINANCIAL STATEMENTS
CITY OF CHOWCHILLA | JUNE 30, 2025
Statement of Net Position
The notes to the basic financial statements are an integral part of this statement. 15 Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments $ 11,107,040 30,546,813 $ 41,653,853 $ Restricted cash and investments with fiscal agents 429,653 738,790 1,168,443 Accounts receivable, net 847,750 497,160 1,344,910
Intergovernmental receivables 756,793 4,077,206 4,833,999 Leases receivable - 48,840 48,840
Notes receivable, net - 24,818,953 24,818,953
Prepaid items 586 159,973 160,559
Prepaid bond insurance 39,500 13,330 52,830
Internal balances (59,710) 59,710 -
Capital assets:

Nondepreciable 4,347,998 7,047,887 11,395,885
Depreciable, net of accumulated
depreciation/amortization 25,747,765 25,136,087 50,883,852 Total assets 45,305,586 91,056,538 136,362,124

DEFERRED OUTFLOWS OF RESOURCES
Contributions to pension plan in current fiscal year 87,520 718,430 805,950 Deferred outflows of resources from pensions 292,714 2,002,875 2,295,589 Total deferred outflows of resources 380,234 2,721,305 3,101,539

LIABILITIES
Accounts payable 518,300 1,004,226 1,522,526
Accrued salaries, wages, and benefits 239,526 - 239,526 Retainage payable 121,573 198,353 319,926
Deposits - 263,468 263,468
Accrued interest 4,226,941 39,430 4,266,371
Long-term liabilities:

Lease liability due within one year 16,149 108,820 124,969 Long-term debt due within one year 1,259,840 250,300 1,510,140 Lease liability due in more than one year 50,058 386,891 436,949 Long-term debt due in more than one year 24,328,410 13,256,337 37,584,747 Net pension liability 440,152 3,694,507 4,134,659
Total liabilities 15,518,473 34,884,808 50,403,281

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources from leases - 25,412 25,412 Deferred inflows of resources from pensions 189,223 1,466,258 1,655,481 Total deferred inflows of resources 189,223 1,491,670 1,680,893

NET POSITION
Net investment in capital assets 23,434,008 20,695,024 44,129,032 Restricted for:

Highway and streets - 6,954,080 6,954,080
Community development - 26,814,467 26,814,467
Public safety 5,590,668 - 5,590,668
Construction projects - 5,490,464 5,490,464
Debt service 429,653 716,953 1,146,606
Unrestricted 8,853,447 (11,599,275) (2,745,828)
Total net position $ 57,401,365 29,978,124 $ 87,379,489 $ CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Statement of Activities
The notes to the basic financial statements are an integral part of this statement. 16 Operating Capital
Charges for Grants and Grants and Governmental Business-Type Expenses Services Contributions Contributions Activities Activities Total FUNCTIONS/PROGRAMSGovernmental activities:

General government 2,238,504 $ 396,238 $ - $ - $ (1,842,266) $ - $ (1,842,266) $ Public safety 6,495,144 331,780 271,799 - (5,891,565) - (5,891,565) Highways and streets 2,619,851 826,276 2,553,898 1,142,451 1,902,774 - 1,902,774 Culture and recreation 1,085,884 394,096 36,000 - (655,788) - (655,788) Community development 1,189,086 1,269,516 121,965 12,160 214,555 - 214,555 Interest and fiscal charges - 960,993 - - (960,993) - (960,993) Total governmental activities 14,589,462 3,217,906 2,983,662 1,154,611 (7,233,283) - (7,233,283) Business-type activities:

Water 3,636,581 3,324,359 - 2,225,286 - 1,913,064 1,913,064 Solid waste 2,345,252 2,496,156 - - - 150,904 150,904
Sewer 1,933,079 2,179,254 - 279,726 - 525,901 525,901
Airport 63,373 46,720 10,000 - - (6,653) (6,653)
Storm drain 206,097 227,416 - - - 21,319 21,319
Total business-type activities 8,273,905 8,184,382 10,000 2,505,012 - 2,604,535 2,604,535 Total $ 22,773,844 11,491,811 $ 2,993,662 $ 3,659,623 $ (7,233,283) 2,604,535 (4,628,748) General revenues:

Taxes:

Property 1,412,635 15,168 1,427,803Sales 5,474,884 - 5,474,884Transient lodging 346,903 - 346,903Franchise 356,052 - 356,052Other 36,428 - 36,428 Motor vehicle-in-lieu - unrestricted 3,595,953 - 3,595,953Investment income 1,716,427 617,336 2,333,763Rental income 115,798 - 115,798Miscellaneous 270,942 96,227 367,169Gain on sale of capital assets 5,190 - 5,190 Transfers 2,057,662 (2,057,662) -
Total general revenues and transfers 2,791,583 11,268,360 14,059,943 Change in net position 5,396,118 4,035,077 9,431,195
Net position - beginning 53,650,602 24,582,006 78,232,608Restatement - change in accounting principle (284,314) - (284,314) Net position - beginning, restated 24,582,006 53,366,288 77,948,294 Net position - ending $ 57,401,365 29,978,124 $ 87,379,489 $ Program Revenues
Net (Expenses) Revenues and
Changes in Net Position
17 FUND FINANCIAL STATEMENTS
CITY OF CHOWCHILLA | JUNE 30, 2025
Governmental Funds Balance Sheet
The notes to the basic financial statements are an integral part of this statement. 18 Other Total
CDBG Impact Streets & Debt Capital Governmental Governmental General Grants Fees Measure N Roads (LTF) Service Projects Funds Funds ASSETS
Cash and investments $ 401,559 11,750,836 $ 5,761,122 $ 3,535,681 $ 751,780 $ - $ 1,474 $ 8,139,297 $ 30,341,749 $ Restricted cash and investments with fiscal agents - - - - - 738,790 - - 738,790Accounts receivable, net - 474,396 - - 9,599 - - 13,165 497,160 Intergovernmental receivables 40,489 872,696 23,478 495,775 1,742,037 - 11,376 891,355 4,077,206 Leases receivable - 48,840 - - - - - - 48,840
Notes receivable, net 22,890,786 - - - - - - 1,928,167 24,818,953Due from other funds - 1,057,645 - - - - - - 1,057,645 Prepaid expenses - 59,729 - - - - - 12,152 71,881
Prepaid bond insurance - - - - - 13,330 - - 13,330
Advances to other funds - 294,136 - - - - - - 294,136
Total assets $ 14,558,278 23,332,834 $ 5,784,600 $ 4,031,456 $ 2,503,416 $ 752,120 $ 12,850 $ 10,984,136 $ 61,959,690 $

LIABILITIES
Accounts payable 352,646 $ 7,642 $ - $ 2,175 $ 78,701 $ 200 $ 12,850 $ 24,940 $ 479,154 $ Retainage payable 11,107 - - - 110,466 - - - 121,573
Deposits - - - - - - - - -
Due to other funds - - - - - 13,479 - 788,893 802,372Advances from other funds - - 294,136 - - - - - 294,136 Total liabilities 7,642 363,753 294,136 2,175 189,167 13,679 12,850 813,833 1,697,235

DEFERRED INFLOWS OF RESOURCES
Deferred inflows from lease proceeds - 25,412 - - - - - - 25,412 Unavailable revenues 22,890,786 461,315 - - 752,862 - - 2,647,911 26,752,874 Total deferred inflows of resources 22,890,786 486,727 - - 752,862 - - 2,647,911 26,778,286 FUND BALANCESNonspendable:

Prepaid expenses 59,729 - - - - - - 12,152 71,881
Advances to other funds 294,136 - - - - - - - 294,136
Restricted for:

Highway and streets - - - - - - - 6,731,041 6,731,041
Community development 434,406 - - - - - - 1,561,108 1,995,514 Public safety - - - 4,029,281 1,561,387 - - - 5,590,668 Construction projects - - 5,490,464 - - 35,167 - - 5,525,631 Debt service - - - - - 716,953 - - 716,953
Committed to:

Emergency contingency 910,223 - - - - - - - 910,223
Assigned to:

General government - 322,470 - - - - - - 322,470
Public safety - 203,760 - - - - - - 203,760
Culture and recreation - 34,776 - - - - - - 34,776
Community development - 189,224 - - - - - - 189,224Subsequent fiscal year budget deficit 49,785 - - - - - - - 49,785 Unassigned - 11,643,695 - - - (13,679) - (781,909) 10,848,107 Total fund balances 13,707,798 434,406 5,490,464 4,029,281 1,561,387 738,441 - 7,522,392 33,484,169 Total liabilities, deferred inflows of resources, and fund balances $ 14,558,278 23,332,834 $ 5,784,600 $ 4,031,456 $ 2,503,416 $ 752,120 $ 12,850 $ 10,984,136 $ 61,959,690 $ Special Revenue
CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position The notes to the basic financial statements are an integral part of this statement. 19 Total fund balances - governmental funds $ 33,484,169 29,560,746
Contributions to the pension plan subsequent to the measurement date 668,557 Deferred outflows of resources from pensions 1,864,062
Deferred inflows of resources from pensions (1,370,498) Bonds, loans payable, compensated absences, lease related liabilities (24,836,254) Net pension liability (3,443,686)
Leases payable (348,395)
(4,226,941)
26,752,874
(703,269)
Net position of governmental activities $ 57,401,365
Amounts reported for governmental activities in the statement of net position are different because:

Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds. Those liabilities consist of:

Internal service funds are used by management to charge the costs to individual funds.

These assets, deferred outflows of resources, liabilities, and deferred inflows of resources of the internal service funds are included in governmental activities in the statement of net position.

Interest payable on long-term debt does not require the use of current financial resources. Therefore, interest payable is not reported as a liability in the governmental funds balance sheet.

Other long-term assets are not available to pay for current period expenditures and, therefore, are deferred in the funds.

Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds.

Pension related deferrals are reported as deferred outflows and inflows of resources on the statement of net position:

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances The notes to the basic financial statements are an integral part of this statement. 20 Other Total
CDBG Impact Streets & Debt Capital Governmental Governmental General Grants Fees Measure N Roads (LTF) Service Projects Funds Funds

REVENUES
Taxes $ - 4,652,244 $ - $ 2,967,948 $ - $ - $ - $ - $ 7,620,192 $ Licenses and permits - 805,069 - - - - - - 805,069
Fines and penalties - 97,864 - - - - - - 97,864
Intergovernmental revenues 244,712 3,886,387 - - 948,961 - 6,350 2,714,152 7,800,562 Use of money and property 16,906 603,432 218,108 158,110 (4,106) 71,448 - 327,797 1,391,695 Charges for services 11,235 437,823 1,241,282 - - - - 321,247 2,011,587 Loan repayments - - - - - - - - -
Legal settlement - - - - - - - - -
Miscellaneous - 198,793 - 328 2,615 - - 11,974 213,710
Total revenues 10,681,612 272,853 1,459,390 3,126,386 947,470 71,448 6,350 3,375,170 19,940,679 EXPENDITURESCurrent:

General government 1,815,334 - - 2,073 2,787 - - 2,834 1,823,028Public safety 4,564,539 - 30 1,064,859 - - - - 5,629,428Highways and streets - - 220 - 596,196 - - 956,429 1,552,845Culture and recreation 852,733 - 21,923 - - - - - 874,656Community development 823,400 72,134 - - - - - 419,943 1,315,477 Capital outlay 11 1,554,723 116,108 - 1,625,206 - 38,481 155,250 3,489,779 Debt service:

Principal 145,491 - - - 7,535 820,000 - - 973,026Interest 24,495 - - - 3,053 659,318 - - 686,866 Total expenditures 72,145 9,780,715 138,281 1,066,932 2,234,777 1,479,318 38,481 1,534,456 16,345,105 Excess (deficiency) of revenues over (under) expenditures 900,897 200,708 1,321,109 2,059,454 (1,287,307) (1,407,870) (32,131) 1,840,714 3,595,574

OTHER FINANCING SOURCES (USES)
Transfers in 22,058 1,349,958 - - 1,107,489 1,407,908 32,131 68,704 3,988,248Transfers out (103,559) (3,360,056) (89,796) (1,332,174) (2,074) (48,955) - (1,109,297) (6,045,911)Gain (loss) on sale of assets - 15,254 - - 848 - - - 16,102Insurance recoveries - 98,470 - - - - - - 98,470Proceeds from long-term debt - 395,694 - - - - - - 395,694 Total other financing sources (uses) (1,500,680) (81,501) (89,796) (1,332,174) 1,106,263 1,358,953 32,131 (1,040,593) (1,547,397) Net change in fund balances (599,783) 119,207 1,231,313 727,280 (181,044) (48,917) - 800,121 2,048,177 Fund balances - beginning 14,307,581 315,199 4,259,151 3,302,001 - 787,358 - 8,464,702 31,435,992Change within financial reporting entity (nonmajor to major) - - - - 1,742,431 - - (1,742,431) - 315,199 14,307,581 4,259,151 3,302,001 1,742,431 787,358 - 6,722,271 31,435,992 Fund balances - ending $ 13,707,798 434,406 $ 5,490,464 $ 4,029,281 $ 1,561,387 $ 738,441 $ - $ 7,522,392 $ 33,484,169 $ Fund balances - beginning, restated
Special Revenue
CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities The notes to the basic financial statements are an integral part of this statement. 21 Net change in fund balances - total governmental funds 2,048,177 $ Capital outlay 3,064,505
Depreciation expense (1,579,631)
(70,509)
Repayment of the principal of long-term debt 820,000
Amortization on bond discounts and premiums (466)
(281,196)
(954,437)
242,013
843,103
(96,482)
Change in net position of governmental activities 4,035,077 $ Amounts reported for governmental activities in the statement of activities are different because:

The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of issuance costs, discounts, and similar items when debt is first issued, whereas these amounts are deferred and ammortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items:

Accrued interest payable on long-term debt is reported in the government-wide statement of activities, but does not require the use of current financial resources.

This amount represents the change in accrued interest payable not reported in governmental funds.

The changes in net position of certain activities of the internal service funds is reported within governmental activities.

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

The distribution of housing loans and corresponding payments that were recognized in the governmental funds are not recognized in the statement of activities.

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of these assets are allocated over their estimated useful lives and reported as depreciation expense. In the current period, these amounts are:

The net effect of various miscellaneous transactions involving capital assets (i.e., sales and donations) is to increase (decrease) net position.

Changes to net pension liability and pension related deferred outflows and inflows of resources do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds
CITY OF CHOWCHILLA | JUNE 30, 2025
Proprietary Funds
Statement of Net Position
The notes to the basic financial statements are an integral part of this statement. 22 Governmental
Activities
Other Internal
Solid Enterprise Service
Water Waste Sewer Storm Drain Funds Total Funds
ASSETS
Current assets:

Cash and investments $ 1,142,818 2,914,513 $ 5,054,148 $ 1,720,992 $ 274,569 $ 11,107,040 $ 205,064 $ Restricted cash and investments with fiscal agents - 324,243 105,410 - - 429,653 - Accounts receivable, net 259,813 329,733 234,903 23,301 - 847,750 - Intergovernmental receivables 5,930 7,814 332,697 387,506 22,846 756,793 - Lease Receivable - - - - - - -
Prepaid items 194 196 196 - - 586 88,092
Prepaid bond insurance - 39,500 - - - 39,500 -
Total current assets 1,408,755 3,615,999 5,727,354 2,131,799 297,415 13,181,322 293,156 Noncurrent assets:

Capital assets:

Nondepreciable - 4,492,801 1,660,680 436,855 457,551 7,047,887 173,794 Depreciable, net of accumulated depreciation 13,710,598 - 5,416,527 5,731,014 277,948 25,136,087 361,223 Total noncurrent assets - 18,203,399 7,077,207 6,167,869 735,499 32,183,974 535,017 Total assets 1,408,755 21,819,398 12,804,561 8,299,668 1,032,914 45,365,296 828,173

DEFERRED OUTFLOWS OF RESOURCES
Contributions to pension plan in current fiscal year - 56,860 24,040 4,689 1,931 87,520 49,873 Deferred outflows of resources from pensions - 178,696 94,337 13,885 5,796 292,714 138,813 Total deferred outflows of resources - 235,556 118,377 18,574 7,727 380,234 188,686

LIABILITIES
Current liabilities:

Accounts payable 295,493 581,009 109,316 18,404 4 1,004,226 39,146 Accrued salaries, wages, and benefits - - - - - - 239,526 Retainage payable - 195,803 - 2,550 - 198,353 -
Deposits - 263,468 - - - 263,468 -
Due to other funds - - - - - - 255,273
Accrued interest - 28,818 10,612 - - 39,430 -
Compensated absences - - - - - - 409,840
Lease liabilities - 7,781 8,368 - - 16,149 12,703
Long-term debt - 200,300 50,000 - - 250,300 -
Total current liabilities 295,493 1,277,179 178,296 20,954 4 1,771,926 956,488 Noncurrent liabilities:

Compensated absences - - - - - - 438,273
Net pension liability - 285,960 120,903 23,580 9,709 440,152 250,821 Lease liabilities - 25,754 24,304 - - 50,058 38,496
Long-term debt 10,343,531 - 2,912,806 - - 13,256,337 -
Total noncurrent liabilities - 10,655,245 3,058,013 23,580 9,709 13,746,547 727,590 Total liabilities 295,493 11,932,424 3,236,309 44,534 9,713 15,518,473 1,684,078

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources from pensions - 118,184 57,639 9,433 3,967 189,223 95,760 Total deferred inflows of resources - 118,184 57,639 9,433 3,967 189,223 95,760

NET POSITION (DEFICIT)
Net investment in capital assets - 9,709,927 4,081,729 6,167,869 735,499 20,695,024 522,314 Restricted:

Debt service - 324,243 105,410 - - 429,653 -
Unrestricted (29,824) 1,113,262 5,441,851 2,096,406 291,462 8,913,157 (1,285,293) Total net position (deficit) $ 10,004,346 1,113,262 $ 9,628,990 $ 8,264,275 $ 1,026,961 $ 30,037,834 $ (762,979) Adjustment to report the cumulative internal balance
for the net effect of the activity between the internal service funds and the enterprise funds over time (59,710) Net position of business-type activities 29,978,124 $
Business-Type Activities - Enterprise Funds
CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Proprietary Funds
Statement of Revenues, Expenses and Changes in Net Position The notes to the basic financial statements are an integral part of this statement. 23 Governmental
Activities
Other Internal
Solid Enterprise Service
Water Waste Sewer Storm Drain Funds Total Funds
Operating revenues:

Charges for services $ 2,496,156 3,324,359 $ 2,179,254 $ 227,416 46,720 $ 8,273,905 $ 1,015,862 $ Miscellaneous 45,479 6,400 39,702 4,597 49 96,227 6,947 Total operating revenues 3,330,759 2,541,635 2,218,956 232,013 46,769 8,370,132 1,022,809 Operating expenses:

Personnel services - 769,500 345,330 49,489 21,298 1,185,617 570,633 Materials, supplies and services 2,345,252 1,997,682 1,144,367 108,018 15,362 5,610,681 477,127 Depreciation and amortization - 500,042 305,417 48,590 26,713 880,762 94,753 Total operating expenses 3,267,224 2,345,252 1,795,114 206,097 63,373 7,677,060 1,142,513 Operating income (loss) 196,383 63,535 423,842 25,916 (16,604) 693,072 (119,704) Nonoperating revenues (expenses):

Use of money and property 56,003 177,550 334,812 38,171 10,800 617,336 - Taxes - - - - 15,167 15,167 -
Grants - capital - - 279,726 2,225,286 10,000 2,515,012 - Grants - operating - - - - - - -
Gain (loss) on sale of assets 77 - 5,113 - - 5,190 1,625 Interest expense - (345,855) (134,232) - - (480,087) (5,638) Total nonoperating revenues (expenses) 56,003 (168,228) 485,419 2,263,457 35,967 2,672,618 (4,013) 252,386 (104,693) 909,261 2,289,373 19,363 3,365,690 (123,717) Transfers in 1,986,834 - - 76,502 - 2,063,336 -
Transfers out - (1,891) (1,891) (1,891) (5,673) - -
Change in net position 1,880,250 252,386 907,370 2,363,984 19,363 5,423,353 (123,717) Net position - beginning 8,124,096 860,876 8,721,620 5,900,291 1,007,598 (354,948) Restatement - change in accounting principle - - - - (284,314) - Net position (deficit) - beginning, restated 8,124,096 860,876 8,721,620 5,900,291 1,007,598 (639,262) Net position - ending $ 1,113,262 10,004,346 $ 9,628,990 $ 8,264,275 $ 1,026,961 $ (762,979) $ Adjustment for the net effect of the current year activity between the internal service funds and the enterprise funds (27,235) Changes in net position of business-type activities 5,396,118 $ Business-Type Activities - Enterprise Funds
Income (loss) before transfers
CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Proprietary Funds
Statement of Cash Flows
The notes to the basic financial statements are an integral part of this statement. 24 Governmental
Activities
Other Internal
Solid Storm Enterprise Service
Water Waste Sewer Drain Funds Total Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users $ 2,480,433 3,381,430 $ 1,855,484 $ 227,321 46,720 $ 7,991,388 $ 1,016,407 $ Payments to suppliers (2,198,635) (2,607,146) (1,079,916) (1,379,749) (15,907) (7,281,353) (467,587) Payments to employees (650,405) - (290,524) (40,280) (17,806) (999,015) (472,329) Other operating revenues 45,479 6,400 39,702 4,597 96,227 49 6,947 327,277 130,279 524,746 (1,188,111) 13,056 (192,753) 83,438

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfer from other funds - 1,986,834 - 76,502 - 2,063,336 - Transfer to other funds - (1,891) (1,891) - (1,891) - (5,673) Loans from other funds - - - - - - 134,443
Taxes received - - - - 15,167 15,167 -
- 1,984,943 (1,891) 74,611 15,167 2,072,830 134,443

FINANCING ACTIVITIES
Principal paid (214,229) - (55,551) - - (269,780) -
Interest paid (340,701) - (133,670) - (63,169) - (537,540) Capital grants received - - 279,726 3,335,691 3,614,464 (953) - Leases paid - - - - - - (34,573) Acquisition of capital assets - (2,348,569) (279,726) (2,544,795) (4,600) (5,177,690) (150,542) Proceeds from the sale of assets 77 - 5,113 - 5,190 - 1,625 - (2,903,422) (184,108) 727,727 (5,553) (2,365,356) (183,490) CASH FLOWS FROM INVESTING ACTIVITIES 56,003 177,550 334,812 38,171 10,800 617,336 - 56,003 177,550 334,812 38,171 10,800 617,336 -
383,280 (610,650) 673,559 (347,602) 33,470 132,057 34,391 759,538 3,849,406 4,485,999 2,068,594 241,099 11,404,636 170,673 Cash and cash equivalents - ending $ 3,238,756 1,142,818 $ 5,159,558 $ 1,720,992 $ 274,569 $ 11,536,693 $ 205,064 $ Business-Type Activities - Enterprise Funds
Net cash provided by (used for) operating activities
activities
Interest received
Net cash provided by (used for) noncapital financing
Net cash provided by (used for) capital and
Net increase (decrease) in cash and cash equivalents

CASH FLOWS FROM CAPITAL AND RELATED
related financing activities
Cash and cash equivalents - beginning
Net cash provided by (used for) investing activities
CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Proprietary Funds
Statement of Cash Flows
(Continued)
The notes to the basic financial statements are an integral part of this statement. 25 Governmental
Activities
Other Internal
Solid Storm Enterprise Service
Water Waste Sewer Drain Funds Total Funds
Operating income (loss) 63,535 $ 196,383 $ 423,842 $ 25,916 (16,604) $ 693,072 $ (119,704) $ Depreciation 500,042 - 305,417 48,590 26,713 880,762 94,753 (Increase) decrease in:

Accounts receivable 73,609 (15,723) (323,770) (95) - (265,979) 146 Prepaid expenses - 2 - - - 2 (71,008)
Net pension liability 7,054 - (21,649) 1,172 (65) (13,488) 31,987 Deferred outflows of resources from pensions 121,940 - 92,584 8,028 3,588 226,140 62,025 Increase (decrease) in:

Accounts payable and other liabilities (609,464) 146,615 64,451 (1,271,731) (545) (1,670,674) 78,839 Deposits (16,538) - - - - (16,538) -
Compensated absences - - - - - - (576)
Deferred inflows of resources from pensions - (9,899) (16,129) 9 (31) (26,050) 6,976 $ 327,277 130,279 $ 524,746 $ (1,188,111) $ 13,056 $ (192,753) $ 83,438 $ Business-Type Activities - Enterprise Funds
Reconciliation of operating income (loss) to net
cash provided by (used for) operating activities:

Adjustments to reconcile operating income
(loss) to net cash provided by (used for)
operating activities:

Net cash provided by (used for) operating activities
CITY OF CHOWCHILLA | JUNE 30, 2025
Fiduciary Funds
Statement of Fiduciary Net Position
The notes to the basic financial statements are an integral part of this statement. 26 Successor
Agency Private
Custodial Purpose
Funds Trust Fund
ASSETS
Cash and investments (in City investment pool) $ 1,081,300 2,112,579 $ Restricted cash with fiscal agents - 657,244
Accounts receivable (net) 4,839 57,539
Prepaid bond insurance 32,774 -
Long term receivables 43,750 -
Total assets 1,162,663 2,827,362

LIABILITIES
Accounts payable 9 5,468
Agency obligations - 17,776
Accrued interest 47,745 -
Long-term debt due within one year 295,000 -
Long-term debt due in more than one year 3,962,003 -
Total liabilities 4,304,757 23,244

NET POSITION
Restricted for:

Individuals, organizations, and other governments - 2,804,118 Redevelopment agency dissolution (3,142,094) -
Total net position $ 2,804,118 (3,142,094) $
CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Fiduciary Funds
Statement of Changes in Fiduciary Net Position
The notes to the basic financial statements are an integral part of this statement. 27 Successor
Agency Private
Custodial Purpose
Funds Trust Fund

ADDITIONS
Taxes $ 530,760 - $
Property tax collections - 1,160,746
Investment earnings 43,532 136,516
Proceeds from sale of property - -
Total additions 574,292 1,297,262

DEDUCTIONS
Payments to bondholders - 924,855 Administrative expenses 147,973 67,777 Interest 106,578 -
Total deductions 254,551 992,632
Change in fiduciary net position 304,630 319,741
Net position (deficit) - beginning (3,461,835) 2,499,488 Net position (deficit) - ending $ 2,804,118 (3,142,094) $ 28 NOTES TO THE BASIC FINANCIAL STATEMENTS
CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements
29 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of Chowchilla (the City) was incorporated on February 7, 1923, as a municipal corporation under the General Laws of the State of California. The City operates as a self-governing local government unit within the State of California.

A five-member City Council appoints a City Administrator who administers the daily affairs under the policy guidance of the City Council. The City has limited authority to levy taxes and has the authority to determine user fees for the services that it provides. Voters elect a City Council that passes laws and determines broad policies. The City Council also oversees the operations of the City and approves all budgets, fund transfers, and fund balance reserves. Services provided by the City include public safety, streets and roads, water, sanitation, public improvements, culture and recreation, parks, building inspections, planning and zoning, redevelopment, and general administration.

B. Blended Component Units
A primary government is financially accountable for a component unit if it appoints a voting majority of an organization’s governing body and it is able to impose its will on the organization, or if there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the primary government. A primary government may also be financially accountable if an organization is fiscally dependent on the primary government regardless of whether the organization has a separately-elected governing board, a governing board appointed by a higher level of government, or a jointly-appointed board, and there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on the primary government. Based upon the application of these criteria, the following is a brief description of each component unit included within the City’s reporting entity. All such component units have been “blended” as though they are part of the primary government as the component unit’s governing body is substantially the same as the City’s primary government and there is a financial benefit or burden relationship between the City and the component unit. In addition, management of the City has operational responsibilities for the component unit, and/or the component units provide services almost entirely to the City or for the exclusive benefit of the City, even though it does not provide services directly to it, or the City is entirely or almost entirely responsible for the repayment of the debt of the component unit. Financial information for these component units can be obtained from the City’s Administrative Services Department and from the City’s website at www.cityofchowchilla.org.

The Public Financing Authority (the Authority) of the City of Chowchilla was formed on August 14, 1989, for the purpose of assisting the City in the financing of the acquisition, construction and installation of public capital improvements for the use, benefit and enjoyment of the citizens served by the City. The City Council serves as the governing board of the Authority and, therefore, is financially accountable for the operations of the Authority.

The Chowchilla Housing Authority (the Housing Authority) was established on January 24, 2012. The Housing Authority was activated pursuant to State Law Section 34240 of the California Health and Safety Code, which allows for every City to establish a housing authority. The Housing Authority is designed to protect local housing funds and programs, provide new revenue opportunities for affordable housing programs, serve the public interest, promote public safety and welfare, and ensure decent, safe, sanitary and affordable housing accommodations to persons of low income.

Since the City Council serves as the governing body of these entities, they are considered blended component units. As a result, the financial activities of these entities are integrally related to those of the City and are “blended” with those of the City.

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements
30 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Basis of Presentation
The accounts of the City are organized on the basis of funds. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds is maintained consistent with legal and managerial requirements.

Government-Wide Financial Statements – The Statement of Net Position and the Statement of Activities display information about the primary government (the City) and its component units. These statements include the financial activities of the overall government, except for fiduciary activities. Eliminations have been made to minimize the doublecounting of internal activities. These statements distinguish between the governmental and business-type activities of the City. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange transactions. Business-type activities are financed in whole or in part by fees charged to external parties.

The Statement of Activities presents a comparison between direct expense and program revenues for each different identifiable activity of the City’s business-type activities and for each function of the City’s governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are included in the program expense reported for individual function. Certain indirect costs, which cannot be identified and broken down, are included in the program expenses reported for individual functions and activities. Program revenues include: 1) fines, fees, and charges paid by the recipients of goods and services offered by the programs; and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented instead as general revenues.

Certain eliminations have been made as prescribed by GASB Statement No. 34 with regard to interfund activities, payables, and receivables. All internal balances in the Statement of Net Position have eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, those transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated: due to/due from other funds, interfund advances to/advances from, and transfers in/transfers out.

Fund Financial Statements – The fund financial statements provide information about the City’s funds. Separate statements for each fund category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds. An accompanying schedule is presented to reconcile and explain the differences in funds and changes in fund balances as presented in these Statements to the Net Position and Changes in Net Position presented in the government-wide financial statements.

Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as nonoperating expenses.

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements
31 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Basis of Presentation (Continued)
The City reports the following major governmental funds:

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

The Community Development Block Grant (CDBG) Special Revenue Fund accounts for the revenues received by the various CDBG grants, the uses of those funds (i.e., grants and loans for housing rehabilitation projects), as well as the receipt and re-use of program income generated by the repayment of CDBG loans.

The Impact Fees Special Revenue Fund accounts for the accumulation of resources from developers for the expected future capital cost of the City as a result of development. Impact fees collected are restricted for the use of general, police, fire and parks facilities; and streets and roads, signalization, water, sewer and storm drain capital projects.

The Measure N Special Revenue Fund accounts for 1% Public Safety Sales Tax add-on that was voter approved in 2018 and became effective April 1, 2019. Monies are allocated between Police and Fire Departments and are used for growth and efficiency of the departments.

The Streets and Roads Fund accounts for the construction and maintenance of the street network system of the City.

Financing is provided by allocations from the County Local Transportation Fund (LTF) created by the Transportation Development Act (TDA).

The Debt Service Fund accounts for the accumulation of resources that are restricted, committed or assigned for the payment of principal and interest on long-term obligations of governmental funds.

The Capital Projects Fund accounts for the acquisition and construction of the City’s major capital projects, other than those financed by proprietary funds.

Enterprise fund financial statements include a Statement of Net Position, a Statement of Revenues, Expenses and Changes in Net Position, and a Statement of Cash Flows for each major enterprise fund and nonmajor fund.

The City has five enterprise funds – water, solid waste, sewer, storm drain and airport. These funds are used to account for operations that are financed and operated in a manner similar to private business enterprise. In an enterprise fund, the intent of the City Council is that the costs (expenses, including depreciation) of providing services to the general public, on a continuing basis, be financed or recovered primarily through user charges.

The City reports the following major enterprise funds:

The Water Enterprise Fund accounts for the provision of water to the residents of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, distribution, maintenance, and debt service.

The Solid Waste Enterprise Fund accounts for the revenues and expenses for operation and maintenance of the solid waste system.

The Sewer Enterprise Fund accounts for the provision of wastewater collection and treatment services to the residents of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, and debt service.

The Storm Drain Fund accounts for the revenues and expenses for operation and maintenance of the storm drain system.

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements
32 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Basis of Presentation (Continued)
Additionally, the government reports the following fund types:

Internal Service Funds:

The Fleet Maintenance Internal Service Fund accounts for the cost associated with maintaining the citywide fleet of vehicles and rolling stock heavy equipment. Charges are assessed to each department on the basis of time/materials necessary to maintain their equipment.

The Information Technology Internal Service Fund accounts for the costs of providing computer and information services. User charges are recovered from other City departments that utilized the services provided.

The Employee Benefits Internal Service Fund accounts for compensated absences and other employee benefits that are provided by the City.

Fiduciary Funds:

The Custodial Funds accounts for assets held by the City as an agent for special districts.

The Successor Agency Private Purpose Trust Fund accounts for assets and liabilities of the former redevelopment agency until they are distributed to other units of state and local government as a result of the dissolution of the redevelopment agency.

Measurement Focus, Basis of Accounting
Government-Wide, Proprietary and Fiduciary Fund Financial Statements – The government-wide, proprietary, and fiduciary fund financial statements are reported using the economic resources measurement focus. The governmentwide and proprietary fund financial statements are reported using the accrual basis of accounting. Revenues are recorded when earned, and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include property and sales taxes, grants entitlements and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenues from sales taxes are recognized when the fiscal year in which all eligibility requirements have been satisfied.

Governmental Fund Financial Statements – Governmental funds are reported using current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when measurable and available. Property and sales taxes, interest, and charges for services are accrued when their receipt occurs within sixty days after the end of the accounting period to be both measurable and available. Expenditures are generally recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to claims and judgments and compensated absences, are recorded only when payment is due. General capital assets acquisitions are reported as expenditures in governmental funds.

Proceeds of general long-term debt and capital leases are reported as other financing sources.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of each fund. Nonoperating revenues, such as interest income, state and federal grants and subsidies, result from nonexchange transactions or ancillary activities. Operating expenses include costs for providing services and delivering goods such as administrative expenses and depreciation on capital assets. All other expenses not meeting this definition are reported as nonoperating expenses.

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements
33 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balances Cash and Cash Equivalents
For purposes of reporting cash flow, the City considers all highly-liquid investments with maturity of three months or less when purchased to be cash and cash equivalents.

Cash and Investments
The City maintains a cash and investment pool that is available for all funds. Each fund-type balance in the pool is reflected on the combined balance sheet as cash and investments. The City apportions interest earnings to all funds based on their quarterly cash balances.

The City pools cash and investments with the City Treasurer except for investments managed by fiscal agents under bonded debt agreements. Interest from bank accounts and investments are allocated quarterly to the various funds based on the fund’s contribution to the pool. The City has stated investments at fair value in the Statement of Net Position and Balance Sheet. The fair value of investments is based on published market prices and quotations from major investment brokers.

Cash and investments with fiscal agent represent funds held by various trustees from proceeds of the issuance of bonds in order to establish required reserve funds and to pay bond issuance costs per the respective trust agreements.

Credit Risk – The City’s investment policy limits certain types of investments to various ratings.

Custodial Credit Risk—Deposits – Custodial credit risk is the risk that in the event of a bank failure, the City’s deposits may not be returned to it. The City has a deposit policy for custodial risk that requires collateralization on certificates of deposit and repurchase (and reverse) agreements. In addition, the City maintains custodial agreements with certain independent third parties.

Concentration of Credit Risk – The City places no limit on the amount the City may invest in any one issuer.

Interest Rate Risk – Reserve funds may be invested in securities exceeding 10 years if the maturity of such investments is made to coincide as nearly as practicable with the expected use of the funds.

Restricted Assets
Certain proceeds of the general obligation debt and enterprise debt are classified as restricted assets on the balance sheet because their use is limited by applicable debt covenants. “Restricted cash and investments with fiscal agents” is used to report resources set aside for potential deficiencies in the repayment ability of the debt service fund and for payment of construction projects undertaken by the City.

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements
34 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balances (Continued) Internal Balances
Interfund transactions are reflected as loans, services provided or used, or reimbursements or transfers. Loans reported as receivables and payables, as appropriate, are subject to elimination upon consolidation and are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and the business-type activities are reported in the fund financial statements and are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not available financial resources.

Services provided or used, deemed to be at market or near market rates, are treated as revenues and expenditures or expenses. Reimbursements occur when one fund incurs a cost, charges the appropriate benefiting fund, and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or proprietary funds are netted as part of the reconciliation to the government-wide presentation.

Notes Receivable
The City engages in programs designed to encourage construction or improvement of housing for persons with low to moderate income and to encourage business development. Under these programs, grants or loans are provided under favorable terms to homeowners or developers who agree to spend these funds in accordance with the City’s terms. For financial statement purposes, the City has established an estimated allowance for potentially uncollectible loans. The balance of notes receivable includes loans that may be forgiven if certain terms and conditions of the loans are met.

Leases
Lessee: The City is a lessee for a noncancellable lease of a building. The lessee recognizes a lease liability and an intangible right-to-use lease asset (lease asset) in the government-wide financial statements. The City recognizes lease liabilities with an initial, individual value of $5,000 or more. 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.  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, which it has determined is the prime rate at the inception of the lease.  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.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain 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.

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements
35 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balances (Continued) Leases (Continued)
Lessor: The City recognizes a lease receivable and a deferred inflow of resources in the government-wide and governmental and enterprise fund financial statements.

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.  The City uses the interest rate charged to the lessees as the discount rate. When the interest rate charged to the lessees is not provided, the City generally uses the implied rate of return as the discount rate for leases. When the implied rate of return has not been determined, the City uses its estimated incremental borrowing rate which it has determined is the prime rate at the inception of the lease.  The lease term includes the non-cancellable period of the lease. Lease receipts included in the measurement of the lease receivable are 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.

Capital Assets
Capital assets, which include public domain (infrastructure) capital assets consisting of certain improvements, including streets (pavements, medians, curbs/gutters, sidewalks, traffic signals, monument signs and bridges), storm drains and water/sewer systems and improvements, are reported in the applicable governmental or business-type activities column in the government-wide financial statements.

Generally, capital asset acquisitions in excess of $5,000 (general capital assets) and $30,000 (infrastructure) are capitalized if they have an expected useful life of one year or more. Acquisitions of capital assets (including infrastructure) are recorded at historical cost at the time of purchase. Donated capital assets are recorded at their fair value at the date of donation.

Land and construction in progress are not depreciated. The other property, plant, equipment, and infrastructure of the City are depreciated using the straight-line method over the following estimated useful lives:

Land improvements 20-50 years
Buildings and improvements 20-50 years
Machinery, equipment and vehicles 6-10 years
Infrastructure 20-100 years
CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements
36 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balances (Continued) Subscription-Based Information Technology Arrangements (SBITAs) Lessee: The City enters into noncancellable subscription-based information technology arrangements (SBITAs) for the acquisition of various information technology services. SBITAs are accounted for in accordance with GASB Statement No.

96. Upon commencement of a subscription, the City recognizes a subscription liability and an intangible right-to-use subscription asset (subscription asset) in the government-wide financial statements. Subscription liabilities are recognized when their initial individual values are $5,000 or more. The subscription liability is initially measured at the present value of payments expected to be made during the subscription term and is subsequently reduced by the principal portion of subscription payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for subscription payments made at or before the subscription commencement date, and any directly attributable initial costs. The subscription asset is amortized on a straight-line basis over its useful life.

Key estimates and judgments related to SBITAs include determining the discount rate used to discount expected subscription payments to present value, the subscription term, and the composition of subscription payments.

The City generally uses the interest rate charged by the subscription provider as the discount rate. When the interest rate charged by the provider is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for SBITAs, which is the prime rate at the inception of the subscription.

Compensated Absences
It is the City’s policy to permit employees to accumulate a limited amount of earned but unused leave time. Permanent employees earn from 12 to 30 vacation days per year depending upon their length of employment. Accumulated vacation days can be carried forward up to 2 years. Each year, by September 30, certain employees may request to receive a cash payment for the value of all or a portion of their accumulated vacation leave. Upon termination or retirement, employees are compensated for the value of accrued vacation leave.

For full-time employees, sick leave is accumulated at the rate of 12 days per year. Upon retirement, employees may also convert a portion of their unused sick leave into service credit through the California Public Employees Retirement System.

The vacation and sick leave balances, along with compensatory leave and holiday hours are reflected in the Employee Benefits Fund, which is part of the Internal Service Funds in the Statement of Net Position.

Long-Term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type Statement of Net Position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discounts. Bond issuance costs are expensed immediately.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources.

Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether withheld from the actual debt proceeds received, are reported as debt service expenditures.

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements
37 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balances (Continued) Pensions
In government-wide financial statements, pensions are recognized and disclosed using the accrual basis of accounting (see Note 11 and the RSI section immediately following the Notes to the Basic Financial Statements), regardless of the amount recognized as pension expenditures on the modified accrual basis of accounting. The City recognizes a net pension liability for the qualified pension plan in which it participates, which represents the excess of the total pension liability over the fiduciary net position of the qualified pension plan, measured as the City’s proportionate share thereof in the case of a cost-sharing multiple-employer plan. Changes in the net pension liability during the period are recorded as pension expense, or as deferred inflows of resources or deferred outflows of resources depending on the nature of the change, in the period incurred. Those changes in net pension liability that are recorded as deferred inflows of resources or deferred outflows of resources that arise from changes in actuarial assumptions or other inputs and differences between expected or actual experience are amortized over the weighted average remaining service life of all participants including retirees, in the respective qualified pension plan and recorded as a component of pension expense beginning with the period in which they arose. Projected earnings on qualified pension plan investments are recognized as a component of pension expense. Differences between projected and actual investment earnings are reported as deferred inflows of resources or deferred outflows of resources and amortized as a component of pension expense on a closed basis over a five-year period beginning with the period in which the difference occurred.

Interest Payable
In the government-wide financial statements, interest payable on long-term debt is recognized as a liability when incurred and is not recognized in the governmental funds’ financial statements.

Unearned Revenue
Unearned revenue is that for which asset recognition criteria have been met, but for which revenue recognition criteria have not been met. The City typically records intergovernmental revenues (primary grants and subventions) received but not earned (qualifying expenditures not yet incurred).

Unavailable Revenue
In the governmental fund financial statements, unavailable revenue is recorded when transactions have not yet met the revenue recognition criteria based on the modified accrual basis of accounting. The City records unavailable revenue for transactions for which revenues have been earned, but for which funds are not available to meet current financial obligations.

Transfers
In the fund financial statements interfund transfers are recorded as transfers in (out) except for transactions that are described below:

Charges for services are recorded as revenues of the performing fund and expenditures of the requesting fund.

Unbilled costs are recognized as an asset of the performing fund at the end of the fiscal year.

Reimbursements for expenditures, initially made by one fund that is properly applicable to another fund, are recorded as expenditures in the fund that is reimbursed.

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements
38 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balances (Continued) Net Position
The government-wide and enterprise fund financial statements utilize a net position presentation. Net position is reported as net investment in capital assets, restricted or unrestricted.

Net investment in capital assets – groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of these assets reduce the net position balance.

Restricted – represents external restrictions imposed by creditors, grantors, contributors, or laws of regulations of other governments and restrictions imposed by law through constitutional provisions or enable legislation.

Unrestricted – represents net position of the City, not restricted for any project or other purpose.

When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources as they are needed.

Fund Balances
The governmental fund financial statements present fund balances based on classifications the comprise a hierarchy that is based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the respective governmental funds can be spent. The classification used in governmental fund financial statements are as follows.

Nonspendable Fund Balance – Amounts cannot be spent either because they are in nonspendable form (such as inventory or prepaid expenses, and long-term loans and notes receivable) or because they are legally or contractually required to be maintained intact (such as principal of a permanent fund).

Restricted Fund Balance – Amounts with external constraints placed on the use of these resources (such as debt covenants, grantors, contributors, or laws or regulations of other governments, etc.) or imposed by law through constitutional provisions or enabling legislation.

Committed Fund Balance – Amounts that can only be used for specific purposes pursuant to constraints imposed by City Council, the City’s highest level of decision-making authority, through an ordinance or resolution. These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified uses through the same type of formal action taken to establish the commitment.

Assigned Fund Balance – Amounts that do not meet the criteria to be classified as restricted or committed but that are intended to be used for specific purposes. Intent is expressed by the City Council or its designee and may be changed at the discretion of the City Council or its designee. For all governmental funds other than the General Fund, any remaining positive amounts not classified as nonspendable, restricted or committed must be designated as assigned fund balance.

Unassigned Fund Balance – These are either residual positive net resources of the General Fund in excess of what can properly be classified in one of the other four categories, or negative balances in all other funds.

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

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements
39 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balances (Continued) Minimum Fund Balance Policy
The City’s minimum fund balance policy requires the City to maintain reserves equal to 2 months (17%) and 3 months (25%) of costs based on the annual adopted budget for Enterprise Funds and the General Fund, respectively. The use of these funds shall be allowed in situations resulting from the loss of revenues and must be replenished before the end of the following fiscal year.

Risk Management
The City participates with other public entities in a joint venture under a joint powers agreement which established the Central San Joaquin Valley Risk Management Authority (CSJVRMA). The relationship between the City and CSJVRMA is such that CSJVRMA is not a component unit of the City for financial reporting purposes.

Use of Estimates
The preparation of financial statements in conformity with United States generally accepted accounting principles (U.S.

GAAP) requires management to make estimates and assumptions that affect certain reported amounts and disclosures.

Actual results could differ from those estimates.

Property Tax Calendar
Madera County is responsible for assessing, collecting and distributing property taxes in accordance with enabling legislation. Revenue received is based on an allocations factor calculated by the County under the provisions of Proposition 13 plus a percentage of the increase in market value in specific areas. The City’s property tax is liened based on the assessed value listed as of the prior January 1 for all real and personal property located in the City. Property sold and the assessment date (January 1) is reassessed and the amount of property tax assessed is prorated.

Secured property taxes are levied on October 1 and are due in two installments on November 1 and February 1. The tax becomes delinquent after December 10 and April 10, respectively. Unsecured property tax is levied on July 1, due on July 31, and becomes delinquent after August 31.

NOTE 2 – CASH AND INVESTMENTS
Cash and investments as of June 30, 2025 are classified in the accompanying financial statements as follows:

Statement of Net Position:

Cash and investments 41,653,853 $
Restricted cash and investments with fiscal agents 1,168,443 Statement of Fiduciary Net Position:

Cash and investments 3,193,879
Restricted cash with fiscal agents 657,244
Total cash and investments 46,673,419 $
CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements
40 NOTE 2 – CASH AND INVESTMENTS (Continued)
Cash and investments as of June 30, 2025 consisted of the following:

Cash on hand $ 2,200
Deposits with financial institutions 5,345,761
Investments 41,325,458
Total cash and investments 46,673,419 $
A. Deposits
The carrying amount of the City’s cash deposits was $5,345,760 at June 30, 2025. Bank balances were $5,535,405, the total amount of which was insured and/or collateralized with securities held by the pledging financial institutions in the City’s name as described below.

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

The market value of pledged securities must equal at least 110% of the City’s cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits.

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

Investments Authorized by the California Government Code and the City’s Investment Policy In accordance with Section 53601 of the California Government Code and the City’s investment policy, the City is authorized to invest in Certificates of Deposit, the California Local Agency Investment Fund (LAIF), U.S. Treasury Obligations, U.S. Government Agencies, Medium-Term Notes, Bankers’ Acceptances, and Commercial Paper of “prime” quality of the highest ranking or of the highest letter and numerical rating as provided by Moody’s Investor Services, Inc. or Standards and Poor’s Corporation. In accordance with the City’s investment policy, the City will not invest in repurchase agreements, reverse repurchase agreements, or any other type of investments prohibited by California Government Code Section 53601.

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements
41 NOTE 2 – CASH AND INVESTMENTS (Continued)
A. Deposits (Continued)
Disclosure Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment.

Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates.

Information about the sensitivity of the fair values of the City’s investments to market interest rate fluctuations is provided by the following table that shows the maturity date of each investment:

Investment Type Total
12 Months
or Less
State Investment Pool 19,271,200 $ 19,271,200 $
Federal Agency Securities:

U.S. Treasury Notes 12,283,593 12,283,593
Held by fiscal agent:

Treasury Obligation Funds 1,333,684 1,333,684
Tri County Savings 7,944,978 7,944,978
Money Market Funds 492,003 492,003
Total $ 41,325,458 41,325,458 $
Disclosure Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment.

This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the actual rating as of year-end for each investment type:

Investment Type Total AAAm Not Rated
State Investment Pool 19,271,200 $ - $ 19,271,200 $
Federal Agency Securities:

U.S. Treasury Notes 12,283,593 - 12,283,593
Held by fiscal agent:

Treasury Obligation Funds 1,333,684 1,333,684 -
Tri County Savings - 7,944,978 7,944,978
Money Market Funds - 492,003 492,003
Total $ 41,325,458 1,333,684 $ 39,991,774 $
Ratings as of Year-End
Concentration of Credit Risk
The investment policy of the City contains no limitation on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. The City did not have investments in any one issuer (other than U.S.

Treasury securities, mutual funds, and external investment pools) that represent 5% or more of total City’s investments for the year ended June 30, 2025.

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements
42 NOTE 2 – CASH AND INVESTMENTS (Continued)
A. Deposits (Continued)
Investment Valuation
Investments, including derivative instruments that are not hedging derivatives, are measured at fair value on a recurring basis. Recurring fair value measurements are those that Governmental Accounting Standards Board (GASB) Statements require or permit in the Statement of Net Position at the end of each reporting period. Fair value measurements are categorized based on the valuation inputs used to measure an asset’s fair value: Level 1 investments reflect prices quoted in active markets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.

Investments’ fair value measurements are as follows at June 30, 2025:

Investments Fair Value Level 1 Inputs Level 2 Inputs Level 3 inputs Debt securities:

U.S. Treasury Notes 12,283,593 $ 12,283,593 $ - $ - $
Treasury Obligation Funds 1,333,684 1,333,684 - -
Total 13,617,277 13,617,277 $ - $ - $
Investments not subject to fair value
heirarchy:

Money Market Funds 492,003
Tri County Savings 7,944,978
State Investment Pool 19,271,200
Total Investments 41,325,458 $
Fair Value Measurements
Treasury obligations are valued at marked to market based on quoted market closing prices.

Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amount based upon the City’s pro-rata share of the amortized cost provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of the portfolio). The balance available for withdrawal is based in the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Although the City did not participate in any securities lending transactions or enter into any reverse repurchase agreements during the year, the City does have an investment in LAIF in the amount of $19,271,200. The Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The Board consists of five members designated by State statute. The value of the pool shares in LAIF, which may be withdrawn, is determined on an amortized cost basis, which is different from the fair value of the City’s position in the pool.

Investment in Money Market Funds
Investment in the money market funds is valued at $492,003 and have a maturity of less than one year and are presented at amortized costs, which approximates fair value. As they are presented at amortized costs, they are not an investment type that can be categorized at any level in the fair value hierarchy.

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements
43 NOTE 3 – RECEIVABLES
Receivables as of the June 30, 2025 year-end for the City’s individual major funds and nonmajor funds, including applicable allowances for uncollectible accounts, were as follows:

Governmental Activities
CDBG
Grants Measure N Other Total
Special Impact Special Streets & Capital Governmental Governmental General Revenue Fees Revenue Roads (LTF) Projects Funds Funds Receivables:

Accounts receivable 474,396 $ - $ - $ - $ 9,599 $ - $ 13,165 $ 497,160 $ Intergovernmental receivables 872,696 40,489 23,478 495,775 1,742,037 11,376 891,355 4,077,206 Notes receivable - 22,890,786 - - - - 1,928,167 24,818,953 Less: allowance for for uncollectibles - - - - - - - -
Net receivables 1,347,092 $ 22,931,275 $ 23,478 $ 495,775 $ 1,751,636 $ 11,376 $ 2,832,687 $ 29,393,319 $ Successor Agency
Solid Storm Nonmajor Private Purpose
Water Waste Sewer Drain Airport Total Custodial Trust Fund Receivables:

Accounts receivable 356,028 $ 276,948 $ 250,677 $ 25,448 $ - $ 909,101 $ 57,539 4,839 Intergovernmental receivables 7,814 5,930 332,697 387,506 22,846 756,793 - - Long-term receivables - - - - - - - 43,750
Less: allowance for
for uncollectibles (26,295) (17,135) (15,774) (2,147) - (61,351) - - Net receivables 337,547 $ 265,743 $ 567,600 $ 410,807 $ 22,846 $ 1,604,543 $ 57,539 $ 48,589 $ Business-Type Activities - Enterprise Funds Fiduciary Funds Receivables are presented on the Statement of Net Position as follows:

Governmental Business-Type
Activities Activities Total
Accounts receivable, net 497,160 $ 847,750 $ 1,344,910 $ Intergovernmental receivables 4,077,206 756,793 4,833,999 Notes receivable, net 24,818,953 - 24,818,953
Total 29,393,319 $ 1,604,543 $ 30,997,862 $
Receivables in governmental funds which are not expected to be collected in one year are as follows:

Notes receivable in CDBG Grants Special Revenue Fund 22,890,786 $ Notes receivable in Home Investment Program Grants Special Revenue Fund 1,859,317 Notes receivable in Low and Moderate Income Housing Asset Special Revenue Fund 68,850 Total $ 24,818,953
CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements
44 NOTE 4 – INTERNAL BALANCES
Due from and due to balances at June 30, 2025 were as follows:

Due From Due To
Governmental Funds:

Major Funds:

General Fund $ - 1,057,645 $
Debt Service Fund 13,479 -
Nonmajor Funds:

SAFER Fire Grant Fund 30,529 -
Transit System Special Revenue Fund 721,389 -
Information Technology Internal Service Fund 255,273 -
Low and Moderate Low Income Housing Asset Fund - 36,975 Total $ 1,057,645 1,057,645 $
The “due from” balance of $1,057,645 in the General Fund listed above represents loans made to other funds to cover operating cash deficit balances.

Advances to and from balances at June 30, 2025 were as follows:

Advances To Advances From
Governmental Funds:

Major Funds:

General Fund $ - 294,136 $
Impact Fees Special Revenue Fund 294,136 -
Total $ 294,136 294,136 $
The balance of $294,136 for advances from other funds in the Impact Fees Special Revenue Fund consists of cash advances from the General Fund and will be paid back with future impact fees. The City has indicated that there are no plans to collect on the advance within the next year.

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements
45 NOTE 5 – TRANSFERS
Transfers for the year ended June 30, 2025, are summarized as follows:

Transfers In Transfers Out
Governmental Funds:

Major Funds:

General Fund 1,349,958 $ 3,360,056 $ (1), (13)
CDBG Grants Special Revenue Fund 22,058 103,559 (2)
Impact Fees Special Revenue Fund - 89,796 (11)
Measure N Special Revenue Fund 1,332,174 (5)
Streets and Roads Fund (LTF) Special Revenue Fund 1,107,489 2,074 (7) Debt Service Fund 1,407,908 48,955 (14)
Capital Projects Fund 32,131 -
Nonmajor Funds:

State Gas Tax Special Revenue Fund - 205,673 (3)
SB1 Special Revenue Fund 14,502 272,765 (4)
Measure T Special Revenue Fund - 607,024 (9)
Transit System Special Revenue Fund 52,425 -
HOME Investment Partnership Program
Special Revenue Fund - 1,777
EDBG Grant Special Revenue Fund - 23,835 (8)
Enterprise Funds:

Major Funds:

Storm Drain Enterprise Fund 1,891 76,502 (6)
Water Enterprise Fund 1,986,834 1,891 (12)
Sewer Enterprise Fund 1,891 - (10)
Total $ 6,051,584 6,051,584 $
The significant transfers out noted above were for the following purposes:
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14) Transfers out of clean renewal energy subsidy to General Fund for related debt.

Transfer out $1,986,834 to Water Fund for Well Projects and Water Main Stubouts.

Transfer Out $14,502 to SB1 Special Revenue Fund for projects required by State; $2,828 to Streets and Roads for CFD Services fund that belong to Streets, $1,355,892 for Debt Service.

Transfer $22,058 to CDBG Grants Special Revenue Fund funds and $1,777 to Home Investment Partnership Program to cover costs associated with Grant management to cover contracted costs when no Admin Program Income is available.

Transfer out to Capital Projects $5,300 for Bridge Preventive Maintenance Project, $5,360 for Berenda Slough Bridge, $1,270 for Riverside pedestrian improv project and $193,743 to Streets and Roads for Street Projects.

Transfer out $534,399 to Streets and Roads; $52,425 to Transit System Special Revenue Fund; $20,200 to Capital Projects for General Street Maintenance, Projects, and new bus for Transit.

Transfer out $76,502 to Storm Drain for Kings Ave Storm Drain Project and $27,057 to Streets and Roads for ADA Sidewalk Project.

Transfer out to Streets and Roads $272,765 for Street Projects.

Transfer out to General Fund $1,271,012 to cover Measure N Projects and Equipment and $61,162 to Debt Service for Pension Bond Transfer out $1,891 to Storm Drain for equipment expenses that belong to storm drain.

Transfer out to General Fund $2,074 for Street Projects.

Transfer out $1,891 to General Fund to cover debt service and equipment expenses.

Transfer out $13,099 to General Fund for Edward Ray Park and $76,697 to Streets and Roads for street projects.

Transfer out $1,891 to General Fund to cover debt service and equipment expenses.

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements
46 NOTE 6 – CAPITAL ASSETS
Capital assets activity of the governmental activities for the year ended June 30, 2025, was as follows:

Balance
July 1, 2024 Additions Reductions Transfers
Balance
June 30, 2025
Capital assets, not being depreciated:

Land 766,397 $ - $ - $ - $ 766,397 $
Construction in progress 4,178,174 1,975,247 (2,571,820) - 3,581,601 Total capital assets, not being depreciated 4,944,571 1,975,247 (2,571,820) - 4,347,998 Capital assets, being depreciated/amortized:

Land improvements 1,569,968 19,069 1,157,934 - 2,746,971 Buildings and improvements 9,583,560 - 1,213,153 - 10,796,713 Right-to-use leased asset 507,101 395,694 - (44,278) 858,517 SBITA - Right-to-use asset - 86,931 - - 86,931
Machinery, equipment and vehicles 7,550,876 1,401,619 (376,376) - 8,576,119 Infrastructure 24,598,161 - - - 24,598,161
Total capital assets, being depreciated/amortized 43,896,597 1,816,382 1,994,711 (44,278) 47,663,412 Less accumulated depreciation/amortization for:

Land improvements (1,310,951) (59,108) - - (1,370,059)
Buildings and improvements (3,766,543) (248,546) - - (4,015,089) Right-to-use leased asset (193,935) (107,103) - 4,058 (296,980) SBITA - Right-to-use asset (28,977) (28,070) - - (57,047) Machinery, equipment and vehicles (4,179,455) (648,639) 305,868 - (4,522,226) Infrastructure (10,986,962) (667,284) - - (11,654,246)
Total accumulated depreciation/amortization (20,465,916) (1,759,657) 305,868 4,058 (21,915,647) Total capital assets being depreciated/amortized, net 23,430,681 56,725 2,300,579 (40,220) 25,747,765 Governmental activities capital assets, net 28,375,252 $ 2,031,972 $ (271,241) $ (40,220) $ 30,095,763 $ Depreciation expense was charged to the following functions/programs of the governmental activities of the primary government as follows:

Governmental activities:

General government $ 281,510
Public safety 578,371
Highways and streets 668,162
Culture and recreation 136,861
94,753
Total depreciation/amortization expense - governmental activities 1,759,657 $ Capital assets held by government's internal service funds are charged to the various functions based on their usage of the assets
CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements
47 NOTE 6 – CAPITAL ASSETS (Continued)
Capital assets activity of the business-type activities ended June 30, 2025 was as follows:

Balance
July 1, 2024 Additions Reductions Transfers
Balance
June 30, 2025
Capital assets, not being depreciated:

Land $ - 2,030,152 $ - $ - $ 2,030,152 $
Construction in progress 5,149,940 4,012,819 (4,145,024) - 5,017,735 Total capital assets, not being depreciated 6,042,971 5,149,940 (4,145,024) - 7,047,887 Capital assets, being depreciated:

Land improvements 4,145,024 1,253,762 - - 5,398,786
Buildings and improvements 12,750 5,464,579 (25,900) - 5,451,429 Right-to-use leased asset 45,135 - - 44,278 89,413
Machinery, equipment, and vehicles 15,000 1,684,225 (47,400) - 1,651,825 Infrastructure - 27,054,638 - - 27,054,638
Total capital assets, being depreciated 35,502,339 4,172,774 (73,300) 44,278 39,646,091 Less accumulated depreciation for:

Land improvements (34,896) (948,158) - - (983,054)
Buildings and improvements (100,735) (1,999,198) 25,900 - (2,074,033) Right-to-use leased asset (4,136) (17,720) - (4,058) (25,914) Machinery, equipment, and vehicles (126,099) (895,666) 47,400 - (974,365) Infrastructure (601,312) (9,851,326) - - (10,452,638)
Total accumulated depreciation (13,698,484) (880,762) 73,300 (4,058) (14,510,004) Total capital assets being depreciated, net 21,803,855 3,292,012 - 40,220 25,136,087 Business-type activities capital assets, net $ 27,846,826 8,441,952 $ (4,145,024) $ 40,220 $ 32,183,974 $ Depreciation expense was charged to the following functions/programs of the governmental activities and business-type activities of the primary government as follows:

Business-type activities:

Water $ 500,042
Sewer 305,417
Storm drain 48,590
Airport 26,713
Total depreciation expense - business-type activities 880,762 $ CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements
48 NOTE 7 – SUBSCRIPTION BASED INFORMATION TECHNOLOGY ARRANGEMENTS (SBITAS) AS A LESSEE In fiscal year 2023, the City entered a three-year SBITA as a lessee for OpenGov software, which has been recorded in the Information Technology Internal Service Fund. An initial SBITA liability was recorded in the amount of $56,745 during fiscal year 2023. There is no associated liability as of June 30, 2025. The value of the right-to-use software as of the end of the current fiscal year was $56,745 and had accumulated amortization of $42,966. In accordance with GASB 96, certain variable and other payments are not included in the measurement of the subscription liability. There were no outflows of resources recognized in the reporting period for variable and other payments.

In fiscal year 2024, the City entered into a SBITA in accordance with GASB Statement No. 96, related to firewall IT assets and components used for networking and security which has been recorded in the Information Technology Internal Service Fund. The arrangement is with CDW-G and commenced in February 2024 with a three-year term. There are no extension options included in the agreement.

Upon commencement of the arrangement, the government recognized a subscription liability of $30,186, representing the present value of the subscription payments. The liability was fully paid up front, and therefore no additional payments are due over the term of the agreement. The corresponding right-to-use subscription asset was recorded in the same amount and is being amortized over its useful life of three years.

The discount rate applied to measure the present value of the liability was 8.5%. The value of the right-to-use software as of the end of the current fiscal year was $30,186 and had accumulated amortization of $14,081. There are no variable payments, termination penalties, or additional commitments related to this SBITA.

NOTE 8 – LONG-TERM DEBT
The following is a summary of debt transactions of the City for the year ended June 30, 2025:

Amounts
Balance Balance Due Within
June 30, 2024 Additions Reductions Transfers June 30, 2025 One Year Governmental Activities:
2005 Civic Center Bond 3,355,000 $ - $ (220,000) $ - $ 3,135,000 $ 230,000 $ 2017 Series Lease Revenue Bonds 3,550,000 - (25,000) - 3,525,000 - State of California NSP Loan 9,913,215 - - - 9,913,215 - 2019 Taxable Pension Obligation Bonds 8,705,000 - (575,000) - 8,130,000 620,000 Add: Premiums 131,785 - (5,990) - 125,795 -
Less: Discounts - (95,329) 6,456 - - (88,873)
Leases 322,337 395,694 (181,961) (40,359) 495,711 108,820 - 19,845 (19,845) - - -
Compensated absences* 283,738 564,375 - - 848,113 409,840 Total Governmental Activities Long-Term Debt $ 26,466,228 679,432 $ (1,021,340) $ (40,359) $ 26,083,961 $ 1,368,660 $ Business-Type Activities:

Direct Placements and Direct Borrowings:

State Water Revolving Loan 2,244,194 $ - $ (160,300) $ - $ 2,083,894 $ 160,300 $ Total Direct Placements and Borrowings - 2,244,194 (160,300) - 2,083,894 160,300 2017 Series Water Revenue Bonds 8,060,000 - - (25,000) 8,035,000 40,000 2017 Series Wastewater Revenue Bonds 3,005,000 - (45,000) - 2,960,000 50,000 (15,366) 41,214 40,359 66,207 16,149
Add: Premiums 451,996 - (24,253) - 427,743 -
Total Business-Type Activities Long-Term Debt $ 13,802,404 - $ (269,919) $ 40,359 $ 13,572,844 $ 266,449 $ Subscription Based Information Technology
Arrangements (SBITA)
Leases
CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements
49 NOTE 8 – LONG-TERM DEBT (Continued)
Long-term debt payable at June 30, 2025 is comprised of the following individual issues:

A. 2005 Civic Center Bond
In 2005, the City issued Revenue Bonds in the aggregate principal amount of $5,890,000 to refund the 2002 $1,900,000 Civic Center Project Private Placement Financing and to finance certain public improvements. The original amount of the note ($5,890,000) was secured by revenues of the Public Financing Authority (the Authority) consisting primarily of lease payments to be received by the Authority from the City under a lease agreement dated July 1, 2005, by and between the Authority and the City which are payable from the City’s General Fund for lease by the City of certain real property and public facilities located in the City, and then constituting the Civic Center Project. There is a provision whereby if the City is unable to make payment or does not comply with bond covenants, the Trustee may, and shall at the written direction of the Owners of not less than a majority in aggregate principal amount of Bonds at that time outstanding, declare the principal of all bonds outstanding and the accrued interest thereon to be due and payable immediately. Semiannual payments range from $7,875 to $357,875 and are payable each January 1 and July 1 through 2036. During the year ended June 30, 2017 the 2005 Civic Center Bond was partially refunded by the 2016 Civic Center Bond for the purposes of savings on future debt service payments.

Annual debt service requirements to maturity of the 2005 Civic Center Bond are as follows:

Fiscal Year
Ending June 30 Principal Interest
2026 $ 129,456 230,000 $
2027 235,000 119,175
2028 250,000 108,238
2029 260,000 96,863
2030 270,000 85,050
2031-2035 1,540,000 223,425
2036-2040 350,000 -
Total $ 762,207 3,135,000 $
B. 2017 Series Lease Revenue Bonds
In 2018, the Chowchilla Public Financing Authority issued Revenue Bonds in the aggregate principal amount of $3,630,000 to finance the costs of clean renewable energy projects and other capital improvements. The original amount of the bonds ($3,630,000) were secured by a pledge of and lien on revenues consisting primarily of lease payments from the City. There is a provision whereby if the City is unable to make payment or does not comply with bond covenants, the Trustee may, and shall at the written direction of the Owners of not less than a majority in aggregate principal amount of Bonds at that time outstanding, declare the principal of all bonds outstanding and the accrued interest thereon to be due and payable immediately. Principal is payable annually on June 1 in amounts ranging from $10,000 to $375,000, with interest due semi-annually at variable rates between 2.6% - 5.0%, maturing on June 1, 2047.

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements
50 NOTE 8 – LONG-TERM DEBT (Continued)
B. 2017 Series Lease Revenue Bonds
Annual debt service requirements to maturity of the 2017 Series Lease Revenue Bonds are as follows:

Fiscal Year
Ending June 30 Principal Interest
2026 - $ 155,117 $
2027 30,000 155,117
2028 40,000 153,961
2029 40,000 152,418
2030 45,000 150,874
2031-2035 420,000 720,104
2036-2040 850,000 609,130
2041-2045 1,495,000 356,679
2046-2050 37,362 605,000
Total $ 2,490,762 3,525,000 $
C. 2019 Pension Obligation Bonds
In 2019, the Chowchilla Public Financing Authority issued Pension Obligation Bonds in the aggregate principal amount of $10,500,000 to finance a portion of the City’s unfunded accrued actuarial liability to the California Public Employees’ Retirement System (CalPERS) for the benefit of the City’s employees and pay the costs of issuance of the bonds. The bonds are unsecured obligations payable from any source of legally available funds of the City, including, but not limited to, amounts held by the City on deposit in its General Fund. Principal is payable annually on July 15 in amounts ranging from $10,000 to $640,000, with interest due semi-annually at variable rates between 2.94% - 4.75%, maturing on July 15, 2046. There is a provision whereby if the City is unable to make payment, does not comply with bond covenants, or files for reorganization or arrangement, the Trustee may declare the entire unpaid principal and interest immediately due and payable.

Annual debt service requirements to maturity of the 2019 Pension Obligation Bonds are as follows:

Fiscal Year
Ending June 30 Principal Interest
2026 620,000 $ 327,556 $
2027 470,000 308,572
2028 510,000 290,971
2029 545,000 271,498
2030 590,000 249,831
2031-2035 3,005,000 881,272
2036-2040 1,525,000 347,581
2041-2045 825,000 92,744
2046-2050 1,425 40,000
Total $ 8,130,000 2,771,450 $
CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements
51 NOTE 8 – LONG-TERM DEBT (Continued)
D. State of California Neighborhood Stabilization Program (NSP) Loan In fiscal year 2011, the City entered into a loan agreement with the Department of Housing and Community Development (the DHCD). The City could borrow up to $10,000,000 to assist Olivero Ranch, LLC, in financing construction of 31 multifamily units, of which 30 units will be restricted to households at or below 50% of all AMI households in the City. The entire outstanding principal balance plus all accrued but unpaid interest is due in full on the 55th anniversary of the date of the project’s receipt of certificates of occupancy. There is no interest due on the loan; however, any program income resulting from the financing provided to Olivero Ranch, LLC will be returned to the DHCD. The loan will be secured on the property on which the project is located. All loan payments will be generated by the operation of the housing development by the private developer which will pass through the City and back to the State.

E. 2017 Series Water Revenue Bonds
In 2017, the Chowchilla Public Financing Authority issued Revenue Bonds in the aggregate principal amount of $8,160,000 to finance capital projects in the Water Fund. The original amount of the bonds ($8,160,000) were secured by installment payments to be made by the City under an installment sale agreement. There is a provision whereby if the City is unable to make payment or does not comply with bond covenants, the Trustee may, and shall at the written direction of the Owners of not less than a majority in aggregate principal amount of Bonds at that time outstanding, declare the principal of all bonds outstanding and the accrued interest thereon to be due and payable immediately. These installment payments are secured by a pledge of and lien on the net revenues of the Water Fund. Principal is payable annually on June 1 in amounts from $10,000 to $775,000, with interest due semi-annually at variable rates between 2.6% - 5.0%, maturing on June 1, 2047.

Annual debt service requirements to maturity of the 2017 Series Water Revenue Bonds are as follows:

Fiscal Year
Ending June 30 Principal Interest
2026 40,000 $ 357,737 $
2027 65,000 356,137
2028 90,000 353,574
2029 115,000 350,028
2030 140,000 345,470
2031-2035 1,170,000 1,623,208
2036-2040 2,205,000 1,330,198
2041-2045 3,655,000 672,826
2046-2050 555,000 45,177
Total $ 5,434,355 8,035,000 $
CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements
52 NOTE 8 – LONG-TERM DEBT (Continued)
F. 2017 Series Wastewater Revenue Bonds
In 2017, the Chowchilla Public Financing Authority issued Revenue Bonds in the aggregate principal amount of $3,310,000 to finance capital projects in the Sewer fund. The original amount of the bonds ($3,310,000) was secured by installment payments to be made by the City under an installment sale agreement. There is a provision whereby if the City is unable to make payment or does not comply with bond covenants, the Trustee may, and shall at the written direction of the Owners of not less than a majority in aggregate principal amount of Bonds at that time outstanding, declare the principal of all bonds outstanding and the accrued interest thereon to be due and payable immediately. These installment payments are secured by a pledge of and lien on the net revenues of the Sewer Fund. Principal is payable annually on June 1 in amounts from $75,000 to $275,000, with interest due semi-annually at variable rates between 2.33% - 4.58%, maturing on June 1, 2047.

Annual debt service requirements to maturity of the 2017 Series Wastewater Revenue Bonds are as follows:

Fiscal Year
Ending June 30 Principal Interest
2026 $ 131,731 50,000 $
2027 129,731 45,000
2028 128,026 50,000
2029 126,081 60,000
2030 123,687 65,000
2031-2035 569,670 450,000
2036-2040 451,154 690,000
2041-2045 264,358 1,025,000
2046-2050 525,000 36,640
Total $ 1,961,078 2,960,000 $
G. State Water Revolving Loan
The City entered into a loan agreement in July 2014 with the State Water Resources Control Board for the purpose of undertaking a project which will enable the City to meet safe drinking water standards established pursuant Chapter 4 of Part 12 of Division 104 of the health and safety Code and the California Code of Regulations, Title 22, or to address other health concerns. The City was awarded a loan in the amount of $3,205,991 for the purpose of installing water meters citywide. The loan is to be repaid over a 20-year period at an interest rate of 0%, which does not begin until the project is completed. In the event of a default, the State shall charge interest in the amount of one tenth of one percent (0.1%) of the delinquent amount each day it remains unpaid past the tenth (10th) day after the date payment was due. The City completed the project during 2018 and the first payment was due on January 1, 2019.

Annual debt service requirements to maturity of the State Water Revolving Loan are as follows:

Fiscal Year
Ending June 30 Principal
2026 160,300 $
2027 160,300
2028 160,300
2029 160,300
2030 160,300
2031-2035 801,498
2036-2040 480,896
Total $ 2,083,894
CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements
53 NOTE 8 – LONG-TERM DEBT (Continued)
H. Special Assessment District Debt
On April 30, 2014, the City issued $3,962,800 of 2013-1 Limited Obligation Refunding Bonds (the 2013 Local Obligations) pursuant to the provisions of the Improvement Bond Act of 1915 to refund the outstanding 2002-1 Local Obligations Improvement Bonds (the 2002-1 Local Obligations), for the purpose of creating annual debt savings. The direct placement 2013 Local Obligations are fully secured by the unpaid special assessments levied on commitment. The 2013 Local Obligations are not secured by the general taxing power of the City, the State of California, or any political subdivision of the State. The City acts as agent for the property owners in collecting assessment installments of principal and interest and forwarding collections to the bond trustee. The City’s liability in the event of delinquent assessments, shall not exceed the balance of the established Reserve Fund. The amount outstanding as of June 30, 2025 is $1,056,200.

In 2007, the City issued Community Facilities District No. 2006-1 Improvement Area 1 Special Tax Bonds in the aggregate principal amount of $8,615,000 to finance certain capital expenses of the District, to pay costs of issuance of the Bonds, and to fund two years’ capitalized interest on the Bonds. The Bonds are authorized to be issued pursuant to the MelloRoos Community Facilities Act of 1982, as amended. The Bonds ($8,615,000) are secured under the Trust indenture by a pledge and lien upon Net Taxes levied on parcels within the District and all moneys in the Special Tax Fund. The Bonds were issued for the purpose of financing the acquisition, construction, expansion, improvement, or rehabilitation of facilities to serve the area within the District and its neighboring areas. Semiannual payments range from $13,375 to $560,486 and are payable each March 1 and September 1 through 2037. The amount outstanding as of June 30, 2025 is $5,290,000.

Since the City is not obligated in any manner for special assessment debt, the debt is not recorded in these financial statements.

NOTE 9 – LEASES
A. Lease as Lessor
In 2006, the City began leasing one of its office buildings to a third party. The initial lease was for ten years and was subsequently extended with two additional five-year extensions through 2026. The City will receive monthly payments of $7,227, which is adjusted on July 1 by the United States Department of Labor, Bureau of Labor Statistics, Southern California Consumer Price Index, or 5%, whichever is less. The City recognized in lease revenue of $44,988 and $6,065 in interest revenue during the current fiscal year related to this lease. As of June 30, 2025, the City’s receivable for lease payments was $48,840. Also, the City has a deferred inflow of resources associated with this lease that will be recognized as revenue over the lease term. As of June 30, 2025, the balance of the deferred inflow of resources was $25,412.

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements
54 NOTE 9 – LEASES (Continued)
B. Lease as Lessee
In fiscal year 2008, the City’s Fleet Maintenance Internal Service Fund entered into a lease agreement as lessee for the acquisition and use of a building for operations. Subsequent extensions of the lease agreement have been noted through fiscal year 2025. An initial lease liability was recorded in the amount of $173,689 during fiscal year 2008. As of June 30, 2025, the value of the lease liability was $322,337. The City is required to make monthly principal and interest payments of $1,500. The lease has an effective interest rate of 7.75%. The leased building has an estimated useful life of 17 years.

The value of the right-to-use asset at the end of the current fiscal year was $858,517 and had accumulated amortization of $296,980.

The City has entered into various lease agreements for vehicles, which have been recognized in accordance with GASB Statement No. 87. These leases generally have fixed payment terms over five years and do not include renewal or termination options that are reasonably certain to be exercised. Upon lease commencement, the government recorded right-to-use lease assets and corresponding lease liabilities across the applicable funds. The total initial lease liability recognized across all funds is $342,599. The right-to-use assets and accumulated amortization by fund type are as follows:
 Governmental Activities (General Fund)
o Right-to-Use Asset: $617,508
o Accumulated Amortization: $105,556
 Enterprise Funds
o Right-to-Use Asset: $89,413
o Accumulated Amortization: $25,914
 Internal Service Fund
o Right-to-Use Asset: $67,770
o Accumulated Amortization: $16,718
Lease assets are amortized over the lease term on a straight-line basis. The annual amortization expense for fiscal year 2025 totaled $103,045.

The discount rate applied to measure lease liabilities was 8.5%. No variable lease payments, termination penalties, or other contingencies are associated with these leases.

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

Governmental: Enterprise Internal Service Fund
Fiscal Year
Ending June 30 Principal Interest Principal Interest Principal Interest 2026 96,272 $ 32,169 $ 16,148 $ 4,750 $ 12,703 $ 6,397 $ 2027 104,347 24,094 17,578 3,320 13,827 4,630
2028 113,063 15,378 19,131 1,767 15,048 3,506
2029 96,038 6,234 13,350 1,611 9,621 2,286
2030 34,792 741 - - - 672
Total $ 78,616 444,512 $ 66,207 $ 11,448 $ 51,199 $ 17,491 $ CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements
55 NOTE 10 – DEFERRED OUTFLOWS/INFLOWS OF RESOURCES
In addition to assets, the Statement of Net Position (and when applicable, the Balance Sheet) will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position or fund balance that applies to future period(s) and thus, will not be recognized as an outflow of resources (expense/expenditures) until then. The City has pension related items that qualify to be reported in deferred outflows of resources. The pension-related deferred outflows of resources are described in detail in Note 11.

In addition to liabilities, the Statement of Net Position (and when applicable, the Balance Sheet) will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position or fund balance that applies to future period(s) and so, will not be recognized as an inflow of resources (revenue) until that time. The City has two types of items that qualify for reporting in this category, which are unavailable revenues and pension deferrals.

Unavailable revenues arise only under a modified accrual basis of accounting and is reported only in the governmental funds Balance Sheet. Deferred inflows of resources reported in the governmental funds for unavailable revenues are as follows:

General Fund
CDBG Grants
Special Revenue
Fund
Streets & Roads
(LTF)
Other
Governmental
Funds Total
Intergovernmental $ - 461,315 $ 752,862 $ 719,744 $ 1,933,921 $ Notes 22,890,786 - - 1,928,167 24,818,953
Total $ 22,890,786 461,315 $ 752,862 $ 2,647,911 $ 26,752,874 $ The City has pension-related items that qualify to be reported in deferred inflows of resources. The pension-related deferred inflows of resources are described in detail in Note 11.

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements
56 NOTE 11 – DEFINED BENEFIT PENSION PLAN
A. General Information About the Pension Plans
Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost Sharing MultipleEmployer Plan (the Plan) administered by the California Public Employees’ Retirement System (CalPERS). The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other). Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools.

Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68.

Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City of Chowchilla (City) sponsors seven rate plans (three miscellaneous and four safety). Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

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

The cost-of-living adjustments for the Plan are applied as specified by the Public Employees’ Retirement law.

The rate plan provisions and benefits in effect at June 30, 2025 are summarized as follows:

Miscellaneous
1st Tier
Miscellaneous
2nd Tier
Miscellaneous
PEPRA
Prior to January 1, 2011 thru On or after
Hire date January 1, 2013 December 31, 2012 January 1, 2013 Benefit formula 2.5% @ 55 2% @ 60 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 - 55 50 - 63 52 - 67
Monthly benefits, as a % of annual salary 2.0% to 2.5% 1.092% to 2.418% 1.0% to 2.5% Required employee contribution rates 8% 7% 7.75%
Required employer contribution rates 14.130% 10.150% 7.870% Safety
1st Tier
Safety (Police)
2nd Tier
Safety (Police)
PEPRA
Prior to January 1, 2011 thru On or after
Hire Date January 1, 2013 December 31, 2012 January 1, 2013 Benefit formula 3% @ 55 2% @ 55 2% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 - 55 50 - 55 50 - 57
Monthly benefits, as a % of annual salary 2.4% to 3.0% 1.426% to 2.0% 1.426% to 2.0% Required employee contribution rates 9% 7% 11.0%
Required employer contribution rates 24.330% 16.560% 11.050% Beginning in fiscal year 2016, CalPERS collects employer contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability and side fund, if applicable. The dollar amounts are billed on a monthly basis. The City’s contribution for the unfunded liability was $184,924 for the fiscal year ended June 30, 2025.

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements
57 NOTE 11 – DEFINED BENEFIT PENSION PLAN (Continued)
A. General Information About the Pension Plans (Continued) Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.

The City’s contributions to the Plan recognized as a part of pension expense for the year ended June 30, 2025 were $627,177.

B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2025, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan of $4,134,659.

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

Proportion - June 30, 2023 0.0346%
Proportion - June 30, 2024 0.0341%
Change - Increase (Decrease) (0.0005%)
For the year ended June 30, 2025, the City recognized pension expense of $2,047,977. At June 30, 2025, the City reported deferred outflows of resources and inflows of resources related to pensions from the following sources:

Deferred Deferred
Outflows of Inflows of
Resources Resources
Pension contributions subsequent to the measurement date 805,950 $ - $ Changes of assumptions 104,329 -
Differences between actual and expected experience 348,638 12,636 Net differences between projected and actual earnings on plan - 221,195 investments
Change in employer's proportion - 1,621,427
Differences between the employer's actual contributions and the employer's proportionate share of contributions 1,642,845 - Total $ 3,101,539 1,655,481 $
CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements
58 NOTE 11 – DEFINED BENEFIT PENSION PLAN (Continued)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued) $805,950 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2025. Other amounts reported as deferred outflow of resources and deferred inflows of resources related to pensions will be recognized as pension revenue as follows:

Year Ended
June 30
2026 563,687 $
2027 247,154
2028 (94,976)
2029 (75,757)
2030 -
Thereafter -
The total pension liabilities in the June 30, 2023 actuarial valuations were determined using the following actuarial assumptions:

Valuation Date June 30, 2023
Measurement Date June 30, 2024
Actuarial Cost Method Entry- Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Payroll Growth 2.80%
Projected Salary Increase Varies by Entry Age and Service Investment Rate of Return 6.90%(1)
Mortality Derived using CalPERS' Membership Data
for all Funds(2)
(1) Net of pension plan investment expenses, including inflation (2) The mortality table was developed based on CalPERS-specific data. The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP 2020 published by the Society of Actuaries.

The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2023 valuation were based on the results of 2021 actuarial experience study. Further details of the Experiences Study can be found on the CalPERS website.

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

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements
59 NOTE 11 – DEFINED BENEFIT PENSION PLAN (Continued)
D. Actuarial Assumptions
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected PERF cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

The expected real rates of return by asset class are as follows:

Asset Class
Assumed Asset
Allocation
Real Return Years
1-10(1,2)
Global equity - cap-weighted 30.00% 4.45%
Global equity non-cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 27.00%
Mortgage-backed Securities 5.00% 50.00%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage (5.00)% (0.59)%
Total 100.00%
(1) An expected inflation of 2.30% used for this period. (2) Figures are based on the 2021-22 Asset Liability Management study.

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

Discount Rate -1%

5.90%
Current Discount Rate

6.90%
Discount Rate +1%

7.90%
$ 4,134,659 11,007,204 $ (1,507,100) $
E. Pension Plan Fiduciary Net Position
Detailed information about the Plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

F. Payable to the Pension Plan
The City did not have any outstanding amounts payable to the pension plan as of June 30, 2025.

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements
60 NOTE 12 – POST-RETIREMENT HEALTH CARE BENEFITS
The City provides no post-employment benefits for its employees. However, former employees may be maintained on the City’s health insurance programs through the City’s Consolidated Omnibus Budget Reconciliation Act (COBRA) insurance continuation plan.

NOTE 13 – RISK MANAGEMENT
The City is a member, along with fifty-eight other public entities, of Central San Joaquin Valley Risk Management Authority (the Authority) organized under a joint powers agreement pursuant to the California Government Code for the purpose of operating and maintaining a cooperative program of self-insurance and risk management which benefits its member cities through cost reductions, insurance coverage stability, and loss control techniques. The Authority is governed by a Board of Directors, consisting of one member appointed by each member city. The Authority maintains pooled coverage programs for its member cities for workers’ compensation, liability, auto-physical damage, property, employment practices liability, and errors and omissions coverage. For workers’ compensation and liability programs, each program and program year is accounted for and administered as a separate operation.

Under the pooled liability program, expected claims are actuarially determined as are required deposits to cover those claims along with all estimated operating costs. Each year is retrospectively adjusted five years following its conclusion and any funds remaining are returned to the member city. Likewise, funds paid out in excess of their original deposits are collected from the member city.

The City is covered for the first $1,000,000 of each general liability claim and $500,000 of each workers’ compensation claim through the Authority. The City has the right to receive refunds of the obligation to pay assessments based on a formula which, among other expenses, charges the City’s account for liability losses under $1,000,000 and workers’ compensation losses under $500,000. The Authority is a member of the Local Agency Workers’ Compensation Excess Joint Powers Authority (LAWCX) for the purpose of providing excess coverage. Any claims of $500,000 up to $150,000,000 are covered under a purchased policy through the membership with the LAWCX. The Authority is a member of the California Affiliated Risk Management Authorities (CARMA) for the purpose of providing excess coverage in a risk sharing pool. The CARMA program provided coverage in excess for the Authority’s retained limit up to $19,000,000.

The financial position results of operations of the Authority are as follows for June 30, 2025:

Total assets 206,777,744 $
Total liabilities 157,063,998
Total net position $ 49,713,746
Revenues 94,036,144 $
Expenses 86,877,199
Change in net position $ 7,158,945
At the termination of the joint powers agreement and after all claims have been settled, any excess or deficit will be divided among the cities in accordance with its governing documents.

The City has established the following retained limits for the coverages shown: $25,000 for liability; $100,000 for worker’s compensation; $1,000 for property damage; $500 deductible on vehicles.

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements
61 NOTE 14 – DEFICIT IN FUND EQUITY
A. Nonmajor Governmental Funds
SAFER Fire Grant Fund
A deficit in fund balance at June 30, 2025, in the amount of $30,529, is due to multiple years of expenditures in excess of revenues. This deficit is expected to be alleviated through future revenues or transfers from other funds.

Transit System Fund
A deficit in fund balance at June 30, 2025, in the amount of $702,253 is due to multiple years of expenditures in excess of revenues. This deficit is expected to be alleviated through future revenues or transfers from other funds.

Low and Moderate Income Housing Asset Fund
A deficit in fund balance at June 30, 2025, in the amount of $36,975, is due to current year expenditures in excess of revenues. This deficit is expected to be alleviated through future revenues or transfers from other funds.

B. Internal Service Funds
Fleet Maintenance Internal Service Fund
A deficit in net position at June 30, 2025, in the amount of $5,770, exists due to unexpected changes to the net pension liability.

Employee Benefits Internal Service Fund
A deficit in net position at June 30, 2025, in the amount of $860,824, exists because the fund was established on a pay-asyou go basis for the purpose of funding the annual accrued leave liability. As employees are paid for their accumulated leave in the future, the fund in which their normal salary is charged makes a transfer to the Employee Benefit Fund to offset the expense.

C. Fiduciary Funds
Successor Agency Private Purpose Trust Fund
A deficit in net position at June 30, 2025, in the amount of $3,137,376, exists as a result of long-term debt in excess of assets that is in the process of being paid back in accordance with the Redevelopment dissolution. See Note 16 for more information on the Successor Agency Trust Fund.

NOTE 15 – COMMITMENTS AND CONTINGENCIES
A. General Liability
There are various claims and legal actions pending against the City for which no provision has been made in the financial statements. In the opinion of the City Attorney and City Management, liabilities arising from these claims and legal actions, if any, will not be material to these financial statements.

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements
62 NOTE 15 – COMMITMENTS AND CONTINGENCIES (Continued)
B. Federal Awards and Grants
The City participates in various federal grant programs, the principal of which are subject to program compliance audits pursuant to the Single Audit Act as amended. Accordingly, the government’s compliance with applicable grant requirements will be established at a future date. The amount of expenditures which may be disallowed by the granting agencies cannot be determined at this time, although the government anticipates such amounts, if any, will be immaterial.

C. Encumbrances
Encumbrance accounting is employed as an extension of formal budgetary integration for the General Fund, special revenue funds, and capital projects funds. At June 30, 2025, certain amounts which were previously restricted, committed, or assigned for specific purposes have been encumbered in the governmental funds. Significant encumbrances included in governmental fund balances are as follows:

Restricted
Fund Balance
Committed
Fund Balance
Assigned
Fund Balance
General Fund - $ - $ 750,230 $
Capital Projects Fund 238,546 - -
Nonmajor Governmental 73,157 - -
Encumbrances Included in:

NOTE 16 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X26 (the Bill) that dissolved all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Chowchilla that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.

The Bill provides that upon dissolution of a redevelopment agency, the city of another unit of local government will agree to serve as the “Successor Agency” to hold the assets until they are distributed to other units of state and local government. On January 10, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City Resolution Number 5-12.

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

In future years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.

The Bill directs the State Controller of the State of California to renew the propriety of any transfers of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure of encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the Successor Agency by the Bill.

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements
63 NOTE 16 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (Continued) Management believes, in consultation with legal counsel, that the obligations of the former redevelopment agency due to the City are valid enforceable obligations payable by the Successor Agency trust under the requirements of the Bill. The City’s position on this issue is not a position of settled law, and there is considerable uncertainty regarding this issue. It is reasonably possible that a legal determination may be made at a later date by an appropriate judicial authority that would resolve this issue favorably to the City.

In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012.

After the date of dissolution, the assets and activities of the dissolved redevelopment agency are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City.

A. Cash and Investments
As of June 30, 2025, the Successor Agency has a cash and investment balance of $1,081,300.

B. Long-Term Debt
Long-term debt reported in the Successor Agency Trust Fund at June 30, 2025 was comprised of the following:

Amounts Amounts Due
June 30, June 30, Due Within More Than
2024 Additions Reductions 2025 One Year One Year
2016 Successor Agency Tax
Refunding Bond 4,400,000 $ - $ (285,000) $ 4,115,000 $ 295,000 $ 3,820,000 $ Add: Premiums - 154,691 (12,688) 142,003 - 142,003
Total 4,554,691 $ - $ (297,688) $ 4,257,003 $ 295,000 $ 3,962,003 $ C. 2016 Successor Agency Tax Allocation Refunding Bonds In 2016, the Successor Agency of the City of Chowchilla issued Tax Allocation Refunding Bonds in the aggregate principal amount of $6,190,000 to refund the 2005 RDA Tax Allocation Bonds. This was done to take advantage of lower interest rates and to save on future debt service payments. As a result, the 2005 RDA Tax Allocation Bonds are considered defeased and the liability for that bond is not included in the Fiduciary Fund (Private-Purpose Trust Fund) Statement of Net Position. The total debt service payments were reduced by $365,124. The original amount of the note, $6,190,000, was secured by a pledge of tax revenues consisting of tax increment payments to be received by the Successor Agency.

Semiannual payments range from $5,294 to $390,294 and are payable each February 1 and August 1 through 2036.

There is a provision whereby if the Successor Agency is unable to make payment, does not comply with bond covenants, or files for reorganization or arrangement, the Trustee may declare the principal of all bonds outstanding and the accrued interest thereon to be due and payable immediately.

CITY OF CHOWCHILLA | JUNE 30, 2025
Notes to the Basic Financial Statements
64 NOTE 16 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (Continued) C. 2016 Successor Agency Tax Allocation Refunding Bonds (Continued) Annual debt service requirements to maturity of the 2016 Successor Agency Tax Allocation Refunding Bonds are as follows:

Fiscal Year
Ending June 30 Principal Interest
2026 295,000 107,981
2027 310,000 92,856
2028 325,000 81,856
2029 330,000 75,100
2030 335,000 67,825
2031-2035 1,760,000 216,591
2036-2039 760,000 21,038
Total $ 4,115,000 663,247 $
D. Insurance
The Successor Agency is covered under the City of Chowchilla’s insurance policies. Therefore, the limitation and selfinsured retentions applicable to the City also apply to the Successor Agency. Additional information as to coverage can be found in Note 13.

NOTE 17 – RESTATEMENT OF BEGINNING NET POSTION
During the year ended June 30, 2025, the City implemented Governmental Accounting Standards Board (GASB) Statement No. 101, Compensated Absences. GASB Statement No. 101 updates the recognition and measurement guidance for compensated absences and certain salary-related payments. The standard was implemented as a change in accounting principle, and beginning net position was restated to reflect the cumulative effect of applying the new guidance.

GovernmentWide Proprietary
Funds
Governmental
Activities
Internal Service
Funds
previously reported $ (354,948) 53,650,602 $
Change in accounting principle:

Implementation of GASB 101 Compensated Absences
(284,314) (284,314)
Net position, July 1, 2024, as restated $ (639,262) 53,366,288 $ Fund balance/net position, June 30, 2024, as
65 REQUIRED SUPPLEMENTARY INFORMATION
CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Budgetary Comparison Schedules
General Fund
The notes to the budgetary comparison schedules are an integral part of this statement. 66 Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Taxes 4,914,460 $ 4,926,134 $ 4,652,244 $ (273,890) $
Licenses and permits 515,475 833,887 805,069 (28,818)
Fines and penalties 113,800 119,666 97,864 (21,802)
Intergovernmental 3,670,801 3,875,843 3,886,387 10,544
Use of money and property 368,055 372,920 603,432 230,512 Charges for services 357,407 461,783 437,823 (23,960)
Miscellaneous 73,117 202,169 198,793 (3,376)
Total revenues 10,013,115 10,792,402 10,681,612 (110,790)

EXPENDITURES
Current:

General government 1,791,858 2,116,323 1,815,334 300,989 Public safety 5,158,649 4,790,665 4,564,539 226,126
Culture and recreation 795,772 890,024 852,733 37,291
Community development 1,068,505 965,220 823,400 141,820 Capital outlay 1,536,604 2,065,432 1,554,723 510,709
Debt service:

Principal - - 145,491 (145,491)
Interest - - 24,495 (24,495)
Total expenditures 10,351,388 10,827,664 9,780,715 1,046,949 Excess (deficiency) of revenues
over (under) expenditures (338,273) (35,262) 900,897 936,159

OTHER FINANCING SOURCES (USES)
Transfers in 1,416,940 1,823,028 1,349,958 (473,070)
Transfers out (4,332,725) (4,531,331) (3,360,056) 1,171,275 Gain (loss) on sale of assets - 8,883 15,254 6,371
Proceeds from long-term debt - - 395,694 395,694
Insurance recoveries 98,740 - 98,470 (270)
Total other financing sources (uses) (2,915,785) (2,600,680) (1,500,680) 1,100,000 Net change in fund balance $ (2,635,942) (3,254,058) $ (599,783) 2,036,159 $ Fund balances - beginning 14,307,581
Fund balances - ending $ 13,707,798
CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Budgetary Comparison Schedules
CDBG Grants Special Revenue Fund
The notes to the budgetary comparison schedules are an integral part of this statement. 67 Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Intergovernmental 1,199,414 $ 1,327,569 $ 244,712 $ (1,082,857) $ Use of money and property 7,654 11,146 16,906 5,760
Charges for services 17,346 17,346 11,235 (6,111)
Total revenues 1,356,061 1,224,414 272,853 (1,083,208)

EXPENDITURES
Current:

Community development 582,775 575,417 72,134 510,641
Capital outlay 500,000 500,000 11 499,989
Total expenditures 1,082,775 1,075,417 72,145 1,010,630 Excess (deficiency) of revenues
over (under) expenditures 273,286 148,997 200,708 (72,578)

OTHER FINANCING SOURCES (USES)
Transfers in (1) - 22,058 22,059
Transfers out (176,414) (176,413) (103,559) 72,854
Total other financing sources (uses) (176,414) (176,414) (81,501) 94,913 Net change in fund balance $ (27,417) 96,872 $ 119,207 $ 22,335 Fund balances - beginning 315,199
Fund balances - ending $ 434,406
CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Budgetary Comparison Schedules
Impact Fees Special Revenue Fund
The notes to the budgetary comparison schedules are an integral part of this statement. 68 Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Use of money and property $ 118,390 96,289 $ 218,108 $ 99,718 $ Charges for services 1,339,512 2,101,629 1,241,282 (98,230) Total revenues 1,457,902 2,197,918 1,459,390 1,488

EXPENDITURES
Current:

Public safety - - 30 (30)
Highways and streets 169,303 102,124 220 101,904
Culture and recreation 40,472 23,402 21,923 1,479
Capital outlay 183,062 277,142 116,108 66,954
Total expenditures 308,588 486,917 138,281 170,307
Excess (deficiency) of revenues
over (under) expenditures 1,149,314 1,711,001 1,321,109 171,795

OTHER FINANCING SOURCES (USES)
Transfers out (498,491) (378,491) (89,796) 288,695
Total other financing sources (uses) (498,491) (378,491) (89,796) 288,695 Net change in fund balance $ 1,212,510 770,823 $ 1,231,313 $ 460,490 Fund balances - beginning 4,259,151
Fund balances - ending $ 5,490,464

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Budgetary Comparison Schedules
Measure N Special Revenue Fund
The notes to the budgetary comparison schedules are an integral part of this statement. 69 Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Taxes 2,693,725 $ 2,822,992 $ 2,967,948 $ 144,956 $
Use of money and property 106,428 63,812 51,682 158,110 Miscellaneous 327 - 1 328
Total revenues 2,929,747 2,757,537 3,126,386 196,639

EXPENDITURES
Current:

General government 4,175 2,300 2,073 227
Public safety 1,286,456 1,148,422 1,064,859 83,563
Capital outlay 100,000 100,000 100,000 -
Total expenditures 1,250,722 1,390,631 1,066,932 183,790 Excess (deficiency) of revenues
over (under) expenditures 1,679,025 1,366,906 380,429 2,059,454

OTHER FINANCING SOURCES (USES)
Transfers out (1,759,140) (1,347,756) (1,332,174) 426,966 Total other financing sources (uses) (1,759,140) (1,347,756) (1,332,174) 426,966 Net change in fund balance $ (80,115) 19,150 $ 727,280 $ 807,395 Fund balances - beginning 3,302,001
Fund balances - ending $ 4,029,281
CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Budgetary Comparison Schedules
Streets and Roads (Local Transportation) Fund
The notes to the budgetary comparison schedules are an integral part of this statement. 70 Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Intergovernmental 1,940,476 $ 2,169,356 $ 948,961 $ (1,220,395) $ Use of money and property 12,580 12,580 (4,106) (16,686) Miscellaneous - 1,451 2,615 1,164
Total revenues 1,953,056 2,183,387 947,470 (1,235,917)

EXPENDITURES
Current:

General government 4,674 2,612 2,787 (175)
Highways and streets 556,081 711,252 596,196 115,056
Capital outlay 2,562,991 2,886,221 1,625,206 1,261,015
Debt service:

Principal - - 7,535 (7,535)
Interest - - 3,053 (3,053)
Total expenditures 3,123,746 3,600,085 2,234,777 1,365,308 Excess (deficiency) of revenues
over (under) expenditures (1,170,690) (1,416,698) (1,287,307) 129,391

OTHER FINANCING SOURCES (USES)
Transfers in 1,982,608 2,282,400 1,107,489 (1,174,911)
Transfers out (566,560) (568,463) (2,074) 566,389
Gain (loss) on sale of assets 305 - 848 543
Total other financing sources (uses) 1,416,048 1,714,242 1,106,263 (607,979) Net change in fund balance $ 297,544 245,358 $ (181,044) (478,588) $ Fund balances - beginning 1,742,431
Fund balances - ending $ 1,561,387
CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Notes to the Budgetary Comparison Schedules
71 NOTE 1 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY A. Budgetary Information
The City establishes annual budgets for the General, Special Revenue Funds, and Capital Projects Funds. Except for encumbrances and long-term projects in progress, which are carried forward to the following year, all appropriations remaining will lapse at year end. The following procedures are followed in establishing the budgetary data reflected in the budgetary comparison schedules:
1) The department heads prepare a budget request based upon the previous year’s expenditures. 2) A meeting is held between the department heads, Finance Director and the City Administrator for the purpose of reviewing and prioritizing the budget requests.
3) The City Administrator submits the proposed City Budget to the City Council, who makes decisions regarding department budgets.
4) The approved budget is placed in the City accounting system and monitored by the Finance Department as well as by the department heads.
5) Budgets are adopted on the modified accrual basis. Revenues are budgeted in the year receipt is expected, and expenditures are budgeted in the year that the applicable purchase orders are expected to be issued. The Debt Service Fund budget is prepared to provide funding for general obligation debt service when liabilities are due for payment. The level of control (level at which expenditures may not exceed budget) is at fund level for the General Fund, fund level for the Special Revenue Funds, and project level for the Capital Projects Funds.

B. Excess Expenditure over Appropriations
The City incurred expenditures in excess of appropriations in the following amounts for the year ended June 30, 2025:

General Fund
Debt service:

Principal 145,491 $
Interest 24,495
Impact Fees Special Revenue Fund
Current:

Public safety 30
Streets and Roads (Local Transportation) Fund
Current:

General government 175
Debt service:

Principal 7,535
Interest 3,053
CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Cost-Sharing Multiple-Employer Defined Benefit Pension Plan Schedule of the City’s Proportionate Share of the Net Pension Liability (Asset)Last 10 Years 72 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Proportion of the net pension liability (asset) 0.1170% 0.1107% 0.1088% 0.1102% 0.0057% 0.0119% -0.0792% 0.0278% 0.0346% 0.0341%Proportionate share of the net pension liability (asset) 8,032,145 $ 9,583,127 $ 10,793,945 $ 10,615,478 $ 579,267 $ 1,290,678 $ (4,281,392) $ 3,215,744 $ 4,315,830 $ 4,134,659 $ Covered payroll 3,617,983 $ 3,411,501 $ 3,728,201 $ 3,960,212 $ 3,991,276 $ 4,313,602 $ 4,489,333 $ 4,742,624 $ 5,092,237 $ 5,312,564 $ Proportionate share of the net pension liability (asset) as a percentage of covered payroll 222.01% 280.91% 289.52% 268.05% 14.51% 29.92% -95.37% 67.81% 84.75% 77.83%Plan fiduciary net position as a percentage of the total pension liability (asset) 74.09% 70.07% 69.45% 70.84% 99.14% 97.37% 110.81% 93.14% 91.38% 92.14%Notes to Schedule:Change in Benefit Terms - None Change in Assumptions - None
CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Cost-Sharing Multiple-Employer Defined Benefit Pension Plan Schedule of ContributionsLast 10 Years 73 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Actuarially required contribution (actuarially determined) $ 942,347 848,864 $ 1,034,227 $ 694,478 $ 523,962 $ 648,797 $ 678,921 $ 738,194 $ 627,177 $ 805,950 $ Contributions in relation to the actuarially determined contributions 942,347 848,864 1,034,227 11,304,271 523,962 648,797 678,921 738,194 627,177 805,950 Contribution deficiency (excess) $ - - $ - $ (10,609,793) $ - $ - $ - $ - $ - $ - $ Covered payroll 3,411,501 $ 3,728,201 $ 3,960,212 $ 3,991,276 $ 4,313,602 $ 4,489,333 $ 4,742,624 $ 5,092,237 $ 5,312,564 $ 5,408,374 $ Contributions as a percentage of covered payroll 24.88% 25.28% 26.12% 283.22% 12.15% 14.45% 14.32% 14.50% 11.81% 14.90% 74 SUPPLEMENTARY INFORMATION
CITY OF CHOWCHILLA | JUNE 30, 2025
Nonmajor Special Revenue Funds
Combining Balance Sheet
75 State SAFER Fire Measure T
Gas Tax SB1 RSTP Grant Fund Fund
ASSETS
Cash and investments $ 1,152,763 2,127,299 $ 98,292 $ - $ 2,530,654 $ Accounts receivable - - - - 3,900
Intergovernmental receivables 98,189 53,239 - - 233,785 Notes receivable, net - - - - -
Prepaid expenses - - - - -
Total assets 2,180,538 $ 1,250,952 $ 98,292 $ - $ 2,768,339 $

LIABILITIES
Accounts payable 9,721 $ - $ - $ - $ - $
Due to other funds - - - 30,529 -
Total liabilities 9,721 - - 30,529 -

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - - 223,039
Total deferred inflows of resources - - - - 223,039

FUND BALANCES (DEFICIT)
Nonspendable
Prepaid expenses - - - - -
Restricted for:

Highway and streets 1,250,952 2,170,817 98,292 - 2,545,300 Community development - - - - -
Unassigned - - - (30,529) -
Total fund balances (deficit) 1,250,952 2,170,817 98,292 (30,529) 2,545,300 Total liabilities, deferred inflows
of resources, and fund balances $ 2,180,538 1,250,952 $ 98,292 $ - $ 2,768,339 $ CITY OF CHOWCHILLA | JUNE 30, 2025
Nonmajor Special Revenue Funds
Combining Balance Sheet
(Continued)
76 Low and
Home Moderate
Maintenance Investment Income
Assessment Transit Partnership EDBG Housing
District System Program Grants Asset Fund Total
ASSETS
Cash and investments $ - 670,971 $ 1,552,641 $ 6,677 $ - $ $ 8,139,297 Accounts receivable - - 9,265 - - 13,165
Intergovernmental receivables 14,089 6,131 485,799 123 - 891,355 Notes receivable, net - - 1,859,317 - 68,850 1,928,167
Prepaid expenses - - 12,152 - - 12,152
Total assets 685,060 $ 507,216 $ 3,418,089 $ 6,800 $ 68,850 $ 10,984,136 $

LIABILITIES
Accounts payable 8,474 $ 2,281 $ 4,464 $ - $ - $ 24,940 $ Due to other funds - 721,389 - - 36,975 788,893
Total liabilities 8,474 723,670 4,464 - 36,975 813,833

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 485,799 10,906 1,859,317 - 68,850 2,647,911 Total deferred inflows of resources 10,906 485,799 1,859,317 - 68,850 2,647,911

FUND BALANCES (DEFICIT)
Nonspendable
Prepaid expenses - 12,152 - - - 12,152
Restricted for:

Highway and streets - 665,680 - - - 6,731,041
Community development - - 1,554,308 6,800 - 1,561,108
Unassigned - (714,405) - - (36,975) (781,909)
Total fund balances (deficit) (702,253) 665,680 1,554,308 6,800 (36,975) 7,522,392 Total liabilities, deferred inflows
of resources, and fund balances $ 507,216 685,060 $ 3,418,089 $ 6,800 $ 68,850 $ 10,984,136 $ CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 77 (Formerly
nonmajor)
State Streets & SAFER Fire Measure T
Gas Tax SB1 RSTP Roads (LTF) Grant Fund Fund

REVENUES
Intergovernmental 517,362 $ 525,861 $ 208,315 $ - $ - $ 867,511 $ Use of money and property 50,449 87,230 - - - 98,427
Charges for services - - - - - -
Loan repayments - - - - - -
Miscellaneous - - - - - -
Total revenues 604,592 576,310 208,315 - - 965,938

EXPENDITURES
Current:

General government - - - - - -
Highway and streets 40,639 62 - - - 7,270
Community development - - - - - -
Capital outlay - - - - - -
Debt service:

Principal - - - - - -
Interest - - - - - -
Total expenditures 40,639 62 - - - 7,270
Excess (deficiency) of revenues
over (under) expenditures 576,248 563,953 208,315 - - 958,668

OTHER FINANCING SOURCES (USES)
Transfers in - 14,502 - - - -
Transfers out (205,673) (272,765) - - - (607,024)
Gain (loss) on sale of capital assets - - - - - -
Total other financing sources (uses) (205,673) (258,263) - - - (607,024) Net change in fund balances 358,280 317,985 208,315 - - 351,644 932,967 1,812,537 (110,023) 1,742,431 (30,529) 2,193,656 - - - (1,742,431) - -
932,967 1,812,537 (110,023) - (30,529) 2,193,656
$ 1,250,952 2,170,817 $ 98,292 $ - $ (30,529) $ 2,545,300 $ Fund balances (deficit) - beginning
Fund balances (deficit) - ending
Fund balances (deficit), beginning of year,
restated
Change within financial reporting entity
(nonmajor to major)

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued)
78 Low and
Home Moderate
Maintenance Investment Income
Assessment Transit Partnership EDBG Housing
District System Program Grants Asset Fund Total

REVENUES
Intergovernmental 6,433 $ 512,901 $ 75,769 $ - $ - $ 2,714,152 $ Use of money and property 104 28,331 57,873 5,383 - 327,797 Charges for services 300,370 20,877 - - - 321,247
Loan repayments - - - - - -
Miscellaneous 9,483 2,491 - - - 11,974
Total revenues 337,625 543,365 133,642 5,383 - 3,375,170

EXPENDITURES
Current:

General government - 2,834 - - - 2,834
Highway and streets 359,337 549,121 - - - 956,429
Community development - - 419,943 - - 419,943
Capital outlay 154,663 - 587 - - 155,250
Debt service:

Principal - - - - - -
Interest - - - - - -
Total expenditures 359,337 706,618 420,530 - - 1,534,456 Excess (deficiency) of revenues
over (under) expenditures (163,253) (21,712) (286,888) 5,383 - 1,840,714

OTHER FINANCING SOURCES (USES)
Transfers in - 52,425 1,777 - - 68,704
Transfers out - - - (23,835) - (1,109,297)
Gain (loss) on sale of capital assets - - - - - -
Total other financing sources (uses) 52,425 - 1,777 (23,835) - (1,040,593) Net change in fund balances (21,712) (110,828) (285,111) (18,452) - 800,121 (591,425) 687,392 1,839,419 25,252 (36,975) 8,464,702
- - - - - (1,742,431)
(591,425) 687,392 1,839,419 25,252 (36,975) 6,722,271
Fund balances (deficit) - ending $ (702,253) 665,680 $ 1,554,308 $ 6,800 $ (36,975) $ 7,522,392 $ Fund balances (deficit) - beginning
Fund balances (deficit), beginning of year,
restated
Change within financial reporting entity (major
to nonmajor)

CITY OF CHOWCHILLA | JUNE 30, 2025
Nonmajor Enterprise Fund
Statement of Net Position
79 Airport
ASSETS
Current assets:

Cash and investments 274,569 $
Intergovernmental receivables 22,846
Total current assets 297,415
Noncurrent assets:

Capital assets:

Nondepreciable 457,551
Depreciable, net of accumulated depreciation 277,948
Total noncurrent assets 735,499
Total assets 1,032,914

DEFERRED OUTFLOWS OF RESOURCES
Contributions to pension plan in current fiscal year 1,931 Deferred outflows of resources from pensions 5,796
Total deferred outflows of resources 7,727

LIABILITIES
Current liabilities:

Accounts payable 4
Total current liabilities 4
Noncurrent liabilities:

Net pension liability 9,709
Total noncurrent liabilities 9,709
Total liabilities 9,713

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources from pensions 3,967
Total deferred outflows of resources 3,967

NET POSITION
Net investment in capital assets 735,499
Unrestricted 291,462
Total net position $ 1,026,961
CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Nonmajor Enterprise Fund
Statement of Revenues, Expenses and Changes in Net Position 80 Airport
Operating revenues:

Charges for services 46,720 $
Miscellaneous 49
Total operating revenues 46,769
Operating expenses:

Personnel services 21,298
Materials, supplies and services 15,362
Depreciation and amortization 26,713
Total operating expenses 63,373
Operating income (loss) (16,604)
Nonoperating revenues (expenses):

Use of money and property 10,800
Taxes 15,167
Grants - capital 10,000
Total nonoperating revenues (expenses) 35,967
Change in net position 19,363
Fund balances - beginning, as previously presented 1,007,598 Net position - ending 1,026,961 $
CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Nonmajor Enterprise Fund
Statement of Cash Flows
81 Airport

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users 46,720 $
Payments to suppliers (15,907)
Payments to employees (17,806)
Other operating revenues 49
13,056

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Taxes received 15,167
15,167
Grants received (953)
Acquisition of capital assets (4,600)
activities (5,553)

CASH FLOWS FROM INVESTING ACTIVITIES
10,800
10,800
33,470
241,099
$ 274,569
Cash and cash equivalents - beginning
Cash and cash equivalents - ending
Net cash provided by investing activities
Net cash provided by (used for) capital and related financing Interest received
Net increase (decrease) in cash and cash equivalents
Net cash provided by (used for) operating activities
Net cash provided by (used for) noncapital financing activities

CASH FLOWS FROM CAPITAL AND RELATED FINANCING

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Nonmajor Enterprise Fund
Statement of Cash Flows
(Continued)
82 Airport
Operating income (loss) (16,604) $
Depreciation 26,713
(Increase) decrease in:

Deferred outflows of resources from pensions 3,588
Increase (decrease) in:

Accounts payable and other liabilities (545)
Net pension liability (65)
Deferred inflows of resources from pension (31)
Net cash provided by (used for) operating activities $ 13,056 Reconciliation of operating income (loss) to net
cash provided by (used for) operating activities:

Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

CITY OF CHOWCHILLA | JUNE 30, 2025
Internal Service Funds
Combining Statement of Net Position
83 Fleet Information Employee
Maintenance Technology Benefits Total
ASSETS
Current assets:

Cash and investments 55,904 $ - $ 149,160 $ 205,064 $
Prepaid expenses 4,115 - 83,977 88,092
Total current assets 4,115 55,904 233,137 293,156
Noncurrent assets:

Capital assets:

Nondepreciable - 173,794 - 173,794
Depreciable, net of accumulated
depreciation/amortization 321,768 39,455 - 361,223
Total noncurrent assets 495,562 39,455 - 535,017
Total assets 499,677 95,359 233,137 828,173

DEFERRED OUTFLOWS OF RESOURCES
Contributions to pension plan in current fiscal year 22,018 27,855 - 49,873 Deferred outflows of resources from pensions 79,147 59,666 - 138,813 Total deferred outflows of resources 81,684 107,002 - 188,686

LIABILITIES
Current liabilities:

Accounts payable 268 32,556 6,322 39,146
Accrued payroll - - 239,526 239,526
Due to other funds - 255,273 - 255,273
Compensated absences - - 409,840 409,840
Subscription liability - current - - - -
Current portion of lease liabilities 4,922 7,781 - 12,703 Total current liabilities 292,751 8,049 655,688 956,488 Noncurrent liabilities:

Compensated absences - - 438,273 438,273
Net pension liability 140,090 110,731 - 250,821
Lease liabilities 15,897 22,599 - 38,496
Total noncurrent liabilities 155,987 133,330 438,273 727,590 Total liabilities 448,738 141,379 1,093,961 1,684,078

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources from pensions 54,326 41,434 - 95,760 Total deferred inflows of resources 54,326 41,434 - 95,760

NET POSITION (DEFICIT)
Net investment in capital assets 31,674 490,640 - 522,314 Unrestricted (deficit) (37,444) (387,025) (860,824) (1,285,293) Total net position (deficit) $ 103,615 (5,770) $ (860,824) $ (762,979) $ CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Internal Service Funds
Combining Statement of Revenues, Expenses and Changes in Net Position 84 Fleet Information Employee
Maintenance Technology Benefits Total
Operating revenues:

Charges for services $ 675,723 340,139 $ - $ 1,015,862 $ Miscellaneous 6,887 60 - 6,947
Total operating revenues 682,610 340,199 - 1,022,809
Operating expenses:

Personnel services 232,527 338,682 (576) 570,633
Materials, supplies and services 79,543 397,584 - 477,127 Depreciation and amortization 75,263 19,490 - 94,753
Total operating expenses 331,560 811,529 (576) 1,142,513 Operating income (loss) (128,919) 8,639 576 (119,704)
Nonoperating revenues (expenses):

Gain (loss) sale of assets 1,400 225 - 1,625
Interest expense (3,656) (1,982) - (5,638)
Total nonoperating revenues (expenses) (1,757) (2,256) - (4,013) Change in net position 6,383 (130,676) 576 (123,717)
Net position (deficit) - beginning 234,291 (12,153) (577,086) (354,948) Restatement - change in accounting principle - - (284,314) (284,314) Net position - beginning, restated 234,291 (12,153) (861,400) (639,262) Net position (deficit) - ending $ 103,615 (5,770) $ (860,824) $ (762,979) $ CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2025
Internal Service Funds
Combining Statement of Cash Flows
85 Fleet Information Employee
Maintenance Technology Benefits Total

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users 340,684 $ 675,723 $ - $ 1,016,407 $ Payments to suppliers (90,365) (377,222) - (467,587)
Payments to or received from employees (187,211) (283,010) (2,108) (472,329) Other operating revenues 6,887 60 - 6,947
22,378 63,168 (2,108) 83,438

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Loan from other funds 134,443 - - 134,443
activities - 134,443 - 134,443

ACTIVITIES
Leases paid (28,069) (6,504) - (34,573)
Acquisition of capital assets (150,542) - - (150,542)
Proceeds from the sale of assets 225 1,400 - 1,625
(26,669) (156,821) - (183,490)
Net increase (decrease) in cash and cash equivalents 36,499 - (2,108) 34,391 - 19,405 151,268 170,673
$ - 55,904 $ 149,160 $ 205,064 $
Net cash provided by (used for) operating activities
Net cash provided by (used for) noncapital financing

CASH FLOWS FROM CAPITAL AND RELATED FINANCING
Cash and cash equivalents - beginning
Cash and cash equivalents - ending
Net cash provided by (used for) related financing activities

Fleet Information Employee
Maintenance Technology Benefits Total
Operating income (loss) 8,639 $ (128,919) $ 576 $ (119,704) $ Depreciation 19,490 75,263 - 94,753
(Increase) decrease in:

Accounts receivable 545 - (399) 146
Prepaid expenses - (940) (70,068) (71,008)
Net pension asset 17,762 14,225 - 31,987
Deferred outflows of resources from pensions 23,565 38,460 - 62,025 Increase (decrease) in:

Accounts payable and other liabilities (10,822) 21,302 68,359 78,839 Compensated absences - - (576) (576)
Deferred inflows of resources from pensions 2,987 3,989 - 6,976 Net cash provided by (used for) operating activities 63,168 $ 22,378 $ (2,108) $ 83,438 $ Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities:

Reconciliation of operating income (loss) to net cash provided by (used for) operating activities:

CITY OF CHOWCHILLA | JUNE 30, 2025
Custodial Funds
Combining Statement of Fiduciary Net Position
86 Community
Facilities
District
Greenhills
Assessment
District
Pheasant Run
Assessment
District
Total Custodial
Funds
ASSETS
Cash and investments (in City investment pool) 883,826 $ 313,761 $ 914,992 $ 2,112,579 $ Restricted cash with fiscal agents - 586,367 70,877 657,244 Accounts receivable (net) 33,613 3,826 20,100 57,539
Total assets 317,587 1,503,806 1,005,969 2,827,362

LIABILITIES
Accounts payable 5,468 - - 5,468
Agency obligations - 17,776 - 17,776
Total liabilities - 23,244 - 23,244

NET POSITION
Restricted for:

Individuals, organizations, and other governments 317,587 1,480,562 1,005,969 2,804,118 Total net position 1,480,562 $ 317,587 $ 1,005,969 $ 2,804,118 $ CITY OF CHOWCHILLA | JUNE 30, 2025
Custodial Funds
Combining Statement of Changes in Fiduciary Net Position 87 Community
Facilities
District
Greenhills
Assessment
District
Pheasant Run
Assessment
District
Total Custodial
Funds

ADDITIONS
Property tax collections $ 35,168 583,287 $ 542,291 $ 1,160,746 $ Investment earnings 11,954 90,950 33,612 136,516
Total additions 47,122 674,237 575,903 1,297,262

DEDUCTIONS
Payments to bondholders - 556,625 368,230 924,855
Administrative expenses 1,064 52,339 14,374 67,777
Total deductions 1,064 608,964 382,604 992,632
Change in fiduciary net position 65,273 46,058 193,299 304,630 Net position - beginning 271,529 1,415,289 812,670 2,499,488 Net position - ending $ 317,587 1,480,562 $ 1,005,969 $ 2,804,118 $ March 26, 2026
To the Honorable Mayor and City Council
City of Chowchilla, California
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Chowchilla, California (the City) for the year ended June 30, 2025. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter previously provided to you. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by City are described in Note 1 to the financial statements. As described in Note 17 to the financial statements, the City changed accounting policies related to accounting and financial reporting for compensated absences by adopting Statement of Governmental Accounting Standards (GASB Statement) No. 101, Compensated Absences, in 2025. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were:

Management’s estimate of the allowance for doubtful accounts is based on historical revenues and analysis of the collectability of individual accounts. We evaluated the methods, assumptions, and data used to develop the allowance for doubtful accounts estimate in determining that it is reasonable in relation to the financial statements taken as a whole.

Management’s estimate of the City-Wide Cost Allocation Plan, as approved in the annual budget, is based on past history, planned future activity, and other factors significant to the City’s operations that are required to support each operating department. We evaluated the methodology used by management to create this estimate and believe that it is reasonable in relation to the financial statements taken as a whole.

Management’s estimate of the net pension liability and related deferrals is based on actuarial valuations which include significant assumptions regarding discount rate, inflation, payroll growth, projected salary increases and investment rate of return. We evaluated the key factors and assumptions used to develop the liability and related deferrals in determining that it is reasonable in relation to the financial statements taken as a whole.

Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users.

The most sensitive disclosure affecting the financial statements was:

The disclosure of the City’s defined benefit pension plan in Note 11 to the financial statements provides detailed information on the pension plan including a description of the plan, benefits provided, contributions, calculation of the net pension liability/asset and related deferrals, actuarial assumptions, and discount rate used to measure the net pension liability/asset.

The financial statement disclosures are neutral, consistent, and clear.

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, the adjustments noted in the “Corrected Material Audit Adjustments” attachment represent the material misstatements detected as a result of audit procedures that were corrected by management.

Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report.

We are pleased to report that no such disagreements arose during the course of our audit.

Management Representations
We have requested certain representations from management that are included in the management representation letter.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

In our audit engagement letter previously provided to you, we communicated the following significant risks of material misstatement (significant risks) as part of our audit planning:
 Management override of controls
 Improper revenue recognition due to fraud
During the course of the audit, we identified an additional significant risk:
 Transfers from restricted funds are not ultimately used for the purpose of the original restriction.

This risk was addressed within our audit procedures and we have no findings to report related to this risk.

Other Matters
We applied certain limited procedures to management’s discussion and analysis, budgetary comparison schedules, proportionate share of net pension liability, and schedule of contribution, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding 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 did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on the combining and individual nonmajor fund financial statements and the budgetary comparison schedules, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

Restriction on Use
This information is intended solely for the information and use of the City Council and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties.

Very truly yours,
Client: CHOWCHILLA, CITY OF
Engagement: 6-30-25 AuditCurrent Period: 06/30/2025Workpaper: Attachment: Corrected Material Audit AdjustmentsAccount Description Debit Credit Net Income EffectAJE02To post CIP transfer to Machinery and equipment 602-0100-0297 Fixed Assets - Construction in Progress 0.00 17,411.00 602-0100-0295 Fixed Assets-Vehicles & Equip 17,411.00 0.00 Total 17,411.00 17,411.00 0.00 AJE03Reverse classification of revenue to unavailable revenue840-0200-0425 Deferred Revenue 2,565.19 0.00 840-4830-8005 County - Delinq Principal 0.00 2,565.19 842-0200-0425 Deferred Revenue 16,511.00 0.00 842-4832-8001 Property Taxes 0.00 16,511.00 800-8850-8008 Property Taxes 0.00 12,404.00 800-0200-0425 Deferred Revenue 12,404.00 0.00 Total 31,480.19 31,480.19 31,480.19 AJE04To post commencement of various governmental leases.100-2610-6401 Fleet Program 395,693.91 0.00 100-9999-9911
Other financing sources - proceeds from debt issuance (PPC CREATED) 0.00 395,693.91 Total 395,693.91 395,693.91 0.00 AJE05To reclassify lease payments to debt service accounts100-6620-6401 Fleet Program 0.00 43,272.67 100-2610-6401 Fleet Program 0.00 126,713.53 305-3620-6401 Fleet Program 0.00 10,587.94 305-9999-3973 Debt Service - Principal (PPC Created) 7,534.64 0.00 305-3620-4074 Interest Expense 3,053.30 0.00 100-9999-3973 Debt Service - Princpal (PPC CREATED) 145,491.40 0.00 100-6620-4074 Interest Expense 12,533.01 0.00 100-2610-4074 Interest Expense (PPC CREATED) 11,961.79 0.00 Total 180,574.14 180,574.14 0.00 AJE06To implement GASB 101 retroactively to FY2024.702-0300-0608 Prior Period Adjustment (PPC Created) 284,313.53 0.00 702-0200-0431 Long Term Leave Payable 0.00 284,313.53 702-0200-0431 Long Term Leave Payable 6,095.99 0.00 702-1720-1096 Leave Accrual Adjustments 0.00 6,095.99 Total 290,409.52 290,409.52 6,095.99 AJE07To tie Comp Abs to client provided schedule.702-0200-0432 Accrued Leave Payable 278,217.54 0.00 702-1720-1096 Leave Accrual Adjustments 0.00 278,217.54 Total 278,217.54 278,217.54 278,217.54
To the City Council and Management of the
City of Chowchilla, California
In planning and performing our audit of the financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Chowchilla, California (the City) as of and for the year ended June 30, 2025, in accordance with auditing standards generally accepted in the United States of America, we considered the City’s system of internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

However, during our audit we became aware of deficiencies in internal control other than significant deficiencies or material weaknesses and other matters that are opportunities for strengthening internal controls and operating efficiency. The following points summarize our comments and suggestions regarding those matters.

Lease Accounting and Fund-Level Presentation
During the audit, we noted the City did not record the required fund-level activity at lease commencement for new leases under GASB 87. Specifically, the City did not recognize the related capital outlay and the corresponding other financing source (proceeds from debt issuance), resulting in an understatement of approximately $395,000 in the affected fund financial statements. In addition, the City did not perform the required fund-level classifications between interest and principal/debt service for subsequent lease payments, resulting in improper presentation of these payments in the fund financial statements.

We recommend the City implement and document procedures to ensure GASB 87 lease activity is appropriately recorded at both the government-wide and fund levels. This should include a standardized lease commencement entry package that identifies the required fund-level capital outlay and related other financing source, along with a recurring process to record and review lease payment activity to ensure amounts are properly classified between principal and interest/debt service.

The City should also consider maintaining a centralized lease schedule (commencement dates, lease liability, right-to-use asset, amortization, and payment allocation) and incorporating these steps into the year-end close process with documented supervisory review to support accurate and consistent financial statement presentation.

We will review the status of this comment during our next audit engagement. We have already discussed the comment with City personnel, and we will be pleased to discuss it in further detail at your convenience, to perform any additional study of these matters, or to assist you in implementing the recommendations.

The communication is intended solely for the information and use of City management, City Council, and others within the City, and is not intended to be, and should not be used by anyone other than those specified parties.

Sincerely,
Clovis, California
March 26, 2026
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL

OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ONAN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and City Council
City of Chowchilla, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Chowchilla, California (the City), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise City’s basic financial statements, and have issued our report thereon dated March 26, 2026.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies.

Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Clovis, California
March 26, 2026

REPORT TO THE CITY COUNCIL
Item 6.2

CLICK HERE

TO RETURN TO

THE AGENDA
Meeting of: Tuesday, April 28, 2026
AGENDA SECTION: New Business
SUBJECT: Approval of a Resolution Awarding Contract for the Road 15 ½ Rehabilitation Project to Hensley’s Paving and General Engineering and Authorizing the City Administrator or Designee to Execute Related Documents
PREPARED BY: Christina Soares, Administrative Analyst
PRESENTED BY: Joe Roman, Deputy Director of Public Works ATTACHMENTS: Resolution

REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☒ RECOMMENDATION:

Staff recommends that the City Council Adopt a resolution awarding contract for the Road 15 ½ Rehabilitation Project in the amount of $369,824.53 to Hensley’s Paving and General Engineering and authorizing the City Administrator or designee to execute related documents on behalf of the City.

BACKGROUND:

The Road 15 ½ Rehabilitation Project, will consist of a rehabilitation overlay of Road 15 ½ starting at Avenue 24 ½ and continuing north for approximately 0.5 miles to 15th Street. The City began advertising the Project for bids on March 2, 2026. The Notice Inviting Bids was published in the Madera Tribune, posted on OpenGov, and submitted to the appropriate construction trade journals and builder’s exchanges.

REASON FOR RECOMMENDATION:

Bids were received from thirteen (13) contactors on April 9, 2026, as follows:

Contractor Bid Amount Add Alternate
Hensley’s Paving and General
Engineering
$369,824.53 $126,463.93
Don Berry Construction $380,702 $120,000
Juarez Bro’s General Engineering $387,108 $99,768
Terra West Construction $399,368 $100,500
United Pavement $414,784 $129,370
Avison Design $433,820 $150,000
Asphalt Design $441,590 $122,700
AJ Excavation $445,048 $115,000
Dave Christian Construction $445,349 $118,828
Cal Valley Construction $456,424 $160,000
American Paving Company $523,984 $140,000
Rolfe Construction $561,210 $135,564
Zara Construction $932,304 $135,000
The Engineer’s Estimate was $616,416. Staff has reviewed the bid submitted by Hensley’s Paving and General Engineering, along with information regarding their previous work experience. Based on review, Staff has determined the bid submitted is responsive and Hensley’s Paving and General Engineering to be a responsible contractor. Staff recommends City Council award the contract for the Road 15 ½ Rehabilitation Project to Hensley’s Paving and General Engineering.

FISCAL IMPACT:

The construction costs and available funding for the Project were included in the Fiscal Year 2025/26 Budget and Capital Improvement Plan (CIP) and is funded by Regional Maintenance and Rehabilitation Account (RMRA), Gas Tax, and Measure T – RTP funds. Contingency is 20% of base bid ($73964.91) plus the Alternate Bid item ($129,463.93). Total is $200,428.84.

Amount
Construction Costs
Contingency $200,428.84
CM/Inspection/Testing $58,600.00
Construction/Maintenance $369,824.53
Total Construction $628,853.37
Construction Funding
RMRA $359,000
Gas Tax $300,000
Measure T – RTP $230,000
Total Construction Funding $889,000
Surplus / (Deficit) $260,146.63
ALTERNATIVES:

1. City Council may reject all bids.

ACTIONS FOLLOWING APPROVAL:

1. Execution of Contract

2. Pre-Construction Meeting

3. Issue Notice to Proceed
COUNCIL RESOLUTION # XX-26

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA, CALIFORNIA AWARDING CONTRACT FOR THE ROAD 15 ½ REHABILITATION PROJECT TO HENSLEY’S

PAVING AND GENERAL ENGINEERING AND AUTHORIZING THE CITY ADMINISTRATOR OR

DESIGNEE TO EXECUTE RELATED DOCUMENTS
WHEREAS, the Invitation to Bid for the Road 15 ½ Rehabilitation Project (the “project”) was published in the Madera Tribune, posted on OpenGov, and submitted to the appropriate construction trade journals and builder’s exchanges; and
WHEREAS, the following bids for the Project were received and publicly opened and read aloud at the Chowchilla City Hall on April 9, 2026 at 3:00 p.m.:

Contractor Bid Amount Add Alternate
Hensley’s Paving and General
Engineering
$369,824.53 $126,463.93
Don Berry Construction $380,702 $120,000
Juarez Bro’s General Engineering $387,108 $99,768
Terra West Construction $399,368 $100,500
United Pavement $414,784 $129,370
Avison Design $433,820 $150,000
Asphalt Design $441,590 $122,700
AJ Excavation $445,048 $115,000
Dave Christian Construction $445,349 $118,828
Cal Valley Construction $456,424 $160,000
American Paving Company $523,984 $140,000
Rolfe Construction $561,210 $135,564
Zara Construction $932,304 $135,000
WHEREAS, the City Engineer’s Opinion of Probable Construction Costs for the project was $616,416; and
WHEREAS, the City Engineer has determined the bid submitted by Hensley’s Paving and General Engineering to be responsive and Hensley’s Paving and General Engineering to be a responsible contractor; and
WHEREAS, the City Engineer recommends the Project be awarded to Hensley’s Paving and General Engineering; and
WHEREAS, funding is currently available in the FY 2025-2026 budget.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chowchilla hereby finds, determines and declares the following:

1. The above recitals are true and correct.

2. The low bid submitted by Hensley’s Paving and General Engineering is responsive.

3. The construction contract for the Project is awarded to Hensley’s Paving and General Engineering in the amount of $369,824.53 with a contingency of $200,428.84.

4. The City Administrator is authorized to execute the contract on behalf of the City of Chowchilla.

5. This resolution is effective immediately upon adoption.

PASSED AND ADOPTED by the City Council of the City of Chowchilla this 28th day of April, 2026 by the following vote to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

Kelly Smith, Mayor
ATTEST:

Joann McClendon, CMC
City Clerk

Chowchilla City CouncilApril 28, 2026

Chowchilla City Council
April 28, 2026